Monthly Archives: October 2017

Airbnb – the breaker of the tradition hotels

Disruptive innovation”, raised by Harvard professor Clayton M. Christensen, was an innovation that transform the existing business or industries which are complicated and have a relative high cost into a simple, convenient, accessible, and affordable approach to acquire certain products or service. At the beginning, the companies who hold a disruptive innovation might has a few resources with a small scale, but it will eventually become a powerful contender alongthe successful companies by focusing on breaking and redefining the inherent modes. Currently, so many disruptive innovation appear and develop in our daily life, including 3D-printing, Uber and Airbnb.

Airbed and breakfast (Airbnb) started by Brian Chesky and Joe Gebbia, who lived in San Fransisco and they were bothered by the heavy rent. Then they decided to rent their garret out to earn extra money. However, the traditional website, like monotonous, was monotonous, and thus a brand new website to rent the idle rooms with airbeds to those who cannot order a room in the near hotels.  They succeed, and after paying the rent, they began to expand the business from a rough website to a competitive company.

At the earlier days, Airbnb only offered the airbed in some people’s houses, and the rooms available for the customers could be the living room, basement, and garret with a really low price, which satisfied some visitors expectations: convenient and cheap. The business model behind it is that the customers with less budget could easily get what they want while Airbnb does not really own its property. “A low-cost solution to a low-value customer”. Time goes by, the quality of Airbnb is going to better.The innovation contained in Airbnb is that, it broke the original mode of a hotel – people now do not need to spend relative more money in getting accommodation, and they could choose the residence that can bring them different and unexpected and local experience with a lower cost. And its success proved it in reality.

Although disruptive innovation has only exist before a few decades, the theories hidden behind it has appeared for a longer time than that. The innovation would work in so many places, and the key to entering an existing and mature market is to find out what people really want, and what they really willing to pay and meet their requirements.

Autonomous Vehicles? A Long Way To Go.

Currently, Artificial intelligence is becoming more and more popular. It can work and react as human, changing our world in variable ways ranging from housework to aircraft industry. One example is the autonomous car. 18 companies including Volkswagen, BMW and Tesla have already invested on this program, attempting to occupy the market as much as possible.

Will people buy it?

Christopher states that the autonomous car can bring people benefits (such as avoiding the accidents and drunk-driving) but it would be hard to achieve in a short term since there are still many problem that need be solved. “one day autonomous vehicle will take over the road, but not in my lifetime”. I agree with his points based on facts and conditions of the society.

It seems like the autonomous vehicles have so many advantages, however, problems that cannot be neglected still occur. Firstly, some traditional people think that they driving is not just for commuting from place to place, it it more likely the way to release stress and refresh themselves, and thus, autonomous cars cannot fit the bill. And, if the auto cars replace the position of manual cars, millions of driver would face unemployment, and that would be definitely a heavy hit on both the families and our society. What’s more, once the accident takes place and who will be responsible for it? The Car Company or the owner? It is ambiguous to determine the person in charge. In addition, the moral issue should also be considered. Just like the situation shown blow, facing the choice between the people on the pedestrian crossing and damage itself, what should the vehicle do and which one has the priority? More over, there is not a effective regulation department for the auto car, and there is not the mature rules and relative laws made for autonomous vehicles.

The Automation of vehicles is a certain trend of development of cars since its convenience and effectiveness. However, it might take a very long term to deal with the non-negligible issues, and it is related to a huge change of the vehicle system, including parking, traffic rules, etc.. Therefore, it would take a long time to construct on it and lead people to adapt the new patterns.