Question

identify and discuss two similarities contributing to innovation that Rakuten and Airbnb have in common? what would you say does the future hold for each firm? how could innovation continue to add vaule?

Answer 1

Two similarities in the business model and strategy of Rakuten and Airbnb which contribute to innovation are as follows:

• Both Airbnb and Rakuten have realized the potential of technology and have integrated the same in their business model. Technology is fast evolving. Both these companies have developed a flexible culture so that the changing technology can be accommodated and its potential can be capitalized upon.
• Human asset is the most critical asset of any company and forms the source of competitive advantage for the company. Both Airbnb and Rakuten give importance to their human asset and come up with various interventions to facilitate their skill, competency and knowledge level. The employees are given the autonomy to manage their work as they like. This facilitates critical thinking as well as innovation.

Airbnb has proved to have disruptive innovation, inculcated in its business model. Rakuten is also trying to imitate the same success by incorporating the primary strategy of Airbnb in Japanese market. Both these companies have immense opportunities in the Asian sub-continent.

The 21^st century is characterized by cut-throat competition among companies. Every company is struggling to make a mark for itself in the industry. Innovation helps a company to think out of the box and come up with strategies and interventions which will help the company to beat its competition and develop a market hold for itself.