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Killing Craigslist Entrepreneurship In The Online Apartment Rental Market Case Solution
| Solution Id | Length | Case Author | Case Publisher |
|---|---|---|---|
| 2022 | 646 Words (4 Pages) | Peter A. Coles, Joshua Gans, Wei-Yuan Yu | Harvard Business School : 912009 |
A Word File
Craig Newmark exploited a new opportunity in the untapped digital world by offering a facility of the online market. He assisted many organizations by creating a website for different types of posting. Apart from this, a key ingredient for its success was the pricing for the service. Although some professional customers were charged a certain fee, it was free for many other posters of information. Attractive service rates made it less of premier service and something which offered a vital service, access to a variety of different users.
Following questions are answered in this case study solution
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What theory of success did the incumbent employ to gain a competitive advantage?
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How much threat do the entrants pose to the incumbent?
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Do RentJungle and RentHop offer more consumer surplus? To whom and why?
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Do RentJungle and RentHop offer more consumer surplus? To whom and why?
Case Analysis for Killing Craigslist Entrepreneurship In The Online Apartment Rental Market
Moreover, the website was also quite convenient to use, something that also kept the user frequently using the site. All these things added to its competitive advantage. Completive advantage always takes place when a competitor comes with a unique concept or price in the market that draws the attention of prospective buyers (Ashworth, 2012). This was what achieved by this entrepreneurial venture.
2. How much threat do the entrants pose to the incumbent?
Although Craiglist reaped heavy financial benefits since the start of its operations, it did not evolve a lot in view of its offering to its customers. This created a space for different entrants, which worked innovatively towards offering better customer experiences. They provided customized services to customers. In this fast-paced world, it is important to provide convenience to customers (Hills, 2008). As new entrants are working to exploit this aspect of the business, they do pose a threat to Craiglist.
3. Do RentJungle and RentHop offer more consumer surplus? To whom and why?
RentJungle and RentHop are offering more consumer surplus for the customers in the online apartment rental market. Consumer surplus takes place when a buyer gets a price, lesser than what he expects for the service (Weitz, 2010). They are offering good deals to their customers in terms of a better website user experience.
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