The New Kids on the Block

Exploring the brand identity of disruptive innovators

By:

Jana Tigges, Bettina van der Stelt & Jessica Volk

The New Kids on the Block Exploring the brand identity of disruptive innovators

Jana Tigges, Bettina van der Stelt & Jessica Volk

Abstract

Aim: The aim of this paper is to examine the corporate brand identity of disruptive innovators that have changed entire industries. Moreover, this paper strives to answer the question, whether a universal pattern of corporate brand identities for these “New kids on the block” can be identified and if so, what it looks like.

Approach: Firstly, a literature review is conducted in order to provide theoretical background in regard to the research question of this paper. Secondly, a qualitative multiple case study approach is used to understand the background and development of the investigated companies. Further, the corporate brand identity of each company was explored in order to identify significant similarities and differences. Thirdly, a corporate brand identity matrix for “New kids on the blocks” was established based on the universal commonalities of the brand identities.

Findings: A universal pattern of disruptive corporate brand identities exists and is illustrated in a model matrix created by the authors.

Originality/ value: The paper’s added value lies on the creation of a corporate brand identity matrix of disruptive innovators, here referred to as the “New kids on the block”.

Keywords: disruptive innovation, corporate brand identity, technological shifts

Paper type: Research paper

Introduction Indeed, literature provides evidence that a First #GAFA - , Apple, , brand’s innovative technology alone, is not sufficient for a successful market driving Then #BATX - , Alibaba, , strategy. In this context, Tarnovskaya & Elg (2012) argue that the unique combination of a Now #NATU - Airbnb Tesla Uber market driving approach in connection with a (Ferreiro, 2018) strong corporate brand identity builds the driving force for a company’s success. In These acronyms are standing for the most similar ways, Lawer and Knox (2007) disruptive companies of their times. Each one emphasize that all managerial actions and of them has changed an entire industry with decision are in line with the corporate brand of its technological innovations. United by a a company (Lawer and Knox, 2007). However, market driving approach and a far-reaching literature does not provide an answer to what vision, these companies managed to create the brand identity of disruptive innovators new categories with outstanding success. looks like and whether fundamental patterns However, do the innovations alone deserve all within the brands DNA can be found. the applause for the companies’ success or is it Therefore, this research paper will focus on the also, partly owed to a strong corporate brand newest group of disruptive companies, namely standing behind these organizations? Netflix, Airbnb, Tesla and Uber (NATU), which are here also referred to as the “New kids In order to revolutionize entire industries, on the block”. The corporate brand identities companies are not only creating new markets will be individually examined with the aim of by using the blue ocean method but also by identifying common similarities and implementing a market driving approach differences. This is done in order to solve the (Kumar et al 2000). Elg et al (2012) state, that research question: If there is a universal pattern a market driving approach “[...]implies of corporate brand identities for “New kids on influencing the structure of the market and/or the block”, what does it look like? the behavior(s) of market players in a direction that enhances the competitive position of the Literature Review business.” Hence, firms, that are using the With regard to the purpose of this paper, there market driving approach successfully, do not are two superordinate factors important to simply adapt to temporary customer examine. On the one hand, there is the market preferences. Instead, they are able to develop approach driven by innovation and on the other unique and new value propositions (Ghauri, hand, there is the brand’s corporate identity, 2014). which are both crucial factors for disruptive innovators’ success. In order to understand The Corporate Brand Identity Matrix these dynamics, relevant terminology will be The corporate brand identity matrix (CBIM) is shortly elaborated. a framework that allows companies to understand and define its corporate brand Blue ocean method identity, which describes the determining All companies examined in this paper used the characteristics of an organization (Urde, 2013). blue ocean method to differentiate themselves According to Kapferer (2012) a “[...] corporate from the competition. According to Kapferer identity helps [...] an organization feel that it (2012), companies that use the blue ocean truly exists and that it is a coherent and unique method can be considered as innovators, who being, with a history and a place of its own, are able to create completely new markets. different from others.” In fact, from a strategic Consequently, the dynamics of these markets is point of view, Urde (2013) argues that by not driven by the desire to outperform others as defining a corporate brand competition does not exist yet. However, identity, management attempts to influence innovations created in a blue ocean how the organization is perceived by internal environment are always disruptive ones and external stakeholders (Urde, 2013). (Kapferer, 2012). The matrix takes both the outside-in and inside- out perspectives into consideration and thus Disruptive innovation balances a market- and brand-oriented A disruptive innovation is “[...] a process approach (Urde, 2013). By focusing on the whereby a smaller company with fewer core of a brand, further internal and external resources is able to successfully challenge elements need to be examined in order to established incumbent business.” (Clayton, formulate a strong corporate identity (Urde, Raynor & McDonald, 2018). By further extend, 2013). it is also a process, in which a new product or The internal elements intended by the service outperforms an older one to create organization (sender) are defined in terms of competitive advantage (Business Dictionary, three organizational attributes: its “mission and 2018). Clayton et al (2012) define disruption as vision”, its “culture” and its “competences”, successful, when the product is bought by and relate to the company’s purpose of mainstream customers. existence and inspiration, its work ethics and unique skills that differentiate itself from the competition (Urde, 2013). Market driving approach

Illustration 1: Corporate Brand Identity Matrix (Source: Urde, 2013)

The external/internal elements can be Methodology considered as the soul of the brand that is driven To start, a literature review was conducted in by the brand’s core comprising its promises and order to explain the external and internal supporting values, from which human driving forces that facilitate an innovative characteristic of employees can be derived that brand entry in established markets. The represent and shape a unique corporate external view focuses on the market approach, personality (Urde, 2013). Moreover, the way while the internal perspective emphasizes the the company expresses itself and importance of a strong corporate brand identity. communicates with consumers is crucial for the company’s value of brand recognition (Urde, Furthermore, a multi-case study approach was 2013). conducted. Thereby, the paper investigated and Finally, the external elements intend to reach analyzed four cases of new entry brands, the receiver outside of the organization and namely Netflix, Airbnb, Tesla, and Uber consists of a company’s value proposition, (NATU), all of which have disrupted their position and relationship (Urde, 2013). The respective industries. value proposition relates to the company’s key The multi-case study approach consisted of offerings and how the latter appeals to three parts. Firstly, case descriptions exploring consumers (Urde, 2013). This in turn, should the companies’ background and developments have a positive impact on the relationship were established. between customers and non-customer Secondly, the corporate brand identity of each stakeholders, ultimately leading to a buying case was investigated. There are several models decision (Urde, 2013). Finally, the position such as the brand identity prism developed by element describes how the company intends to Kapferer (2012) that help managers to define a position itself in the market and in the minds of brands’ identity. Since Kapferer’s brand consumers (Urde, 2013). identity prism rather focuses on product brands, According to Urde (2013) the arrows it does not serve as an appropriate framework symbolize a linkage between all nine elements. for this paper (Urde, 2013). However, the In fact, the author argues that “[i]n a coherent corporate brand identity matrix developed by corporate brand identity, the core reflects all Urde (2013) considers internal and external elements and every elements reflects the core.“, components and allows the alignment of a which highlights the interdependence of each corporate identity with its core and is therefore factor being crucial for a strong organizational better suited for the purpose of this research. brand (Urde, 2013). Thirdly, in line with Urde’s framework (2013), Initially starting as a DVD rental business in an overall corporate brand identity matrix of the 1997, Netflix offered its members access to NATU brands was established based on unlimited DVDs via mail delivery service secondary research. Here, the secondary (Netflix Media Center, 2018). Netflix research conducted for the case studies as well differentiated its online service from its main as required additional sources were used. The competitor Blockbuster, a significant chain that additional sources are not stated in the text and rented movies, games and TV box sets, by are therefore indicated in the reference list as offering monthly subscriptions, thus making "NATU CBIM additional references". The late fees redundant and unlimited DVD rental NATU matrix and a following discussion possible (BBC, 2018; Satell, 2014). Since helped to define common similarities and Blockbusters’ business revenues relied heavily differences in order to identify whether a on late fee charges, Netflix forced its main universal pattern exists and what it looks like. competitor to alter its business model in order to stay competitive within the changing market Finally, based on these shared characteristics, a (Satell, 2014). “New kids on the block“ corporate identity In 2000, the company continued to build upon matrix was constructed. On the one hand, this its future leading position by introducing a specific matrix, which is supported by movie recommendation system, which is based indicative questions, may be used as a guiding on members’ ratings in order to personalize tool for companies who would like to launch a movie choices (Netflix Media Center, 2018). disruptive brand. On the other hand, it will be This enables Netflix to suggest movies helpful for brand managers defending according to customers’ taste and preferences established brands by taking industry which creates a personal customer experience. development and future competition into Only seven years later Netflix pioneered with consideration. its streaming service and made it possible to watch television shows and movies on personal The sources used for this paper were selected computers, ultimately changing customer’s cautiously according to its date of publication, consumption pattern (Netflix Media Center, author, impact and credibility of websites. 2018; Netflix Investor, 2018a). Shortly after, Netflix established partnerships with several Case Description consumer electronic companies, which enabled In this part, the evolution of Netflix, Airbnb, the company to offer its service on a wide range Tesla and Uber is described. The case studies of devices such as the Xbox 360, Blu-ray disc focus on the development of the respective players, PS3 or Apple iPad, iPhone and iPod brand, the disruptive innovation of each Touch (Netflix Media Center, 2018). company and the resulting technological shift Consequently, these partnerships laid the within the industries. The case descriptions foundation for Netflix global success and function as a solid basis, whereupon the allowed the streaming of movies to anyone, at corporate brand identity analysis is established. any time, and anywhere in the world. However, Netflix global success has intensified The Netflix case competition and companies such as Amazon Netflix is an internet entertainment service and Prime, YouTube and HBO have introduced provides unlimited streaming of TV series and media streaming services as well (Archer, movies across different genres and multiple 2018). Nevertheless, with its unique value languages (Netflix Media Center, 2018). proposition, Netflix seems to remain the Members can enjoy watching movies on streaming star in the digital content universe demand without commercial interruption on (Archer, 2018; Columbus, 2018). any internet-connected screen (Netflix Media In conclusion, Netflix demonstrated to be a Center, 2018). disruptive innovation by restructuring not only an entire industry but also by having the willingness to disrupt itself: from shipping not only the supply-side flexibility that helped DVD by mail and abandoning late fees, to Airbnb to differentiate itself from hotels. In streaming movies and TV shows digitally, to fact, what travelers value most on Airbnb is the ultimately creating original content – the local experience it provides (ALTO, 2018). Netflix “Originals” (Taylor, 2018). Guests can live in unique accommodations Today, Netflix has 130 million subscriptions in rather than homogeneous hotel rooms, which over 190 countries and generates an annual allows them to interact with the hosts and “live revenue of 11.69 billion US. Dollars in 2017 like a local” instead of feeling like a tourist (Netflix Media Center, 2018; Statista, 2018). (ALTO, 2017). Today, Airbnb has more than five million The Airbnb case listings in over 191 countries with an average Airbnb Inc. is an online community of two million people staying on an Airbnb marketplace, which gives consumers the every night and thus has grown into a global opportunity to rent out a room or their home to community (Airbnb Press Room, n.d.b). With travelers. While renting out homes is not a new the growth of Airbnb, the company also idea, Airbnb created a peer-to-peer platform, expanded their home rental to new categories, which leverages technology to do it in an easier such as “experiences”, where local hosts offer and safer way for both: the “hosts” and the excursions and other activities to travelers travelers, called “guests”, who can select from (Airbnb, n.d.a). In fact, Airbnb is growing from a list of available housing according to their a technological brand to a lifestyle brand specifications (Meleo et al, 2016). (BrandDNA, 2014). Despite of a rising number Airbnb was founded in 2008 in San Francisco of competitors like Expedia or Priceline, and initially launched as Airbed & Breakfast, a Airbnb still remains leader in the home-sharing website that offered the renting of rooms industry (McDermid, 2017). (Airbnb Press Room, n.d.a). The idea started off a year earlier, when the two founders rented The Tesla case out air mattresses to earn rent during a “In 2004 – the idea of creating an electric car conference when hotels were sold out (Airbnb company was stupidity squared”, stated Elon Press Room, n.d.a). In 2009, the company Musk (2016a) during an interview looking back changed its name to Airbnb and expanded on Tesla’s journey. Nonetheless, back in 2004, beyond rooms to apartments, houses, and he decided to join the newly founded company: vacation rentals (Airbnb Press Room, n.d.a). Tesla Inc. Nowadays, Tesla is world-known for Since its founding, Airbnb has become the its innovative electric cars which disrupted the largest provider of accommodations in the entire automotive industry. world by disrupting the hotel industry and is However, when looking back at the history of now more worth than major hotel chains electric vehicles, it becomes apparent that the (Gallagher, 2017). concept of electric cars is not new. For instance, The rapid growth of Airbnb was enabled by its the first Porsche, created in 1898, was an technology, which does not only facilitate the electric car (BBC, 2014). At the beginning of process for suppliers to rent their homes and 1900, mostly all existing vehicles were electric. find a match, but also provides the “hosts” with In fact, it is only due to Henry Ford’s invention full flexibility on the time of rental (Roach, of gas-powered cars, which were immensely 2018). This allows Airbnb to extent its supply cheaper, that the electric car trend diluted and at peak times with a high demand for slowly vanished from the market. In order to accommodation, for instance during public reduce air pollution, weak attempts to holidays or big events (Roach, 2018). reintroduce the electric car in the US during the Furthermore, the “hosts” can establish own 70s and 90s failed completely. Back then “[...] prices for their accommodation, often offering limitations in range and speed – and style – kept travelers a cheaper alternative to hotel rooms electric cars from being adopted on a mass (Farronato and Fradkin, 2018). However, it is scale [...].” (Thompson, 2017). It was not until Tesla that these limitations should finally be enables an immediate connection of passengers tackled. Entering with a master plan in mind, and drivers, but also provides an estimated time Elon Musk quickly incorporated its vision into of arrival and thereby offers passengers a more Tesla. The plan entailed a three-step approach convenient alternative to traditional cabs starting with “[...] a low volume car, which (Abrosimova, 2014). For further simplification, would necessarily be expensive [...]” to “[...] a the app includes a mobile payment system as medium volume car with a lower price [...]” well as a rating and feedback function to assure until the final goal of producing “[...] an the quality of drivers and a pleasant customer affordable, high volume car.” (Elon Musk, experience (Uber, 2018a). In 2012, Uber 2006). At the center of this plan was a introduced UberX, a low-cost alternative to the technological innovation - lithium batteries, black car service, which offers private car rides which dramatically widened the range of an (Brustein, 2012, Flegenheimer, 2014). In fact, electric car to 245 miles per charge. In addition, this service turned into Uber’s most popular the first launched car called “The Roadster”, a standard service and became a budget friendly two seat, sporty cabriole was able to go from 0- alternative to taxis (Uber Newsroom, 2016; 60 miles in 3.7 seconds (Business Insider, Uber, 2018b). 2016). Hence, Tesla was finally able to With its technology and innovation, Uber produce electric cars that were attractive for the managed to disrupt the long-established taxi mass market and thus increased the pressure for industry. However, along with Ubers’ success competitors (Thompson, 2017). In fact, global competitors have arisen such as Lyft, “Tesla’s announcement and subsequent success which is Uber’s main competitor in the United spurred many big automakers to accelerate States, Didi Chuxing in China or Ola in India. work on their own electric vehicles.” (Matulka, Yet, Uber is currently considered the world’s 2014). Today, many traditional carmakers such most valuable privately held technology as Ford, Mercedes-Benz, BMW have company with an estimated valuation of $70 integrated electric cars into their portfolio and billion (Bhardwaj, 2018). are planning to expand it even further. Today, the company has a global community consisting of three million drivers, which serve The Uber case 75 million riders in 65 countries (Uber Uber Technologies Inc. is a technology Newsroom, 2018b). company that provides transportation on Meanwhile, Uber’s driver on demand service demand on a peer-to-peer platform. The has been widely expanded. For instance, Uber platform can be accessed via its mobile phone now offers Uber Eats, a food delivery service, app, where consumer called “riders”, can order and Uber Freight, a service to match carriers a private driver to pick them up and bring them with shippers (Uber, 2018c). Furthermore, to their preferred destination by connecting the Uber is working on self-driving cars and freight rider with a nearby driver. trucks as well as urban air-transport (Uber, Initially called UberCab, the company was 2018c). The company itself states its initial idea founded by two entrepreneurs in San Francisco “[...] quickly grew into a global logistics layer, in 2009 (Uber Newsroom, 2018a). While the transforming an entire industry in the process.” main idea, to “tab a button and get a ride”, was (Uber Newsroom, 2018a). the same as today, Uber first provided a black- car service, which was 1.5 times more Case Analysis expensive than a cab (Uber Engineering Blog, In the second part of the multi-case study 2015; McAlone, 2016). However, what approach the following corporate brand differentiated Uber from the long-established identity matrices are established on the basis of taxi industry was the usage of modern the case descriptions and further additional technology. The company developed a research which is stated within the reference list location-based mobile application with an as: “NATU-CBIM additional references”. integrated mapping software that not only Netflix Airbnb Tesla Uber

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important than processes and uses the term When evaluating how NATU express “dream teams” to describe its highly skilled, themselves, it becomes apparent that all brands team-oriented and diversified workforce focus on online communication as their main (Netflix Jobs, n.d.). Similarly, Airbnb channel. In addition, all companies have a underlines the importance of the entire team recognizable design in common. working together in order to achieve goals Given the nature of their business, it is not effectively (Airbnb, n.d.). At Tesla, the creation surprising that NATU communicate mostly via of cars is considered to be a team effort, which their website. In fact, Airbnb, Uber and Tesla requires talented individuals to work together connect with consumers through their own (Tesla, 2018). Uber emphasizes that everyone blogs. is welcome to their company regardless of Moreover, all brands set a focus on a background or culture. By further extend, they recognizable design. For instance, Netflix also strive to build something great together as expresses itself with a unique global branding a team and therefore consider these two factors called “The Stack”, which “[...] implies both important parts of their company culture (Uber, the infinite, ever-changing catalogue and the 2018e). Given these statements, it becomes custom-curated selections that make up the obvious that team-spirit and diversity are core of the Netflix service.” (Gretel, n.d.). considered important elements of culture for all According to Airbnb, design has an influence companies. on every part of its business, which is illustrated by an own website dedicated to this field Competences: Innovative Technology (Airbnb Design, n.d.). Also, interesting to Innovative technology enabled NATU to mention, is Airbnb’s inclusive design in line disrupt entire industries. For instance, Netflix with its focus on a global community (Sui, created a completely new business model with n.d.). Similarly, Uber runs a separate blog in its streaming service and therefore was able to which the company presents its “[...] holistic change the entertainment industry (Netflix brand system that’s instantly recognizable, Investor, 2018b). Airbnb was the first company works around the world, and is efficient to who took advantage of home rental technology. execute.” (Uber Design, 2018). On the By doing so, they provided the hosts with contrary, Tesla focuses on a unique car design flexibility on duration and price but also offered that unifies beauty and efficiency. Chief a new and unique way to experience local designer von Holzhausen established a culture while travelling (Roach, 2018). Tesla comprehensive visual impression with a hint of was the first to commercialize electric cars by industrial design, which is expressed in every using innovative technology that expanded the Tesla car (DeBord, 2017). range as well as the performance tremendously (Thompson, 2017). In similar ways, Uber Core: Innovation & Commitment for a Better invented a new transportation technology, World which enabled transportation on demand At the heart of all companies lie two core including accurate arrival and price times as values: Innovation and commitment for a better well as the opportunity to rate the driver world. NATU are associated with innovative (Abrosimova, 2014). To conclude, all four technologies that managed to disrupt entire companies were able to create innovative industries. Even after their technological technologies, which can be considered as the breakthrough, innovation remains their driving core asset in order to successfully disrupt their force in order to change the world and reach respective industries. their mission and vision. Although Uber is already very successful with its innovative business model, the company keeps working on new ways to move people forward. For Expression: Online Communication & instance, Uber Health aims to “[h]elp patients Recognizable Design and caregivers to get reliable rides.” (Uber Health, 2018). Further, the company plans to even challenged and disrupted themselves by change the “[...] future of autonomous taking risks. For example, Tesla was brave transportation technology” by building self- enough to invest all its financial resources even driving vehicles and developing urban air though electric cars were not seen as transportation (Uber, 2018b). commercial business (Badkar, 2013). Moreover, Airbnb keeps evolving its peer-to- In similar ways, Uber published a list of “big peer platform in order to further facilitate hosts’ bold bets” in its cultural norms (Khosrowshahi, and guests’ home booking process. Besides 2018). Indeed, the company keeps making bold developing their existing offering, Airbnb bets, for example, with Uber Air, a ride sharing expanded its product range to “Experiences”, product enabling customers to call urban flights which are out-of-home activities for travelers on-demand. According to the company, this designed by local hosts (Airbnb, n.d.c). With its service will launch in 2023 (Uber, 2018f). The innovative “OpenHomes” program, Airbnb caring trait of NATU is expressed by their aims to “[o]ffer free, temporary housing to strong commitment to change the world for the people who’ve left their home due to conflict, better as embedded in their core and mission. disasters, or medical care.” (Airbnb, n.d.d). For example, Airbnb, wants to create a world, Hence, Airbnb stays committed to create a where people can belong anywhere. better world. Furthermore, Netflix has changed Furthermore, it is of interested to mention, that the way customer watch movies and series by in an extreme case, an organization’s continually improving its streaming service personality can be embodied by a real-life such as its movie recommendation algorithm person. This is shown by Tesla, who is (Aurisset et al, 2017). In addition, the company identified with its CEO, Elon Musk. Even recently introduced a feature that allows though such embodiment is not the case for all members to download shows in a smart and four companies, it allows a company to easy way by automatically deleting episodes differentiate itself from the competition. that have been watched offline and downloading the next episode once connected Value Proposition: Affordable for the Average to Wi-fi (Netflix Media Center, 2018). Finally, Consumer Tesla remains an innovation-driven company Netflix, Airbnb and Uber offer a service that is as shown in its business plan. Future affordable for the average consumer. innovations are for instance, the development In particular, all companies focus on of a new battery technology, which will enable convenience and strive towards making a range of up to 1,000 kilometers per charge by consumer’s life easier. In this context, Netflix 2020 (Thompson, 2015). abandoned late fees and introduced a monthly subscription system, allowing members to Personality: Dare to be Different, Brave & watch movies for as long as they wished. Caring Today, Netflix offers three different plans The corporate character of NATU can be starting with a basic option at 7.99€ per month described as caring, brave and daring to be (Netflix, 2018). Similarly, Airbnb enables low- different. With their new innovations, all budget traveling by offering less expensive companies differentiated themselves from the accommodation compared to most hotels competition within their industry. For example, (McCarthy, 2018). In the same way, Uber can by offering monthly subscriptions and thus be considered as a budget friendly alternative to unlimited movie rental, Netflix differentiated taxis. While cabs charge their customer per itself from its main competitor Blockbuster and minute, Uber’s prices are calculated upfront changed the way people watched TV (BBC, before the actual request of a car (Uber, 2018g). 2018; Satell, 2014). In contrast, Tesla cars might not be perceived By daring to be different, NATU has affordable for everyone when considering its challenged their respective industry with high price positioning. However, the innovative technologies. In fact, the companies company’s long-term vision aims to create monetized or not, in ways that improve sustainable cars for the mass (Musk, 2016b). efficiency, sustainability and community.“ As a result, one can conclude that all brands (Rinne, 2017). strive to be affordable for the majority of Therefore, Airbnb and Uber extend their consumers in order to make life easier and drive customer-relationship by relying on positive change. intermediaries, similar to a B2B partnership. In similar ways, Tesla has established a strong Relationship: Emotional & Loyal emotional bond based on trust. For instance, All brands share a strong emotional connection half a million customers were willing to deposit with its customers which reinforces the sense of 1,000 USD for a new Tesla model without belonging and attachment, ultimately creating having seen or testing it (Ong, 2018). In fact, loyalty. Due to its broad range of series, 91% of Tesla customer would buy a Tesla “Netflix has become the opium of the masses”, again, which proves customer’s loyalty thus turning the streaming of digital content (DeBord, 2016). into an obsession (Mahdawi, 2018). Chasing one episode after another, Netflix makes Positioning: Leadership members forget about everything while sharing The NATU brands are striving to become the the thrill with its main characters. leader in their respective industry in order to Consequently, Netflix takes its members on an drive positive change and development. Netflix emotional roller coaster and capitalizes on their positions itself as the leading streaming media urge of satisfying curiosity. service while Airbnb aims at being the primary Less addicting but still engaging, Airbnb and home rental company (Turek, 2018; Gretel, Uber have created a global community by n.d.; Gallagher, 2017). Likewise, Uber wants reinforcing peer-to-peer relationships between to be perceived as the leader in providing locals and foreigners. In particular, trust and transportation service on demand (Kosoff, kindness are crucial for a positive customer 2015) In similar ways, Tesla wants to conquer experience. In this respect, it is of interest to the world by reducing the environmental mention, that Airbnb and Uber are taking footprint as the leading provider of electric cars advantage of sharing economies and “[...]focus (Elkind, 2016). on the sharing of underutilized assets,

“New kids on the block”

Illustration 2: “New kids on the block” - Corporate Brand Identity Matrix (Source: Own illustration) From the significant similarities between the In addition to the model matrix, Table 2 lists four companies, a universal pattern including indicative questions for each element, which all nine elements was identified, whereupon a were formulated in line with Urde (2013). new corporate brand identity matrix was These leading questions serve as assistance in established, as shown in Illustration 2. order to understand and build a “New kids on Therefore, these common characteristics can be the block” brand identity. considered as important elements for disruptive corporate brand identities. As such, the new corporate brand identity serves as a model matrix for “New kids on the block”.

Illustration 2: Indicative Questions (Source: Own illustration)

Conclusion on the block” could be derived based on the The aim of this paper was to examine the major common characteristics found in all nine corporate brand identity of disruptive elements (Illustration 2). The new model innovators and to answer the question whether matrix illustrates an overview of important a universal pattern of corporate brand identities components of disruptive brand identities. In for “New kids on the block” could be identified addition, the indicative question shown in and if so, what it looked like. Table 2, initially designed by Urde (2013), were adapted and correspond to the new model Theoretical implications matrix. Research showed that a pattern for the corporate brand identity of the “New kids on Managerial implications the block” does exist. Due to the fact, that the The developed model matrix allows managers corporate brand identity matrix NATU (Table to understand the brand identities of disruptive 1) revealed more significant similarities than innovators. Further assistance is provided by differences, a universal pattern for “New kids indicative questions (Table 2). On the one hand, (brand) managers, who are planning to establish a “New kid on the block” can use the Airbnb Press Room. (n.d.c). About model matrix as a guideline for building their Airbnb[online]. Available at: brand identity. On the other hand, brand https://press.airbnb.com/about-us/ managers defending established brands can use [Accessed 12 Oct. 2018] the model matrix in order to gain a better Airbnb. (n.d.a). What are experiences?. understanding of the industry development and [online] Available at: future competition. https://www.airbnb.com/help/article/1581 /what-are-experiences?ibbe=1 [Accessed Limitations and future research 10 Oct. 2018]. Limitations of this paper include the following Airbnb. (n.d.b). Create a world that inspires points. Firstly, the corporate brand identity human connection. [online] Available matrices are solely based on secondary at: https://www.airbnb.co.uk/careers research, which weakens the validity of the [Accessed 12 Oct. 2018] established matrices. Secondly, the matrices Airbnb. (n.d.c). Host an experience on Airbnb. might have been influenced by personal [online] Available at: opinions of the authors. Thirdly, the https://www.airbnb.com/host/experiences information used to establish the matrices refer ?from_footer=1 [Accessed 10 Oct. 2018]. to NATU’s present situation and thus distort the Airbnb. (n.d.d). Open Homes. [online] initial brand identity at the point of market Available at: entry. https://www.airbnb.com/openhomes [Accessed 10 Oct. 2018]. For future investigation it is of interest to Airbnb.Design. (n.d.). [online] Available at: examine whether this research approach https://airbnb.design [Accessed 10 Oct. applied to the other two groups of disruptive 2018]. companies, namely Google, Apple, Facebook ALTO. (2017). The effect of AirBnb’s entry on and Amazon (GAFA) and Baidu, Alibaba, the revenues of the hotel industry. [online] Tencent and Xiami (BATX) would lead to the Available at: https://altonet.org/effect-of- same conclusions. Furthermore, it would be airbnb-entry-on-the-revenues-of-the- interesting to explore the brand identity of hotel-industry/ [Accessed 11 Oct. 2018]. “New kids on the block” in comparison to other Archer, J. (2018). Netflix Beats Amazon Prime market driving companies. And Others In Five-Way Video Streaming Shoot Out. [online] Forbes. Available at: https://www.forbes.com/sites/johnarcher/ 2018/05/22/netflix-beats-amazon-prime- References and-others-in-five-way-video-streaming- Abrosimova, K. (2014). 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