1. A process by which a product or service takes root
initially in simple applications at the bottom of a market
and then relentlessly moves ‘up market’, eventually
displacing established competitors.
An innovation that is disruptive allows a whole new
population of consumers access to a product or service.
2. $12 Billion $16 Million
$93 Billion $655 Million
$362 Billion ?
3.
4. Rent nightly from real people in
19,716 cities in 196 countries.
Airbnb.com – Air mattresses and donuts
Listings worldwide from a room to a home
Implications for hotels and real estate?
6. • Mobile – Disrupts traditional websites
• Now more minutes are spent searching the web on apps than
browsers
Google Android – 150,000 apps –
2 Billion downloads
Apple – 425,000 apps – 15 Billion
downloads
• 1/2 of all searches will be via mobile devices within a year
54. Disruptive Innovation
Uber app-town cars, taxi Assn tried to stop it, 10 seconds for
driver to accept, passenger rates driver & driver rates passenger,
$10 fee if passenger is a no show
55. • Top 1, 2 or 3 sites according to Hitwise and ComScore in almost
every market in the US except Houston
• Ratings of agents
o Over 70,000 agent reviews by consumers
• Source for housing articles in Wall Street Journal and USA Today
• Achieved $1 Billion market cap
• 1/2 of agent leads may not be responded to
• Zillow gives consumers what they want
• Zillow is Innovative
56. Internet Information provider that
we call “Desired Monopolies.”
Well, your average realtor (we interviewed several as part of our
research for this report) doesn’t quite “hate” Zillow, but the
realtor-Zillow relationship is complicated. Realtors generally
admire Zillow’s web site and its ability to efficiently (and
prettily) provide a wealth of real estate information.
However, realtors loath Zillow’s price estimates, invariably
describing them as wrong and bemoaning the friction they
cause when prospective clients cite them, only to have the
realtor "set them straight" with local knowledge Zillow never
catches.
But the biggest thing realtors hate about
Zillow is that ... they don’t own it.
57. We can’t resist Zillow’s free, voyeuristic window into our neighbors’
homes, what they paid for them, and what they’re worth now. Zillow’s official
business model calls for signing up more subscribing real estate
agents, facilitating more mortgage originations, and selling more of its highly
targeted advertising.
Overlaid graphically data on the classic Zillow aerial presentation :
Crime statistics
Health statistics
Immunization rates at schools
Sewage treatment plants overlaid with arrows representing the predominant
wind direction
If Facebook charts our social graph, then Zillow clearly has the lead in
charting our environmental graph. And as a Desired Monopoly, Zillow can be
the trusted middleman, aggregating nice-to-have information into a must-
have whole.
58. By only pursuing “sustaining innovations”
that perpetuate what has historically helped
them succeed, companies unwittingly open
the door to “disruptive innovations”.
59. Providing Consumers What They Want
Sold Prices & Dates
Listing History(Price Reductions)
Days on Market
Nearby Homes for Sale
Nearby Homes Sold
Price Estimates & Trends
Contact a Buyer’s Agent
Post Homes for Sale
Compilation of Features from Above Websites