Final answer:
Re-intermediation strategy like Airbnb's model introduces a new intermediary between consumers and service providers, differing from traditional retailers which directly sell goods. Unlike physical retailers, Airbnb facilitates peer-to-peer transactions without owning inventory. Amazon similarly redefined book selling by providing an expansive online inventory, leading to a decline in traditional bookstores.
Step-by-step explanation:
Re-Intermediation Strategy and Airbnb
A re-intermediation strategy involves the introduction of a new intermediary into a supply chain or market. In the case of Airbnb, the company has re-intermediated the accommodation industry by providing a digital platform that connects people looking to rent out their homes with those seeking accommodation. This differs significantly from traditional retailer strategies which generally involve a more direct transaction between the provider of goods and services and the consumer without such a peer-to-peer marketplace dynamic.
Traditional Retailers vs. Airbnb
Traditional retailers, such as bookstores, typically maintain a physical inventory and sell products directly to consumers. However, with the advent of platforms like Airbnb, the company itself does not own the inventory (i.e., the properties) but instead facilitates transactions between hosts and guests. This dramatically lowers overhead costs and broadens the range of available options for consumers.
Case Study: Amazon
Similar to Airbnb, Amazon revolutionized the book selling industry by offering an expansive online inventory and eliminating the need for physical storefronts. This convenience, variety, and often lower prices have led to a decline of traditional bookstores. Amazon's platform has empowered shoppers to purchase books anytime, anywhere, and has set a precedent for other industries, like Airbnb's re-intermediation of property rentals.