The Start-Up That Survived the "Kill Zone"

The "kill zone" refers to the space near a tech giant’s core business where start-ups risk being copied or crushed simply for getting too close. But what if survival were possible?In this episode, Associate Professor of Strategy Michaël Bikard walks us through a case that begins with a promising partnership between Airbnb and Sofar Sounds, but ends with the two companies going head to head.London-based start-up Sofar Sounds built its brand on intimate secret gigs in living rooms and other low-key spaces around the world. “It's all about human offline connections through music, bringing together people in a very intimate setting,” said Bikard. “There is some fairy dust there.” A partnership with Airbnb seemed like a perfect match. Airbnb would gain some of Sofar Sounds’ cool factor. Sofar Sounds could scale through Airbnb’s global reach. But the alliance didn’t last.A few months later, Airbnb came up with their own version of Sofar Sounds, Airbnb Concerts. It looked like the classic tech “kill zone” scenario. “At the time… it felt like they [Sofar Sounds] were gonna be eaten alive, frankly,” said Bikard. “And the interesting thing is that exactly the opposite happened.”