Business Model Innovation Case Study
Business Model Innovation Identification
In this assignment I will analyze the business model of two ventures in the same industry – internet. Both of them brought existing offline business ideas to the online medium, in order to enhance the customer experience by saving time and assuring faster and easier accessibility. The first one is PetFlow – an online store for pets’ food and items and the second one is Airbnb – an online platform for people to list, find, and rent lodging.
But first, what is a business model and what is a business model innovation?
While the term “business model” has gained widespread use in the practice community, the academic literature on this topic is fragmented and confounded by inconsistent definitions and construct
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In my opinion Airbnb have used a business model innovation, because unlike traditional hotels, Airbnb scales not by scaling inventory but by increasing the hosts and travelers and matching them with each other. Therefore this business model is highly scalable as there are a huge number of homes that could potentially go up on the site. The platform disrupted traditional industries by creating new sources of supply. The revenue model of Airbnb is such that booking and monetary transactions are done on Airbnb’s platform, which generates revenue from 2 different sources: a flat commission (6-12%) from hosts upon every booking done through the platform and other 3% of the booking amount as transaction …show more content…
By that they have gained a huge customer base. Because of the market share and financial power, Airbnb has since mid-2011 acquired several of its competitors. The first of them was Accoleo based out of Hamburg, followed by their London-based rival CrashPadder , and then by by NabeWise and Localmind . However still there are plenty of other websites which offer partially the same services and can be considered small Airbnb competitors, such as: www.guesthouser.com, www.homeescape.com and www.homeaway.com, but experts consider them as a no-threat and predict that Airbnb is to remain a market
Compare And Contrast Home Depot And Lowe's Annual Report
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Case Study: A Good Airbnb Cleaning
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Zara's Disruptive Business Model
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Amazon: Compare And Contrast The History And Business Model Of Amazon
1177 Words | 5 PagesAmazon was by far the greatest e-commerce performer in terms of revenue in 2013 as reported by (Wireless News, 2014). One of the company’s many accolades is that it has the seventh most visited website in the world (alexa, 2015). Compared to its competitors, meaning companies that are offering similar services, it is number one. The position occupied by Amazon in the market warrants a study of the company and its businesses model.
Gig Economy Advantages And Disadvantages
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Amazon Big Data Case Study
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Airbnb Case Study Globalization
1557 Words | 7 PagesAirbnb was established in 2008 in San Francisco, California, by its founders Joe Gebbia, Brian Chesky and Nathan Blecharczyk, who were not able to find any free rooms in a hotel while attending a conference. As a consequence of that, the idea to offer private rooms online emerged, where clients could book them easily via their smartphone, tablet or computer. ‘On one side the platform enables people to list their available space and earn extra income in the form of rent. On the other, Airbnb enables travelers to book unique home stays from local hosts, saving them money and giving them a chance to interact with locals. Catering to the on-demand travel industry, Airbnb is present in over 190 countries across the
Case Study: Airbn B
206 Words | 1 Pages(American company financing startups) with an additional $20,000 in funding. At this time Airbed & Breakfast becomes Airbnb. They received $600k from Sequoia Capital and Y Ventures (specializing in incubation and financing of innovative companies). In 2010, Airbnb perceives $7.2 million Series A (A Series A round is the name typically given to a company's first significant round of venture capital financing ) Back in
External Environment Analysis Of Airbnb
1609 Words | 7 Pages1. Introduction of Airbnb Airbnb is an online platform where people can list and book their accommodations all around the world. It is founded by Nathan Blecharczyk, Brian Chesky and Joe Gebbia in the year of 2008 in California. The types of accommodations offered in Airbnb vary from an apartment, a villa, a castle to even a tree house.
Holiday Inn: Porter's Five Forces Of Industry
1384 Words | 6 PagesBy reducing rivalry, Holiday inn came with the strategy of delivering high quality revenues at a lowest possible cost. This has helped Holiday inn in maintaining customer loyalty and growing sales. It is not easy for a customer to switch to the competitor when they are loyal to a specific brand. Since Holiday inn is one of the best hotels, its competitors are represented by four stars lodging offering equally attractive product as the one Holiday inn is offering. Since Holiday inn hotel has so many competitors, and they offer equally attractive products and services, then the establishment will most likely have little power in the situation.
Price Discrimination In Hotel Industry
777 Words | 4 PagesConsidering all these factors, we can clearly say that hotels belong to monopolistic competition. Hotels are price makers, meaning that there is not one market price, at which all the suppliers have to sell
Marriott International Vs Airbnb Case Study
1094 Words | 5 PagesMarriott International vs. Airbnb Although Marriott International has a competitive advantage of being the largest hotel company in the world, experiencing years of remarkable growth with the acquisition of Starwood Hotels, and ranking at number 163 on this year’s Fortune 500, it operates in a highly competitive market. The recent success of Airbnb, for example, has had major effects on the hotel industry as it has quickly become a threat. Airbnb, founded in 2008, is an online hospitality service that provides short-term lodging and unique travel accommodations around the world with more than 3,000,000 lodging listings in 65,000 cities and 191 countries.
Essay On Couchsurfing
884 Words | 4 PagesThe internet gives individuals a tool for keeping in touch with family and friends that are in geographically dispersed locations, or when traveling and separated from support networks, while also facilitating the formation of new relations” (Rosen, Lafontaine & Hendrickson, 2011). One of this tool undoubtedly is Couchsurfing. From technical view it is a hospitality exchange and social networking website with platform for members from around the world locate accommodations while traveling by staying in the homes of other members. But from founders’ view it is a “small passion project” created for people who anywhere would want to share their homes with strangers. Couchsurfing is a global community of 10 million people in more than 200,000 cities
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