Volume 1 | AirBnB Business Model
Corona-virus is shaking up businesses. Businesses need to understand the consumer behavior and reinvent their business model to survive.
This series “Reinventing Your Business Model” is our humble attempt to guide the small medium scale enterprises to reinvent their business model to emerge stronger. Let us first look at the AirBnB business model.
Company Overview: Airbnb is an online marketplace that enables people to list, find and rent accommodations for a processing fee.
Secret Sauce:
- The biggest accommodation provider in the world does not own a single room.
- Airbnb does not rent the accommodation from the host but conveys only between supply and demand.
- Their business model builds on the share economy and on the strong believe that house owners are willing to rent out free space to strangers.
Now let us further dive to understand their Key PAR (Partners, Activities and Resources) on how AirBnB’s business model.
New let us look at Customer RSVP (Relationships-Segments-Value Propositions-Product Channels) of AirBnB.
Now let us look further on keys for success in today’s environment:
1. Reinvent your product / service with health as a primary focus .
As we emerge from this phase, we will have to express how we are taking health as a priority for our customers. Focus your procedures and campaigns on customer’s health.
2. Asset sharing.
It will take time for business to back to full steam. Think further on your asset sharing model. Airbnb allows homeowners to share them with travelers, and Uber shares assets with car owners. Sometimes assets may be shared across a supply chain. Sharing will reduce cost pressures.
3. Usage-based pricing.
Business will have to evaluate on models to charge customers when they use the product or service, rather than requiring them to buy something outright.
4. Collaborative ecosystem.
We must become collaborative with the supply chain partners. The supply chain pressures will push the business owners to be improve collaboration with supply chain partners and helps allocate business risks more appropriately, making cost reductions possible.
5. An agile and adaptive organization.
The most important is the make your organization agile and adaptive. Cost optimization methodologies are to be implemented to make decisions that better reflect market needs and allow real-time adaptation to change in those needs.
About Baljit
Baljit Singh has been fortunate to be part of teams that have brought innovation and game changer product & services to the market. He has experience in building successful product and services companies. He is currently an advisor to companies for developing their innovative journey. He is a motivational speaker and gives talks on how to cultivate habits and change lifestyle to drive innovation. Baljit is currently driving cross border partnership between India-Israel-North America.
About the Book- My Experiments with Innovation
The Book – My Experiments with Innovation is a practical guide to inculcate Habits and Lifestyles to drive innovation! Click below to order your copy of My Experiments with Innovation.
Chapters
1. Finding Imagination-Purpose-Relevance
2. What is Innovation pH Balance?
3. Finding Your Purpose
4. How to Solve Challenges
5. Finding Your Niche
6. Finding Inner Peace
7. Roar like a Tiger
8. A personality for customer centricity
9. Pay It Forward
10. Summary
For any further information, please contact Baljit Singh at [email protected]
Wah ji