Airbnb and the canvas business model

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Airbnb promo video

          Value Proposition: Considering we are in the era of smartphones and tablets taking over airbnb offer value where people can stay in bigger rooms at more affordable prices and all at the click of a button. Yet the Value proposition appeals to all levels of income. This increases their customer base.

2.       Customer Segments:  Airbnb offer a place to stay for all types of users. Holiday goers can stay in an affordable place in major cities. Yet it also appeals to the business traveller who is looking to save on company expenses.

3.       Channels: All Airbnb’s distribution channels are done through online services. Their web page browser and their smartphone and tablet application offer the same services. They have a strong presence on social media where the majority of their marketing and advertising is done. However word of mouth also contributes as both hosts and guest discuss their experience with friends and family as well as on social media.

4.       Customer Relationships: Airbnb is a global platform and is used all over the world. As a result their customer service is almost available 24/7. Airbnb offer promotional and loyalty programmes which cater and look after both new and existing customers.

5.       Revenue Streams: They have a simple but effective revenue stream where both the hosts and guest pay a fee. All transactions are also carried out online.

6.       Key Resources: Airbnb need to continuously gain new hosts in both new and existing countries and cities so they can offer a greater choice to the customer.

A) Continue to grow their customers profiles so they can make tailored offers of accommodation based on their needs.

B) As they are an online based business they need to keep up to date with the latest advancements in technology and need to have the best tech savvy professionals working for them.

C) Considering all payments are made online they need to make sure they have the most up to date systems in place to ensure a smooth and seamless process for its customers.

7.       Key Partners:  They need to have a portfolio of hosts and guests.

A)   Market and advertise the company on all sources including social media and print based advertisements. Liaise with tourism boards and newspapers.

B)   Photographers who can take the ideal picture of each accommodation they offer.

C)   Tech experts to keep their social media platforms up to date.

D)   Payment processing channels from banks to paypal.

8.       Key activities:  Recruiting more hosts to expand their portfolio of accommodation.

A)     Continue to advertise on line as this is where the majority of business is generated.

B)      Off-line based advertising such as posters bill boards newspapers etc.

C)      Retrieve search engine data from google and yahoo to spot potential new customers.

D)     If possible target some famous faces to endorse the brand as this will increase footfall to the website and possibly increase sales.

E)      Become a partner with the tourism board to have them advertise your company on official promotional videos and advertisements.

9) Cost Structure: Capital needed for promotional campaigns both online and off line. Considering all payments are 100% online the biggest chunk of money will be paid to the likes of MasterCard, Visa and pay pal for transaction fees. 

Digital Movement

The way in which business is conducted today couldn’t be any further from how it was led twenty years ago. The question is what has changed this? One of the biggest drivers in the change of how business is conducted is that of the digital movement. One example of digital movement is how smartphones and tablets are not only a necessity to the majority of people but they have also caused a shift in how business is done.

Everything from banking, retail shopping, booking flights and everything in between can now be done at the push of a button, from almost anywhere at any time. The movement of business applications has become an expectation from consumers. This expectation is growing and evolving at an alarming pace. Take AIB bank for example they have opened a digital hub in Dundrum town center know as the lab, this showcases all their latest digital developments and ideas and allows customers to experience them first hand. It is fair to say that AIB are leading the way the banking sector with their online banking application. However these changes have led to redundancies and the closer of some branches. The branches which have not closed have seen staff numbers drop. Gone are the days when a good relationship with your bank manager was important. Banks have lost their personal interaction which some people enjoy. Will this trend continue into other sectors such as retail shopping where we will see closer of shops or reduction with staff levels as the online craze continues to grow? Some organisations today now dedicated application software and online teams who not only develop new features for existing application but also monitor the customer feedback. This does not come without its difficulties as now business need to stay ahead of their competition by providing a digital service and experience like no other. Trying to maintain loyal customers is also proving to be more difficult as now customers hold the key for change and can now compare organisations and their services online. Websites such as trip advisor and Go compare are just two examples of websites for comparing companies offerings and ratings for same. Digital is now paving the way and fast becoming the primary route for new and existing business entering the market. Advanced technologies have paved the way for organisations to enter new markets. Take apple for example they have been able to enter the contact less payment market with the introduction of apple pay.  All the above have benefited the customer by making organisations become more competitive in the market resulting in cost saving measures for customers.

These are just some of the examples of how the digital movement is affecting the context of business. Another major effect is how robots can lead the way in automation which will allow us to focus on the areas in which automation cannot occur. There are many other ways that digitisation can affect how business is conducted. Please click the link below to discover if you are ready for change?

Are you ready for change?