Unique Place to Stay
Like a home, your real home International Expansion
Competitive Process compared with hotel
Freedom Human Policy (from the video)
AIRBNB’S BLUE OCEAN STRATEGY
Create an Uncontested Market Space/Make the Competition Irrelevant
Process innovation, e.g. distribution channel (online); make it like a real home; sustainable business model on payment
Create & Capture New Demands
The demand on renting a spare room to some strangers VS sleeping at strangers‟ home with lower cost; new locations in many places with innovative experience (not limited to location)
Create New Way of Supplying Customers are suppliers and also the consumers, a network effect from customer involvement Break Value/Cost Trade Off; Align the whole system of a firm‟s activities in pursuit of differentiation and low cost New locations in many places with innovative experience (high value) with lower cost compared with other hotels
AIRBNB’S STRATEGY
Innovative Concept
Share space and save money; customers are suppliers, suppliers are customers
With local hosts and experience the local culture with more interactions Create change to make friend while makTTENTION!
AIRBNB CASE STUDY TH 9 MARCH 2015
AIRBNB’S SUCCESS
Friend Story -3 complementary profiles (ingeenering, sales, design,…) + hardworkers Good Concept - Enter a 18 Billion Market (vacation rental market) - Online market place : low fixed cost Launched - Good Press, raised money thanks to the cereal sales - “Never give up”: use failures (downhills after events) to modify the concept from a occasional use to a permanent market place that was successful - Sustainable business model thanks to the percentage of transactions YC experience - Went to YC program after the launched (even more booster!) - Use the „go to talk to user‟ policy to understand the needs of customer - Big capital raise thanks to investors and network