The document analyzes Airbnb's business model using several frameworks. A SWOT analysis finds strengths in Airbnb's lower prices and unique experiences, but weaknesses in reliance on hosts and safety issues. Porter's five forces sees low threat of new entry but high threat of substitution. The business model canvas outlines Airbnb's customers, value propositions, and revenue streams from hosts and guests. A blue ocean strategy canvas explores creating value in new market spaces through the ERRC grid of eliminating, reducing, raising, and creating elements.

1. 陈宇珩 CHEN, Yuheng
程璐璐 CHENG, Lulu
黄靖勤 HUANG,
Jingqin
梁绮云 LIANG, Qiyun
刘杨 LIU, Yang
孙雅文 SUN, Yawen
1155096104
1155099386
1155096069
1155096183
1155102256
1155097151

2. Agend
a
SWOT
Analysis
Porter’s
Five
Forces
Business
Model
Canvas
Blue Ocean
Strategy
Canvas &
ERRC GRID

3. SWOT
Analysis

4. Strengths
 Lower prices compared with hotels
 High-quality and unique hospitality service
 Good brand recognition, image, and equity
 Global marketing strategy
 Unique experience programs associated with local
culture
 Clear and manageable business model

5. Weaknesses
 Rely heavily on hosts and lacks flexibility
 Need to resolve conflicts between hosts and
guests
 Increasingly high customer services costs
 Safety problems

6. Hi
.
Opportunities
 Global trend sharing economy
 C2C business model flourishes the industry
 Growth of mobile device market

7. Threats
 Intense competitions around the
world (Xiaozhu, Tujia, Ctrip in China)
 Legal issues in some countries or
districts (Public Housing Policy Hong
Kong)

8. Porter’s
Five Forces

9. ThreatsofNewEntry-Low
 High cost of entry
 Airbnb’s worldwide homestay networks
 Airbnb’s strong brand recognition
 Strict legal and local policy of house renting
ThreatofSubstitution-High
 A wide range of alternatives in the
market (Traditional hotels, hostels,
and Bed & Breakfast)

10. Buyerpower-Low
 Buyers segmented into niches
 No group buying
Supplierpower-Moderate
 Multiple suppliers
 control connection between hosts and
guests
 Hosts’ regulations and legal issues make
the expension of homestays unstable

11. CompetitiveRivalry-Moderate
 Powerful rivals (e.g. Expedia and Home Away)
 Homogenous services following the trend of C2C
 Highly segmented market of Airbnb helps

12. Business Model
Canvas

13. Customer
Segments
Pastel
Color
 Hosts
▻ who own a house (houses) and desire to
make extra income by sharing their space
▻ who want to make friends from all over the
world
 Guests
▻ who like traveling and tasting new
experiences
▻ who have travel need and want to find
accommodations at lower prices

14. Value Propositions
 Hosts
▻ earn extra income by sharing their
accommodations
▻ meet and make new friends from all over the
world
 Guests
▻ find various unique accommodations
(homestays) at lower prices
▻ build relationship with local hosts
▻ build connection between with local cultures

15. Channels
 Airbnb Official website
 Airbnb mobile app
 Social media sites (Facebook, YouTube,
WeChat)
 Digital advertising (Pre-roll video ads, Email
ads)
 Word of mouth
Customer Relationship
 Home insurance (only for hosts)
 Self-service
 Personal assistance: 7/24 service
 Social media interaction

16. Revenue Streams
 6 - 12% of the amount guests pay
 3% of the amount hosts receive
Key Resources
 Technology
▻ (Platform architecture, algorithms, and database)
 Human resources
▻ (Customer services, UI designers, and
photographers)
 Customer networks
▻ (among Airbnb, hosts, and guests)

17. Key Activities
 Platform development and maintenance (Website and app)
 Marketing
 Community management (Host and guest network)
 Travel services (Experience programs, restaurant
recommendation)
Key Partnerships
 Investors
 Insurance companies
 Social media platforms for logging in
 Map providers
 Online payment platforms
 Photographers

18. Cost Structure
 Platform development and maintenance cos
 General and administrative cost
▻ (Employees’ wages & physical properties)
 Insurance cost
 Marketing cost

19. Blue Ocean Strategy
Canvas & ERRC GRID

21. ERRC GRID

22. References
Juggernaut. (2015, July 07). How Airbnb works: Insights into business & revenue model. Retrieved from
http://nextjuggernaut.com/blog/airbnb-business-model-canvas-how-airbnb-works-revenue-insights/
Truong, K. (Producer). (2016, September 25). Business model canvas for Airbnb. Retrieved from
https://www.youtube.com/watch?v=-YEQrKtSf8w
Lumos. (2012, November 08). Business model breakdown: Collaborative consumption. Retrieved from
http://www.lumosforbusiness.com/blog/821/08-11-
2012/Business+Model+Breakdown++Collaborative+Consumption
Elisa Lafuente. (2015，October 05). Airbnb blue ocean strategy. Retrieved from
https://prezi.com/e-_pugyywzgl/airbnb-blue-ocean-strategy/

23. THANK
YOU