1.

Using the Business Model Canvas, Airbnb's business model can be described as follows:

Key Partnerships:

 Hosts: Individuals who list their properties on Airbnb's platform.

 Payment Processors: Companies like PayPal and Alipay that facilitate transactions.

 Service Providers: Cleaning services, property management companies, etc.

Key Activities:

 Online Platform Management: Maintaining the Airbnb website and mobile app.

 Customer Support: Providing assistance to hosts and guests.

 Marketing and Promotion: Attracting new hosts and guests through various channels.

Key Resources:

 Technology Infrastructure: Servers, databases, and software needed to run the platform.

 Brand Reputation: Airbnb's strong brand image and reputation for providing unique
accommodations.

 Community: The network of hosts and guests who contribute to the platform's success.

Value Proposition:

 Variety of Accommodations: Airbnb offers a wide range of lodging options, from apartments to
villas, providing guests with unique and personalized experiences.

 Affordability: Accommodations on Airbnb are often cheaper than traditional hotels, appealing to
budget-conscious travelers.

 Local Experience: Guests can stay in neighborhoods and interact with locals, offering a more
authentic travel experience.

Customer Relationships:

 Peer-to-Peer Interaction: Airbnb fosters a sense of community by facilitating direct

communication between hosts and guests.

 Trust and Safety: Airbnb implements measures to ensure the safety and security of both hosts
and guests, such as user reviews and identity verification.

Channels:

 Online Platform: Airbnb's website and mobile app serve as the primary channels for hosts to list
their properties and for guests to find and book accommodations.

 Marketing and Advertising: Airbnb uses various channels, including social media, search engines,
and partnerships, to attract hosts and guests.

Revenue Streams:
  Commission Fees: Airbnb earns a commission on each booking, typically ranging from 3% to 5%
of the total transaction value.

 Service Fees: Guests may also pay service fees, which help cover the cost of running the
platform.

Cost Structure:

 Technology and Infrastructure: Costs associated with maintaining and updating the online
platform.

 Marketing and Promotion: Expenses related to advertising and acquiring new users.

 Customer Support: Costs associated with providing customer service and resolving issues.

What made Airbnb successful:

 Disruptive Innovation: Airbnb introduced a new way of traveling by connecting travelers directly
with local hosts, disrupting the traditional hotel industry.

 Scalability: Airbnb's asset-light model allows for rapid expansion without the need for significant
capital investment in physical infrastructure.

 Customer-Centric Approach: Airbnb prioritizes customer experience, offering personalized and

unique accommodations tailored to individual preferences.

 Network Effects: As the number of hosts and guests on Airbnb's platform grows, the value of the
network increases for all users, leading to sustainable growth and success.

2. When classifying Airbnb's strategy according to the three generic strategies, it aligns most
closely with the differentiation strategy. Airbnb differentiates itself from traditional hotels by
offering unique and personalized accommodations, providing guests with experiences they
cannot find elsewhere. By focusing on variety, affordability, and local experiences, Airbnb
creates a distinct value proposition that sets it apart from competitors in the hospitality
industry.

Regarding the blue ocean strategy, Airbnb's entry into the market can be seen as a blue ocean strategy
to some extent. While the concept of peer-to-peer lodging was not entirely new, Airbnb successfully
identified and tapped into an underserved market segment by offering a wide range of accommodations
at affordable prices, coupled with a unique and personalized experience. This created a new market
space, distinct from traditional hotels, where Airbnb could operate with limited competition. However,
as Airbnb's success grew, competition in the peer-to-peer lodging market intensified, leading to the
emergence of other players and challenging Airbnb's position in the market. Therefore, while Airbnb
initially operated in a blue ocean, it has since become more competitive, with elements of both blue
ocean and red ocean strategies.