In partnership with ocean conservancy, airbnb organized an opportunity for five volunteers to join a scientific expedition to investigate the presence of microplastics on the planets most isolated continent. Airbnb blue ocean strategy by elisa lafuente on prezi. Blue ocean strategy airbnb social networking marketplace. Airbnb is now a household name that has surpassed industry legacy hilton hotels in nights booked. Founded in 2008, airbnb has created an online marketplace connecting travelers to potential hosts. Competition airbnb has switched the paradigm by creating a less restrictive, more dynamic marketplace. Airbnb seemingly grew to be the worlds leading hotel group out of nowhere. Blue ocean strategy challenges companies to break out of the red ocean of bloody competition by creating uncontested market space that makes the competition irrelevant.
Airbnb is a new concept which are using sharing economy as a platform have been accepted in the tourism industry all over the world. Blue ocean strategy and sustainability for strategic. In this article you will learn the plan they outline for how to make your competition irrelevant and have sales and profit growth in excess of anything you thought was even possible. This paper is an attempt to highlight how business model innovation can be a disruptive force in any industry which can shake the roots of a wellestablished firm by using a case study on airbnb. Our blog is there to help you shift your mindset, go beyond competing, and create your own blue ocean, whether in business, government, or personal life. Here are 6 things we can learn from their marketing strategy.
Based on a study of 150 strategic moves spanning more than 100 years and 30 industries, blue ocean strategy addresses this question and provides a systematic approach to drafting and implementing your own blue. Chen, yuheng cheng, lulu huang, jingqin liang, qiyun liu, yang sun, yawen 1155096104 1155099386 1155096069 1155096183 1155102256 1155097151 2. Now, airbnb i covered under blue ocean strategy, but its not necessarily mutually exclusive with the disruptive technology. With this mindset, brands are motivated to create new frontiers of opportunity instead of squabbling over the same market. Instead of dividing up existingand often shrinkingdemand and benchmarking competitors, blue ocean strategy is about growing demand and breaking. The huge content marketing opportunity that airbnb is. Blue oceans denote all industries not in existence today the unknown market space untainted by competition in blue ocean, demand is created not fought over. Essay about blue ocean strategy 825 words bartleby. May 15, 2017 here are 6 things we can learn from their marketing strategy. Blue ocean strategy and its implications for businesses.
You should steal these 4 business strategies from airbnb. In this way, it swam into a blue ocean, offering a plastic watch at a price that allowed people to purchase two or three watches at one time. The company who was established in 2009 is a testament to the. Value innovation strategy competes in an uncontested market space. Members of airbnb can use the platform to arrange or offer lodging, mostly offered for homestays or tourism experiences. A business model is a great tool to execute a business strategy. Instead of fighting headon with your competitors, how do you create uncontested market space and make the competition totally irrelevant.
Youre sleeping on the couch, in the case of airbnb and the industry incumbents, hilton and the sheraton, they dont think that this airbnb is a credible threat to. This strategy, which is based on extensive research of hundreds of companies spanning across decades and including several industries, proclaims that instead of battling competitors, companies can create new markets for themselves. Chan kim and renee mauborgnes bestselling book of the same name, they begin to move into steps four, five and six as well. When one of the drafted business models encounters the. Its the theory that states that companies can succeed not by battling competitors, but rather by creating. Chan kim and renee mauborgne, a blue ocean strategy allows brands to develop and thrive within an uncontested market space, while simultaneously making competition irrelevant. Then, i apply an instrumental strategy using a bartiklike instrument that combines distance to the beach with citywide levels of tourism. Red ocean vs blue ocean strategy differentiation or low cost differentiation and low cost compete in existing market space create uncontested market space. Its miles ahead of the competition when it comes to blending the affordable with the unique. Unlocking hidden value through ubernomics blue ocean strategy. Thus, companies following a blue ocean strategy offer much more value at a lower cost for the end customers.
This blog article is a overview of some of the key points of the book by w. Blue ocean strategy offers startup owners a way to create a new market and fill it with their product. Today, airbnb has over 1,500,000 host listings offered in. Blue ocean strategy including examples and pdf download. Since our foun di ng i n 2008, 160 mil l i on guest s have arri ved at a i rbnb l i st i ngs around the world and the number of homes shared on our pl at f orm has reached 3 mi l l i onmore t han. A business strategy is a deliberate vision to get toward a desired longterm goal. Feb 25, 2015 learn the growth strategy that helped airbnb and dropbox build billiondollar businesses sujan patel former contributor opinions expressed by forbes contributors are their own.
An analysis of the changing competitive landscape in the. With over half a million listings in 190 countries, airbnb has practically become the market leader for travel accommodation. By handling transactions, allowing for instant bookings, and streamlining the reservation process, the website allows for a higher volume of bookings for an ever increasing. Accommodation includes apartments, villas, houses, tree houses or even castles for a different travel experience. Blue ocean strategy can be summarized in a nutshell. Airbnbs current content strategy is already good, theyre collecting stories from users and are sharing those stories via highly produced videos and commercials that build on their positioning live there. Airbnb is a website for people to list, find, and rent lodging. Learn the growth strategy that helped airbnb and dropbox. With over half a million listings in 190 countries, airbnb has. Businesses that undertake a blue ocean strategy approach to strategic planning can discover new, innovative ways of conducting business and uncover markets with little to no competition.
Blue ocean strategy is a business strategy book, first published on february 3, 2005 by the harvard business school press. Airbnb is accessible through its official website or through means of an app. Blue ocean strategy is a book published in 2005 and written by w. The strategy canvas outlined in the book is basically a tool to visually show how a company will or has created a blue ocean strategy. Apr 07, 2019 this type of content marketing could be a huge opportunity for airbnb to beat out its competition. Marine daumen karina ramirez jorge velasco antoine reynard jose ramirezit sures look like it. It is used to plot how the current competitors compete in a market space, what factors they compete on and how your company and the competition scores on each key factor. It is an attempt to illustrate a starts up can grow and differentiate itself by adopting blue ocean. The on the blue ocean strategy essay 1969 words 8 pages. Airbnbs guide minimizing the impact of covid19 how do the worlds biggest otas react to covid19. It was built on the notion of creating new markets where competition is irrelevant and the opportunity to grow and be profitable is unlimited. Growth hacking process growth hacking is a process of rapid experimentation, coupled with the understanding of the whole funnel, where marketing, product, data analysis, and engineering work together to achieve rapid growth. Apple, uber, and airbnb all benefitted from this approach to discover unique market opportunities. At the beginning, the performance is much, much worse.
White paper on new sustainable tourism destinations. Blue ocean strategy it must be said that blue ocean strategy is a set of tools leaning towards the first three steps described in the basic process above. Achieved via the delivery of features that have a highest marginal benefit to customer needs. Blue ocean strategy is a concept that has been pioneered by insead professors, w. Blue ocean strategy formulation the strategy canvas. The difference in airbnbs current content strategy vs.
In this article you will learn how to make your competition irrelevant and have sales and profit growth in excess of anything you thought was even possible. Unlocking hidden value through ubernomics blue ocean. Blue ocean strategy airbnb social networking marketplace for. Kim chan and renee mauborgnes blue ocean strategy a macat business analysis duration. Learn the growth strategy that helped airbnb and dropbox build billiondollar businesses sujan patel former contributor opinions expressed by forbes. Startups using it enjoy a competitorsfree market and when the copycats and competitors finally come, its harder for them to beat the predecessors since people dont like changing their habits. There has already been studies conducted by using the blue ocean strategy bos kim. Yet while achieving a longterm goal a business strategy set a vision, mission and value proposition that can be executed through several possible business models. Those who want to create a blue ocean strategy for their company must focus on value innovation that makes the competition irrelevant by the simultaneous pursuit of differentiation and low cost, thus creating a leap in value for the customers and an uncontested market space for the company.
It reduced costs by using plastic instead of metal, for example, and reducing the parts in each watch from 150 to 50. Blue ocean strategy is a landmark idea founded by w. The five forces is a framework for understanding the competitive forces at work in an industry and which drive the way economic value is divided among industry actors isc webpages. All they have to do is focus on helping people share their stories. Airbnb is engaged in providing online hospitality services, and enable people to rent or lease shortterm lodging which involve vacation rentals, homestays, apartment rentals, hotel rooms or hotel beds. This blog article is part of a series on the book blue ocean strategy by w. Varsamis, 2018 airbnb, which was founded in 2008, has its presence online and provides hospitality services and rental services.
Jul 18, 2016 businesses that undertake a blue ocean strategy approach to strategic planning can discover new, innovative ways of conducting business and uncover markets with little to no competition. The premise of the book is that companies can succeed by creating. Airbnb is a marketplace to list, find, and book unique accommodations around the world for shortterm. The concept of blue ocean is based on the idea that the business universe is made up. Finally, since the bulk of these strategies are user generated, after initial setup and staffing costs, the overall cost of acquisition from this content should be very competitive. Airbnb and ocean conservancy will use the research findings from this expedition to support educational.
Airbnb provides affordable and comfortable accommodation to travellers as per their specific requirements and budget. Introduction the 2000s have developed an era of collaborative consumption, which is to increase the use of a good or service sharing, exchange, sale or lease of it. Shake shacks blue ocean strategy with pricing that is just slightly more than the typical fast food burger like mcdonalds, shake shacks offering is irresistible for an increasingly large group of american diners, especially those between the ages of 18 and 34, who are willing to dash out dining dollars on good quality food. We all heard about couchsurfing or exchange of apartments or houses and the society swears today more than airbnb. A read is counted each time someone views a publication summary such as the title, abstract, and list of authors, clicks on a figure, or views or downloads the fulltext. I argue that such instrument captures only the variation of airbnb listings that is not correlated with rents. Chan kim and renee mauborgne, professors at insead and codirectors of the insead blue ocean strategy institute. This international bestselling book sold more than a million copies in its first year of publication, and has.
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