Businesses have the fundamental mandate of ensuring that they conduct their affairs in ways that would guarantee the attainment of better outcomes with regard to aspects of profits and growth. The choice of the business model adopted needs to propel the particular business into the achievement of the identified strategies. In the current discussion, the primary focus is on analysis of Airbnb's value proposition business model. The intention is to evaluate how the conventional business model has been disrupted. The understanding would influence on determination of how normal operations by other businesses have been affected.
Value Business Model
Value proposition is a fundamental component in marketing which entails the adoption of various aspects including innovation to ensure that the services provided to the clients are attractive (Conger, 2015). In general, it can be perceived as a promise to the value which is offered to the customers. Organizations adopt the business model as a way of providing assurance to the customers that they will get value for the products which they purchase from the company. For example, it is an indication of how the particular product or service will improve the customer's experience.
How the Conventional Business Model has been disrupted
In general, there is a significant disruption of the normal conventional business model, following the entry of the value proposition approach. For example, there is a derailment from the initial focus of ensuring that a business attains the identified objectives which in most cases are the profits and growth. The value proposition model acknowledges the importance of customers. Therefore, much of the focus is on ensuring that the needs of the customers are met. Consequently, the value proposition model is characterized by an approach where apart from the provision of services or goods purchased by the customers, there needs are met. Airbnb has made significant efforts in ensuring that it meets the individual desires of its customers. The application of the value proposition model has been instrumental in improving the overall state of the customers. The feelings and concerns of the clients seeking services are met. The value created is provision of a unique service which meets the individual needs of the customers.
In conclusion, Airbnb strives to provide value for the services offered to the customers. The ultimate objective is to end up with a clientele base that is satisfied with the services provided. The approach has been instrumental in distinguishing the company from its competitors.
Part Two
Why competitors have a difficult time competing against OpenTable
OpenTable has established a huge clientele base across the globe that has been critical in improving the overall manner in which the company operates. In general, the company has adapted to the ever changing market patterns. For example, initially, when the company was being formed, most of the restaurants were not using the computers. However, with time that has since then changed and most of the restaurants have adopted the use of the internet. The ability to adopt the approach where the firm can adjust the needs of the customers is an advantage considering that it would guarantee continued growth. Also, there is the fact that OpenTable is using the most recent forms of technology to improve on the services that restaurants provide customers. For example, they are deveThus, it would be difficult for the competitors to outdo the rest of the competitors.
Characteristics of the Restaurant Market making it difficult for a national reservation system to work. There are various challenges associated with the national reservation system. The first regards the issue of guests failing to show up. For example, guests from different parts of the world may decide to book for a reservation. However, some of them fail to show up resulting in a loss to the hotel. Also, there is the issue of special requests by different guests in various parts of the nation. For instance, some of the guests may be having problems of allergies to certain foods. Thus, the adoption of the national reservation could be difficult.
How OpenTable Changed the Market Strategy to Succeed
OpenTable understood the nature of the market that they were operating. First, there is the aspect of the technological improvements that are being witnessed. OpenTable has adjusted to the changing environmental situation, to ensure that they meet the needs of their customers. The marketing strategy has been based on the use of various approaches including technology and focus on value addition to the services offered to the customers. Thus, it has been possible for the organization to realize success.
SaaS Model
SaaS model is cheap. Most businesses strive to ensure that they reduce the cost of operations. Thus, the model allows the restaurants to pay for only that which is needed. The model equally allows for scalability (Châlons, " Dufft, 2017). Thus, the restaurants can only specify on what they need.
In conclusion, businesses have to ensure that they adopt the most effective approaches in doing operations. The value addition model provides an opportunity to improve on services. Restaurants can adopt the system in serving their clients.
References
Châlons, C., " Dufft, N. (2017). The Role of IT as an Enabler of Digital Transformation. In The Drivers of Digital Transformation (pp. 13-22). Springer, Cham.
Conger, S. (2015). Six sigma and business process management. In Handbook on Business Process Management 1 (pp. 127-146). Springer, Berlin, Heidelberg.
