Question

What are Airbnb's critical success factors? How sustainable are they? Please present it in a table. and word limit is 1000 words

Answer 1

Solution -

Airbnb is an online market space that facilitates the arrangement of lodgings, tourism experiences, and business spaces. The company does not on any of the properties but acts as a platform to provide a listing of properties available for rent. What started in 2008 as an idea is today’s $3 billion invested company and valued at $31 billion.

The critical success factors of the company are as below -

Critical Success factors	Description	Sustainability
Business Model	None of the properties are owned by Airbnb. The maintenance is also not borne by them. This makes this business model very effective as it is based on free arrangements. Whatever the customer pays at the property, a certain portion is charged as fees by the company. This makes this business model even more lucrative as the owners of the properties list down with competitive rates so that they can attract customers and with the customer base of Airbnb it proves as an advantage for the owners of the property as they gain visibility and for the company as they have a regular revenue stream due to competitive listings by the property owners. The customers prefer such a competing model as they get a better value for their money. The model proves scalable as more and more property owners join the platform and provide more options for the customers. It proves as an economical offering for the customers and a convenient option for the property holders.	The convenience factor and the revenue stream model make this business offering sustainable, as certain customer expectations keep on evolving and as the property owners keep on refining their offerings the business is bound to grow for Airbnb. It is a low maintenance model and with so many customers on board, this business model is growing and is easily scalable.
Easy Offering	The convenience of connecting property owners with travelers and vice versa is the USP of this company. There is transparency in dealings and the customers, as well as the property owners, have started trusting the company platform. With the growing technology and the ease of booking and canceling properties, the website has gained popularity, especially with the low budget income groups. Apart from convenience and transparency, there is also an external market that keeps Airbnb into business as the pricing of the properties is usually lower on the company's platform as compared to the hotels and rental rates in the locality. This provides a competitive offering that drives customer value.	Today convenience drives most of the business models and Airbnb provides a very convenient and safe business opportunity for the property owners and for the customers. Hence with higher preference, there is higher sustainability.
All in one offering	Airbnb has an offering for all kinds of customers. There are luxury properties, commercial properties, and budget properties. There are various facilities extended with the properties as per the preferences of the customers. Hence all kinds of customers are attracted to the company platform. This, in turn, provides a cycle for the property owners to provide a listing of all kinds of properties on the platform as they are aware that different customers from different genres get attracted to the company platform and they have a better probability of renting out. The wide range of offerings provide a larger customer base and a better business opportunity	Airbnb operates in a customer segment that is much larger and bigger than all hotels that separately operate. Hence with viable commercial offerings, it becomes a preferable option for customers and with a larger customer base and an equally preferable option for property owners. Hence the business is sustainable as it operates in a large market space and revenue stream is assured.