The document discusses the Business Model Canvas, which is a tool for developing and analyzing business models. It presents the key elements of a business model using the Business Model Canvas template, including customer segments, value propositions, channels, customer relationships, revenue streams, key resources, key activities, key partnerships, and cost structure. It then provides an example of how the Business Model Canvas can be applied to Airbnb's business model.

1. Applying the Business Model
Canvas to your Business
Chris Moore, MD Specialist Language Courses
www.specialistlanguagecourses.com

2. What is a business model?

3. Business models are, at heart, stories — stories
that explain how enterprises work. A good
business model answers Peter Drucker’s age-old
questions, ‘Who is the customer? And what does
the customer value?’ It also answers the
fundamental questions every manager must ask:
How do we make money in this business? What
is the underlying economic logic that explains
how we can deliver value to customers at an
appropriate cost?”
Joan Magretta, Why Business Models Matter, HBR, May 2002

4. OSTERWALDER & PIGNEUR, Business Model Generation, Wiley, 2010

5. The Business Model Canvas
Image © OSTERWALDER & PIGNEUR, Business Model Generation, Wiley, 2010

6. Segmented, for example, by:
• Offer
• Distribution channel
• Type of relationship
Image © OSTERWALDER & PIGNEUR, Business Model Generation, Wiley, 2010

7. • What makes you different? Competitive advantage?
• One product/service, or a bundle?
• New/disruptive or ‘similar + added features’?
• Defined by… newness? Personalisation? Performance? Price? Expertise? etc
Image © OSTERWALDER & PIGNEUR, Business Model Generation, Wiley, 2010

8. The value proposition canvas
© Strategyzer AG

9. • Raise awareness
• Evaluate and buy
• Delivery and distribution
• After sales support
Image © OSTERWALDER & PIGNEUR, Business Model Generation, Wiley, 2010

10. • Personal service vs automated
• Retention and upselling
• Co-creation and community building
• Trust, referral
Image © OSTERWALDER & PIGNEUR, Business Model Generation, Wiley, 2010

11. • Transaction revenue?
• Recurring revenue?
• Commissions?
Image © OSTERWALDER & PIGNEUR, Business Model Generation, Wiley, 2010

12. • Physical
• Human
• Intellectual
• Financial
Image © OSTERWALDER & PIGNEUR, Business Model Generation, Wiley, 2010

13. © Chaharbaghi & Lynch, 1999

14. • Service / product design and development
• Solving problems for customers
• Systems management
Image © OSTERWALDER & PIGNEUR, Business Model Generation, Wiley, 2010

15. • Suppliers
• Joint venture partners
• Strategic (between competitors)
Image © OSTERWALDER & PIGNEUR, Business Model Generation, Wiley, 2010

16. • Cost-reduction vs value creation
• Fixed vs variable costs
• Economies of scale?
Image © OSTERWALDER & PIGNEUR, Business Model Generation, Wiley, 2010

17. Image © OSTERWALDER & PIGNEUR, Business Model Generation, Wiley, 2010

18. Business Model Canvas – Airbnb
Key Partners
• Bloggers
• Travel communities
• Legal institutions
• Investors
• Insurance companies
• Payment processors
Key Activities
• Creating technological
infrastructure & design
• Community
management
• Customer service
• Marketing
• Product development
• Management of
international payment
system
Value Propositions
• Trustworthy & reliable
platform
• Free membership
• 24/7 support team
• Easy to use
• Rental of unique
spaces
• Incredible range
• Personal
relationships, local
knowhow
• Cheaper than most
hotels
• Monetise space
• You set availability
• Property insurance
coverage
• Easy process
Customer
Relationships
• Support team 24/7
• Online & mobile
applications
Customer Segments
• Individual travelers
• People who want to
rent out their place
Key Resources
• Platform
• Brand
• Community of home
providers & travelers
• Data base with
accommodations
Channels
• Website
• Mobile app
• Social media
• Blog
• PR
• Word of mouth
Cost Structure
• Platform development & design
• Human resources
• Marketing
• Maintenance of the payment system
Revenue Streams
• Commission renters (6-12% of booking fee)
• Commission home/ apartments owners (3% of each
booked place)
http://www.businessmodelgeneration.com

22. Chris Moore
chris@specialistlanguagecourses.com
www.specialistlanguagecourses.com
Thoughts, questions, feedback?