Team Assignments - Sharing economies Flashcards
Four models of sharing economy platforms:
●Franchiser Model
=> (Tight Control, High Rivalry)
-Services are standardized to ensure efficiency and scalability
-Example: Uber
-Low-cost operations through automation
-Participants have limited control over pricing and service conditions
-Prize adjustments optimize demand-supply balance
Four models of sharing economy platforms:
●Principal Model
=> (Tight Control, Low Rivalry)
-Platform maintains strict control over service provision and participant
behaviour
-Pricing is fixed rather than fluctuating with demand-supply changes
-Participants compete less aggressively and receive predetermined
compensation
-Risk mitigation for customers by ensuring service quality
-Example: Handy
Four models of sharing economy platforms:
●Chaperone Model
=> (Loose Control, High Rivalry)
-Participants set their own prices but are influenced by platform
recommendations
-Competition among participants is high, leading to differentiated offerings
-Encourages innovation and differentiation among participant
-Provides diverse services, appealing to various customer preferences
-Creates long-term relationship with supply-side participants
-Example: Airbnb
Four models of sharing economy platforms:
●Gardener Model
=> (Loose Control, Low Rivalry)
-The platform has minimal control, relying on community norms
-Transactions often involve gift exchange or cost-sharing, reducing rivalry
-Participants interact cooperatively ⇒ fostering community engagement
-Example: Couchsurfing
Sharing economy
Sharing economy platforms differ from traditional marketplaces by integrating
organizational and market mechanisms innovatively
Characteristics of Sharing Economy Platforms:
-Access over ownership: Consumers increasingly prefer access-based consumption
-Peer-to-peer transactions: Platforms rely on trust and reputation systems to
facilitate transactions
-Utilization of idle resources: Assets and labor that would otherwise be unused aremonetized
Sharing economy platforms challenge incumbents firms through:
-Lower costs due to asset-light business models.
-Scalability through network effects (e.g., the more Airbnb hosts, the more
travelers join).
-Regulatory ambiguities, sometimes allowing them to bypass traditional regulations
Strategic Implications for Businesses (competing with sharing economies)
Five key lessons
- Understand the Strategic Intent of Sharing Economy Platforms
- Complement Product Portfolios with Services
- Access New Modes of Innovation (open innovation & crowdsourcing)
- Engage Consumers in Value Creation
- Optimize Coordination Mechanisms for Strategic Fit
