Strategies and Tools for Success with the Collaborative Economy for a Business Model.
- info Pivvot
- Mar 26
- 9 min read
Updated: Mar 27
Summary
In a constantly evolving business environment, understanding and applying effective business models is crucial for success. This article provides a comprehensive analysis of business models, addressing their definition, functioning, and the implementation of innovative tools to design and optimize business strategies. Through a detailed study of the Sharing Economy model, we will explore how this trend is transforming the interaction with resources and creating value in the modern economy.
Keywords: Collaborative economy, business models, value, market segment.
What is the collaborative economy?
The collaborative economy, or Sharing Economy, is an emerging business model based on the exchange and shared use of resources and services between individuals, rather than individual ownership. It uses digital platforms to connect providers with consumers, allowing for more efficient use of resources and promoting sustainable practices.
The collaborative economy has experienced exponential growth over the past two decades. The concept began to gain traction in the early 2000s, with initiatives like eBay and Craigslist, which allowed people to exchange goods and services online. However, it was from 2008 onwards, with the founding of companies like Airbnb and Uber, that the collaborative economy truly took off globally. Since then, this model has evolved and expanded into multiple sectors, including mobility, financing (with platforms like Kickstarter), and coworking (with spaces like WeWork). Today, the collaborative economy is a multibillion-dollar market, driven by technology and the growing preference of consumers for more flexible and sustainable options.
Types of Sharing Economy.
The collaborative economy encompasses a variety of approaches and models that allow the exchange of goods, services, and knowledge between individuals. These types of exchanges can vary in their form and purpose, but they all share the goal of maximizing available resources. Below are the main types of the collaborative economy.
Collaborative consumption: Exchange of goods and services between individuals.
Collaborative production: Collective contribution in the creation of products.
Open knowledge: Dissemination of information and knowledge without copyright restrictions.
Collaborative finance: Collective financing systems (crowdfunding) such as donations, microloans, and loans to develop projects.
Characteristics and Benefits.
The success of the collaborative economy is based on a series of characteristics that make it efficient and attractive both for users and for the platforms that facilitate it. These characteristics not only redefine the relationship between people and products but also provide sustainable and economic benefits. Below are the main features of this model.
It is based on the efficiency and reputation of users..
It promotes the use of goods and services only when they are truly needed.
The exchange model is often P2P (peer-to-peer) or C2C (consumer-to-consumer).
It creates new markets or virtual spaces where collaboration is established.
It focuses on access rather than ownership of objects.
It generates network interactions with multiple decentralized people, instead of relying on a single company.
It blurs the line between professional and personal.
It leverages underutilized resources, promoting sustainability.
It reduces expenses by avoiding the use of disposable or single-use items.
Popular forms of collaborative consumption.
With the rise of digital platforms, several forms of collaborative consumption have gained popularity, transforming traditional sectors such as transportation, accommodation, and commerce. These modalities allow users to access products and services in a flexible and efficient manner. Here are some of the most popular forms of collaborative consumption that are leading this transformation.
Hospitality exchange: Couchsurfing.
Accommodation for house and pet sitting: Housesitting.
Vehicle rental with driver: Uber.
Accommodation for work exchange: Wwoof.
Accommodation rental: Airbnb.
Carpooling to the same destination: BlaBlaCar.
Restaurant - delivery connection: Rappi.
Exchange or loan of second-hand items: GoTrendier (clothing and textiles).
What is a Business Model in the Collaborative Economy?
A business model in the collaborative economy is the foundation upon which platforms that facilitate the exchange and shared use of goods and services between people operate. This model defines how a collaborative economy company creates, delivers, and captures value, focusing on shared access rather than ownership. Platforms like Airbnb or Uber use this approach to connect providers and consumers, generating revenue through commissions or subscriptions while optimizing the efficiency of available resources.
Imagine a collaborative economy platform like Airbnb: beyond offering accommodation, it must have a clear strategy to attract both hosts and users, ensure service safety and quality, and maximize the shared experience. A business model in this context answers key questions: What problem does it solve by sharing resources? How does it differ from traditional models? How will it generate income while promoting sustainability?
Tools for Designing Business Models in the Collaborative Economy
To design a business model in the collaborative economy, it is essential to use tools that allow for visualizing the interactions between users and optimizing the exchange processes. Among the most effective tools are the Business Model Canvas, which helps structure all the key elements of the collaborative business, and Porter's Five Forces Model, which analyzes how the collaborative economy challenges and transforms traditional industries by creating new forms of competition and collaboration between individuals.
Tool 1: Business Model Canvas and the Collaborative Economy
The Business Model Canvas, developed by Alexander Osterwalder and Yves Pigneur, is a fundamental tool for designing and analyzing business models, and it is particularly useful in the context of the collaborative economy. Each of its nine blocks provides key insights to identify opportunities and challenges:
Value Proposition: It helps define how your offering in the collaborative economy creates unique value for users. For example, a shared transportation service can stand out for its accessibility and cost reduction for users.
Customer Segment: It helps identify which customer groups are most interested in sharing resources and how their needs can be met more effectively.
Channels: It helps identify the digital platforms and other channels needed to connect service providers with consumers.
Customer Relationships: It defines how to build and maintain trust-based relationships in a business model that heavily relies on reputation and reliability.
Revenue Streams: It allows exploring different monetization methods, such as transaction commissions, subscriptions, or service fees, tailored to a Sharing Economy model.
Key Resources: Identifies the essential resources needed to operate in this model, such as platform technology, support staff, and user networks.
Key Activities: Details the crucial activities for managing and scaling the business, such as platform maintenance and managing relationships with users.
Key Partners: Highlights the strategic partnerships needed, such as collaborations with service providers or technology platforms.
Cost Structure: Helps understand the costs associated with operating and scaling the business, enabling efficient management in a competitive environment.
Tool 2: Porter's Five Forces Model and the Collaborative Economy
Porter's Five Forces Model, developed by Michael E. Porter, provides a framework for analyzing the competitive environment and can be particularly useful for identifying opportunities in the collaborative economy:
Elaboración propia
Rivalry Among Competitors: Evaluates the level of competition in the collaborative economy sector. Understanding the intensity of rivalry will allow you to differentiate your offering and find less saturated market niches.
Threat of New Entrants: Analyzes the barriers to entry in the collaborative economy market. Identifying these barriers helps develop strategies to protect your business from new competitors and explore opportunities in areas with higher barriers.
Bargaining Power of Suppliers: Examines the influence of service providers on prices and quality. In the collaborative economy, understanding how suppliers can affect your business model will help you negotiate better terms and ensure service quality.
Bargaining Power of Customers: Considers how customers can influence your business model. In a Sharing Economy environment, consumers have access to many alternatives, so offering added value is crucial to attract and retain customers.
Threat of Substitute Products or Services: Identifies the availability of alternatives that could replace your offering. Understanding the threats of substitutes will allow you to adjust your value proposition and find innovative ways to differentiate yourself.
To design an efficient business model in the collaborative economy, tools like the Business Model Canvas and Porter's Five Forces Model allow not only to structure and analyze operations but also to anticipate the specific challenges of this sector.
Challenges of the Collaborative Economy
One of the main challenges that these tools can help address is the labor precarization faced by many workers on platforms like Uber and Didi, who often lack formal benefits. Social issues also arise, such as gentrification, caused by the growth of platforms like Airbnb.
Relevant Statistics
Despite these challenges, the statistics demonstrate the significant impact and acceptance of the collaborative economy, highlighting its influence and growing popularity. Here are some key data points:
Impact on Traffic: The use of shared transportation services like Uber and Lyft has reduced the number of vehicles in San Francisco by 10-15%, helping to ease traffic congestion.
Your own elaboration
Consumer Preferences: 72% of consumers prefer companies that operate in a sustainable and collaborative manner, reflecting a shift toward more responsible business models.
Your own elaboration
The Sharing Economy contributes between 0.2% and 0.3% of the local GDP. It was also concluded that at least 200,000 workers are drivers or couriers for platforms like Uber or Rappi, and the majority have an education.
Source: Muñoz, A. R. (8 septiembre, 2023).
Currently, in Latin America, at least 70% of people are willing to use a shared service or application.
Your own elaboration
Thus, the design of business models must integrate solutions that address both sustainability and social impact, as well as growth opportunities and technological improvement, ensuring that the collaborative economy continues to transform industries in a responsible and efficient manner.
Success and Failure Cases in the Collaborative Economy
Examining real cases provides valuable lessons for entrepreneurs interested in the collaborative economy.
Success Cases
Airbnb: Founded in 2008, Airbnb has revolutionized the hospitality industry by allowing property owners to rent their spaces globally. With over 7 million listings, it has shown how the collaborative economy can transform traditional sectors.
Uber: Launched in 2009, Uber has redefined urban mobility. Its shared transportation model has been highly successful, reaching a valuation of over $60 billion and demonstrating the potential impact of the collaborative economy on transportation.
Failure Cases
Quirky: Despite promising to revolutionize innovation through crowdfunding, Quirky faced execution and management issues, leading to its bankruptcy in 2015.
Homejoy: The home cleaning platform failed to maintain a sustainable model and shut down in 2015 due to legal and financial issues.
These examples highlight the importance of solid execution and efficient management for success in the collaborative economy.
Practical Guide: Design Your Own Business Model in the Collaborative Economy
The collaborative economy is transforming the way we interact with resources and services. If you're interested in creating a business model within this innovative paradigm, follow these seven practical steps to define and build your proposal:
Define Your Value Proposition
Reflect on the problem that your shared service or platform will solve. Consider how your offering will facilitate access to resources, reduce costs, or provide unique benefits to users. In the collaborative economy, your proposition should stand out for its ability to offer value in a collaborative and sustainable way.
Identify Your Customer Segment
Determine who your ideal users are and what specific needs they have. In the context of the collaborative economy, it is crucial to understand the profiles of consumers willing to engage in the exchange of goods or services. Research their preferences and behaviors to tailor your offering effectively.
Design Your Distribution Channels
Decide how you will deliver your service or connect users. In the collaborative economy, channels are often digital platforms such as mobile apps or websites that facilitate the exchange. Ensure that your channels are accessible, easy to use, and effective in connecting providers and consumers.
Establish Your Revenue Streams
Define how you will generate income within this model. In the collaborative economy, revenue may come from transaction commissions, membership fees, subscriptions, or even advertising. Consider which monetization model best aligns with your value proposition and the nature of the shared service.
Determine Your Key Resources and Activities
Identify the essential resources and activities required to operate your Sharing Economy platform. This may include platform technology, support staff, marketing, and quality management systems. Ensure you have the right resources in place to ensure efficient and secure operation.
Form Strategic Partnerships
Consider alliances and partners that can enhance your business model. In the collaborative economy, partnerships with service providers, technology partners, and other key players can be vital for expanding your network and improving your offering. Seek partnerships that strengthen your value proposition and help you achieve your goals.
Plan Your Cost Structure
Establish the main costs associated with running your platform and how you will manage them. Include operational costs such as platform maintenance, customer support, and marketing. Develop a strategy for managing these costs efficiently and maintaining business sustainability
Implementing these steps will help you build a robust business model tailored to the Sharing Economy, maximizing shared value and addressing the specific opportunities and challenges of the collaborative market.
Conclusion
Exploring and designing innovative business models is essential for entrepreneurship. The collaborative economy presents a dynamic framework to maximize resource use and create value collaboratively. By applying tools such as the Business Model Canvas and Porter's Five Forces Model, you will be better prepared to develop effective strategies and tackle the challenges of the modern business environment.
Authors:
References
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Porter, ME (1979). Cómo las fuerzas competitivas dan forma a la estrategia. Revisión de negocios de Harvard.
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