Embedded Files
Pattern description
Pattern description
This model is based on a cooperation that specializes in mediating between individuals belonging to an homogeneous group. It is often abbreviated as P2P. The company offers a meeting point, i.e., an online database and communication service that connects these individuals (these could include offering personal objects for rent, providing certain products or services, or the sharing of information and experiences).
Inventive problems
Inventive problems
It is necessary to invest in new products development in order to create the new products.
There is no need to invest in developing new products in order to reduce costs.
The assortment should be broad to attract more buyers.
The assortment should be narrow to reduce production costs.
The customers should visit as few places as possible (it's the best - one place) to contact suppliers, so as not to waste time on visiting companies or stores.
The customers should visit many different places (shops, companies) to find the most suitable suppliers.
The company should be large and have a complex structure to perform a large number of diverse operations for the development, production, and delivery of a complex product to the customers.
The company should be small and have a simple structure in order to:
- reduce the variety and complexity of the company activities;
- focus on a small number of core operations;
- have a small stuff;
- minimize the cost of development, production, sale, and delivery of products to customers.
Application examples
Application examples
Online auction site eBay is one of the pioneers of the Peer to Peer model, giving people in over 30 countries an opportunity to auction off items they no longer need. Globally, eBay handles over 12 million auctions a day.
American company LinkedIn provides the largest social network for business professionals. Like Facebook, users on LinkedIn can create personal profiles with a business-oriented focus on the website free of charge. Company representatives are able to seek professionals for hire and job seekers browse job opportunities. Of course, users within the Peer to Peer network communicate among themselves and build relationships. The website is easy to handle and enables users to display a comprehensive profile and expand their network of professional contacts.
Airbnb is a privately owned company based in San Francisco offering users (‘hosts’) a means to rent their living space, private rooms, apartments, castles, boats and other assets to a wide range of people within a Peer to Peer community. Logged on to its conveniently configured website, users of Airbnb can present their living space or property for short-term rent to a community of travellers and other people looking for affordable accommodation. A rating system has been introduced for both the accommodation facilities and guests to prevent fraud and misrepresentations. Airbnb’s primary revenue is raised through service fees on bookings (between 6 and 12 per cent). Other sources of revenue include guests’ credit card processing fees.
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