Airpair Institution: Business Model and Success Factors

This document provides an overview of Airpair Institution, a services providing company that connects customers with programming experts. It discusses the business model, including customer segments, value proposition, distribution channels, and customer relationships. The document also explores the critical success factors for the organization and provides recommendations for improvement.

Running head: AIRPAIR INSTITUTION 1
Airpair institution
Students’ name
Affiliation

AIRPAIR INSTITUTION
2
Contents
Introduction......................................................................................................................................2
Business model................................................................................................................................3
Building blocks................................................................................................................................3
Customer segment........................................................................................................................4
Value proposition.........................................................................................................................4
Distribution and channels.............................................................................................................5
Customer relationships.................................................................................................................5
Revenue streams..........................................................................................................................5
Key resources...............................................................................................................................5
Key activities................................................................................................................................6
Key partnership............................................................................................................................7
Cost structure...............................................................................................................................7
Interrelationships.............................................................................................................................7
Critical success factors....................................................................................................................8
Conclusion.......................................................................................................................................9
Recommendation.............................................................................................................................9
References........................................................................................................................................9
Appendices....................................................................................................................................11

AIRPAIR INSTITUTION
3
Airpair institution
Introduction
Airpair institution is a services providing company which is mandated with connecting
customers who need the help of any programming issues in the market. Airpair is an institution
that was founded by Jonathon Krasner and deals with programming allowing the programmers to
help companies to realize their goals. They also help individuals to develop the software and
transfer knowledge to people the organization, therefore, offers high skilled programming
services to companies that are stuck with their programming tasks (Sveinung Jørgensen, 2018).
The main business idea is to help the corporations to develop the skills that are missing in the
organization to realize the desired objective. Historically, Airpair Company was launched around
March 2013 by its founder Jonathon Kresner who comes from Australia. Previously Jonathan
was working alone fulltime but he hired three people started working alongside him as a
developer.
Business model
Airpair uses the simple business model acts as an intermediary through linking the startup
businesses with the expert developers. The organization helps the startups in the field of
technology to launch their services faster in the market through the provision of education which
is done on an online platform (Adam J. Bock, 2018). The organization has been described as a
digital matchmaker where the institution links the organization of individual to their desired
objective (Thierry Verstraete, 2016). When an organization needs to seek programming services

AIRPAIR INSTITUTION
4
airpair helps the organization to meet the organization that will provide the experts who will
provide the service.
Building blocks
Osterwalder & Pigneur’s (2010) nine building blocks approach. In Australia, the AirPair has
successful operated for more than five years. Its success is contributed by both external and
internal factors which creates conducive environment for the business operations in the long run.
To understand this growth and success well we are going to use AirPair business model using
nine building blocks which includes customer segments, value propositions, channels, customer
relationships, revenue streams, key resources, key activities, key partnerships and cost structure
(Gaul, 2016).
Customer segment
The customer segment served by the business includes individuals and organizations that are
involved in the programming systems. The customer segment dealing with this institution is well
developed and has specific needs to be addressed by the institution. As an intermediary business,
the organization deals with individuals and groups as well as organizations that will be interested
in the services. The table below shows the number of customers the company serves from
organization and individuals
Airpair company
Customers from Individuals Organizations
Sex of customers Male Female Male Female
Number of
percentage
86% 73% 78% 63%

AIRPAIR INSTITUTION
5
served
Income generated 23% of the total income 16% of the total income
Value proposition
The organization promises excellence in the services provided in the institution and to match the
organization with the best institutions that will address the needs stated by the institution to the
required standards. The client will get the value for their investment and the success of the
institution is among the primary concerns of the individuals in the organization through
maintenances of performance excellence in the activities at all times.
Distribution and channels
The services are distributed through the online platform which allows for reaching to as many
clients as possible within the shortest time possible. The institution also offers personal services
to the organization that request for them and the request is done through direct mailing.
Customer relationships
The information from the client is taken and used to determine the future defection of the
organization. Successful institutions tend to develop positive customer relationship programs
which are achieved through proper service delivery to the patients and proper public relations
program that will ensure the institution is successful (Adam J. Bock, 2018).
Revenue streams
The organization has been able to raise its revenue significantly with an annual income of up to $
1 million. Since its initiation, the revenue has been on the increase steadily and to date, the

AIRPAIR INSTITUTION
6
amount is close to the competitor's revenue earned each year. Most of the revenue is earned from
the orders placed by other companies which have become loyal to the institution.
Income statement 2015 ($’000) 2014 ($’000)
AirPair turn Revenue 21,450 19790
Gross Profit 7,985 7,100
Profit before tax 2,439 2,090
Key resources
There are a number of resources that will be required to achieve the desired goals. They include
the skilled human resource to rum the operations of the organization. A pool of experts who will
constitute the workforce and who will be hired by the institutions to determine the quality of
service given to the institution. There will also need to incorporate the information technology
infrastructure to enhance communication and allow for online service delivery.
Ranking Company Leadership CEO
Score
No of
employees
Total
Funding
Revenue
generated
1 AirPair Johathon
(Founder
and also the
CEO)
66/100 10 $1M $<1M
2 Hack.hands
()
Ed Roma
CEO
71/100 20 $175K $3M
3 CodeHs Jeremy
Keeshin Co-
70/100 32 $4.2M $25.8M

AIRPAIR INSTITUTION
7
founder and
CEO
4 Code121 Staefano
Spada
70/100 3 ----- input
5 Plato CEO --- 50 $3.3 $1.5M
Key activities
achievement of the organizations objective and to deliver the clients need the organization
engages in a number of activities including marketing the product sourcing the organization's
resources and their management to ensure that the institution continues to operate profitably
without many challenges. Institutions need to develop strategies that are focused on the objective
and drive the factor towers achievement of their objectives.
Key partnership
The organization has joined many partners to expand the operations, for instance, it has
expanded its partnership to involve other organizations such as strip and twirl among other
companies that enable it to advance its services. Through the partnership, the organization has
been able to utilize the resources provided by the companies to boost their operations.
Cost structure
The costs included in the organization include marketing cost, internet costs, salaries and wages
as well as the value added cost. There will also be a need for inclusion of the cost of production
of the service.
Income statement 2015 ($’000) 2014 ($’000)
Cost of sales 13,465 12,680

AIRPAIR INSTITUTION
8
Financial costs 156 120
Distribution costs 3,210 2,985
Tax expenses 746 580
Interrelationships
all the nine blocks identified are interrelated with each other in different ways, for instance, the
customer service is linked to the internal operations of the organization including the services
offered, the different aspects of technology the activities that are undertaken in each section of
the organization to realize the desired goals (Anne Persson, 2015). The different aspects involved
in the organization also are important which include the cost of operation which informs the
stakeholders who are the key partners of the viability of their business and how to improve the
institution. Improvement of business is depended on how the organization operates its internal
operations in the organization.
Critical success factors
In order for airpair to succeed in this directive, several issues need to be put into consideration.
The main areas of concerns include the need to uphold positive relations with the customers and
to direct important resources in the right direction to serve the clients in the organization
(Ghazali, Ahmad, & Zakaria, 2015). There is also a need to ensure that the organization
maintains strong customer service and serve the segment in different proportions. There is also a
need to ensure that the customer service becomes better and does not undermine the
organizations needs to succeed in the future (Falcone, Halbruner, & Vincellete).

AIRPAIR INSTITUTION
9
Apart from ensuring that the institution provides strong customer service, there is a need for a
sound financial management system to be set in place to manage the revenue (Vesala-Varttala,
2010). The institution generates sufficient revenue which is slightly below the amount generated
by the competitors and therefore there is need to ensure that the amount reaches the same level
with the competitors in order to remain equally competitive in the market.
Success, on the other hand, will be based on the management of the finances and the institution
to ensure that they operate in the best conditions and guarantee proper action towards a positive
realization in the institution (Rad & Levin, 2014). There is also a need for the organization to
ensure that they try to maintain more loyal customers to realize positive feedback.
Conclusion
The factors that may impact on the ability of the organization to meet its goals include proper
marketing system, the commitment and motivational level of the employees, the existing
goodwill of the organization about the continued high-quality services, improvement of the
customer relations (Cerullo & Cerullo, 2014). The organization, therefore, need to have a proper
revenue management procedure to ensure that they meet the desired needs of each individual
interested in the organization.
Recommendation
There are possible changes that would be necessary for the organization in order to achieve the
desired objective. For instance, I would change the method of marketing used from the online
marketing to a more involving method such as direct marketing which achieves more in
convincing the clients to engage the program in a more convenient way (Rad & Levin, 2014).

AIRPAIR INSTITUTION
10
There is also a need to ensure that the number of employees in the institution is increased to
ensure that the services in the organization are improved significantly.
References
Adam J. Bock, . G. (2018). The business model book : design, build and adapt business ideas
that thrive. Harlow, England: Pearson Education Limited.
Al-Fadly, A. (2016). Development and Implementation of E-Business Strategies Managed and
Applied by Kuwait Airways. International Journal of Economics and Finance, 41-49.
doi:10.5539/ijef.v8n9p41
Anne Persson, . S. (2015). Advanced Information Systems Engineering Workshops Caise 2015
International Workshops. New York : Springer-Verlag New York Inc .
Cerullo, V., & Cerullo, M. J. (2014). Business continuity planning: a comprehensive approach.
ISM journal, 70-81. Retrieved from
https://pdfs.semanticscholar.org/2a84/d37c32f84e9b826547fdce2ef56961e73c84.pdf
Dolnicar, S., Grün, B., & Leisch, F. (2018). Market Segmentation Analysis. Singapore: Springer
Open.
Don Peppers, . R. (2016). Managing Customer Relationships A Strategic Framework. Michigan:
Somerset John Wiley & Sons Ann Arbor.

AIRPAIR INSTITUTION
11
Falcone, N., Halbruner, E., & Vincellete, J. (n.d.). Groupon, inc, Daiky deak or lasting success.
general issues in strategic management, 1-19.
Gaul, C. (2016). The difference between successful and unsuccessful franchisees : an insight into
German franchise networks. Advances in business related scientific research journal,
7(1), 44-62.
Ghazali, R., Ahmad, M. N., & Zakaria, N. H. (2015). The mediating role of knowledge
integration in effect of leadership styles on enterprise systems success. Journal of
enterprise information management, 20-22.
Goos, G., Hartmanis, J., Leeuwen, J. v., Connor, R., & Mendelzon, A. (2013). Research Issues
in Structured and Semistructured Database Programming. Berlin: Heidelberg Springer
Berlin Heidelberg .
Howell, M. T. (2012). Critical success factors simplified : implementing the powerful drivers of
dramatic business improvement. Boca Raton [Fla.]: CRC Press.
Persson, A., Stirna, J., & Aggestam, L. (2016). How to Disseminate Professional Knowledge in
Healthcare. Newyork: Journal of Cases on Information Technology.
Rad, P. F., & Levin, G. (2014). Achieving Project Management Success Using Virtual Teams.
Boca Raton: J. Ross Publishing, Incorporated.
Sveinung Jørgensen, . J. (2018). RESTART Sustainable Business Model Innovation. London:
Cham Springer International Publishing Palgrave Macmillan.
Thierry Verstraete, . J.-L. (2016). A business model for entrepreneurship. Cheltenham, UK:
Edward Elgar.

AIRPAIR INSTITUTION
12
Vesala-Varttala, T. (2010). CHALLENGES AND SUCCESSES IN MULTICULTURAL
CORPORATE COMMUNICATION. HAAGA-HELIA , 82-84.
Voigt, C. (2013). Building Blocks. [Place of publication not identified]: Atheneum Books for
Young Readers.
Appendices
Customers segment
Airpair company
Customers from Individuals Organizations
Sex of customers Male Female Male Female
Number of
percentage
served
86% 73% 78% 63%
Income generated 23% of the total income 16% of the total income
Revenue stream
Income statement 2015 ($’000) 2014 ($’000)
AirPair turn Revenue 21,450 19790
Gross Profit 7,985 7,100
Profit before tax 2,439 2,090

AIRPAIR INSTITUTION
13
Key resources
Ranking Company Leadership CEO
Score
No of
employees
Total
Funding
Revenue
generated
1 AirPair Johathon
(Founder
and also the
CEO)
66/100 10 $1M $<1M
2 Hack.hands
()
Ed Roma
CEO
71/100 20 $175K $3M
3 CodeHs Jeremy
Keeshin Co-
founder and
CEO
70/100 32 $4.2M $25.8M
4 Code121 Staefano
Spada
70/100 3 ----- input
5 Plato CEO --- 50 $3.3 $1.5M
Cost structure
Income statement 2015 ($’000) 2014 ($’000)
Cost of sales 13,465 12,680
Financial costs 156 120
Distribution costs 3,210 2,985
Tax expenses 746 580

AIRPAIR INSTITUTION
14