Airbnb Case - Exploring Strategy PDF

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Exploring Strategy Study Case about AirBnb...

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Airbnb Case Study 1)The strategy statement we’d propose is: “Our goal is to provide not only a sense of belonging but also deliver local experiences directly to the customer. Because it’s not about where you stay, it’s about what you do while you’re there.” 2) Here you can see the analysis of the three horizons for the Airbnb company The first horizon is the renting of private apartments and homes to individuals to stay in during a set period of time. In other words, functioning as a sort of hotel service. The second horizon is the further integration into the contemporary sharing culture, working with other apps such as Easy car and Girl Meets Dress to bring in new users to increase the user base. And also they introduced Airbnb Neighborhoods and local lounges, partnering with local coffee shops that can offer free Wi-Fi and other things. They also acquired a small start-up that connects guests with locals who can answer their questions. The third horizon, or long-term goals, is the business of delivering experiences to the customers who are currently renting out a property. This is the transition service from a hotel service to a lifestyle brand. 3) Here is the identified key positioning issues for Airbnb and their relative importance. The macro issues are primarily based around legislation and regulations about the legality of renting properties in certain localities such as NYC or San Francisco (San Francisco hotels were having to slash prices to protect their occupancy rates. Incumbents in the industry fought back by arguing Airbnb were dangerous and unsafe in terms of health and safety and quality assurance as it was unregulated. Although one must have a permit to rent for under 30 days, San Francisco residents were still illegally listing personal homes and apartments. Similar problems were being experienced in New York where an ‘illegal hotel law’ was passed preventing people from subletting apartments for less than 29 days. There was also a question mark over hosts not paying tax on earnings.) In the industry environment, there are new competitors such as Expedia, Roomorama, HouseTrip, Flipkey and Travel Advisor being created to compete with Airbnb. Strategic capability is very strong as it was the hottest IPO of 2016 and has massive investment. Money is not a problem. Weaknesses is lack of control, such as the recent spate of people filming porn movies in people’s houses. The stakeholders are the people who own shares in the company and the people who rent their empty properties out for an income. About the culture...They say their culture is “elephants, dead fish and vomit,” which refer to problems nobody wants to talk about, problems they can’t get over, and people speaking their mind. The company has a ground control staff to make the culture come alive with things like birthday parties and baby showers. They also have been rigorous recruitment policy to ensure no conservative voices challenge their group think.

4) At the corporate level, they should focus more on accountability and liability concerns regarding the people who rent properties via the website. At the business level, try to improve the profitability of the primary product by marketing more lifestyle and less hotel. The functional strategy should be tighter control over who rents out properties and intent to avoid fraud and ensure a positive experience. 5) They evaluated their strategic performance and made the appropriate changes via their strategic development process to help expand, such as inventing the mobile app and streamlining it. They worked to increase responsibility and the public image. They organized the company around a culture based on feeling a sense of belonging and used this to push forward with their successful implementation of their strategic processes which derived their goals for their strategic evaluation.

The Macro Environment consists of broad environmental that impact multiple industries, sectors and organizations. We have here environmental participants with who interactions are primary economic. Pricing and innovation are key strategies here...