Case Study assignment 2 PDF

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Case Study assignmnt for module 2...

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Case 2 Jessica Scott 7-8-18 MTKG 760 Dr. Nelson A. Barber

Airbnb must figure the best way to grow its market before the 2020 Olympics in Tokyo.The Olympics bring in an enormous number of tourists, so Airbnb will need to dominate the market to make as much profit as possible off the tourists. Their growth strategy has been to localize each market, yet, the Japanese market had some complications. The large issue for Airbnb’s management is being able to expand its market to the local community of Japan. 1. How should Airbnb partner with the government to be regulated? To be regulated, Airbnb should partner with government and follow the National Strategic Special Zone Law. This system was developed to increase economic growth by putting less focus on regulations in certain areas. This law was made to create international competition in certain areas of Japan. This in the end would help promote Airbnb because this law would help deregulate hotel businesses. 2. Should Airbnb partner with its competitors such as Tomareru/Ryokan (Japanese style inn) to enter the market? Airbnb’s competitor includes Tomareru/Ryokan which is a Japanese style inn. I think it would be in Airbnbs best interest to try and partner up with these locations. This partnership would end up leading to connections with the government because of their ties with Rakuten. Rakuten is a global online marketplace in over 29 countries and 100 million users. This connection would end up helping reduce the regulations on hotel business and international companies as well. 3. How should Airbnb brand itself for Japan? Airbnb should brand themselves for Japan as a home away from home. When people typically think about traveling around the world they think about high flight, hotel and travel expenses. Airbnb can market and attract people to Japan using their low-cost model that will offset the high hotel costs that people typically steer away from. 4. How can Airbnb educate the Japanese about its services and increase its listings? Airbnb can educate the Japanese about its services and increase its listings by demonstrating more in depth their rules and procedures that one must follow. As well as the process that one would have to go through to be a guest of an Airbnb. Lastly, how potential guests how Airbnb’s additional services can help to improve their home owners experience. These services include tax/financial reports of the property and cleaning services. If it were up to me, I feel as if Japan’s best bet would be to gain connections and develop their market on a greater scale. When looking at the cultural regulatory background, it did not seem easy to be able to make a successful entrance into the Japanese market. Airbnb does have the potential to dominate the Japanese market, with gained business connections through local

community partnerships. If there were to be a local partnership that would knock the risk of the competition, as well as make the market for hotel businesses less regulated. This would then open a door for enormous growth just in time for the Olympics....