Business Case Analysis: Airbnb (write the name of the

company)
Main question/s (write here the general question/s assigned by the instructor to your team)
What key factors may determine the success of Airbnb?
________________________________________________________________________
___________________________

(Eg: Indra Nooyi has employed you as a consultant to assess PepsiCo’s diversified
business portfolio in 2014 and to make recommendations as to what actions PepsiCo’s top
management team should now take to increase shareholder value to new highs. Your
report should contain a 2–3 page executive summary of your recommendations, which are
fully supported by the use the concepts and analytical tools presented in Chapter 8.
Supplement your executive summary with additional charts and tables as needed to
support your analysis and recommendations. It is strongly suggested that you follow the
analytical steps covered in Chapter 8 in developing your paper. Your supporting exhibits
and executive summary of recommendations will be given equal weighting in your grade
for the written assignment.)

Specific questions assigned and your name

​ hat is PepsiCo’s corporate strategy? Briefly identify the business strategies that PepsiCo is
Question 1 (​eg: W
using in each of its consumer business segments in 2014​ – ​Analyzed by Manuel - n​ ame​ – De Nicola - ​surname -)

What key factors may determine the success of

Airbnb?​__________________________________ Analyzed by Gemma - ​name – Garralon Lorite -
surname

Question 2

What are the key elements of Airbnb’s strategy? Which one of the five generic
competitive

strategies we are going to discuss in next unit 3 (Chapter 5) most closely

approximates the

competitive approach that Airbnb is employing?

Analyzed by Gemma - ​name​ – Garralon Lorite - ​surname

Question 3__________________________________ Analyzed by _____ - ​name – _____ -

surname

1
Question 4__________________________________ Analyzed by _____ - ​name – _____ -
surname

Question 5__________________________________ Analyzed by _____ - ​name – _____ -

surname

Question … __________________________________ Analyzed by _____ - ​name – _____ -

surname

ND

QUESTION N.1
(Write the question or the problem and your name)

What key factors may determine the success of Airbnb​ ? Gemma Garralon Lorite

Textbook, articles and additional sources

Textbook

N. Topic Chapter Page

1.
2.
3.
4.
….
…

Scientific articles/books

N. Title Author Journal Year, number Link

1.
2.
3.

2
4.
….
…

Additional sources (company disclosures, web pages, video etc)

N. Title Author Journ Year, Link

al numbe
r
1. How Harriet - May 5 https://www.theguardian.com/technology/2019/m
Airbnb Sherwood 2019 homelessness-renting-housing-accommodation-s
took
ties-travel-leisure
over
the
world
2.
3.
4.
…
.
…

3
 ANSWER AND RECOMMENDATIONS N.1
Write your answer and be critical not descriptive. ​Quote the references you listed in the
previous section to let the reader understand how you used them to prepare the answer. Moreover,
that will allow you to justify and reinforce your as well as to actualize problems and solutions to the
current scenario (that could be different than the one descripted in the reading).

The last decade, the middle-class society has grown so fast over the world. People have
been able to afford things and experiences that they couldn’t before. This fact doesn’t
mean that they started to invest in luxury services or products, but to start living and
buying new kind of things such as travelling.

The Californian company ​Airbnb was born in 2008 inspired by another company named
Zipcar whose is about sharing your car for travelling. The brand originally from San
Francisco took this sharing model business to a whole new level, to encourage people to
share their own houses with strangers for a certain time.

The main factor of Airbnb’s is trust. It is demonstrated that the more different somebody is,
the less we trust them. The company beats this fact with reviews. Starting from 3 reviews
in a profile, people start trusting the host and that’s how they beat similarity with a good
reputation.

Airbnb’s developed a more efficiently a platform (website) to share than previous

companies did. They digitized trust as no one did before, a non-easy process that needs
time to be achieved. However, it should be noted that they have very few numbers of
competitors. Its main rival is all the hotels, who at the same time, plays another kind of
business, making Airbnb have advantage above all the tourism services and
accommodations.

Another point that has helped Airbnb’s business success has been social media. Social
networks have helped them to go mainstream all over the world. Nowadays, people are
more use to share personal things than before and sharing your own home it is not as
crazy as it might have seemed a decade ago.

A third fact to focus on its triumph is how they help renters to reduce the costs of their
houses by sharing it. It is an easy way to make money, a point that easily attracts people
to participate. Also, as a traveler, renting an Airbnb is usually a cheaper option rather than
go to a hotel room, where you can stay longer because of the low price and experience a
better accommodation by having a flat or house all by yourself.

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As a conclusion, Airbnb owes part of its ​prosperousness to the globalization. People relate
to the world more than ever were before. Individuals like welcoming other individuals and
they certainly like to feel welcome. Its business model about sharing is refreshing and
innovative. They bet for human trust and changed in a way into marketing. If you have a
place, you can become a host. If you have internet connection, you can rent a place to
stay anywhere in the world. Easy as that, Airbnb got a great idea focused on business and
succeeded.

IND

QUESTION N.2
(Write the question or the problem)

What are the key elements of Airbnb’s strategy? Which one of the five generic
competitive

strategies we are going to discuss in next unit 3 (Chapter 5) most closely

approximates the

competitive approach that Airbnb is employing?

Textbook, articles and additional sources

Textbook

N. Topic Chapter Page

1.
2.
3.
4.
….
…

Scientific articles/books

N. Title Author Journa Year, number Link

1.
2.
3.
4.
….

5
…

Additional sources (company disclosures, web pages, video etc)

N. Title Author Journal Year, Link

number
1. Airbnb Aidan - January https://www.essay48.com/case/5120-
Gereneric Butler 10 Airbnb-Porters-Generic-Strategies
Strategies 2018
2.
3.
4.

ANSWER AND RECOMMENDATIONS N.2

​ uote the references you listed in the
Write your answer and be critical not descriptive. Q
previous section to let the reader understand how you used them to prepare the answer. Moreover,
that will allow you to justify and reinforce your as well as to actualize problems and solutions to the
current scenario (that could be different than the one descripted in the reading).

The main point of Airbnb’s strategy is connecting people based on trust and promises. The
Californian company has revolutionized hospitality and promoted the community feeling
with individuals from different places.

In Airbnb’s case, its strategy is a mix of three strategies, these are a focused low-cost
provider, a focused differentiation strategy and a broad differentiation strategy. In the
following paragraphs, I am going to explain the reason why of every strategy.

First of all, the company started a business in a market sector when no other brand did
before. They took advantage of the niche market about renting flats and houses for
tourism. Its services agree with their consumer tastes and requirements better than their
rivals, such as hotels and hostels. Airbnb’s target, the millennials, want to live like a local
when they travel and the American company offers that to them better than its rivals.

This last point drives us to the second strategy applied by the organization, a focused
low-cost strategy. What they offer is a good service at a reasonable price for the target.
Usually cheaper than the hotels, Airbnb’s prices are very competitive. Their target can
experience a great time and experience for a great price. Millennials are known for wanting
to travel and experience as much as possible for a low fee and they got this when they use
Airbnb for travelling.

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Last but not least, Airbnb has always wanted to bet for differentiating itself from any
competence while at the same time, they have got a competitive advantage for offering an
innovative service. They have studied their target’s interest and they have offered what
they wanted in a different but attractive and available alternative way to them. A broad
differentiation strategy requires a big investment in marketing and the American
organization didn’t hesitate to invest​ in that and advertising to succeed.

As a conclusion, Airbnb’s uniqueness has been its better advantage to get a leadership
position in the market. They have increased their target over the years without exerting
significant efforts. The company born in San Francisco is global with a strong presence
over the world, a factor that has provided a strong edge over its rivals in the global tourism
market. The right combination of these three strategies had led Airbnb to achieve its main
goals.