Unit 1 Airbnb Case Study
Unit 1 Airbnb Case Study
Strategy Statement:
“Our goal is to provide a place that feels like home, anywhere, and at any time. To provide a sense of
belonging, while delivering the best local experiences at your fingertips.”
2. Carry out a 'three-horizons' analysis (Section 1.2.1) of Airbnb, in terms of both existing activities and
possible future ones. How might this analysis affect its future strategic analysis?
Horizon 1: Providing an online platform which enables individuals to book accommodation in various
homes and apartments.
Horizon 2: Airbnb is developing its online platform by focusing on the whole travel trip, with an
emphasis on delivering local experiences. They have also integrated a small start-up that connects guests
with locals and also offer cleaning services.
Horizon 3: The business is moving towards a seamless integration, that will provide everything from
planning a staycation to providing complete holiday packages – this will become a lifestyle brand and not
just a hotel service.
3. Using the headings of environments, strategic capability, strategic purpose and culture seen in Section
1.3.1, identify key positioning issues for Airbnb and consider their relative importance.
Environments: Currently, Airbnb’s main challenge would be ensuring the cleanliness of its homes and
apartments. Due to the complexities of our environment, individuals are now more conscious about the
cleaning processes involved.
Strategic Capability: Airbnb’s key capability is providing investors with a platform to gain income from
multiple properties, while providing affordable and seamless short-term rental for individuals. A key issue
with their strategic capability would be the risk of damages to the properties that are being rented out.
Strategic Purpose: Airbnb’s strategic purpose is to create a sense of belonging, to provide a space that
feels like home. And in the long-term, to be a Lifestyle Brand,
Culture: Airbnb focuses on a contemporary sharing culture. Founder and CEO Brian Chesky advised top
management not to mess up the culture.
Robin S Sharma once said “Nothing fails like success. Because when you are at the top, it’s so easy to
stop doing the very things that brought you to the top.”
Joe Gebbia was concerned that open dialogue would become challenging, therefore he invented the
notion of ‘elephants, dead fish and the vomit’.
4. Following on from the previous questions making use of Section 1.3.2, what alternative strategies do
you see for Airbnb?
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Airbnb could possible introduce the following strategies:
- Give more value to the client at less cost to the company. This could be in ways such as holiday packing
lists; small guest amenities; or vouchers for local restaurants.
- Integrate its platform with an airline and car hire, to provide a complete holiday package.
5. Converting good strategic thinking into action can be a challenge: examine how Airbnb has achieved
this by considering the elements seen in Section 1.3.3.
Airbnb has actioned good strategic thinking by analysing its position, evaluating challenges, considering
alternative choices, and selecting and implementing these strategies.
In 2010 Airbnb experienced sluggish listings in New York, they evaluated the possible causes and
understood that they needed to improve the way hosts were presenting their properties, they selected a
strategy that required them to rent a $5000 camera to take as many photos of New York apartments as
possible. Listings in the city suddenly doubled.
Airbnb converted a performance and evaluation strategy, as stated above, into a development, leadership
and strategic change by integrating its platform to enable hosts to automatically schedule a professional
photographer. 2 years later, there were 20,000 freelance photographers being employed by Airbnb around
the world.
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