Introduction
Case study analysis examines the challenges a business faces during its expansion and operating time. Also, with the help of case study analysis, alternative solutions are also addressed for the business. For this report, a case study analysis on Airbnb will be conducted.
This report will mainly add the challenges of this industry during its expansion process in the literature section. Also, the methodology findings and discussion section will represent how this analysis will be done and the key results. The study mainly focuses on the strategic management of Airbnb in an international setting. With the help of this analysis, it will be easy to understand the company’s strategic position and the relationship with the key stakeholders of Airbnb.
Literature Survey or Review
Making an exceptional culture to satisfy the guests shall make Airbnb the most preferable service in the UK.
Strategic position analysis of the company, Airbnb has focused on increasing its core value with the help of indigenous culture that would fulfill the business requirement. Exceptional hospitality has become the measured strategy of the company. A person would get some additional facilities if the person collaborated with Airbnb. According to Tien et al. (2019), it is expected that in a competitive market, every competitor would consider some exceptional facilities that would make the service attractive to the guests.
However, Airbnb maintained consistency and updated the list of facilities with trending requirements. The analysis of the company’s origin has indicated that strategic planning and execution could make a startup business quite effective and successful within a short time. Within 7 years, a started business has successfully $10 billion is only possible for continuous analysis of the market requirements simultaneously involving all the necessary components on time (Refer to case study). The culture that has been made by the company is the main asset that has multiplied and made a huge profit.
Strategic analysis of the internal and external environment would help to remain positive during a crisis
Internal environment
| Strength
● A flexible work environment. ● Diverse cultural employees. ● Strategic planning and execution. |
Weakness
● Legal safety.
● weak governance. |
| Opportunity
● The availability of investors. ● Technological innovation. |
Threat
● Inexperienced.
|
Table: SWOT analysis
(Source: Learner)
The description of the internal environment of Airbnb indicates the company already has some strengths and opportunities which can make this business competitive. Simultaneously weaknesses like legal issues and weakness in governance can gradually make this business infirm (Nayak, and Narayan, 2019). In spite of having a flexible work environment and skilled employees, inexperienced leaders and minimum knowledge about the necessity of legal safety and security like “illegal hotel law” scams can cause serious damage to the reputation of the company.
External environment
The external environment of the hotel industry in the UK mentions that there are many scopes for a new business to successfully make it profitable. In the case of Airbnb, the company has rapidly made its market position because of its Technology collaboration. Initially, the company started the business through a website where additional investment can easily be cut off from the strategic planning. The funding required to make a proper setup can be invested in developing the business stronger than the competitors. The more a business could make business sustainable internally, the business will outshine.
Importance of strategic management in a startup company
After analyzing the internal and external environment of Airbnb it can say that its strategies are quite effective in changing its appearance in the market. When the owners take strategic decisions for a startup business, it can automatically disclose solutions for the challenges (Martins and Soofastaei, 2020). Though at initially time, this company suffered through some difficulties in getting its investors, in 2009 it got its very first investment that actually molded the path of growth for Airbnb (Refer to the case study).
It has also been observed in the time of analyzing the case study that the owners’ efforts are cultural diversity that made it so adaptable worldwide. From the perspective of Nambisan et al. (2019), strategic management is one of the important elements that a startup company has to incorporate to expand worldwide. In the case of Airbnb, it is proven that strategic management is an important area of discussion.
Methodology
The research methodology is the part of the research process which will be able to find out the ways to complete the research and then find out the conclusion of the study (Cassell and Deutsch, 2020). The research methodology is described in the following sections for a better understanding of the case of Airbnb.
Research strategy
Qualitative analysis of the research will be important for the study so that it will be able to complete the whole study and find out the conclusions (Wu and Grbovic, 2020). The non-numerical facts can be understood with the help of the study (Dalir et al., 2021). The database will provide valuable information regarding the case study of Airbnb and it will be able to complete the study properly (Cassell and Deutsch, 2020). The growth rate of the study can be managed when the valuable information regarding the company will be interpreted properly.
Data collection
The researcher can implement a secondary analysis by which the researcher will be able to find out the information from the previous sources. The valuable information will be able to provide the analysis of the case study (De Janasz et al., 2020). the internal and external environment of the case study will provide the conclusions of the study and maintain the research properly.
Findings
According to Cassell and Deutsch, (2020), Airbnb is focusing on the core values of the company and the company is integrating the local culture within the business so that it will be able to do the improvement in the business conditions. The company can do a collaboration with other companies so that it will be able to provide additional facilities to the consumers and it will be able to improve the services of the company (De Janasz et al., 2020). The main focus of the company is to provide desired services to the consumers so that it will be able to manage the growth rate of the company. The company is maintaining consistency in the facilities so that it will be able to maintain the rate of consumers from the global market.
The company has made successful moves in the 7 years so that it can manage all the activities of the organization for the development of the business (Cassell and Deutsch, 2020). The company is operating in different parts of the world and it is possible for the company to maintain its business operations when the organization has aligned its activities with the cultures of the country (Wu and Grbovic, 2020).
The company has tried to understand the cultural factors and the analysis of the internal environment of the countries has provided valuable information regarding the current conditions of the country so valuable information will make the strategies of the company stronger (Cassell and Deutsch, 2020). It is important to gain a competitive advantage in the market and it will be possible when the company will be able to do the analysis of the internal and external market situations and grow the business (De Janasz et al., 2020).
The company has faced legal issues which can reduce the growth of the organization in the international business environment (Yu et al., 2020). It is very important for the company to understand its strong and weak areas so that it will be effective to implement strategies for reducing the issues and make the improvement within the business.
Discussion on the findings
In the opinion of Griggio and Oxenswärdh, (2021), in the study, the analysis of the business environment is provided which will be able to provide valuable information about the study and the market of the company can be improved. There are some issues that are notified with the help of the external environment analysis and the main purpose of the organization is to formulate some methods which will be able to reduce the issues and improve the marketing and the business of the company (De Janasz et al., 2020).
The main purpose of the study is to find out the challenges of the company so that it will be able to formulate business strategies and then it can manage the business models (Cassell and Deutsch, 2020).
The objectives of the study are justified because the issues faced by the company have been mentioned in the study (Dalir et al., 2021). The company is facing legal issues and the work environment of the organization is not favorable for the employees. The discussions on the findings will be able to manage the aims and objectives of the study and it will be effective for making the conclusion of the research.
From the above situations, it can be concluded that the KPI indicator of the company can be improved when the overall performance of the employees and the company can be improved with time (Yu et al., 2020). The case study has discussed managing the growth and it will be able to manage all the important activities of the company (Griggio and Oxenswärdh, 2021). Growth and improvement can happen within the business when the organization will be able to implement recommended business models within the company. Strategic planning is very important for the company because it will be able to execution of the model in a real-life scenario (Griggio and Oxenswärdh, 2021). The objectives of the company can be fulfilled and it will be able to complete all the processes of business management. The overall business development is very important for the company because it can formulate different strategies within the business to make the move in the internal market (De Janasz et al., 2020). Airbnb should have reduced the issues areas and then the business framework can manage the activities of the company. Competitive advantage can reduce complications and improve the current business situation of the company.
Conclusion and recommendations
This whole report is based on the case study analysis of Airbnb business in which the strategic management analysis and the relationship of the company with its take holders are mainly added. Through the secondary method, this data analysis has been conducted for this report. In the case study some challenges have been observed on which recommendation has been provided in this study. The strategic position of the company is helpful in understanding the importance of static management in global settings. From this perspective, it can say that the key findings of the study must be the importance of strategic management for a startup company which can make the company popular in the international setting.
Recommendation
- The first issue observed during the time of analyzing the case study was that the hosts need to reveal better pictures of their properties that are actually hampering the reputation of Airbnb’s website. The solution observed in this case study was that the owners are renting a camera and started clicking pictures related to their accommodations. This strategy of the owners proved one of the best decisions that the founders have taken. According to Kabeyi (2019), strategic planning helps business owners make changes according to their needs. The solution that has been observed in this challenge was entirely appropriate and easy to implement in any startup industry. From this perspective, the strategic implementation of Airbnb was proven to be helpful for its future success.
- Another issue that has been observed in analyzing this case study of the startup was difficulties in finding investors for the company. From this perspective, it can be recommended that if this company designs its objectives and future goal properly it would be easy for this company to get investors during the growing phase. From this perspective, it can easily be said that not representing the business idea and objectives as a start-up company can be challenging sometimes.
References
Cassell, M.K. and Deutsch, A.M., 2020. Urban challenges and the gig economy: How German cities cope with the rise of Airbnb. German Politics, pp.1-22.
Dalir, S., Mahamadaminov, A. and Olya, H.G., (2021). Airbnb and taxation: Developing a seasonal tax system. Tourism Economics, 27(2), pp.365-378.
De Janasz, S.C., Kim, S., Schneer, J., Beutell, N.J. and Wong, C., (2020). Work-Family integration and segmentation in the gig economy: Airbnb hosts’ challenges and strategies. In Academy of Management Proceedings (Vol. 2020, No. 1, p. 20130). Briarcliff Manor, NY 10510: Academy of Management.
Griggio, C. and Oxenswärdh, A., 2021. Human capital and sustainability challenges for Airbnb Bed and Breakfast lifestyle entrepreneurs. Scandinavian Journal of Hospitality and Tourism, 21(3), pp.286-312.
Kabeyi, M., 2019. Organizational strategic planning, implementation and evaluation with analysis of challenges and benefits. International Journal of Applied Research and Studies, 5(6), pp.27-32.
Martins, P. and Soofastaei, A., 2020. Making decisions based on analytics. In Data analytics applied to the mining industry (pp. 193-221). CRC Press.
Nambisan, S., Zahra, S.A. and Luo, Y., 2019. Global platforms and ecosystems: Implications for international business theories. Journal of International Business Studies, 50(9), pp.1464-1486.
Nayak, M.S.D.P. and Narayan, K.A., 2019. Strengths and weaknesses of online surveys. Technology, 6(7), pp.0837-2405053138.
Tien, N.H., Dung, H.T. and Tien, N.V., 2019. Branding building for Vietnam tourism industry reality and solutions. International Journal of Research in Marketing Management and Sales, 1(2), pp.63-68.
Wu, L. and Grbovic, Mhttps://dl.acm.org/doi/10.1145/2783258.2788627., (2020), July. How Airbnb tells you will enjoy sunset sailing in Barcelona? Recommendation in a two-sided travel marketplace. In Proceedings of the 43rd International ACM SIGIR Conference on Research and Development in Information Retrieval (pp. 2387-2396).
Yu, M., Cheng, M., Yu, Z., Tan, J. and Li, Z., (2020). Investigating Airbnb listings’ amenities relative to hotels. Current Issues in Tourism, pp.1-18.
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