Airbnb in 2018

Apply: Case Study Analysis

Read “Case 2: Airbnb in 2018” in your Connect textbook.

In the accommodations market, Airbnb appears to have a significant advantage over its competitors as it relates to regulations affecting the operations of its business.

Develop a business strategy that will allow Airbnb to meet local, state, and international regulatory requirements and motivate individuals to benefit from participating in this space of the accommodations market. Address the following questions:
o How can Airbnb ensure the ethical treatment of consumers?
o Should there be a separate strategy for the international component of their business model?

Submit your assignment.

ANSWER

Airbnb has revolutionized the hotel sector globally, and many hotels have had to go back to the drawing board to develop new strategies to keep them on the business. Airbnb has taken away customers from the common traditional hotels. Studies show that the business has earned a super profit since its birth way back in 2008 though it faces several legal challenges from its competitors and the government at large. To thrive, the Airbnb business must have its local, state, and international regulatory requirements met. The business owners have since reverted to new strategies to keep them afloat and thriving in the business.

Their specialization in internet marketing gives them an upper hand in the business; their clients love the peace and freedom of the business. Their success has been primarily contributed by improvement on their websites, new features, new products, and expansion of their markets. A business strategy that will ensure the subject business meets local, state, and international regulatory requirements comprise several aspects. Airbnb needs to create a system that allows all its users to register legally before commencing any business activities. The online registration will ensure all the business owners are legally recognized, thereby minimizing illegal practices and operations. Different countries have various regulatory measures governing business operations hence the need for the subject business to familiarize itself with these norms and chords to ensure minimal violation of the set standards.

In any business, the customers/consumers are the primary determinants of how the business will thrive. In this context, Airbnb needs to ensure maximum ethical treatment of its consumers. The consumers need to have maximum security while under the premises of any Airbnb globally; this can be achieved by deploying stringent measures that will ensure good customer service through the business openings internationally (Anwar, 2018). A security system should be installed in all the openings to ensure that all the customer services are monitored as required by the business. The consumers will also be guaranteed ethical treatments in all the Airbnbs globally by allowing them to give their opinions on the best ways they can be served as they enjoy maximum security and freedom while within the premises.

Various countries have different business customs and modes of operations; thus, different strategies are required in various countries. Furthermore, the demographics and economic status of different countries will control the various business models implemented globally. Therefore, different strategies need to be applied in the various international component. The success of every strategy depends on the business environment, culture, and average financial income of every country. For instance, the model of Airbnb operation in the USA cannot be similar to that in England, and the same also applies to the rest of the globe. Therefore, Airbnb needs to ensure that each business zone has its strategy; this will ensure that the business has minimal issues with various states from which they operate (Boswijk, 2017). Another essence of developing different strategies is the surety of maximizing product sales and providing the local consumers with the kind of services that suits their demand. Separation of strategy will therefore maximize profits globally and ensure the subject business thrives in various economic settings.

In conclusion, the Airbnb business has changed the general perspective of the hotel business; most of the common and traditional hotels (bed and breakfast) are on the brink of losing their businesses since their customers prefer the services offered by Airbnb. The success of Airbnb depends on its adherence to the legal requirements and the ability to face the challenges that arose from its competitors with precise and sober strategies.

References

Anwar, S. T. (2018). Growing global in the sharing economy: Lessons from Uber and Airbnb. Global Business and Organizational Excellence, 37(6), 59-68.

Boswijk, A. (2017). Transforming business value through digitalized networks: A case study on the value drivers of Airbnb. Journal of Creating Value, 3(1), 104-114.