AIRBNB

Aim of Analysis
 The utilization of the strategic management concepts, systems, and tools that was
mastered during the Strategic Management course in creating technique and
execution plans in the travel industry.
 The plan of this study is to introduce a perceptive, approved, and comprehensive
view on airbnb current and (proposed) future procedure to its leader supervisory
group.
 The proposed procedure ought to work with feasible turn of events and greatness
in comprehensive worth creation for business partners and society (overall) inside
the divided extent of airbnb purpose of statement.
Airbnb is an online marketplace that
connects people who want to rent out their
homes with people who are looking
for accommodations in that locale.
It currently covers more than

100,000 Cities and 220 countries
worldwide. The company’s name comes
from “air mattress B&B.
In recent years Airbnb has expanded its

offerings to include experiences and
restaurants, travel, people searching by
location will see a list of experiences, such
as classes and sightseeing, offered by local
Airbnb hosts.
How does airbnb makes
money?
 It charges both for it guest

and host a fee for arranging
stays.
 Hosts are charged 3% of
the booking value to cover
the costs of processing
payments and running the
sites.
 Guests are charged 6-12%
depending upon the value of
booking. In order4 to
return for that charge, guest
get the benefit of 24-hour
support.
airbnb Business Framework
Value
proposition
Organization
and
customer
Mission and
Airbnb core value
Value
Revenue formation
model and core
activities
Legacy of airbnb
Airbnb provides a platform for hosts Guests can search for lodging using The newly updated Airbnb mobile
to accommodate guests with short- filters such as lodging type, dates, app has personalization at its heart,
term lodging and tourism-related location, and price, and can search for created with a brand new design
activities. specific types of homes. language.
The new product includes an
airbnb
innovative matching system designed
to understand travelers' preferences
and then match them with the homes,
neighborhoods and experiences that
meet their needs.
Value proposition
and customer:
Airbnb is a community
based, two-sided online
stage that works with the
way toward booking
private living spaces for
travelers. On the one
side it empowers
proprietors to list their
space and bring in rental
cash. On the opposite
side it gives travelers
simple admittance to
leasing private homes.
Airbnb business comparison
Generic strategic
option
Strategic
Analysis Advance model
description
Competitive strategy
Airbnb core values
 Airbnb core values include “champion the mission, be a host, simplify, every
frame matters, be a 'cereal' entrepreneur, and embrace the adventure.
 They form the fundamental elements that drive the operations of the firm and
ensure everyone remains in the right direction.
Strategic management plan
airbnb marketing approach
 Airbnb's marketing
approach focuses on
building and
maintaining a strong
community among its
users, targeting the
long-term loyalty of
both customer segments:
guests and hosts.
airbnb marketing strategy
Brand identity
Identity:
The company began

to realize that
the Airbnb communit
y had greatly
increased in size since
its foundation and
was now outgrowing
the original Airbnb
brand.
Vision statement
Evaluation
Positioning strategies
Positioning
Airbnb generic and intensive growth
strategies
 Airbnb Company is a multinational firm with high
recognition in targeted market segments.
 The intensifying competition in the industry has made it
challenging for Airbnb to sustain the market leadership
position and increase market share without exerting
significant efforts.
 The company has adopted a combination of cost
leadership, differentiation and focus strategies to handle
the competitive pressure.
Streams for porter’s generic strategies
Focus strategy
Differentiation Focus is the third generic
Cost leadership
Airbnb uses differentiation in competitive strategy that
Cost leadership strategy involves
combination with the cost encourages companies to
gaining a competitive advantage
leadership strategy to achieve concentrate their resources on
by lowering the cost.
growth objectives. expanding the narrowly targeted
segments
airbnb intensive growth strategies
Market
penetration
Intensive
Diversificatio Product
n growth development
strategy
Market
development
 Market penetration
Market penetration involves encouraging sales growth within the current
customer base. It includes the activities used to increase the market share by
focusing on an existing product in the existing market.
 Product development
Product development is the second intensive growth strategy of growth matrix.
Airbnb uses it as a secondary strategy to achieve growth objectives. This strategy
involves the development of new products or modification in the current product
lines to make them new to current customer base.
 Market development
Market development is the third intensive growth strategy of Ansoff growth
matrix. The main objective of this strategy is to explore and enter new markets.
 Diversification
Diversification is the fourth intensive growth strategy of the Ansoff matrix. This strategy
involves entering new markets with new products. The diversification strategy is further
divided into related diversification and unrelated diversification.
• Unrelated diversification
• Related diversification
Porter’s five forces model
Airbnb-Blue ocean strategy
What factors made the Airbnb blue-ocean strategy?
 Airbnb launched in 2008.

 Airbnb doesn’t own any property, it manages an online travel platform.
 Airbnb blue ocean strategy is based on process innovation as the company does not own
any properties but provides the customers and sellers a platform through which they can
service one another.
 It also creates and captures new demands by making an irrelevant competition
 Airbnb created an uncontested marketplace where in they are providing the best
suitable accommodations to their users at the best possible price.
 The numbers speak for themselves: 7+ million listings worldwide, 2+ million people
staying on Airbnb per night on average, 750+ million all-time Airbnb guest arrivals. In
2019, Airbnb registered $9.4 billion in the total booking value.
 The company can achieve blue-ocean strategy also by value innovation.
 But how does one achieve value innovation?
To achieve value innovation, the company looks at two factors: cost savings and buyer value.
Airbnb canvas business model
Business Model
Value-proposition
 Airbnb is a community-
based, two-sided online
platform that facilitates
the process of booking
private living spaces for
travelers. On the one side
it enables owners to list
their space and earn
rental money. On the
other side it provides
travelers easy access to
renting private homes.
Core values
 Airbnb is more than an
affordable travelling
accommodation option.
Through facilitating access
to distinctive spaces and
local culture, Airbnb aims
to enable travelers to “feel
at home anywhere you go in
the world” by building
connections with local hosts,
gaining access to distinctive
spaces and culture of their
destinations.
Value model
Revenue Model
 Airbnb receives
commissions from two
sources upon every
booking, namely from
the hosts and guests.
For every booking
Airbnb charges the
guest 6-12% of the
booking fee. Moreover
Airbnb charges the host
3% for every successful
transaction.
Organization model
External Analysis
Airbnb competitors
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Competitive advantage
 Airbnb is engaged in providing online hospitality services, and enable people to
rent or lease short-term lodging which involve vacation rentals, homestays,
apartment rentals, hotel rooms or hotel beds.
 It has more than 3,000,000 listings of lodgings in more than 65,000 cities in 191
countries(source: airbnb)
 The biggest competitive advantage it has is about its effects of the network. It
means, the greater number of hosts are listed on Airbnb, the greater number of the
guest it will have, and so greater number of booking will be done by guests
through Airbnb, the more number of host it will get.
 Whereas, the supplies are built by the competitors, word of mouth, reviews of
people on the given lists, and this make Airbnb different and unique from its
competitors.
 Services provided by Airbnb are very latest manifestations of disruption in the
industry of travel lodging. It has brought the change in the traditional system of
intermediaries like travel agents, who are now replaced by Airbnb or Google
(automated ones).
 Airbnb has a competitive advantage from traditional agents as it is able to
provide a variety of options, direct interactive channels, and easy access to
information.
Strategy execution
 Financial perspective
 Revenue streams
The majority of its revenue comes from service fees from bookings charged to both guests and
hosts. Airbnb raised $3.5 billion in its initial public offering on Dec. 10 at a fully diluted
valuation of around $47.3 billion, debuting on the Nasdaq under the ticker ABNB and pricing
its IPO at $68 a share.
 Customer perspective
 By making their customers partners, it has created a platform which creates value for
everyone: hosts (that create value out of an unused asset), guests (that get a customized,
affordable and authentic experience), and share that value by orchestrating the network and
facilitating connections.
 Resources
 Airbnb's cost structure includes investment in all of its key activities and resources, as well
as its channels, which are: software maintenance and development, marketing, salaries,
customer acquisition, insurance, credit card fees, legal and administrative costs.
Summary
 The company’s name comes from “air mattress B&B.”
 Airbnb is an online marketplace that connects people who want to rent out their homes
with people who are looking for accommodations in that locale.
 It currently covers more than 100,000 cities and 220 countries worldwide.
 Airbnb provides a platform for hosts to accommodate guests with short-term lodging and
tourism-related activities.
 Typical Airbnb advantages over hotels include more space, better amenities, kitchens,
lower cost, a washer & dryer, and much more.
Thankyou!

AIRBNB

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What is Airbnb's business model?

How does Airbnb make money?

Aim of Analysis

It currently covers more than

In recent years Airbnb has expanded its

 It charges both for it guest

The company began

 Airbnb launched in 2008.

flipkey Onefinestay Trivago

Home-away VRBO homestay

Booking.com Tripping.com Turnkey

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