Airbnb Case study 2 8 2021

Case 2: Air BNB 

David Vaughn  

Phoenix University 

Claude Toland 



Case 2: Air BNB 

After Airbnb’s initial opening the industry in which it resided in had to prepare for the new entrant. This is the common case or scenario for most firms that operate in productive or crowded markets. In this situation Airbnb a start-up that began 2008 on a very practical chance, it soon became clear that this had happened to their operation. So, for this paper I’m to improvise a new strategic plan for the company so that they can better compete with a crowded industry. 

Initial market  

Typically, if I were to consider going into operations for myself the hotel or travel market would not seem as lucrative. I believe that the strategy that Airbnb used was based not on just seeing the niche opportunity, but realizing the past success of companies like Ebay and not the hotel industry itself. Also, with the current trends being set by large conglomerated companies like Uber and Uber eats. Or even a smaller yet large corporation like lyft. You can see that diversification through joint venturing was apart of what some companies may have thought. 

So, in order to do better or sustain such past successes I would propose that Airbnb would need to remain cost effective in the future market. Seeing that the competition is soon to catch up in terms of offerings or possibly price. Airbnb may need to begin offering exclusivity in it’s future plans and marketing concepts.  

As was the case with Hilton beginning to offer Hostel types of rooms which is according to the case study. That also noted that some companies began to offer their own types of perks and benefits only to Airbnb users. This says that many of the industry leaders will not just eventually follow suit but in turn may come up with their very own programs.  

Market conditions 

In order for Airbnb to be successful in the coming future they must learn to incorporate the economic and ethical parts of business. This means creating strategies and plans that can be adapted and become a part of a CSR program. This is not unusual and may be in part because of accusations that Airbnb may be using unethical practices. 

In order for Airbnb to justify operations amidst accusations they must comply with orders to keep guest safe. This says that laws are put in place that provide guide lines and parameters that allow for guest and hosts to stay in comfortable and secure environments. This is in cases of fires and many other hazards that could effect the consumers. To address this, I propose that Airbnb become compliant and create a focused strategy based on hazard protection and safety. Following not just local guidelines but attempt to create a global standard. This may become apart of a sustainability effort that will help in any marketing routine and a public CSR drive. 

The Strategy for Total quality management To ensure that each guest and host is given fair treatment. Airbnb must begin to not only practice assured quality they must also begin to use that as part of their marketing drive. Example is “Airbnb wants To provide a ethical and cost friendly experience”, which says those that are considering being host or guest should be given guidelines and rules to uphold for themselves. 

With ratings being given to the host and guest, this same mechanic could be applied to give an assessment of its host. This may set an entire standard for the organization and provide a possible way to incorporate Airbnb into other opportunities or regions. Providing experience ratings, and any possible perks/benefits for those that carry titles or affiliations. This will be done in order to provide safer transactions and make Airbnb more accountable. 

The strategy for international functions and company health  

The market indicated that Airbnb was a fast-growing company and industry leader according to the case study. It also indicated that there were other ways to benefit using Airbnb by providing services like Taxis. With Airbnb using a simple platform it shows that simplicity may be the key to engage it’s interested parties and provide a safe and convenient resource. So, with many companies popularizing the use of Airbnb building award programs should be simple.  

With some of the emphasis being placed on cultural relevancy I would not want to become intrusive but stress the concepts of “consumer loyalty through some type of understanding”. The company would not force it’s way into markets and I would try to use a strategy that would allow the company to become more related through diversification. This is opposed to past years that may have been the reason that Airbnb may have been facing bankruptcy.  

The point will be to build solid relationships and consumers trust and loyalty. By providing universal standards and a brand that can be trusted by consumers and any possible shareholders. 


The purpose of this paper was to create a strategy. In my view I created a guideline for creating a strategy. In some ways it could be considered better because of the ambiguous nature of its context. In terms of companies big or small the purpose is to make money, using  “ethical” standards to guide them. It remains to be seen if all companies can accomplish this

Published by David Vaughn

I am finished with my Graduate degree now I am hoping to enter into Doctoral college this fall now after starting and restarting transferring then starting again, but now unsure of my funds. I am in College now for my Phd and doing ok. This was my first website and now I have a radio station connected to it. The radio station is fanbaseradio and is apart of another website I now own. I am hoping to continue to grow my network and develop a marketing firm. kewlbeer'd marketing affiliate of fanbase.

Leave a comment

%d bloggers like this: