AirBnB Strategy

2. Case Study
Prof Sheikh Morshed Jahan
Md Shihabul Islam 09 Group
MBA 63D
IBA DU
Taslima Binte Kamal 12
Md Tanjim Khan 25
Rahul Deb Nath 32
Mahboob Uddin 40

3. Case Lead 1
Regulations for Airbnb
 Similar tax regime alike hotels if they avail similar regulatory standards.
 Operates in more than 3 industries
 Lawsuits, ethical, and competitive landscape

4. Frameworks 2
Source: (McAlone, 2015)
• Sample Text
• Sample Text
• Sample Text
• Sample Text
Product
Performance
Time
Source: (Christensen and Raynor, 2003)
Product
Performance
Time
Source: (Christensen and Raynor, 2003)

5. VRIO Model 2
Resources Valuable Rare Imitability Organized
Brand equity    
Product/ Service    
Technological Platform    
Marketing    
Consumer Loyalty    

6. Stakeholder Relationship 2
Source: (Preston & Sachs, 2002)

7. Business Model Canvas 2

8. Money Flow Diagram 2

9. Innovation Strategy: Shared Economy 2

10. Porter’s 5 Forces 2
Bargaining Power of Suppliers
Weak
• Hosts are the suppliers
• Airbnb’s popularity and lack of alternatives reduces host’s bargaining power
• Airbnb has strong control over hosts so that they cannot form any sort of union to advocate demands
Bargaining Power of Buyer
Moderate
• Size and concentration of buyers are much higher than suppliers
• This allows buyers to dictate in some aspects
• Limited supply limits them to some extent in terms of bargaining power
Bargaining Power
- Buyers
Bargaining Power
- Suppliers
Competitive
Rivalry
Threat of
Substitutes
Threat of New
Entrants

11. Porter’s 5 Forces – Continued 2
Threat of New Entrants
Weak
• Virtually non-existant due to challenging barriers
• Substantial capital requirement
• Airbnb already struggling with legal and regulatory barriers
Threat of New Substitutes
Weak/ Moderate
• Hotels are indirect substitutes to Airbnb
• No switching cost of consumers pressurize Airbnb
• Airbnb’s monopoly on authentic peer-to-peer lodging prevents the customers to look for substitutes
Competitive Rivalry
Moderate/ Strong
• Rivalry is strong in the combo of lodging industry and peer-to-peer rentals
• Diversity of competitors have reached Airbnb’s missed segments
• Airbnb’s strong brand equity is keeping the pressure of industry rivalry down

12. Triple Triangle Framework 2

13. Competitor Landscape Map 2

14. Challenging the Leads 3

15. Set of Criteria 4

16. Choosing a Strategy 5

17. Foresight 6

18. Implementation 7

19. Plan Layout 8

20. THANK YOU!