airbnb case study strategic management plan

Strategic PlanUnder supervision of

Dr. Ossama Mossallam

24/2/2017

http://www.showeet.com/


Leaders Team

Esraa ElZuhery(reporter)

Ahmed Khalaf

Mohamed Hossam

Mustafa Gi Ci

Saad Meabed(facilitator)

Esraa

MohamedSaad

Mustafa Ahmed



01 – Introduction

02 – Vision

03 – Mission

04 – SWOT

05 – Space Matrix

Contents

Airbnb Strategic Plan

06 – Goals

07 – Strategies

08 – Objectives

09 – Conclusion

IntroductionAbout the company and the team

01


ABOUT THE TEAM

INTRODUCTION

5

Our team has been assigned to assist Airbnb in developing its strategic plan

Several meetings

Everybody participated

Group dynamics

Stick to the case

External resources use

“

”- The Leaders Team

ABOUT THE COMPANY

INTRODUCTION

6

Founded in 2008

Two-sided platform for short-term lodging (hosts and guests)

Earns from commission from both hosts and guests

One of the highest growing companies in sharing economy from 1K to 1M users in 2 years

A phenomenal disruptive innovation

VisionThe Dream!

02


THE DREAM!

VISION

8

Making the world everybody’s home

The developed vision:

MISSIONWho we are

03


WHO WE ARE

MISSION

10

Airbnb is a trusted community online-marketplace for people to list, discover, and book unique accommodations around the world at any price point. It helps hosts to earn

from renting their extra space.

The modified mission:

WHO WE ARE

MISSION

11

Be a Cereal Entrepreneur

Every frame matters

• Be bold and apply original thinking

• Imagine the ideal outcome

• Be resourceful to make the outcome areality

• Look at the end to end experience ofeverything.

Champion the Mission

• Prioritize work that advances themission and positively impacts thecommunity

• Build with the long-term in mind

• Actively participate in the communityand culture

• Simplify!

Be a Host

Embrace the Adventure

• Care for others and make them feel likethey belong

• Encourage others to participate to theirfullest

• Listen, communicate openly and set clearexpectations

• Be curious, ask for help, and demonstratean ability to grow

• Own and learn from mistakes

• Bring joy and optimism to work

Simplify

CORE VALUES

SWOT AnalysisWhere we are

04


WHERE WE ARE

SWOT ANALYSIS

13

1. Lower prices compared to hotels2. Strong customer service to handle any

complaints for customers and to offer help and support

3. Customer-driven development (listening to customers and fulfilling their requests as quick response to customers’ needs and wants)

4. Photography program as development tool to enhance the pictures and properties` photos to attract more customers

5. Adopting working backward strategy to enhance the service features based on the desired optimum experience

Positive NegativeExternal

Internal

Strengths Weaknesses

Opportunities

WHERE WE ARE

SWOT ANALYSIS

14

6. Offering amazing experiences beyond the traditional accommodation (e.g. hosts steer guests to discover places and make friends)

7. Trust (guests have mutual friends with hosts through social connections + ratings and reviews + photographers verified addresses + moving quickly to address related concerns)

8. Safety ($1M insurance + photographers verified addresses)

9. Highly customized service (guests choose hosts based on their characteristics and preferences)

10. Huge number of connections between members increasing their engagement


Internal


Opportunities

WHERE WE ARE

SWOT ANALYSIS

15

11. Offering attractive content (wish lists) which increase engagement

12. Ability to raise fund to be used in operations and developing new markets and services

13. Clear business model (taking commission from both sides)

14. Premium public image and trustable brand15. Huge number of properties to rent which

gives customers the chance to choose their preferred properties from a wider range which makes them satisfied.

16. Large number of users and customers


Internal


Opportunities

16


Internal


Opportunities

1. Inappropriate handling of major issues as happened in the case

2. Less effectiveness in countries outside USA and Europe

WHERE WE ARE

SWOT ANALYSIS

17


Internal


Opportunities

1. The declining economy in many countries (people will tend to make money by renting their homes)

2. Investors were never more eager to invest in money making e-projects

3. Huge international accommodation market4. Higher rates of other accommodation types5. Growth and development in the mobile

market

WHERE WE ARE

SWOT ANALYSIS

18


Internal


Opportunities

1. Negative media propaganda (which happens from time to time)

2. Accommodation service is offered by hosts not by the company itself, issues can arise and the public image can suffer (New York accident)

3. Security and safety breaches especially at the underdeveloped countries.

4. Governmental regulations (legalization, taxes, etc.)

5. Hotels and other providers of accommodations.

6. Comparable rates of hostels and guesthouses.

WHERE WE ARE

SWOT ANALYSIS

19


Internal


Opportunities

7. Couch Surfing offering the same service for free

8. Airbnb causes scarcity of lodging and prices rise, causing anti movements lead by upset community

9. Innovation does not stop, new alternativesmay appear

10. The idea of accommodation sharing might not be appealing to some cultures.

11. New entrants (potential competitors) due to ease of business model.

WHERE WE ARE

SWOT ANALYSIS

FS

IS

ES

CA

SPACE MATRIXWhere we are

05


WHERE WE ARE

SPACE MATRIX

21

Financial Strength

1. Ease of exit from market (difficult to easy): 62. Risk involved in the business (much to little):

43. Use of economies of scale and experience

(low to high): 6

FS

IS

ES

CA

Average = 5.3

WHERE WE ARE

SPACE MATRIX

22

Environmental Stability

1. Technological changes: -22. Rate of inflation: -23. Demand variability: -14. Price range of competing products: -25. Barriers to entry into market: -46. Competitive pressure/rivalry: -27. Price elasticity of demand: -48. Pressure from substitutes: -2

FS

IS

ES

CA

Average = -2.4

WHERE WE ARE

SPACE MATRIX

23

Competitive Advantage

1. Market share (small to large): -32. Product quality (inferior to superior): -23. Product life cycle (late to early): -14. Customer loyalty (low to high): -15. Technological know-how (low to high): -16. Vertical integration (low to high): -17. Speed of new product introductions (slow to

fast): -1

FS

IS

ES

CA

Average = -1.4

WHERE WE ARE

SPACE MATRIX

24

Industry Strength

1. Growth potential (low to high): 62. Profit potential (low to high): 53. Financial stability (low to high): 54. Technological know-how (simple to

complex): 65. Resource utilization (inefficient to efficient):

66. Capital intensity (low to high): 67. Ease of entry into the market (easy to

difficult): 1

FS

IS

ES

CA

Average = 5

25

3.6

2.9

Aggressive

WHERE WE ARE

SPACE MATRIX

FS

ES

CA IS

Integration StrategiesIntensive StrategiesDiversification Strategies

Industry Competitors

Rivalry Among Existing Firms

Suppliers Buyers

Potential

Entrants

Substitutes

GOALS (5 YEARS)Where we should go

06


WHERE WE SHOULD GO

GOALS

27

Attaining a larger share of the market

Maximizing Airbnb’s customers’ savings

Increasing the bookings tremendously

Having most of the Internet users to join Airbnb

Building the largest social community of property owners and renters

Market Penetration

Diversification

Product Development

Market Development

STRATEGIESHow to go there

07


HOW TO GO THERE

STRATEGIES

29

Market Penetration

Concentric Diversification

Product Development

Market Development N

ewExisting

ProductsMarket

30

1. Publish positive emotional stories

2. Intensive advertising campaigns in

the cities where there are famous

events

3. Economy related conferences

4. Sponsor sports events

5. Attract celebrities

Market Penetration


Product Development

Market Development

HOW TO GO THERE

STRATEGIES

31

Market Penetration


Product Development

Market Development

1. Hire freelancer photographers2. Enhance the website and apps3. Integrate Twitter and Instagram4. Hire psychological experts to

study the UX5. Home security checklist6. Encourage local communities’

events7. Improve the service based on

the most frequent complaints

HOW TO GO THERE

STRATEGIES

32

Market Penetration


Product Development

Market Development

Products

1. Expand the operation in the Middle

East (turbulent economies,

internal use) and the Far East

(attractive and trendy)

BUT customize the services based on

different cultures and traditions needs

HOW TO GO THERE

STRATEGIES

33

Market Penetration


Product Development

Market Development

1. Flight booking

2. Pick-up and drop services (uber-

like)

3. Two-sided tour guiding

HOW TO GO THERE

STRATEGIES



Suppliers Buyers

Potential

Entrants

Substitutes

OBJECTIVES (2 YEARS)Where we should go SMARTly

08


WHERE WE SHOULD GO SMARTLY

OBJECTIVES

35

Increasing the market share of accommodation industry by 1%

Increasing the number of users to 185M

Having 24 gatherings (with different activities) held by local community in each city

Having 50% of the properties matching Airbnb’s security and safety checklist

Saving Airbnb’s customers 3% more than the current saving average

Increasing bookings by 50%

36

Developing a tool for analyzing the social media’s reviews and buzz about Airbnb

Having 5 celebrities subscribe to Airbnb and offer their castles

Developing and publishing 400 emotional stories about the relationships among the community

Winning the Stevie Award for the best customer service

Establishing a natural disaster recovery department for hosting the evacuated

Raising $4b in new funding rounds

WHERE WE SHOULD GO SMARTLY

OBJECTIVES



Suppliers Buyers

Potential

Entrants

Substitutes

CONCLUSIONLet’s wrap it up!

09


LET’S WRAP IT UP!

CONCLUSION

38

Sharing economy concept (win-win situation )

Fast growth

Our team worked hard

Our goal is to make Airbnbsustain its leadership and grow

more

“

”- The Leaders Team

THANK YOU!

Any questions?



airbnb case study strategic management plan

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