Reference no: EM132941902

Question 1:

Airbnb, hotels and motel chains competed within the large tourist accommodation market. By 2016 Airbnb had seen immense growgrowth th and success. It had expanded to over 190 countries and had more than two million listed properties, and enjoyed a market valuation estimated at $30 billion. However, Airbnb appeared to be disrupting the hotel and tourism industry and was facing resistance, from city officials, owners and operators of Hotels and motels. Local and global businesses criticized Airbnb of their unfair business practices and lobbied lawmakers to force the company to comply with lodging regulations which posed continuing challenges to Airbnb to obtain permits and overcome regulatory barriers

What are the general strengths and weaknesses of large hotel chains, motels and Airbnb? Explain how you would compare and contrast those businesses.

Suggest recommendations you would make to Airbnb to improve its competitiveness in the accommodation market while mitigating any current and future risks.

Question 2:

When an incumbent faces a new entry from a competitor to the market, this incumbent should decide whether on an offensive approach and initiate aggressive strategic moves to improve its market position, or to employ defensive strategies to protect its market position. As a result, a competitive dynamic-action and response begins in the market. Suggest and critically discuss a model that helps managers to decide to adopt an offensive or defensive route. Support your answer with examples.

Question 3:

Lou Gerstner, former CEO of IBM, has strong views on why successful companies often fail. He goes on to comment that "enduring companies we see are not really companies that have lasted for 100 years. They've changes 25 times or 4 times over the 100 years." His prescription for this for strong leaders is to inoculate their firms against complacency and continuously push their firms forward. He adds that leadership that really counts is the leadership that keeps a company changing in an incremental, continuous fashion. You are requested to think of an organization leader that you know (or read about). Critically discuss whether or not this leader was effective and was able to bring about a significant organization change. Explain reasons behind this leader success (or failure).