Reference no: EM132839509
Airbnb and other home-stay accommodations have experienced exponential growth globally over the past few years. On December 10, 2020, Airbnb went public with a valuation of over $100 billion making it one of the largest IPOs of 2020. Their market capitalization is more than the three biggest publicly traded hotel chains (Marriott, Hilton, and Intercontinental) combined. Yet, Airbnb has been faced with a number of challenges including the pandemic and the subsequent decline in the travel industry.
Your goal in this case is to perform a strategic analysis of Airbnb by identifying key challenges faced by the company and providing your recommendations on how they should address these challenges. The analysis should follow the format specified below:
Introduction/Executive Summary
Outline of the major issues and your recommendations for AirBnB.
External analysis (use General Environment analysis and Porter's 5 forces)
What are the opportunities and threats in the external environment for AirBnB?
What is your assessment of the key competitive forces in the industry?
Internal analysis (use Value Chain Analysis or Resource-based view)
What are AirBnB's resources and capabilities?
How is AirBnB positioned to respond to the challenges in its external environment?
How well do airBnB's financials reflect its resources and capabilities?
Business strategy identification (Specific strategy of the firm such as cost leadership, differentiation, combination, focus, etc.)
What is AirBnB's competitive advantage?
Is their advantage sustainable?
Recommendations
How would you change AirBnB to respond to the key challenges it faces today?