Strategy

Managemen
t
Born in 2007 two friends hosted three visitors in their San Francisco home, the
company acts as an online market place for affordable renting of shared living
space.

Company Name Airbnb

Founded 2008

Headquarters San Francisco, CA, USA

Stock ABNB(NASDAQ) – 206$/share
Public since 2020
Operation countries 220+ Countries
100,000 cities
Hosts/Guest Arrivals 4 Million+ Hosts
800 Million plus Guests arrivals

Data as of Sept. 2020

Mission Statement
“Airbnb's mission is to help create a world where you can belong anywhere and where
people can live in a place, instead of just traveling to it.”

Vision Statement
“Belong Anywhere”
Champion the Mission
Core


Values
Be a Host
 Simplify
 Every Frame Matters
 Be a Cereal Entrepreneur
 Embrace the adventure
 PESTEL Analysis
ECONOMIC TECHNOLOGIC ENVIRONMENTA
POLITICAL SOCIAL AL L
LEGAL
AL
Unregulated Housing Airbnb is a market Airbnb is run by the Though Airbnb is in Reduction in energy Housing regulations
laws leader in the sharing community where the hospitality sector, and water have to be followed
economy. It allows people share their Airbnb is a tech consumption in by the host, which
Different states in the people to earn living spaces. based company as it America and Europe are addressed on
USA and 220+ passive income by provides an online compared to the the company
countries in which sharing their living It helps build platform for sharing hotels and motels, website. Hosts must
Airbnb operates have space. connections among resources which are leading to reduction agree to follow the
other housing laws the people, making done via an app or in waste production, tourism, taxation
which Airbnb should This sharing the world much more website. reduction in green and housing laws
consider. economy has open and inclusive. house gases and along with the terms
generated over 600 Data analysis is a less water and and conditions set
The hosts must follow million USD in New This has also led to major part of Airbnb electricity by Airbnb.
the housing laws of York in 2019 and has the sharing of to make sure that consumption
the Judiciary under created 4000 plus experiences of both both hosts and A legal document
which they operate full-time jobs. the host and visitors visitors needs are also has to be
and pay taxes online via Reddit and met, and the reviews signed that protects
accordingly It currently has four given rise to referrals, of both hosts and the Airbnb from any
million-plus hosts sharing of need and company are good so issues that may
and has welcomed experiences openly. that the trust is held occur in future.
800 million-plus and the company
guests since its continues to grow.
founding.
Strategic Mapping
 Porter’s five forces
analysis Competitive rival
marketplace

Cheaper rentals offered by High number of buyers

other substitute services Price sensitive

Huge investments Large number of hosts

Existing network of Limited online marketplaces
customers and hosts
 Analysis & Identification
TANGIBLE INTANGIBLE
CAPABILITIES
RESOURCES RESOURCES
A. As of 2019, Airbnb was worth about A. Airbnb had 14,384 skilled employees, A. Lodging capabilities
$38 billion with revenue reaching $4.7 including data scientists, software
billion. While it made a profit of $ 200 engineers, developers, and B. Software and network effects
million in 2018, Airbnb posted a net management teams, as of 2020. capabilities
loss of about $ 322 million in 2019.
This is attributed to the increase in B. There are about 2.9 million active hosts C. Technological capabilities
expenses on safety, tech, marketing, and 14,000 new hosts joining the
and acquisitions. platform each year. D. Customer service capabilities

B. Host leases of Airbnb which add up to C. The Brand reputation that Airbnb is
more than 7 million listings worldwide unique and crucial since it has no
and 400,000 Super hosts who are their replacement when compared to the
primary resources and are essential for likes of its competitors. All work gone
the operation and success of Airbnb’s into brand building is focused on not
business model. being a intermediary but on the
customer experience.
C. The Network - active and well-equipped
customer – host network system

D. Acquisitions
 Analysis & Identification (cont.)
DISTINCTIVE
COMPITENCIES CORE COMPETENECE
COMPETENCE
Airbnb offers customers a platform that Airbnb is the first of its kind in the home Airbnb offers diverse locations to guests
is simple and easy to use. sharing market and has had complete and this is a key point of differentiation
global dominance in the market. No that gives them a distinct competitive
It allows guests to search and find other company has been able to master advantage over other competitors.
places to stay at a reasonable price in this business model.
three clicks. For property owners, renting for short
As a result, Airbnb has built a brand and term on Airbnb is a great way of making
The interface is built for simplicity and culture that everyone admires and loves. quick money.
speed, which makes it a competitive and The “belong anywhere” approach in
compelling option to use as one does everything they do has attracted more As a result, Airbnb’s strategy attracts both
not need to go through the hassle of and more customers year on year travelers and hosts willing to rent their
calling and making reservations. leading to substantial growth in its property, making it a distinctive
tenure. competence that is unique to Airbnb.
 Value Chain
Airbnb Inbound
Airbnb Marketing and Sales
logistics
• Inbound logistics related to core services
Hosts can list their properties or experience services on Airbnb value proposition for guests is associated with
the website of the lodging colossus on a matter of a few huge range and competitive costs of accommodation
minutes. Therefore, inbound logistics of each new and experiences, as well as, the opportunity for guests to
addition to its website comes for no extra cost for Airbnb. live like locals in any place where the company operates

• Inbound logistics of resources and items that are used to

aid the facilitation of core services 0
Physical resources such as stationary items for its offices 02
Products like pillows and mugs, distributed to hosts
occasionally to motivate them
1
Airbnb
Airbnb Service
Operations
• Handling of keys, cleaning and providing amenities within 03 04 Both, hosts and guests rate each other after the
properties where these activities are done by hosts, not completion of stays and this practice encourages hosts
the company to improve the level of the service. The most highly rated
hosts are awarded the title of Super hosts, to be aspired
• Today, Airbnb operates in more than 191 countries and to by other hosts and super hosts have greater earning
regions worldwide and there are about 100000 cities with potential.
Airbnb listings and 500 million Airbnb guest arrivals all-
time

• Majority aspects of operations are undertaken by hosts

 SWOT Analysis

STRENGTHS WEAKNESSES
 Well established brand  Airbnb Plus
 A cheaper alternative  Airbnb Collections  Law and regulations violations
to hotels  Social media presence  Poor hosts
 Global Recognition  Easy to copy business models

OPPORTUNITIES THREATS
 Expansion into energy markets
 Product Expansion  Law and regulations in different countries
 Low price and personal touch  Lawsuits
 Mobile app usage  Competitors
 VRIO Framework applied for Airbnb
Expensive to Exploited by Competitive
Valuable? Rare? Organization?
Imitate? Implications

 4.5 million  Trust between  Hotels &  An intelligent Sustained

homes across hosts & guest Motels cannot end-to-end pay competitive
the world  First to market imitate Airbnb system advantage
 Effective and &  Host Incentive business model  24/7 customer
secure (legacy service
communication constraint) platform
interaction  Marketing
 Different platform
business model
compare to
hotel & motel
Airbnb Investments and Strategic
Timeline

The initial strategy of Airbnb was to provide an alternative to the hotels and as the company grew the mission
became that anyone could belong anywhere and to provide end-to-end travel platform to the customers of Airbnb.

To fulfil that it has taken multiple strategic initiatives from acquisitions of rivals for expansion, to acquisitions of
companies that had core competencies in the areas where Airbnb was not a strong player.
 Funding Year Strategic Initiatives
Seed: $30,000 was arranged with the 2008 Website (www.airbedandbreakfast.com) was launched for easier
sales of cereal boxes during the bookings.
Democratic National Convention.
Seed: $20,000 from Y Combinator 2009 Website’s name was shortened to www.airbnb.com for easier recall and
and again $615,000 from Sequoia the website started hosting variety of rooms and properties to target
Capital & Y Ventures. wider audience.
Series A: $7.2M from Sequoia 2010  
Capital & 7 others.
Series B1: $114.9M from Sequoia 2011 Acquisition of “Accoleo” for easier expansion into the German market and
Capital & 7 others. a new international office at London.
Series B2: $2.1M from Sequoia
Capital & 7 others.
  2012  Six new international offices opened to facilitate wider expansions.
 Acquisition of “CrashPadder” to target 2012 London Olympics.
 Airbnb announces Australia to be the next country to focus on,
along with Thailand and Indonesia.
 Aggressive entry to the Asian market via Singapore headquater
 Acquisition of “NabeWise” & “Localmind” both provided location
based services.
 The company focuses itself to offer hyperlocal recommendations.
Series C: $200M from Sequoia 2013 Instead of hiring more people for international expansion, extra employees
Capital & 3 others. were reassigned for the expansion task.

Series D: $519.7M from Sequoia 2014  Partnership to offer home cleaning services to homeowners on the
Capital & 5 others. Airbnb network.
 Website and mobile application revamped for better experience.
 Insurance for the property and the guest.

Series E1: &1.6B from Kleiner 2015  Apps for iPad and Apple watch.
Perkins, Sequoia Capital & 12 others.  Acquisition of “Vamo” and reassigned the team to design a feature to
Series E2: $100M from FirstMark. make recommendations to Airbnb customers.
 Started targeting “Business Travel” customers.

Debt: $1B from Margan Stanley, JP 2016 Collaborated with homeowners to design hosting rules
Morgan Chase & Co.,Citi group and
Brand Capital.
Series F: $1B Eniac Ventures & 5
others.
  2017 Acquisition of “Luxury Retreats” to enter high-end market & “Tilt” for the
split payment options.

  2018 CEO Brian Chesky informed that the company looking to launch an
airlines as well.

Unattributed: $201.6 M 2019 Launch of the “Natiivo” range of hotels.

Private Equity: $1B from Silver 2020 Filling of IPO in the Covid era, this was to keep the company afloat as
Lake Partners & Sixth Street due to the pandemic the bookings fell by 90%
Partners
IPO: $3.5B raised

  2021 Plans to:

 Add more properties
 Simplify the journey
 Deliver better services
VUCA analysis for the decision of releasing IPO during pandemic

Complexity:
The bookings are at Volatility:
all time low and Due to the pandemic
running the business the market is in
with high losses is disarray and travel is
extremely difficult for ristricted only in case
such a young of necessity
company

Uncertaininty:
Every day new rules
Ambiguity: are being made & old
There is no timeline norms are being
as to when things shattered. The
would go back to current scenario is
normal not the correct
reprentation of the
company's potential
 Airbnb 2021 & Beyond

SUSTAINABL
FLEXIBLE E&
AFFORDABL
SEARCH E TRAVEL

LIVE
“POD” SAFE
ANYWHE
TRAVEL TRAVEL
RE
THANK YOU
QUESTIONS?
Section A || Group-5

Abishaek J S 200201005
Nivedita Wasson 200201047
P Akash 200201050
Piyush Pratik 200201052
Shreyash Siddhant200201079