Global Marketing: Challenges and Opportunities for Airbnb in Japan

- Marketing Globally - 3042MKT - FinaL Case Study - AIR BNB GOING
FOR GOLD TOKYO 2020
Student Name: ........... Student Number: .............

Executive Summary
Global marketing is a trending phenomenon that most organizations are
adapting to. It entails various mechanisms developed by organizations to help them
operate beyond the geographical borders of the countries they are located. Most of
the organizations are adjusting their strategies in order to get to understand and get
used to conditions practiced in other countries. This is in the form of production,
marketing, operations and many more factors. Organizations that operate at global
level such as the Airbnb with its headquarter in San Francisco enjoy a number of
benefits such as; creation of brand awareness across the world, earning more
revenue and others. On the other hand, there are also a number of challenges that
may be obtained. These challenges include; taking risks as much may not be known,
difference in culture that might inhibit entry, difference in laws and differences in
standards.
In a broader manner, the challenges that are received by the Airbnb Company
can be categorized into external and internal factors. The external factors entail
things like the regulation by the foreign governments, external environments,
competitors and many more. Partnering with the Japanese government is a move
that could have helped the Airbnb Company to be at a better position of conducting
business in Japan. The Airbnb Company is facing competition from other well-
established companies and in order to do well in business, they do not have to
partner with their competitors. They should just remain unique so as to capture the
attention of customers in their own way.
Some of these challenges can be managed by having a good strategic plan
before venturing into a foreign market. The plans should take the domestic behavior
into considerations as well as the culture and laws. There are two common
strategies that companies adopt while venturing the global market space. This
includes; establishment of a strong brand and marketing as if you never had a brand.
Including what the local people are familiar with in the brand will work great. In order
to well in foreign market, it is recommended that a company considers local people
in terms of employment and use of environment as well. Creation of awareness is
vital and the Airbnb Company can educate the Japanese through social media,
advertisements and public shows or workshops.
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Contents
1.0 Introduction........................................................................................................... 3
2.0 Discussion: Case Analysis....................................................................................3
2.1 – Q1: External Environment: Opportunity to Partner with Government to
Regulate.................................................................................................................. 4
2.2 – Q2: Competitors: Opportunity to Partner with Competition.............................5
2.3 – Q3: Branding: Branding Across Boarders in Japan.......................................6
2.4 – Q4: Education and Promotion: Promoting Services to Increase Listings.......7
3.0 Recommendations and Conclusion.......................................................................7
3.1 Overview of Recommendations Summarised from Analysis.............................7
3.2 Conclusion......................................................................................................... 9
References................................................................................................................10
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1.0 Introduction
Global marketing is known as the procedure under which market strategies are
adjusted in an organization or company so that the company can adopt or get used to the
conditions practiced in other countries (Gillespie, et al. 2015). Companies and
organizations sometimes line themselves with international standards so that they can fit in
the market space globally. It is more than selling and buying of goods across the world as
it concentrates on different processes of planning and then creating the desirable product,
then positioning the company at the global perspective and finally getting to promote the
products and services on a global market space. A number of challenges are likely to be
received by companies that venture into foreign markets just like we see with the Airbnb
Company in Japan. Some major challenges facing them are difference in culture,
regulations and creation of public awareness. The best way that big companies handle
global marketing is by having their offices in different countries across the world, with
this, they understand the market space and the specific needs their customers need. This is
more like having your people in the grassroots where they can relate to the problems and
challenges faced in this areas, and the mother company comes up with a remedy for the
problems (McCorkle, et al. 2017). This report comprehensively analyzes various aspects
of global market as well a number of factors that the Airbnb Company should do in order
to be successful in Japan. As given in the case study, the Airbnb Company with its
headquarters located in San Francisco in the US is working tirelessly to ensure that they
venture into global market in Japan.
2.0 Discussion: Case Analysis
2.1 – Q1: External Environment: Opportunity to Partner with Government to
Regulate
Question; should Auirbnd partner with government to be regulated?
In the case study given, the Airbnb Company is facing quite a lot of
challenges to fit into the Japanese market. The biggest challenge that they are facing
is regulations from the government of Japan. The best thing that the Airbnb
Company should do to is to partner with the Japan government and agree on
regulations that are present and apply in Japan. This will help them operate smoothly
without much rebellion.
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