Strategic Management of Airbnb: Competitive Advantage and Market Segments

Running head: STRATEGIC MANAGEMENT
Strategic Management
Name of the Student
Name of the University
Author note

1STRATEGIC MANAGEMENT
Executive Summary
The assignment helps in the analysis of the different kind of strategic marketing strategies
that has helped Airbnb in attracting more customers. Proper ascertainment has been done that
has helped them in overcoming the different challenges and solve the issues effectively. The
competitive advantage gained by Airbnb has helped the company in gaining more customers
in the market and this created huge value to their company as well. Furthermore, it was seen
that there has been different kind of challenges faced by the company and this created huge
competitive advantage for their customers as well.
Furthermore, the main aim and purpose of the assignment is to analyse the strategic group of
Airbnb that has helped them in competing with other firms in the competitive market with
implementation of different kind of strategies. The strategic group has been analysed
effectually as this helped the respective company Airbnb in handling different conflicts and
solved them appropriately.
Lastly it was seen that Airbnb has created different kind of strategic initiatives that helped
them in maintaining proper competitive advantage in the entire competitive market. Proper
analysis has been done wherein CEO has provided his views and solved the different kind of
strategies.

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Table of Contents
Introduction 2
Main Customer Market Segments 2
Strategic Group of Airbnb 4
Competitive Advantage of Airbnb 6
Value created by Airbnb 6
Main sources of competitive advantage of Airbnb 7
Viewpoint as CEO: 9
Conclusion 10
References 11

3STRATEGIC MANAGEMENT
Introduction
The report helps in analysis of the customer groups along with market segments in the
hospitality industry of the respective company named Airbnb. The business model of Airbnb
will be discussed along with analysis of the competitive advantage along with the sources.
The Porter’s Five Forces Model will analyse the main players in the industry. The different
trends and changes in the micro and macro business environment has to be analysed
effectively and reflective analysis is required to be provided in order to understand the
situation of Airbnb and the steps taken to implement the changes as well.
Main Customer Market Segments
a) Main customer or the market segments of hospitality industry are as follows:
❖ Family is one the customer segments of the hotel industry wherein they have specific
kind of needs and they require kid friendly atmosphere that is suitable in nature as
well. The hotel industry targets these customers with the help of offering them
discounted products as this will help them in gaining competitive advantage in the
market (Wheelen et al. 2017)
❖ Business travellers is the other market or customer segment wherein as they are the
prized customers as of their willingness is high in paying room prices and enjoy stable
stay in an effectual manner as well. Proper attention from the hotel attendants is
required by them as this will help them in gaining more customers in the future
❖ Backpackers and couples are the other category wherein they will spend time on
exploring the city and the couples will be requiring high quality services wherein the
brand management plays a major role in the company as well. These kinds of