Business Management and Strategic Management

This paper discusses the issues and strategies of AccorHotels and Airbnb using Resource-Based View Model and Porter’s Five Forces. It evaluates the digitalization in their business models and the changes in the industry.

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Business Management and Strategic Management
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Introduction
The aim of this paper is to discuss about the various issues that are regarding betterment
of strategies by AccorHotels and Airbnb. Two important strategic tools will be used in this paper
to evaluate the issues of these two companies. Therefore, these two strategic tools are Resource-
Based View Model and Porter’s Five Forces. The performance of these companies on the basis
of these tools will be highlighted in this paper. The digitalization in the business model of these
companies will be judged on the basis of these two companies. The changes in the industry and
their reactions are necessary for the companies (Jelassi and Keller-Birrer, 2017).
Resource Based View of Companies
AccorHotels
AccorHotels is one of the largest hotel groups in Europe. It is indeed crucial to view the
growth of this organization on the basis of digital transformations for the country. Therefore, it
would be important to note how they can use their current resources for the overall betterment of
the situation. This resource based view model is used by organizations to measure their success
and their ability to gain the competitive advantage (Jelassi and Keller-Birrer, 2017). A big named
company like AccorHotels can only gain the supremacy if they can utilize their resources at the
correct time. The company had the aim to make positive transformations into an active player in
the hospitality economy (Accorhotels.com. 2019). This would give them best opportunities to
thrive in most difficult phases of industry environment. Their competition with Airbnb has been
immense as they are giants in sharing economy. It must be said in this context that the digital
disruption of AccorHotels had largely affected the organizational structure, culture and value
proposition of the organization. Thus it created a barrier for AccorHotels to gain the overall

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competitive advantage. The tangible and intangible resources of the organization were not as per
the needs of the hospitality industry.
Airbnb
One of the biggest factors that has enhanced the growth of Airbnb in digital disruption is
its adaptation of sharing economy. This sharing economy has been achieved by Airbnb so they
can achieve the best position in their hospitality industry as compared to that of their
international rivals AccorHotels (Airbnb.com. 2019). Apart from Airbnb, Uber is also an
example who has been indulged in sharing economy and digital disruption. The various
resources for the company like the rooms, hospitality services, cars or individual skills of
employees have all conformed to the basic resources for the organization. The organization has
used the internet to make all transactions that has catered to the growth and expansion of Airbnb.
Another resource that has been an important factor for the growth of Airbnb is that of the rise of
websites that would compare the prices of hotels. This had made the resources of the company
very much difficult to imitate. New challenges have occurred in the hospitality industry with the
digital disruption process for Airbnb (Airbnb.com. 2019). These factors have come up to be the
most beneficial instruments for the success. In the start-up phase of the business, the company
was able to provide suitable accommodation for their visitors and this became their strong point
as a paart of resource based view.
Porter’s five forces of the companies
AccorHotels
The digital disruption of the company has made the market more efficient in more areas.
Due to this, the market of the company has expanded. The company has to be very much active

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to make sure that internet presence of the company is very much efficient. The internet
formulated marketing approach will indeed be important for the organization. The differences
between competitors of AccorHotels have been reduced when their competitors are also present
online (Accorhotels.com. 2019). The scope of widening the market is there with the rise of
competitors as well. The use of internet has surely decreased the barriers to entry in hotel
industry for AccorHotels (Tanwar, 2013). They can use the quality of food and beds for their
utility in the marketing campaign. This hotel provides environment friendly materials for their
visitors that offers them a good position in the market. The high ambitions of the market will
surely increase the acceptance of their resources to a bigger market in Europe (Accorhotels.com.
2019). The bargaining power of suppliers is indeed not a huge factor for the success of the
organization in a better manner. This factor is not taken as a huge threat for the customers in the
business.
Airbnb
Airbnb has been one of the most successful business enterprises in the hospitality
industry. With the help of digital disruption and sharing economy, they have been established as
one of the frontrunners in this industry. It seems that there are hardly any barriers to entry that
can pose a threat to the existence of Airbnb. The company is well funded and this is one of their
strongest points in the industry. Customers or visitors have always looked upon Airbnb as a
cheaper option for accommodation (Zervas, Proserpio & Byers, 2017). The Airbnb web platform
is a good option for customers to negotiate hotel prices. The bargaining powers of vendors or
suppliers are also very weak indeed. Airbnb app is a cheap option for customers to book hotels or
makes payments. Airbnb always seeks to work with the hosts so they can avoid all sorts of
conflicts with the customers (Quattrone et al., 2016). In order to gain the competitive advantage

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over the competitors, Airbnb has employed the information system that will serve their
customers in a better manner altogether. The company has provided the customers or travelers
many unique experiences that have earned the trust of customers over them. Therefore, the
threats of new entrants in the market are significantly low.
Conclusion
On a concluding note, it can be said that both AccorHotels and Airbnb have performed
very significantly in their business industries. Their different techniques of tackling difficulties in
the work are magnificent. The companies have cared for customers but Airbnb’s position
because of digital disruption and sharing economy. This factor has increased the trust of
customers on Airbnb and helps them achieve competitive advantage.

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Reference List
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