Business Management and Strategic Management

Running head: BUSINESS MANAGEMENT AND STRATEGIC MANAGEMENT
Business Management and Strategic Management
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1BUSINESS MANAGEMENT AND STRATEGIC MANAGEMENT
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

2BUSINESS MANAGEMENT AND STRATEGIC MANAGEMENT
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