Does Airbnb have a future in Moldova?

Does Airbnb have a future in Moldova?

Contents
INTRODUCTION.........................................................................................................................3
Literature Review..........................................................................................................................4
Discussion of the secondary and primary research undertaken...............................................9
Critical Review of the results of the research...........................................................................11
Recommendations and Action Plan...........................................................................................14
REFERENCES............................................................................................................................17

INTRODUCTION
Maldova is a country in Eastern Europe, which is bordered by Romania to the west and
Ukraine to the north, south and east. Airbnb is an American company that is vacation rental
marketplace that operates online. The company is based in San Francisco, California and offers a
variety of services wherein the users can arrange lodging, tourism experiences as well as
homestays on the list of their properties for rent. Airbnb attracts a large number of customers
through its strategy(Asgaryand Maccari, 2019). The strategy of the company is that real estate
investors purchase different rental properties and then list the entire property or their individual
rooms on Airbnb. This strategy is a great opportunity for the investors to generate income from
the various properties that they own. One of the main reasons why Airbnb is popular because of
its concept and execution in the market. Also, the prices for reservation are often lower than the
rates offered by local hotels or motels. It is an affordable option for the company as well as the
users.
The strategy implemented by the company is creative and has helped it to grow in the
market and also contributed significantly to its overall profitability(Kozinetsand Gambetti,
2020). But there are also certain problems that are faced by the company. For example, there can
be cases wherein customers can leave bad reviews based on their experience. Apart from this,
there can also be circumstances wherein the guests find it difficult to cancel a particular
reservation. Unfair reviews and change in check-in as well as check-out times are also some
problems that the company has been facing in the recent years. Therefore, it is important for the
company to adopt different measures so as to overcome this problem. Maldova is a safe place to
visit for the tourists and there are hardly any crimes reported by the them(Ast, 2019). Airbnb
currently operates in different geographical locations and has been successful with its operations
there. The company is always looking for different alternatives as to expand its business and
provide the real estate investors to invest in new properties.
The respective company might have to implement a new strategy in order to start its
operations in Maldova. There are many different measures that Airbnb should implement in
order to build a successful future in Maldova and attract a greater number of customers(Austin
and Wojcik, 2018). Maldova is among the least visited country in Europe and therefore, this can

serve to be an important opportunity for the respective company so that it can enhance its overall
business. This report is aimed towards determining if Airbnb has a future in Maldova.
Aim and Objectives
Aim: To determine if Airbnb has a future in Maldova in order to expand its business operations.
Research Objectives
 To identify if Airbnb has a future in Maldova for the overall growth of its business.
 To analyze the challenges that Airbnb can face while expanding its business operations in
Maldova.
 To determine different strategies that Airbnb can implement in order to build a future in
Maldova.
Conceptual Framework
Figure 1: Conceptual Framework
Source:Conceptual Framework, 2021
A conceptual framework illustrates what you expect to find via your studies. It defines
the relevant variables for examine and maps out how they could relate to every other. One has to

construct a conceptual framework earlier than you start accumulating records(Baumann, Winzar
and Viengkham, 2019). It is frequently represented in a visible format. The respective research
aims at determining if Airbnb has a future in Maldova. Apart from this, the research also expects
to find the challenges that the company can face while setting its business in the country. Various
strategies that should be developed in order to ensure that business operations are conducted in
an effective manner. Conceptual frameworks are mainly beneficial as organizing gadgets in
empirical research.They outline a conceptual framework as "the manner ideas are organized to
reap a research challenge's purpose.
Literature Review
Corporate governance:
According to Kowalewski, (2016), Corporate governance are set of rules, regulations and
compliances that helps to operate as well as control a business entity. There are several internal
as well as external factors are included in Corporate governance that influence the interest
internal as well as external stakeholders such as employees, managers, customers, stakeholders
and more. Here board of directors of organization is responsible to formulate appropriate
framework for corporate governance for the growth and success of organization. Corporate
governance can be understood as the system that comprise laws, procedures, practices as per
which a company is managers as well as controlled(Bogetić, Vorkapić and Lekić, 2017). It is
really important for stakeholders as it demonstrates the integrity and direction of business. In
addition, it shows the financial viability of organization that is crucial for shareholders and
provide them an opportunity to take effective long term decisions regarding investment.
Corporate governance is a system that comprises certain laws such as transparency,
accountability. Security and more that are crucial to provide appropriate information to
outsider’s parties(Labaeye, 2019). It is really essential for a company to maintain positive
corporate governance in terms of higher transparency and security.It is analyzed that Airbnb
maintain higher corporate governance in terms of financial data and information that is crucial to
maintain positive image among stakeholders. Here, manages provide transparency to
shareholders and reveal necessary financial information of company in order to maintain positive
image of brand at market place.
Theories of governance:

According to Jacoby, (2018), there are several theories of corporate governance that are essential
to follow in order to ensure higher productivity and profitability of business. Agency theory
refers that managers of an organization work as they are responsible to carry out the objectives
that are formulate by higher authorities of company. In this, board of directors consider as higher
authorizes but they do not have the necessary skills and potential to execute objectives
effectively so take help of managers. In context of Airbnb mangers act as agent and responsible
to execute the policies and strategies in appropriate formulate by higher authorities of
organization. Shareholder theories refers that organization is taken as property for shareholders
as they invest money in business and look forward to get maximum return from business. So, it
is the responsibility of managers as well as directors to protect the interest of shareholders in
business. They formulate strategies to maximize the wealth of shareholders that is crucial to get
an edge over other competitors at market place(Loudermilk, 2018). In case of respective
company, it is analyzed that shareholders operates company as their property where managers
are required to maximize their wealth. Stakeholder theory reefers there are several stakeholders
of business such as customers, managers; creditors are present at market place. So, organization
need to consider the interest of all relevant parities for the success of business. It is analyzed that
these different stakeholders have different interest that sometime arise conflicts thus managers
are required to create strong coordination among all the parties. In reference of Airbnb, it is
analyses that there are several stakeholders of entity are present at market place that need to
consider by managers while formulation effective strategies for future success and growth of
entity.
Board and decision making:
According to Puac-Polanco and Morabia, (2020), board members consider as higher authorities
for company that is made with several executive and non executive directors and more. These are
the key persons of company sand responsible for effective decision making for betterment of
organization. In addition, these people are required to make appropriate strategies and policies
for enlargement of business(Lupu, Brochadoand Stoleriu, 2019). Here, board members of Airbnd
are experienced and have the capabilities to take proper decisions for long term success of
business. They take several short as well long term decisions by considering maximum growth of