Management Strategy of Airbnb

Management strategy of Airbnb
Student Details
9/4/2019

Contents
Introduction......................................................................................................................................3
Background......................................................................................................................................3
Vision...........................................................................................................................................3
Mission.........................................................................................................................................3
Values...........................................................................................................................................3
Strategic Analysis............................................................................................................................3
Porter’s generic strategy..................................................................................................................4
Cost Leadership............................................................................................................................4
Differentiation..............................................................................................................................4
Cost Focus....................................................................................................................................4
Differentiation Focus...................................................................................................................4

Introduction
Airbnb is a corporation that exists in online market place, which facilitates the arranging,
as well as offering of primarily home stays, tourism experiences and lodging. It is claimed that
there is no single real estate listing that is hold by the company for conducting its business. The
main strategy behind the success of Airbnb is that it acts as a broker, which facilitates the link
between room seeker and room provider for rent (Oskam & Boswijk, 2016). The company
came into existence in the year 2008 and start working in San Francisco, California by Brian
Chesky, Joe Gebbia and Nathan Blecharczk. This report is all about analyzing the main strategies
behind all the decisions taken by the company so far.
Background
The idea behind the establishment of this company was came into existence for the first
time in 2007, where two owners of the company that are Brain and Joe start renting their own
rented house to other persons for nights by providing them air mattresses to sleep and charging
very nominal amount from them they once called it AirBed & Breakfast. They were roommates
and do not have must amount for giving their rent to the owner, hence they thought of providing
their room for staying in the night to other people in exchange of some money. In this way, they
collected required amount for their rent as well as slowly they expended this idea and start-
making profit in a very short span of time (Zervas, 2017).
Vision
The vision statement of the company talks about its extended objective that must be
achieved in the end. The vision statement of Airbnb is “To be the leader in the world related to
accommodation industry based on Internet”
Mission
It is related to the core objectives of the company that helps the company in achieving its
vision. The mission statement of Airbnb is “The Company believes in connecting the whole
world and making it in one community. They connect their guests with authentic and safe local