Comprehensive Business Report: Airbnb's Digital Strategies Analysis

This report provides a comprehensive analysis of Airbnb's business operations, focusing on its digital marketing strategies, web design, business-to-business (B2B) approach, and mobile commerce initiatives. It begins with an introduction to e-business and the context of Airbnb's services, followed by a Porter's Five Forces analysis to assess market competitiveness. The report delves into Airbnb's digital marketing efforts, including its use of Google Ads and social media, while also evaluating the effectiveness of its web design. Furthermore, the report examines Airbnb's B2B strategies, particularly its focus on business travelers, and explores its mobile commerce platform. The analysis highlights the company's strengths and weaknesses across various aspects of its business model, providing insights into its overall performance and strategic direction.

BUSINESS REPORT ON
AIRBNB

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
DIGITAL MARKETING ANALYSIS............................................................................................2
WEB DESIGN ANALYSIS............................................................................................................3
BUSINESS TO BUSINESS ANALYSIS........................................................................................4
MOBILE COMMERCE..................................................................................................................5
CONCLUSION AND RECOMMENDATIONS............................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Background of e-business
Business report is the module which give detailed description regarding the company
upon which different type of analysis is done. This type of report helps manager in making the
right decision about the company. In this regard, it can be said that there are significant changes
are occurring in the external environment of company. Herein, it is analysed that development in
the technological infrastructure of country is opening new source for the enterprises with regard
to market and sale their produced goods and services to the final buyers (Deans, 2005).
Hence, due to this a very new concept of selling the products to the buyers has come into
existence. It is called by the name of e-business (Electronic business). Here, E-business is the
practice of using information and communication technology with an aim to deliver the products
and services to the ultimate buyers. The concept had come into existence in the year 1998.
However, it was first used by IT company which is named as IBM. Here, IBM along with its
agency Ogilvy and Mather has begun conducting its operation in business with the help of
different e-business technologies. In this context, it has been seen that the e-business has evolved
from last many years. Earlier business tend to use their website for marketing the goods and
services which is being produced by them. Furthermore, in the early 1990's websites of the
company provides basic information about its products to the buyers. Here, customer uses the
website of company with an aim to get the contact number of the firms. Thus, during the given
period firm will not carry out any kind of goods purchase and sale related transaction with the
customers.
But, the thing has changed in the present scenario. Here, the website of company not only
provide information about its product, but they also offer an option to the customers with regard
to make the order of different products from the company's websites. Hence, in the present era
the concept of online selling has begun which is currently being practising by many companies.
For example, the organisations such as Amazon Apple and many other firm uses this innovative
mean for selling and distributing their product (Dholakia, 2002). Furthermore, the company such
as Airbnb has also being counted under the given list. But, the major difference which exit
between these firms and Airbnb is that the other firms offer tangible product but Airbnb offers
services. Here, in the present report Airbnb is taken into consideration. In this regard, the report
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will give detailed description that how firm uses information and communication technology
tools with an aim to carry out its operation in an effective manner.
About Airbnb
It is the website which assist people with respect to list and rent lodging. It is the private
company which has come into existence in the year 2008. The company has its presence in more
than 190 countries and 34000 cities (Airbnb, 2016).
Porters five forces analysis of Airbnb
With an aim to get the information about the competitiveness of the market where Airbnb
is operating, porters five forces analysis is used. The application of the respective tool is depicted
in below: Threat of new entry: This is moderate for Airbnb because of its brand image in market.
Here, any company can use the concept as being used by Airbnb. But, with an aim to
compete with the respective firm, new entrant has to first establish its presence in
market . Threat of substitute: This is high for the corporation. This is because, customer still have
the option to book the room in hotel in a traditional way (Jengchung and et.al., 2013). Bargaining power of customers: This is also high because of availability of high
competitors and substitute of the services which is being given by firm. Bargaining power of suppliers: This is low for company. This is because, the individual
who rent their lodge does not have any other option with regard to get connected with
their client (Multhaupt, 2007).
 Rivalry among competitors: This is moderate or may be low for Airbnb. This is because,
there are many firms which offers the services as being given by corporation, but these
firms are not successful and popular as Airbnb does.
DIGITAL MARKETING ANALYSIS
Digital marketing is the way of making the promotion of goods and services which is
being given by company by using different electronic means (Digital marketing, 2016). Here, in
the digital marketing different means such as email, you tube and social networking websites are
used for the purpose to give information about the product to the respective target market
customers of the corporation. In this context, it has been analysed that the company such as
Airbnb also make use of respective platform in order to promote its services.
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In this regard, from the analysis it is assessed that Airbnb is using Google platform with
an aim to give information about the products and services which it is offering. Here, in order to
lure the international audience cited firm has made investment in the Google search engine ads.
Hence, due to this company has performed significant increment in their number of listing.
Earlier the listing was 10000 but after investment in Google ads it has raised to 80000 ( 4 Digital
Marketing Strategies: An Airbnb Case Study, 2016). In this context, it can be depicted that it is
beneficial for the firm that it must make use of such platform for marketing. This is because, the
given platform will enable the enterprise with respect to show the actual image of the products
and services which is being offered by firm.
However, for service firm like Airbnb the given mean has greater importance. This is
because, it has been seen that customer generally does not trust any service company as they
have the doubts that the information which company is providing about the flat is correct or not.
But, with the use of Google platform, Airbnb can display actual picture of the rental place which
it will offer to the buyers (Enrico and Paul Lapoule, 2012). Through this way, enterprise can
build up trustworthy relationship with its customers.
In addition to this, firm is also using digital marketing tools such as social media
websites. With the help of websites such as Twitter and Facebook, firm connects itself with the
international buyers. The given mean also plays very effective role in giving exact information
about the company to the respective buyers. However, the major problem which firm faces with
digital marketing is of updating the information of company. Herein, the organisation will have
to regular make efforts with respect to update the information which they have posted in
different online means (LI, 2007). This is because, if this is not done then any kind of
misinterpretation of information will be held between both Airbnb and its buyers. This may
affect the brand image of corporation.
WEB DESIGN ANALYSIS
Web designing is the process of designing the website of the company. Thus, the website
designing includes information architecture, website structure, website layout, colours and
photos etc. For any company, which is selling its product via online platform, website plays very
important role. This is because, it is through attractive looking websites only firm can impress its
buyers. This is because, it is well known fact in business that “the product which seems good
sales good”.
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In this context, the website of the Airbnb is analysed. This is done with the help of
different points such as crucial business information, good navigation, uses of graphics etc. The
website will be considered as effective when it has crucial business information. The given
things is effectively followed by Airbnb (Manzoor, 2010). The front page of Airbnb website
depict the main services as being offered by the firm. Hence, the first page welcome the
customers and below the welcome statement customer can write the name of places where they
wanted to go (Airbnb, 2016). In addition to this, the whole website of company is divided into
different sections which provide convenience to the users with regard to get the information
which they are searching upon the Airbnb website in an effectual way.
But, the major disadvantage of Airbnb website that it does not have any contact
information. The website of company does not communicate the number which customers could
use in order to communicate their complaint to the firm. In addition to this, the website of
company will not also have FAQ application. These two are the major disadvantage of the
company website (Morteza, 2011).
However, one of the biggest advantages of company's website is that it the content of
website can be transformed as per the customer preferred language. This will help in providing
convenience to the buyers. Furthermore, the website of Airbnb is visually very appealing and
attractive. This is because, there are many graphics and images are used in the website which
also plays very effective role in terms of attracting the large number of buyers towards the
corporation (Plant, 2000). Moreover, the proper arrangement of each and every content in the
website make easier for the buyers with regard to easily navigate the information which they are
searching in the website. Overall, it can be said that the website of the cited company is effective.
BUSINESS TO BUSINESS ANALYSIS
It is the other form of services wherein the produced goods and services are exchange
between the businesses rather than final consumers. The given thing is also followed by Airbnb
wherein it targets different business travellers. In this regard, company has its connection
different other business which often send its employees to the other places for travel. Herein, the
firm provides different type of amenities and faculties to the business travellers (Gorman, 2006).
For example, for business travellers Airbnb makes the arrangement of such type of rental places
which will be useful for the business travellers. For example, business travellers often conducts
their business meeting at the places where they live. Hence, the Airbnb ensures the given thing
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and make significant measures with regard to fulfil the same in an effectual way. Here, it is by
complying with the given type of activity only organisation maintains an effectual relationship
with its client. Thereby, perform significant improvement in the sales and profits in an effective
way.
In addition to this, for the firm it is very beneficial that it should enhance the base of
business customers. This is because, on doing so firm has more chances of earning profits. It is
due to the fact that, there are very less number of business which negotiates with the
accommodating firm for prices (Joshi and Phippen, 2004). Thus, by targeting and increasing the
base of given type of customers, organisation can perform significant improvement in its sales
and profits. Overall, it can be depicted that B2B form of carrying the business is being regarded
as one of the most effective activity.
MOBILE COMMERCE
Mobile commerce depicts the way of selling the services through mobile phone. The
success of any hospitality enterprise thoroughly depends upon the aspect that how it delivers the
services to the customers. Thus, it can be said that mobile commerce is very new and evolving
concept. This provides opportunities to the buyers of firm with regard to make the order of
different products and services by using the company's mobile application. The firm such as
Airbnb also make use of given mean with an aim to deliver its services to the buyers. In this
regard, the firm has formulated the app which gives thorough information to the customers about
the services which it is offering to the buyers (Michie, 2006).
The given mean is effective as it helps in fulfilling the convenience related needs and
demands of the customers in an effectual manner. In this regard, it has been seen that with the
help of mobile commence customers of Airbnb can make the order of room for rent from any
places. Furthermore, the given mean also reduces the customers efforts of bringing bulky laptop
from one place to another. Hence, it can be said that there are many benefits associated with the
mobile commence. The given benefits are currently being experienced by the cited firm also
(Morteza, 2011).
CONCLUSION AND RECOMMENDATIONS
Attributing all the facts from the conducted analysis, it can be depicted that significant
developments in the information technology is providing several benefits to the corporation like
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Airbnb. Here, it is helping the enterprise with regard to earn more profits and sales by
maintaining the satisfaction level of the buyers in an effectual manner. In addition to this, the
website of the company is also playing very important role in the task of attracting the buyers
towards the customers. It has been seen that the website of company provides thorough and clear
information to the buyers regarding the services which they sell. This plays very critical role in
raising the satisfaction level of the customers in an effectual way. In the similar way, with the
help of digital marketing tools, organisation is targeting wide number of buyers and thereby
performing improvements in profits.
Besides this, on the basis of conducted analysis it is suggested to firm that it should
involve FAQ in its website. With the help of given tool, customers can resolve all the doubts
which they are facing when handling and dealing with the company's website. In addition to this,
firm should invoke customer feedback option in the website. By doing this, Airbnb can assess
the effectiveness of the services which they are delivering to the buyers.
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REFERENCES
Books and journals
Deans, C. P., 2005. E-Commerce and M-Commerce Technologies. Idea Group Inc (IGI).
Dholakia, N., 2002. Global E-commerce and online Marketing. Greenwood Publishing
Group.Earl, M. J., 2000. Evolving the E‐Business. Business Strategy Review. 11(2). pp.
33-38.
Enrico, C. and Paul Lapoule, 2012. E‐commerce: exploring the critical success factors.
International Journal of Retail & Distribution Management. 40 (11). PP.842 - 864.
Enrico, C. and Paul Lapoule, 2012. E‐commerce: exploring the critical success
factors. International Journal of Retail & Distribution Management. 40 (11). PP.842 -
864.
Gorman, E. G., 2006. Giving way to Google. Online Information Review. 30(2). pp.97 – 99.
Jengchung and et.al., 2013. Process quality and collaboration quality on B2B e‐commerce.
Industrial Management & Data Systems. 13 (6). PP.908 - 926.
Joshi, P. and Phippen, D.A., 2004. Web services: measuring practitioner attitude. 4 (5). PP.366 –
371.
LI, F., 2007. What is E-business: How the Internet Transforms Organizations. Wiley.
Manzoor, A., 2010. E-Commerce. Amir Manzoor.
Michie, J., 2006. Street Smart Internet Marketing: Tips, Tools, Tactics & Techniques to Market
Your Product, Service, Business Or Ideas Online. Street Smart Internet Market.
Morteza, G., 2011. Adoption of e‐commerce applications in SMEs. Industrial Management and
Data Systems. 111 (8). PP.1238 - 1269.
Morteza, G., 2011. Adoption of e‐commerce applications in SMEs. Industrial Management and
Data Systems. 111 (8). PP.1238 – 1269.
Multhaupt, D., 2007. Internet Marketing Via Search Engines with an Emphasis on Platforms and
Pay-per-view Portals. GRIN Verlag.
Plant, T. R., 2000. Ecommerce: Formulation of Strategy. Prentice Hall Professional.
Online
4 Digital Marketing Strategies: An Airbnb Case Study. 2016. [Online]. Available through:
<https://www.searchenginejournal.com/4-digital-marketing-strategies-airbnb-case-
study/95007/>. [Accessed on 7th April 2016].
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Airbnb. 2016. [Online]. Available through: <https://www.airbnb.com/about/about-us>.
[Accessed on 7th April 2016].
Digital marketing. 2016. [Online]. Available through:
<https://www.coursera.org/specializations/digital-marketing>. [Accessed on 7th April
2016].
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