Evaluating Airbnb's Potential for Business Expansion in Moldova

This report assesses the potential of Airbnb in Moldova, an Eastern European country with a developing tourism sector. The report begins with an introduction to Airbnb and its business model, followed by a literature review that examines corporate governance, theories of governance, board decision-making, and business ethics. The research then explores the aim and objectives of the report, including identifying Airbnb's future in Moldova, analyzing potential challenges, and determining strategies for success. The conceptual framework outlines the key variables and their relationships. The report analyzes the challenges Airbnb could face in Moldova, including the country's economic conditions and limited tourism infrastructure. The report concludes with recommendations and an action plan, outlining strategies for Airbnb to overcome these challenges and expand its business operations in Moldova. The report aims to provide a comprehensive analysis of the market and offer recommendations for Airbnb's 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

entity. Further, they also prepare necessary plans, plociesm procedure to regulate business in
better manner and to protect the interest of different shareholders in business.
Business ethics and sustainability
According to Reinecke, Arnold and Palazzo, (2016), Business ethics refers to the right
and wrong conduct at work place that is essential to follow in order to maintain positive image of
company at market place. There are several values included in business ethics that guide
managers to conduct operations in ethical manner. Nowadays, it is really crucial for an entity to
follow ethics that are formulated by higher authorities. Here, a standardized set of behavior,
policies is followed by companies so that they can differentiate between right and wrong
conduct(Markovic, 2019). However, main aim of an entity is to earn higher profitability but they
are required to follow moral principals while operating business. it is analyzed that business
ethics are significant aspect of each and every business entity to ensure longer sustainability.
Now, it has become a part of overall business activities that need to follow in an efficient manner
so that organization can sustain at market place for longer duration at market place(Johannessen,
2018). Here, CSR has become has become a crucial part of overall business ethics in which
managers are required to give due consideration to social, economical as well as environmental
development to inflate overall profitability of company. In case of Airbnb, it is monitored that
managers follow business ethics, values in order to ensure long term sustainability of
organization. Here, they give significantly contribution in overall economic as well as social
development so that business can grow and succeed. In addition, managers also give significant
contribution in development of society and economy with an aim to manage positive image of
organization at market place. To identify if Airbnb has a future in Maldova for the overall growth of its business.
According to Patrick Yip, (2020),Business expansion consider as one the most important
strategy in which business operations are expanded in more countries with an aim to increase in
sales and profitability. Here, managers analyze the prevailing conditions within different
countries including preferences, taste, needs of customers so that they can survive at
international market place. In addition, they have also face extensive competition at international
market that also provide significant opportunities of growth and success. It is analyzed that
Airbnb is a renowned company of America that provides facilities to travelers to make online

bookings for comfortable stay(Mayson, 2018). They ensure to provide higher quality services as
pee the specifications and requirements of customers. Unlike hotel, it provides ensures to offer
unique, authentic accommodation facilities to travelers that is given by local people. In addition,
they provide an opportunity to local people to convert their houses, villas in rental places where
people can stay. So, it has created a huge source of revenue for people. Currently, organization is
operating in nearly 200 countries across the globe with the help of its effective strategies(Kelsey,
2018). Here, managers are looking forward to explore business in different countries such as
Maldova. It is analyzed that Maldova is an European country that do not have plenty of
resources. The economic condition of country is not also good as most of the people are poor and
depend on wine business to meet with their basic necessicities. In addition, the present condition
of Maldova is not favorable for tourism so it is not easy for Airbnb to explore business in
respective country due to its unfavorable conditions. However, wine considersas an important
attraction for visitors but it is not sufficient to earn higher profit margin for company. Here, the
business of Airbnb completely depends on number of tourist within country so there are lower
opportunities for respective organization to explore business in particular country for future
growth and success.
 To analyze the challenges that Airbnb can face while expanding its business operations
in Maldova.
According to Tomer Harel, (2018), there are several challenges are faced by companies
while exploring business in different countries. It is analyzed that environment of different
countries also differ so it is not easy to operate business at global level. In addition, there are
several changes are introduced by government of respective country that also affect business
operations of entity. Here, they need to face extensive competition from other companies that are
already working within country from several years and have good understanding regarding needs
preferences of customers(Morace, 2017). Further, managers also required to invest huge money
in expansion and need to analyze the environment of particular country on continuous basis. It is
analyzed that Airbnb will require to face several challenges while exploring business in different
country. Here, they will be required to monitor prevailing political, environmental as well as
social condition of Maldova to expand business. In addition, people of Maldova are poor and

depend on wine business for survival. Here, condition of economy is also not favorable so
manages of respective company have to face several difficulties. It is analysed that there are
lower number of tourist visit Maldova every year. Even, number of visitors is lower in
comparison of other European countries. For the success of business of Airbnb, it is really
essential to maintain higher number of tourist. In addition, Maldova is disconnected from Europe
thus it is not easy to get cheaper tickets to visit the country. Here, higher authorities of country
are unable to promote its tourism in better manner so visitors do not have idea about history,
destinations of country. Further, image of nation across the globe is not positive that is also a
reason that people are not likely to visit the country. These negative conditions have been created
several constraints for managers of organization to explore business within country. Here, social,
economical conditions are also create higher challenge for company to enlarge its business.
Therefore, managers have to face several challenges related to market condition and other
external factors. To determine different strategies that Airbnb can implement in order to build a future
in Maldova.
According to Brandon Hickie, (2014), There are several strategies followed by
managers of organizations to explore business at global level. For this, they are required
to analyze the prevailing conditions market place of respective country in which they are
going to explore business. In addition, they can do licensing, joint venture with any
existing companies. It will not only help to eliminate competition but also help to
establish business in different countries. It is analyzed that local companies remain well
aware with the needs and requirements of local audience that help an international
company to set up their business. In case of Airbnb, managers are firstly required to
analyze the current social, economical conditions of country then formulate necessary
strategies accordingly. Here, they are required to adopt effective strategies in order to
improve the image of Maldova among tourist so that they get attracted towards country.
It will help to promote tourism within country that is really essential for Airbnd to
establish their business within country. Business model of organization is completely
based on tourism condition of nation so managers are firstly required to enhance in the
number of visitors. Here, they also required to get associate with existing hospitality
companies of nation in order to ensure sustainability at international market place. In

addition, managers can undertake joint venture with any local organization to attract
more number of customers. However, Airbnb is already a well known company that has
expanded business in different countries at global level but they are required to adopt
effective strategies so that they can operate business in Maldova successfully as market,
economic conditions of country are not usual like other nations. So, it is vital for
administration of respective entity to prepare appropriate strategies as per the
environment and conditions of country.
Discussion of the secondary and primary research undertaken
For research, it is crucial to collect data and information from respondents so that
researcher can reach at meaningful conclusion (Largan and Morris, 2019). There are different
methods used in order to collect necessary information. It can be collected by researcher and may
use the available data that has already collected by some other researcher for a predefined
purpose. Different methods of research are discussed as under:
Primary research: It is one of the crucial ways of data collection that is widely used by
researchers in order to draw meaning conclusion out of research. Here, data is collected by
investigator that is completely raw. This approach of data collection considers as more authentic
and reliable source to collect necessary information. Different source of primary research are
given as under:
 Interview: In this, data is collected through face to face interaction with respondents.
With this, optimum information can be gathered from limited number of applicants. In
addition, interview also helps to get some additional information about behavior, attitude
of respondents that is essential to interpret the results in better manner.
 Surveys: It is more rigorous than interview as here questionnaire is prepared to collect
appropriate data from respondents (Li, Fernie and Persson, 2016). Here, large groups are
included in this type of source and provide limited information that will help researchers
to get desired results. In this, researchers are required to put higher efforts for the
formulation of questionnaire. It needs to be design in such a manner that maximum
information can be received from respondents.
 Observation: In this, researcher observed the behavior, attitude of respondents and make
inferences accordingly. Here, no personal interaction takes place between both parties but

it consider as a better method to collect information(Sæþórsdóttir, Hall and Wendt,
2020). There is lower probability of biasness thus it provides fair results. In addition, it is
widely used at the time of launching a new product and services at market place.
Merits of primary research:
 It helps to gather fair, true and raw data that is collected by investigator for the purpose of
research so there is higher relevancy that is crucial for the success of research.
 In addition, Primary data is up to date, recent and highly authentic as it is collected by
researches with own efforts without any assistance and interruption of other party. Thus,
researchers can use this data with an aim to get appropriate results from research.
 Here, data is gathered by investigator with own efforts so they have the opportunity to
make interpretation on their own. They are not required to rely on some other secondary
sources for interpretation that helps to draw appropriate conclusion for the success of
whole process.
Demerits of primary research:
 It is analyzed that there are higher time as well as cost incurred in this source of data
collection. For this purpose, investigator need to travel from one place to another that
enhances overall cost of research. Here, long duration is required by researchers to collect
appropriate information.
 Here, it is also essential to have the involvement of respondents in order to get
appropriate feedbacks(Selby and Vescent, 2017). Sometimes, it does happen that
respondents are not willing to provide detailed information that may create constraints in
overall research process.
 Apart from time and cost, there are some other resources such as human being, tools area
also required to conduct research in appropriate manner. So, requirement of huge
resources may enhance overall cost of project.
Secondary research:
 In this, information is taken from already available data that has been already gathered by
some other researcher for a specific purpose (Raccanello, Hall and Burro, 2018). Here,
data is not raw as it is not collected first time. In addition, researchers are also required to

be careful regarding authenticity and reliability of information while using secondary
sources(Sweijs, and et.al., 2017). Here, it can be gathered from different sources such as
Website, journals, articles and more. Different sources of secondary research are
mentioned below:
 Data available on internet: This is the most common and widely used source for
secondary data. Here, data is available on internet on different websites and investigator
is required to download this for the purpose of research. It is analyzed that this data can
be accessed without any cost that helps researchers to keep the overall cost of research at
minimum possible level. In addition, they are required to check the authenticity and
reliability before collection of information.
 Government and non government agencies: From secondary research, data can be
collected from government and non government agencies. There are several agencies in
different countries such as US census bureau and more that provide readily information
to investigators to promote research and development work within country.
 Commercial information sources: There are different commercial sources such as
newspaper, journals, articles also used by researches for the purpose of secondary
research. These sources provide reliable information on market, segmentation, economic
development and more that is crucial for the success of research.
Merits of secondary research:
 It is analyzed that secondary research helps to collect appropriare information within less
time and cost. There are limited sources required to gather information from secondary
sources (Schwab, 2018) . Sometimes, researcher is not required to pay any amount for
data while information is gathered through websites and internet.
 In addition, it can be used to get quick information without the involvement of more time,
cost and tools. Secondary source can be easily used while researcher wish to get quick
results in limited period of time.
Demerits of secondary research:
 The most crucial demerit of secondary research is the authentication and reliability of
data. Here, data is not raw and first hand so investigator is required to use trusted and