Strategic Management Report: Airbnb's Strategy Statement Analysis

This report provides a strategic analysis of Airbnb, examining its business model through the lens of the strategy statement framework. The analysis begins with an introduction to strategic management and the importance of a clear strategy statement, referencing the work of Collis and Rukstad. The report then delves into the three core elements of a strategy statement: objective, scope, and advantage. These elements are defined and discussed in detail, providing a foundation for understanding Airbnb's strategic position. The report then applies these concepts to Airbnb, evaluating its objectives (such as market share and customer retention), scope (including geographic reach and technological integration), and competitive advantages (network effects, differentiation, flexibility, goodwill, and global presence). Finally, the report proposes a concise strategy statement for Airbnb, encapsulating its key strategic priorities. The analysis is based on the provided case study and the company's online presence.

Strategic Management

Table of Content
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
Elements of Strategy Statement..............................................................................................3
PART 2............................................................................................................................................4
Objective of Airbnb................................................................................................................4
Scope of Airbnb......................................................................................................................5
Advantage of Airbnb..............................................................................................................5
PART 3............................................................................................................................................6
Strategy statement proposed to Airbnb..................................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Strategic Management is a process which is continuous in nature and refers to companies
going through planning, analysing and implementation of all necessary and needed changes and
resources for enabling to work with more productivity. The process of strategic management is
most appropriate for addressing the changes taking place in business environment and the
development companies’ needs to make in relation to make amendments in the operations and
management of the firm as per those changes took place in the operating industry and the market
due to any respective factor. Airbnb is a leading company providing rental opportunities to its
hosts and the acquisition opportunities of the rental properties to its respective users or guests in
exchange of the prescribed sum of money. It is an American firm which deals through online
portals and were founded in 2008. The headquarters of Airbnb are in San Francisco, California
and it serves to customer worldwide using internet and technology to reach the larger customer
base. The report highlights upon the strategy statement which details about the three elements of
strategy statement which makes it a whole and potential statement that are objective, scope and
advantage (Collis, 2019). Then, it discusses the objective, scope and advantages of Airbnb and
ultimately a brief strategy statement for further improvements is formulated at the end that can
be proposed to Airbnb so the brand can enhance its operations and profitability in the
marketplace.
PART 1
Elements of Strategy Statement
OBJECTIVE
Objective may be defined as the single specific objective that will direct the operations
and functioning of the business organisations in the coming five or more years. There are times
when businesses may mislead their visions or missions with their objective or objectives. But it
required for the companies to introspect within the management structure and focus on
formulating some relevant and attainable objectives. The accomplishment these developed
objectives can lead the company towards better outcomes along with offering it a chance to be
more competent and valued in the market holding higher reputation amongst customers as they
will be looking over the company’s objectives as well the practices it takes to make every
objective possible to attain and fulfil on time.

SCOPE
The scope of businesses refers to an amalgamation of three major constituents on which their
businesses is surviving and sustaining in market.
 The first element can be termed as the target consumers and the offering provided to the
same.
 The second can be describes as the geographic placement of the business enterprise.
 The last element can be characterised as the vertical integration of the business venture.
According to the given article, the scope of the organisations should encourage and enhance
the exploration, experimentation and the initiatory undertaken by enterprises (Hyatt, 2018).
ADVANTAGE
The advantage component of a strategy statement refers to and focuses upon the competitive
edge a respective company holds in market. Acquisition of the accurate and appropriate
competitive advantage is necessary for the companies so as to sustain and survive in their target
markets for longer time phase. A competitive advantage or advantages also allows the
organisations or different brand to dominate their valued market share and acquire good position
in their respective industries in which they deal so as to encourage the profits and leverage the
benefits associated with the competitive advantages acquired by business entities.
PART 2
Objective of Airbnb
Airbnb is a rental service firm which allows its users or hosts to provide their residencies
on rent to the individuals who want to occupy the same for some days or months. It is a brilliant
venture that has opened the doors for good business opportunities for its users as they can earn a
good sum of money by providing their residents on rent service through Airbnb (King, Melzer
and Gaming Industry Response Consortium, 2018).
 Better Market share and Customer base- The prominent objective of Airbnb is to
acquire a good market share in its respective industry and by dealing in different markets
of the world. This offers the brand an opportunity to generate good revenues from their
operations by dominating its concerned market domain and holding a competitive edge.
 Attracting and Retaining customers new or old- The second most important objective of
Airbnb is to attract users or customers towards its services and offerings. Along with it

company also work for retaining them for a longer period of time by facilitating potential
buyer and old customers with quality service experiences.
Scope of Airbnb
Scope can be characterised as the extent to which an individual can measure the expansion
and growth possibilities of a business venture like Airbnb. The scope of Airbnb is very broad in
nature and these are as follows:
 The company operate worldwide, it can add new and advanced branches to its current
lines of operations so as to expand and develop the business in new and improved
direction.
 The utilisation of technology in the business process of Airbnb can be lead to greater
modification which can change the entire game of Travel and hospitality industry (Liu,
Li, Wang and Zhao, 2017).
 The company can further invest in new venture as well such as transportation, food
delivery etc. services which can generate more profit margins for the business
organisation.
Advantage of Airbnb
The competitive advantages of Airbnb are as follows:
 Network of the brand- The biggest competitive advantage of Airbnb can be termed as its
network process which enables the users of all across the world to connect through the
platform which results in enhancing and encouraging the number of hosts approaching as
wishing to oblige the offering of Airbnb which in turn will facilitate in increasing the
number of users and customers.
 Differentiation in offering- Company also provides interesting and diverse destinations
to its users which helps the brand to facilitate differentiation in its offering and stand out
of the box in the industry staying ahead from the rivals performing their operations in the
respective industry (Straker and Wrigley, 2018).
 Flexibility in Offering- The services provided by Airbnb are very flexible as the
destinations and locations in which it offers and holds its approach is worldwide that is
the smallest corner with restrictions of areas for tourist and their attraction.

 Goodwill of Airbnb- Company also leverages from its goodwill in the marketplace as it
has been able to build a good brand image in the eyes of it targeted audiences. The
customers of Airbnb trust the brand and its services and holds huge faith in the company.
 Global Market presence- Its global presence also allows Airbnb to have competitive
edge over in the market and over other businesses that are its competitors and deals in the
same market domain.
PART 3
Strategy statement proposed to Airbnb
OBJECTIVE
To acquire dominating marketing share in the concerned market industry.
SCOPE
Enhance the business operations by investing in new ventures.
COMPETITIVE ADVANTAGE
The global presence and profitability associated with the capitalisation of business venture.
CONCLUSION
The report concludes the value and importance strategy statement plays in for businesses to
manage their operations by taking strategic approaches. The strategic management is important
for firms to make in order to keep their development and improvement continuous which leads
the brand to betterment with higher productivity and profitability.

REFERENCES
Books and Journals
Collis, D. J., 2019. Can you say what your strategy is?.
Hyatt, N. C., 2018. Written evidence prepared for: The Business, Energy and Industrial Strategy
Committee's inquiry on Draft National Policy Statement for Geological Disposal
Infrastructure.
King, D., Melzer, A. and Gaming Industry Response Consortium, 2018. Comment on the global
gaming industry’s statement on ICD-11 gaming disorder: A corporate strategy to
disregard harm and deflect social responsibility?. Addiction.
Liu, Y., Li, Z., Wang, L., Hu, Z. and Zhao, R., 2017, July. Statement-oriented mutant reduction
strategy for mutation based fault localization. In 2017 IEEE International Conference
on Software Quality, Reliability and Security (QRS) (pp. 126-137). IEEE.
Straker, K. and Wrigley, C., 2018. From a mission statement to a sense of mission: Emotion
coding to strengthen digital engagements. Journal of Creating Value, 4(1), pp.82-109.