Strategic Management Case Study: Accor Hotels vs AirBnB Analysis

This case study analyzes the strategic management approaches of Accor Hotels and AirBnB. The analysis begins with a Resource-Based View (RBV) comparison, highlighting Accor's employee training programs and loyalty programs against AirBnB's internal training. The study then examines industry dynamics using Porter's Five Forces, focusing on rivalry among existing competitors and the impact of switching costs and product differentiation. The document includes a comparative assessment of the two companies' resources, capabilities, and competitive positioning within the hospitality industry. The case study also uses Porter's Five Forces to compare the competitiveness of Accor and AirBnB. The conclusion provides an overall comparison and analysis of the two companies.

Running Head: STRATEGIC MANAGEMENT
STRATEGIC MANAGEMENT
Student’s Name
University Name
Author’s Note

2STRATEGIC MANAGEMENT
1. Comparative RBV analysis of Accor Hotels and AirBnB
1.1 Resource and Capabilities
Accor Hotels have 91% of their employees who undergo training program every year
(Accorhotels.com, 2019). There is collaboration with 18 academics all over the world that help
the organization in providing best in class training and development of the employees
(Accorhotels.com, 2019). Besides, the organization includes 40 million members in their loyalty
program who enjoy benefits like discounts as well as other perks from the 50 partner
organizations of Accor Group (Goorah and Panchoo 2019). The major resources of the
organization that would provide the business group with a competitive advantage include 25
subsidiary flagship brands like Sofitel, Novitel in their upscale range as well as Ibis in the budget
range (Accorhotels.com, 2019).
In contrast to Accord Group, AirBnB employs an internal training program, where
famous hospitality managers competently train the employees. In this context, it can be argued
that such training program is most suited for the short term goals of the organization.
Additionally, it can also be commented that the academic learning program of the Accor Group
will be helpful in achievement of the long term goals (Yu 2017). When they set up new business
spaces in the future, they will have enough employees with entrepreneurship knowledge.
2. Comparison of the Industry Dynamics
2.1 Porters’ Five Forces analysis
2.1.1 Rivalry among the existing competitors

3STRATEGIC MANAGEMENT
The competitiveness among the rivals of Accor Group is quite low because of the fact
that the cost of switching to substitutes is quite high and the quality of representative market
players in the same price range is of inferior quality.
On the contrary, AirBnB have high differentiation in products range and that is why
market segmentation does not have a high impact up on the business of the organization. Their
Home stay feature and simple pricing feature make it easier for the customers to avail the
services of AirBnB, easily.

4STRATEGIC MANAGEMENT
Reference List
Goorah, V and Panchoo, S. 2019. Business Model Innovations Transforming the Hotel Industry
and Its Implications for Small and Medium Hotels in Mauritius. (Academia.edu). Available at:
https://www.academia.edu/35573736/Business_Model_Innovations_Transforming_the_Hotel_In
dustry_and_Its_Implications_for_Small_and_Medium_Hotels_in_Mauritius [Accessed on 9th
April 2019]
Yu, H. 2017. Marriott And Hilton Stay Ahead Of The Sharing Economy, Proving That Airbnb Is
Not The Uber Of Hotels. (Forbes.com). Available at:
https://www.forbes.com/sites/howardhyu/2017/02/16/marriott-and-hilton-stay-ahead-of-the-
sharing-economy-proving-that-airbnb-is-not-the-uber-of-hotels/#1aae90e876b3 [Accessed on: 9th
April 2019]
Accorhotels.com, 2019. DISCOVER OUR BRANDS. Available at:
https://www.accorhotels.com/gb/brands/index.shtml [Accessed on: 13th April 2019]