Can It Revive Sales and Profitability in Its Core North American Market?
Downloaded doc is below of the instruction and the case
and my first case I did and did not do it right.
Here is the feed back on the first case.
The mission of Airbnb is “to create a world where anyone can belong anywhere and we are focused on creating an end-to-end travel platform that will handle every part of your trip.” They are utilizing a disruptive innovation approach to the hospitality industry by leveraging the sharing economy as opposed to the traditional economy.
The root strategic issue is “how effective and how flexible is this new business model that they have created for the hospitality market?” You correctly note that the issue lies with the model, but I don’t see why you say it is unsustainable.
Traditional competitors are wedded in the current system and will claim that anyone with a new model that doesn’t face the same restrictions as them as operating unfairly. Often, the best way to compete with large existing players is to utilize a different business model that shifts the competitive advantage in your favor. Airbnb does not provide accommodations; they are merely using the sharing economy to connect someone with a need to someone that can fulfill it.
Be mindful of the directions. You were to simply identify the strategic issue, NOT provide analysis and recommendations. At this stage in the course, we don’t know enough to properly analyze the strategic situation and provide recommendations. You were on the right track with your problem identification, however your analysis is not a proper strategic analysis and your recommendations are not strategic.