Prudence is part of our roster of professional writers with a regular contribution to our business strategy sample collection. As a Market Research Analyst by profession, Prudence brings her training in business analysis as well as real life expertise from the world of professional business consulting, to our case study solutions. The result is a robust collection of superb premium business strategy case studies tailored for student revision, faculty and researchers.
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In this report, we examine Airbnb’s value chain to try and understand which activities have helped the company become a low cost leader in the global hospitality/vacation rental industry. While Primark’s value proposition of low prices isn’t unique within the hospitality industry, the company’s execution of an asset light business model is comparable to none, helping keep operational costs very low and guest hosting processes very efficient, consequentially driving costs down. Few hospitality companies have mastered scale in guest accomodation like Airbnb, the very areas of the value chain it has derived the most value.
Table of Contents
HARVARD
Prudence, K. Magezi (2021) "Airbnb Value Chain 2021" 123 Writing [Online] at https://www.123writing.com/sample/airbnb-value-chain-analysis-2021
Prudence, K. Magezi (2021) "Airbnb Value Chain 2021" 123 Writing [Online] at https://www.123writing.com/sample/airbnb-value-chain-analysis-2021
APA
Magezi, K.P. 2021. Airbnb Value Chain 2021. 123 Writing. Retrieved from https://www.123writing.com/sample/airbnb-value-chain-analysis-2021
Airbnb Strategy Case Study
Key Learning Outcomes
By the end of the case, students should be able to:
- Apply the value chain to a real world company using the example of Airbnb.
- Understand how to use Airbnb’s value chain framework to examine the sources of competitive advantage for Airbnb.
- Understand which value chain activities have helped Airbnb become a low-cost leader in the global hospitality/vacation rental industry. While Airbnb’s value proposition of low prices isn’t unique within the hospitality industry, the company’s execution of an asset light business model is comparable to none. You will discover what these are and much more…
1.0 INTRODUCTION
The value chain refers to a set of activities within an organization, which together help it create or produce a product or service (Grant 2016; Johnson et al. 2017). First developed by Michael Porter, the purpose of the value chain is to help firms identify value adding activities they are undertaking, that either add (or don’t add) value to their product or service. Once disaggregated, such activities can help provide a more precise understanding of all firm activities and the capabilities corresponding to each activity so as to understand where competitive advantage is being derived (Grant 2016).
According to Porter’s value chain, organizations can only gain a competitive advantage by adding value to their customers. This makes it essential for managers to analyse all the activities undertaken by their organizations and understand ones that add value and those that do not. According to Johnson et al (2017), organizations can use a value chain to understand their strategic position as well as their resources and capabilities. It can also help them evaluate the relative importance of internal activity costs as well identifying how costs can be reduced (Grant 2016).
In the following sections, the author will use the value chain analysis to assess and understand sources of value for Airbnb.
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Make use of your available free word credit (up to *7,000words) to commission on-demand custom case solutions, case study assignments and receive fast & speedy personalised answers. Receive timely and fast plagiarism-free answers to assignment questions or case solutions in as little as 1-2 business working days. Topics include Strategic Management, Marketing, Business Management, Economics, Operations Management, Organization Studies, International Business & Management, Human Resource Management and more. (* Exclusive to premium members).
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