Airbnb Growth and Expansion Opportunity

Airbnb Growth and Expansion Opportunity

Identify two countries in the developing world and two in the developed world where the company can acquire a large market share and describe the expansion and growth opportunities in the countries.

To conduct a pilot study on the company’s success in the selected countries

Estimate the resources required to enter into the new markets effectively

 Justification

Airbnb can leverage growth and expansion opportunities by expanding its operations into different countries. The first objective of the growth and expansion project will be to conduct market research in two countries in the developing world and two in the developed world where the company can acquire a large market share and describe the expansion and growth opportunities in the countries. The rationale for selecting two countries in the developing world and two in the developed world is that the developing world offers the opportunity to dominate the accommodations market because of limited competition, and the developing world creates an opportunity to attract customers by introducing new services that are not offered by competitors such as family packages and personalizing a guest’s experience. One of the most important operational steps that will be taken to meet this objective is conducting market research to determine the needs and preferences of potential customers in the selected countries and services that existing competitors do not offer. According to Phillips (2015), market research prepares organizations entering into a new market for what to expect from their customers and the business environment. Therefore, it is important to take enough time to conduct thorough market research.

Identifying the target customers based on location, income, and cultural values and beliefs is important because it will enable the company to determine what is expected to be successful in the new market. For example, the company’s services must respect and align with the local communities’ cultural values and beliefs. The step will also be essential in estimating success based on the location of potential customers and their distribution across the countries. Identifying the hosts in different parts of the selected countries based on tourist attractions and the inflow of business travelers will help the company determine whether the business is feasible in the selected countries based on the number of hosts, tourist attractions, and the inflow rate of business travelers. Creating a team of individuals experienced in customer service, sales management, and marketing to analyze the data collected from the customers and hosts in the selected countries is crucial in determining appropriate marketing and customer relationship management strategies that can be implemented to grow the company’s market share in the countries.

The second objective is to conduct a pilot study on the company’s success in the selected countries. The pilot study will give the company an overview of the new markets to determine whether it will be successful. One of the operational steps that will be used to meet these objectives is selecting four areas for the pilot study in each selected country. The rationale for selecting the four areas is that they will give different information about the new markets, thus helping the company better understand the market opportunities and threats. The second step will be selecting hosts to participate in the pilot study. According to Wang et al. (2019), hosts play a vital role in the success of the Airbnb business because they are the service providers. Therefore, it is important to involve them in the pilot study. The third step is developing a research plan, which will be used to ensure that all relevant information is collected. The final step, which includes analyzing the data from the pilot study, is essential in estimating the company’s profitability in the selected countries.

The third objective is estimating the resources required to enter the new markets effectively. The company must effectively allocate resources to ensure operations run smoothly in the new markets to develop and maintain a good reputation. Therefore, the company needs to review the financial reports of competitors operating in the selected countries to determine the expected expenses. Determining the resources hosts may require from the company will also help the company plan the expansion timeline based on the availability of resources and estimate profitability. Determining the licenses required to operate in the selected countries will help prevent legal issues that could delay the company’s expansion. According to Slorach et al. (2017), the legal environment may influence a company’s reputation based on violation of legal requirements. Therefore, the organization must comply with all the selected countries’ legal requirements to develop and maintain a good reputation. Purchasing the resources needed to begin operations in the selected countries, including hiring staff, is essential for the success of the expansion project. For example, hiring qualified staff who understand the local culture in the selected countries will support the expansion process and eliminate barriers that may arise due to cultural values and beliefs.

References

Phillips, A. (2015). What is market research? Market Research Handbook, 37–60. https://doi.org/10.1002/9781119208044.ch2.

Slorach, S., Embley, J., Goodchild, P., & Shephard, C. (2017). Businesses and the Business Environment. Legal Systems & Skills. https://doi.org/10.1093/he/9780198785903.003.0014.

Wang, Y., Asaad, Y., & Filieri, R. (2019). What makes hosts trust Airbnb? Antecedents of hosts’ trust toward Airbnb and its impact on continuance intention. Journal of Travel Research, 59(4), 686–703. https://doi.org/10.1177/0047287519855135.

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Airbnb Growth and Expansion Opportunity

Using the Project Plan Template and the business needs identified in the Balanced Scorecard.
Develop the project objectives.
Explain what operational steps will be taken to achieve your stated objectives.
Identify the responsible person(s) for each operational step
Outline a timeline for each operational step

Justify the choices made in the project plan in a 525 to 700-word response on the Project Plan Template.