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Airbnb Case Analysis

Airbnb was founded in 2007 by Brian Chesky and Joe Gebbia as an online marketplace for people to list and book accommodations around the world. While it struggled initially to gain traction, Airbnb was able to understand customers' needs by living as guests themselves. They also leveraged limited marketing resources creatively through bloggers and partnerships. A key opportunity that helped Airbnb gain recognition was offering cereal boxes promoting Barack Obama and John McCain during the 2008 US election. Airbnb has since grown tremendously in valuation and works to address concerns while fostering engagement between guests and hosts.

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Siddhartha Awasthi
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113 views

Airbnb Case Analysis

Airbnb was founded in 2007 by Brian Chesky and Joe Gebbia as an online marketplace for people to list and book accommodations around the world. While it struggled initially to gain traction, Airbnb was able to understand customers' needs by living as guests themselves. They also leveraged limited marketing resources creatively through bloggers and partnerships. A key opportunity that helped Airbnb gain recognition was offering cereal boxes promoting Barack Obama and John McCain during the 2008 US election. Airbnb has since grown tremendously in valuation and works to address concerns while fostering engagement between guests and hosts.

Uploaded by

Siddhartha Awasthi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Fortune Institute of International Business

CASE STUDY OF AIRBNB

SUBMITTED TO: SUBMITTED BY:


DR. NIMIT GUPTA SIDDHARTHA AWASTHI

ROLL NO -116
AIRBNB CASE ANALYSIS
In 2007 a billion dollar start-up was born, when the founder Brian Chesky and Joe Gebbia were
struggling for money they came up with the idea of bed sharing (bed on rent) .today we know this
innovative idea as AIRBNB.it is now a very well know online marketplace for arranging or offering
lodging, primarily homestays, or tourism experiences.

As we know success not come easily, alike many start-ups AIRBNB also faced many challenges in its
initial days but they conquered all the hurdles and become market leader.

Target customer
Target customer means finding the appropriate audience for your product or service. It seems piece
of cake in penned but in reality it is painful job. Airbnb also failed in predicting its target audience, as
initially they were expecting young customer but in reality scene was quite the contrary , some
middle aged people showed up. For launching a new product or service it is very important to decide
the target customer.

Understanding the customer


Airbnb done a tremendous job in understanding there customer. For understanding the customer’s
needs the owner of Airbnb lived as guest and discovered many loopholes. During his stay he finds
asking the money from the guest was extremely awkward for the host.

So they made changes and started facilitating the exchange of money by charging renters upfront,
taking small transaction fee, and then depositing the remaining money to the host’s account.

For surviving the long term in any business it is very important to be flexible. You must think like a
customer then only you can add value to your service or product and Airbnb did it very well.

They understand the psychic of customer and on the basis customer’s need they were transforming
there business strategy.

INNOVATIVE MARKETING
We all are aware, how much marketing is important for any business but Airbnb took it to next level,
I was astonished by knowing how intellectually Airbnb used there limited resource for marketing
there business and got best possible result.

In 2008 as the company was nascent and struggling for funds, so the owner decided to advertise
there business through small bloggers, which I think it was brilliant idea.

This helps a company to reach larger audience but converting the audience into customer was still a
challenge for them.

It was a learning experience for me that how I can use my limited resource in a best possible way
and get best result.

Make hay while the sun shines


Opportunity knocks every door but it depends on you how well you grab the opportunity. The
United States presidential election, 2008 came like a blessing for the Airbnb. Airbnb used this
opportunity by creating cereals that featured two different box designs for Barack Obama and john
McCain’s. They distributed these boxes to some big media house, which gave them a big hype and
created a buzz in town. This marketing strategy bring them in lime light they become famous
overnight.

This shows that entrepreneur should wait for the right opportunity and use the opportunity in a best
possible way.

TIME TO REAP THE FRUIT


After this they came into limelight and succeed in attracting investors. The company is now ready to
take off and enjoy the flight, the valuation of company was swelling every day.

But using the fund in a best possible way was also a challenge for the company but they handled this
very well and used there fund carefully.

Some time I feel getting the fund is easy but using in right direction or in best possible way is more
difficult.

Crushing the competitor


Company faces stiff challenges some of the challengers are as follows

 Copy cats
 Vocational rental
 One-stop vacation services

Company uses 4 prolong approach to tackle the competition

 Address customer and host concerns


 Foster engagement between stakeholders
 Help customers to find their preferred rentals fast
 Expose imitator sites.

Airbnb succeeded in tackling this situation and now enjoying the ride.

RECOMMENDATION
 Use auto-saving for forms and fields so as to not have users lose their work or messages
while writing them
 Security is big concern for first time user, I recommend to build more trust
 I will suggest to not restrict themselves for only others property but also build their own
buildings.
 Allow new users to authenticate with their Google and Facebook account.

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