In This Assignment, Conduct A Business Case Study Analysis ✓ Solved

In this assignment, conduct a business case study analysis a

In this assignment, conduct a business case study analysis and create a narrated PowerPoint presentation (10 slides) including speaking notes. Course outcome: MT460-2: Use a variety of analytical tools to monitor and improve business strategy. Select one case: Case 2: Airbnb in 2016 or Case 4: Costco Wholesale in 2016. Steps: 1) Provide brief company synopsis (name, industry, products, target market). 2) Explain macro-environment (PESTLE) factors affecting competitive advantage. 3) Conduct Porter’s Five Forces analysis. 4) Use one additional strategic tool (e.g., SWOT, VCA, SOAR) to assess industry outlook for growth/profitability. 5) Determine if company resources and capabilities give competitive edge. 6) Assess strengths and weaknesses in light of opportunities and threats. 7) Explain company value chain activities and how they affect cost structure and customer value proposition. 8) Evaluate results and explain the company’s competitive situation and implications for managerial strategic decisions. Demonstrate use of at least three strategic analysis tools (PESTLE, Porter’s Five Forces, plus one more).

Paper For Above Instructions

Executive synopsis

This analysis examines Airbnb in 2016 as the selected case. Airbnb is a technology-enabled platform operating in the sharing-economy accommodation sector, matching hosts who list short-term lodging with guests seeking alternatives to hotels. Core offerings in 2016 included private rooms, entire homes, and experiences targeted at leisure and business travelers seeking lower cost, local experiences, and flexibility (Harvard Business School, 2016; Guttentag, 2015).

PESTLE analysis — macro-environmental factors

Political: Regulatory scrutiny and local lodging ordinances posed threats to Airbnb’s expansion in many cities (Zervas et al., 2017). Economic: Post-2008 travel rebound and cost-conscious consumers favored platform adoption; currency fluctuations affected international listings (PwC, 2015). Social: Growing consumer preference for authentic, local experiences supported demand (Eckhardt & Bardhi, 2015). Technological: Mobile adoption, big data, and secure payments enabled scalable matching and trust mechanisms (Harvard Business School, 2016). Legal: Liability, tax collection, and zoning law compliance increased operational complexity (Zervas et al., 2017). Environmental: Urban housing shortages and sustainability debates influenced stakeholder perceptions and political responses (Guttentag, 2015).

Porter’s Five Forces — industry competitiveness

Threat of new entrants: Moderate — platform model has low marginal cost but network effects and brand scale create barriers (Porter, 2008). Supplier power (hosts): Low to moderate — many individual hosts, but concentration in key cities can raise local bargaining leverage. Buyer power (guests): Moderate — low switching costs but strong brand and unique inventory reduce price sensitivity. Threat of substitutes: High — hotels, hostels, and other platforms provide alternatives. Rivalry among existing competitors: High and escalating, as Expedia, Booking.com, and niche platforms expanded listings and distribution channels (Zervas et al., 2017).

Additional strategic tool — SWOT analysis

Strengths: Strong brand, large network effects, superior platform technology and trust systems (reviews, verification) (Harvard Business School, 2016). Weaknesses: Regulatory exposure, inconsistent guest experience, limited control over supply quality. Opportunities: Geographic expansion, diversification into experiences and longer-term stays, partnerships with cities or corporate travel (PwC, 2015). Threats: Regulatory clampdowns, intensifying competition from OTAs, negative publicity from isolated incidents (Guttentag, 2015).

Resources and capabilities (VRIO lens)

Valuable: Yes — Airbnb’s network of hosts and data assets create customer value and convenience (Barney, 1991). Rare: At scale in 2016, Airbnb’s global inventory and community moderation were relatively rare. Inimitable: Partially — while technology and user interfaces can be copied, network scale and brand trust are costly to replicate (Barney, 1991). Organized to capture value: Airbnb’s platform, trust mechanisms, and marketing monetized the resource base effectively, indicating a sustainable competitive advantage, albeit vulnerable to regulatory shocks (Harvard Business School, 2016).

Strengths/Weaknesses versus Opportunities/Threats (strategic fit)

Airbnb’s strengths align with opportunities to expand services (experiences) and penetrate new markets. Weaknesses (quality inconsistency and regulation) map directly to external threats like legal constraints and reputation risk; thus, strategic priorities should focus on governance, host quality standards, and cooperative regulation approaches to convert threats into controlled operational constraints (Zervas et al., 2017; PwC, 2015).

Value chain analysis

Primary activities: Platform development and IT (technology and matching algorithms), marketing and customer acquisition, host onboarding and trust systems (reviews, insurance), and customer service. Support activities: Firm infrastructure (regulatory affairs), human resources (community managers), and partnerships (payments, local governments). These activities reduce transaction costs, enhance perceived customer value (unique local experiences), and create economies of scale in marketing and platform maintenance. Cost structure relies heavily on technology and marketing investments while variable costs remain low, enabling margins once scale is achieved (Porter, 1985; Harvard Business School, 2016).

Strategic evaluation and managerial implications

Overall competitive situation: Airbnb held a strong market position via network effects, brand, and platform capabilities but faced significant external threats from regulation and incumbent competition (Guttentag, 2015; Zervas et al., 2017). Managers should prioritize: 1) Institutional strategy — proactively engaging cities to design fair regulation and tax-collection frameworks; 2) Operational excellence — strengthen host quality control and standardized service protocols to reduce variation; 3) Diversification — expand experiences and long-term stays to increase revenue streams and reduce sensitivity to short-term regulatory shocks; 4) Defensive partnerships — integrate with OTAs for distribution while protecting direct booking channels (PwC, 2015; Eckhardt & Bardhi, 2015).

Recommended 10-slide narrated presentation structure (speaking notes summary)

  1. Title & Objectives — introduce Airbnb case, presentation goals and MT460-2 learning outcome. (Note: summarize scope.)
  2. Company Synopsis — quick facts: industry, offerings, target customers. (Note: cite case.)
  3. PESTLE Overview — highlight top 2 factors per dimension. (Note: emphasize regulation and technology.)
  4. Porter’s Five Forces — visual map and strategic implications. (Note: focus on rivalry and substitutes.)
  5. SWOT Analysis — concise strengths/weaknesses/opportunities/threats. (Note: link to PESTLE/Porter.)
  6. Resources & Capabilities (VRIO) — evidence of competitive advantage. (Note: cite Barney.)
  7. Value Chain — primary/support activities and cost/value impacts. (Note: explain cost structure.)
  8. Strategic Issues & Options — present 3 strategic moves (regulatory engagement, host quality program, diversification). (Note: pros/cons.)
  9. Recommendation — prioritized action plan with metrics for success. (Note: timelines & KPIs.)
  10. Conclusion & Managerial Takeaways — summarize how analyses inform decisions. (Note: restate MT460-2 outcome.)

Conclusion

Applying PESTLE, Porter’s Five Forces, SWOT, VRIO, and value-chain analysis shows Airbnb (2016) had robust strategic assets but faced high external risk from regulation and competition. Managers should focus on regulatory partnerships, host quality control, and service diversification to convert strategic vulnerabilities into sustainable growth opportunities (Harvard Business School, 2016; Porter, 2008; Barney, 1991).

References

  • Harvard Business School. (2016). Airbnb in 2016: A business model for the sharing economy. Harvard Business School Case.
  • Guttentag, D. (2015). Airbnb: disruptive innovation and the rise of an informal tourism accommodation sector. Current Issues in Tourism, 18(12), 1192–1217.
  • Zervas, G., Proserpio, D., & Byers, J. (2017). The rise of the sharing economy: Estimating the impact of Airbnb on the hotel industry. Journal of Marketing Research, 54(5), 687–705.
  • Porter, M. E. (2008). The five competitive forces that shape strategy. Harvard Business Review, 86(1), 78–93.
  • Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120.
  • PwC. (2015). The sharing economy: Consumer intelligence series. PricewaterhouseCoopers.
  • Deloitte. (2016). The sharing economy: What is it, and why does it matter? Deloitte Insights.
  • Eckhardt, G. M., & Bardhi, F. (2015). The sharing economy isn’t about sharing at all. Harvard Business Review.
  • Porter, M. E. (1985). Competitive Advantage: Creating and Sustaining Superior Performance. Free Press.
  • Statista. (2016). Number of Airbnb listings worldwide — historical data. Statista Market Data.

Related Assignments