QUESTION
Operation Management - business analysis - Airbnb
Business Analysis - Airbnb
Drawing upon the relevant theories from attached course contents and answer the question prompt.
Business Analysis - Airbnb This is a three-question assignment, doesn't have to be a whole essay style, just answer the questions directly. Drawing upon the relevant theories from the attached course contents PDF. Thank you~ 1. Analyze company process strategies. 2. Which processes have had to change due to Covid-19? 3. How have they improved service productivity?
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| Subject | Business | Pages | 3 | Style | APA |
|---|
Answer
Business Analysis –Airbnb Process Strategies
Company Process Strategies
A process strategy dictates that a business process' goal is to facilitate a procedure to produce assistance and exceed customer expectations. At Airbnb, client and hosts are offered a peer-to-peer business module. This type of business enables the company to provide a platform for easy booking of rental homes to potential customer. Strategically, the company enables the holders to list their home on Airbnb online booking platform, thus earning rental income. Airbnb also offers a cheaper home for travelers within local hosts. Besides, the company provides ratings and reviews structure for hosts and guests. This strategy has fundamentally enabled the hosts assess their client's legibility. Guests also get to enjoy a user-friendly web structure and mobile app.
Airbnb process strategy includes the process focus, which aids the organization in attaining specialized activities. In this case, the organization has provided an online platform to connect customers and vendors. This process enables a high degree of product flexibility. since there is less interaction by the company, holders and clients can communicate through the web and app. The company also experiences high costs and low equipment. The trillion-dollar industry faces an annual budget of over 5 million dollars in deductions to facilitate its market exposure by listing in over 200 countries (Cocola-Gant & Gago, 2019). The company's deductions are dedicated to the advertisement and freelance photographers. The company also experiences a high-profit margin while charging a minimal service rate.
The company's repetitive focus includes the employment of a photographer to continually feed the customers with rental information. The photographers take high-quality captions of the properties specifications to upload them on the Airbnb online platforms. Product focus also plays a vital role in process strategy. Airbnb facilitates product focus by enabling its clients to post quality products on their online portal. In this case, the customers choose to engage with products/hosts within their preferred desire and costs. According to the principle of product focus, there is an experience of high fixed cost but low changeable costs. Airbnb variables costs include a 3% host chargeable fee and a further 14% fees on guests per transaction. In this case, the company manages to charge both the client and holder and hence source revenue.
Mass customization is among the factors in the Airbnb process strategy. The company offers Airbnb Experience, Airbnb Collections, and Airbnb Plus (Ferreri & Sanyal, 2018). In this perspective, the Airbnb Experience has an additional feature to enable the customer to participate in activities such as cooking and adventure. The company's Airbnb Collection feature enables the clients to identify homes that facilitate special trips through a private room and full homes.
Processes that have changed at Airbnb due to Covid-19
The primary process strategy that has changed at Airbnb dues to Cvid-19 is the mass customization process. Mass customization primarily focuses on providing low-cost production of service and goods to meet the unique customer's requirements. Airbnb considers this aspect, hence encouraging the host to follow the Centers for Disease Control and Prevention (CDC) and World Health Organization (WHO) recommendations on safe practices. For the process, Airbnb encourages the hosts to participate in enhanced cleaning standards. As a strong indication of the commitment to a safe and clean environment, the organization has stated that hosts should comply with their new Covid-19 cleaning and safe practice by November 20, 2020 (Farmaki et al., 2020). The company also implores its customers to engage with the host who committed to their enhanced cleaning techniques.
How has the Process improved Service Productivity?
Airbnb encourages both guests and hosts to maintain a high standard of cleanliness due to the Covid-19 pandemic. As a client, Airbnb encourages the guests and hosts to wear protective masks when interacting. The company also emphasizes social distancing as a measure to promote healthy interactions and movement. On the other hand, Airbnb hosts are encouraged to commit to cleaning practices to facilitate a safe customer environment.
References
Cocola-Gant, A., & Gago, A. (2019). Airbnb, buy-to-let investment and tourism-driven displacement: A case study in Lisbon. Environment and Planning A: Economy and Space, 0308518X19869012.
Farmaki, A., Miguel, C., Drotarova, M. H., Aleksić, A., Časni, A. Č., & Efthymiadou, F. (2020). Impacts of Covid-19 on peer-to-peer accommodation platforms: Host perceptions and responses. International journal of hospitality management, 91, 102663.
Ferreri, M., & Sanyal, R. (2018). Platform economies and urban planning: Airbnb and regulated deregulation in London. Urban Studies, 55(15), 3353-3368.