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international business management assignment analysis techniques to help Airbnb Inc. improve global business operations.


Task: How can Airbnb,Inc. improve their globaloperations usinginternational business management assignment operation analysis techniques?


The chosen MNE for this international business management assignmentis Airbnb, Inc., an American organization that delivers an online marketplace within the hospitality industry, counting different activities such as lodging, tourism activities, and homestays (Annual Report, 2022). To access the services of Airbnb, Inc, the customers can go through its websites, where the services are provided at a very affordable price. The affordable price of Airbnb, Inc is counted as one of the attractive factors for customers to enjoy the service of Airbnb Inc. The report has focused on addressing the current scenario's global trend and development and how Airbnb Inc has been facing those trends and development. It is evident that in the current situation, there has been a huge global change because of the existing challenges (Week-1). The way the business organization has been tackling such trends and development is significant, which can impact their future. Therefore, understanding those trends and development from the course work, the report has been developed focusing on the involvement of Airbnb in multiple social changes across its operating regions. Current trends and development in the global economy affecting Airbnb, Inc The current trend and development in the global economy identified on this international business management assignmentfor Airbnb, Inc are multiple in numbers that can impact the firm positively or negatively. Therefore, six different trends and development has been discussed below with the help of a useful tool, i.e., the PESTEL model, to analyze the global trend(Westcott & Anderson, 2020).

PESTEL Analysis




As per research done on this international business management assignment,Airbnb, Inc operates within the hospitality sector and follows the theory of shared economy, providing an opportunity for the host to earn extra income. Although it appears beneficial for both the host and the guest, the renting process is not considered within rental house regulations. Regarding this concept, every state has its own regulation, which can impact the business of Airbnb, Inc(Shaw, 2021). Moreover, because of Airbnb, Inc’s unique business model faces a lot of legal issues where states like Barcelona and New York impose a heavy tax on the brand name. Therefore, Airbnb, Inc are obliged to follow housing regulation based on the state regulation within each operating country.


The Covid-19 pandemic suddenly shook the world economy (Week-10), and the tourism industry was the one to be completely shut down for a few years. Airbnb, Inc has created many employment opportunities for the local people, in years, which were affected highly because of the pandemic. Moreover, Airbnb, Inc has also experienced fluctuations in the exchange rate, mostly in its domestic currency. According to research done on this international business management assignment, Airbnb, Inc can attract more families to become its host because of the increase in inflation rate as the investors demonstrated a huge concern about limited supply in terms of lodging podium as demand proceeds.


The current market trend of the home-sharing concept has been significantly impacting the business of Airbnb, Inc. It has been found that the home-sharing trend has been a new concept that the hotels are now trying to enter in a very similar business concept to Airbnb, Inc (Miles, 2018). Therefore, it develops stiff competition and multiple risks to Airbnb.


The development of technology and its application in the current scenario is a new global trend is a new normal (Week-9). Multiple organizations, including Airbnb, depend upon the Gig workforce for their renting and other activities(Caza et al., 2021). Airbnb has developed AI to measure guest dependability and consider challenges.


With its sharing economy concept, Airbnb has reduced the overall usage of energy, mostly in Europe and America, compared to the existing hotels. It counts decreasing greenhouse gases, less water usage, and escaping waste, which has increased environmental awareness.


Multiple countries where Airbnb operates have their own housing regulation, which has affected a lot of the firm's legal department, forcing it to develop certain rules to be followed by its guest. Airbnb paid about 15.3% of its overall income in 2020 to avoid conflict with existing laws(Shaw, 2021).

Table 1: PESTEL
Source:(Shaw, 2021)

Supply and Value chain configuration in Airbnb, Inc
A supply chain includes the steps taken by the organization while taking the product or services in the market from their original state. On the other hand, the value chain denotes the activity that occurs with the firm to bring out valuable products or services in the market to meet the need of the customers (Dubey et al., 2020).

Supply Chain
The sharing economy denotes the strength of integrated consumption, which has become an aspect of developing an additional value chain, mostly in the tourism industry(Apleni&Henama, 2020). This concept highlighted on this international business management assignmentconsiders the buying and selling of the services and products basically arranged through an online platform. In terms of the current trend of the global economy, sharing economy has become a vital source of earning revenue which Airbnb Inc. has successfully implemented. Through this process, Airbnb has developed an effective business model that has benefited millions of hosts who are connected with Airbnb Inc. The collaboration of sharing economy model with the supply chain of Airbnb Inc has generated endless opportunities, such as co-managed collaboration.

Value chain analysis

Inbound logistics

The online business nature of Airbnb allows the host to list their experiences on the firm's website, which needs no huge cost.

The usage and sourcing of multiple stationery items and other products to facilitate its core service come under this logistics.


The operation, such as key handling, cleaning, providing amenities, etc., is operated by its host because of its platform business model.

Outbound logistics

Outbound logistics in Airbnb Inc. is very less because the host, instead of the firm, conduct all the activities.

Marketing Sales

The marketing activities in Airbnb include the integrated concept of celebrity endorsement, social influencers, brand partnerships, etc.


The high-level service of Airbnb is a strong source of competitive advantage. Hundreds of agents are 24/7 available to serve the customers via phone, mail, chat, etc., in 30 languages. Both the guest and the host directly interact for the service rates, which highly motivates the host to enhance their service level.


Table 2: Value Chain of Airbnb
Source:(Dudovskiy, 2019)

Discuss how MNE is responding to the current trends and developments
The international business management assignment findings show that Airbnb, Inc is known to be one of the largest hospitality companies, and it operates business in the global region. The company operates its business online and has facilitated many tourists and visitors to get the affordable and best places to stay. In the current trends, the company faced challenges in Covid-19, and it has led their business to run at a loss. However, the company introduced various strategies and tactics for responding to these trends. The guests of Airbnb, Inc canceled their reservations due to an ongoing pandemic, and it led the company to suffer a loss in business (Boros et al., 2020). Airbnb, Inc decides to serve the guest based on the market price and the marginal cost at the current, and it allows them to survive in the competitive market. During the Covid-19 pandemic for business existence, the company offered long-term stay to people with adjusted services. They also added traveling and distant working to their guests, and this helped them gain popularity in business. The strategies implemented by Airbnb, Inc for their business helped in increasing their revenues even during the pandemic (Gyódi, 2021). Airbnb, Inc, Inc is significantly based on technologies, and it has helped them to grow more in business and reach every people, even in remote locations. The increase and advancement in technology have helped in bringing various improvements and growth in business.

Industry 4.0 brings various cyber-physical systems that allow for real-time tracking and intervention. The use of artificial intelligence in business forecasting and data managing has played a crucial role in business. However, it also brings various challenges to business. The increasing cybercrime has made it hard for businesses to manage and control it (week lecture 8). Airbnb, Inc has developed its business due to the emergence and advancement of technologies with the help of the internet (Lorde & Joseph, 2019). The use of technologies has helped Airbnb, Inc to widen its business in Barbados tourism. The company has mitigated various identified challenges and has entered into the small markets with the help of technologies and has brought various transformations in its business. The other hotels have introduced home-sharing rentals like Airbnb, Inc, and it has disrupted their business. To mitigate those issues, the company is analyzing the prices of the other hotels to provide the best rooms and services at an affordable price for their customers. However, the company faced a 90% dropping in its business due to the pandemic despite the changes (Kwok, 2020).

international business management assignmentReflection on key trends
Airbnb, Inc, has transformed its business in the global region with the help of technology, and it has allowed them to meet various potential customers. The implementation of technologies has revolutionized the hotel industry massively. Airbnb, Inc has changed the way of communicating with hosts and guests and has filled a gap in doing safe business and finding the best place. Guests can find affordable hotels at their price of choice, and hosts can find guests for their business. Receiving payments from the guests has helped both parties in doing safe transactions. The emerging technology and its advancement have brought changes in the working culture and techniques of Airbnb, Inc. As per the international business management assignment findings, it has been identified that emerging technologies have brought disruption to human rights. The latest technology installation and automation and artificial intelligence implementation in businesses have decreased employment, and many people are struggling due to unemployment (Coulman, 2018). Due to emerging technologies and their advancement, it has made various progress and will be making progress in technology which will help business to grow tremendously. Cybercrime is also increasing, and it will hamper business in the future days. The increasing cybercrime will be the biggest threat for Airbnb, Inc, as it operates its business fully with the help of technology. In the future, the organization has to work on building strong security forces along with its business development (Seneviratne, 2017). The Covid-19 pandemic has also hampered the business massively, and many businesses were forced to shut down due to decreasing sales and revenues. However, Airbnb, Inc has introduced various strategies for its business growth and sustainability, and it has helped it survive in the competitive market and during a pandemic. The company introduced long-term homestay plans with adjusted services to its clients and guests for their business flow even during the Covid-19 pandemic. Post pandemic Airbnb, Inc has faced challenges in transactions, finance, income, and financing operations risk in their business. Furthermore, the company has also analyzed the accounting risks in their business due to exchange rate fluctuations in the domestic country. Covid-19 has brought various changes in business, and in the future, it could bring various issues in business. People post-pandemic has focused on safety and hygiene, and it is important that Airbnb, Inc, has to bring changes in their hygiene and safety for customer attraction. People have also focused on environmental sustainability as well, and a lack of environmental sustainability, safety, and hygiene maintenance can disrupt their business, and they may attain loss in business (Dwipayanti et al., 2021). In the future, Airbnb, Inc may get affected due to a lack of hygiene and environmental sustainability practices.

The increasing current trends and developments in business have helped in bringing growth and progress in the business. Airbnb, Inc, has developed its business in the global region, and it acts as a bridge between host and guest in doing safe and secure business. The company has helped in bringing more improvements and progress in the hotel industry. During Covid-19, the company started long-term home stay with adjusted services, and it allowed them to survive in the competitive market. In PESTLE, it has been observed that Airbnb, Inc, may get impacted by these factors. Technological development has changed the way of business in Airbnb, Inc, and it has helped in communicating with people tremendously. However, Covid-19 and technological development has brought various challenges and risks in the future. As per the international business management assignment findings, the organization in the future has to bring various strategies for their business growth and sustainability in the competitive market.

Annual Report. (2022). Form 10-K (NASDAQ:ABNB). international business management assignment

Apleni, L., &Henama, U. S. (2020). (PDF) Airbnb as a Tourism Supply Chain Champion for Small Businesses: The Case of South Africa. ResearchGate. Small_Businesses_The_Case_of_South_Africa Boros, L., Dudás, G., &Kovalcsik, T. (2020). (PDF) The effects of COVID-19 on Airbnb. ResearchGate.

Caza, B. B., Reid, E., Granger, S., & Ashford, S. (2021). 6 challenges of being a gig worker during the COVID-19 pandemic. The Conversation. Coulman, L. (2018). How Airbnb’s Tech Is Impacting People’s Fundamental Human Rights. Forbes. Dubey, S. K., Singh, R., Singh, S. P., & Mishra, A. (2020). (PDF) A BRIEF STUDY OF VALUE CHAIN AND SUPPLY CHAIN. ResearchGate. _CHAIN Dudovskiy, J. (2019, September 16). Airbnb Value Chain Analysis - Research-Methodology. Research-Methodology. international business management assignment Dwipayanti, N. M. U., Lubis, D. S., &Harjana, N. P. A. (2021). Public Perception and Hand Hygiene Behavior During COVID-19 Pandemic in Indonesia.

Gyódi, K. (2021). Airbnb and hotels during COVID-19: different strategies to survive. International Journal of Culture, Tourism and Hospitality Research, ahead-of-print(ahead-of-print).

Kwok, L. (2020). Will More Hotels Get Into the Home-Sharing Business? | By Linchi Kwok. Hospitality Net. Lee, D. (2022, February 16). Inflation may push more families to become Airbnb hosts, chief says. Financial Times.
Lorde, T., & Joseph, T. (2019). (PDF) Airbnb, Technological Change and Disruption in Barbadian Tourism: A Theoretical Framework. ResearchGate. _Barbadian_Tourism_A_Theoretical_Framework Miles, J. (2018). PEER-TO-PEER ACCOMMODATION NETWORKS. Research World, 2018(70), 51–51.
Seneviratne, D. (2017). Emerging Technologies: The Future of Cybercrime. international business management assignment Shaw, A. A. (2021, February 17). PESTLE Analysis of Airbnb. SWOT & PESTLE Analysis. Westcott, M., & Anderson, W. (2020, September 2). 14.2 Top Trends. international business management assignment; BCcampus.


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