Question

BASED ON THE AIRBNB, ETSY, UBER: GROWING FROM ONE THOUSAND TO ONE MILLION CUSTOMERS HARVARD CASE:

1) An Introduction describing the market the firm is competing in.
2) Identifying the Challenge(s) facing the firm
3) Strategic Alternative(s) available to the firm
4) Decision: Recommended Action(s)
5) Lessons learned from the case

Answer 1

1.

• AIRBNB - Airbnb is an online marketplace which lets people rent out their properties or spare rooms to guests. Airbnb takes 3% commission of every booking from hosts, and between 6% and 12% from guests.
• ETSY - Etsy is an American e-commerce website focused on handmade or vintage items and craft supplies. These items fall under a wide range of categories, including jewelry, bags, clothing, home décor and furniture, toys, art, as well as craft supplies and tools.
• UBER -  Uber, is an American multinational ride-hailing company offering services that include peer-to-peer ridesharing, ride service hailing, food delivery, and a micromobility system with electric bikes and scooters.

2. CHALLENGES FACING BY FIRMS -

Airbnb -

• Discrimination, illegal listings, hosts using spy cams, unnecessary fees, etc

• Check-in/Check-out Time Changes

• Late Notice Cancellation From a Guests

• Amenity Problems

Etsy -

• Decreasing in market share ( huge competition from amazon)
• The new Handmade marketplace provides a daunting challenge for Etsy.
• controversial vendor policy changes

Uber -

• Changes in laws
• Few unprofessional drivers
• Some countries and airports have banned ride-sharing companies altogether.
• Company has regulatory issues world wide

3.Strategic alternatives available

Airbnb -

Targeting the right customers and providing what they really want

Improving online rental marketplace.

Etsy -

Improving marketing strategies

Focusing more on available opputunities

Uber -

Improving customer based business model

Improving service standards and reducing operational costs

4. Recommanded actions

• Analysing weeknesses and making necessary strategies to overcome them
• Improving matketing and growth strategies
• Evaluation through SWOT Analysis
• Converting threats into oppurtunities

Lessons learnt

• Should think from customer point of view
• A good strategy never fails
• Should be consistent in providing best customer services and provide best experience