Module Code: BE284

Module Subject: Strategic Management

Word length: 2,000 words (max. 2,200; minimum 1,800 words)

BE284 Essay Question:

Using appropriate concepts and theories, analyse and evaluate Airbnb strategy to change its business model and become an empire in the hotel industry. Use the case study ‘The rise of a unicorn: Airbnb’ to answer the following questions:

1. Carry out a PESTEL analysis and five competitive forces analysis of Airbnb and identify the opportunities and threats.
2. Based on the data from the case (and any other sources available) and by deploying VIRO framework and Porter Value Chain model analyse resources and capabilities and identify the strengths and weaknesses of Airbnb.
3. Develop a SWOT analysis and suggest 3 corporate strategies that Airbnb can pursue for the next 5 years to Airbnb.
4. Discuss how your suggested strategies, regarding to Airbnb’s culture and history, can help Airbnb to achieve differentiation, or cost leadership strategies in the next 5 years.

Notes: Writing an essay

• The introduction to your essay should provide a summary of your arguments that you use to answer the question. It should also set out in broad terms the structure of your essay.
• The main section of your assignment should provide the detailed arguments that answer the question. You should use appropriate evidence to support your arguments and you should make your interpretation of that data as clear as possible. You should not leave the interpretation of the data that you use to the reader.
• Do not be descriptive.
• Whenever you include some text in an assignment, you are, in effect, saying ‘this is important’. Always, therefore, ask yourself ‘why does the reader need to know this?’ Make the relevance of that material as clear as you possibly can.

Learning Outcomes:

1. Describe the key questions and associated challenges to be addressed in formulating an organisation’s competitive and corporate-level strategies
2. Appreciate that to sustain competitive advantage an organisation must harness its internal resources and capabilities and react appropriately to changes in its external environment
3. Critically apply a range of tools and techniques to illuminate the key questions of competitive strategy and corporate strategy

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