In Lesson 3 and Lesson 4, we learned about the basic production and cost structure of firms, and in Lesson 5, we have started investigating the structure of competitive markets and different business strategies in such markets. Many online businesses operate in competitive markets and mostly need to take market prices as given. Their profit margins are relatively low due to continuous pressures from competitors. In such markets, firms develop different strategies to open room for their businesses and attract more customers. Airbnb, a private tech firm, is one of the most successful examples of such firms. Airbnb is a relatively new firm which operates in the competitive market of online platforms for booking overnight accommodations. The Economist article “Among Private Tech Firms, Airbnb Has Pursued a Distinct Strategy (Links to an external site.)” provides information about Airbnb’s strategies and explains possible challenges that the firm needs to overcome.
Article: “Among Private Tech Firms, Airbnb Has Pursued a Distinct Strategy (Links to an external site.),” The Economist, May 27, 2017 (or download as a PDF).
Directions
Please discuss all of the following questions in your initial discussion submission.
- In the article, different business strategies of Airbnb have been listed. Please list three of them. Which business strategy do you think helped them the most and is the key to their success? Why? Explain your answer.
- The article also listed possible challenges and solutions for Airbnb. Please list three of them. Please suggest alternative solutions to these challenges. Explain your answer. Try to find some examples.
Participation Expectations
Your initial discussion submission to the questions above must be at least 400 words and specifically reference some concept or content from the coursework lesson. You must complete your initial comment by the end of Lesson 5. See the Course Schedule for dates. Please note that you cannot edit, change, or delete your submissions. Thus, please double check your submission before you submit it.
After completing your initial submission, you will be able to see the comments by your peers. Read these posts your peers have made, and reply to at least two students by providing them with suggestions to improve their answers, making comments, or asking questions about their comments. Peer responses should reflect one or more of these types: 1) agreement with extension, 2) an alternative perspective with rationale, or a 3) respectful challenge with counter argument. Each of your peer responses are expected to be at least 100 words (in total, at least 200 words). You must complete your peer comments by the end of Lesson 6. See the course schedule for dates.
Rubric
Weight of the assignment is 4% of the final grade. Please note that the accompanying rubric will be used for your complete submissions including the initial comments and peer comments. To view the rubric, click the three dots icon towards the top right of the page and select Show Rubric. Seventy percent of your grade is for initial comments and 30% of grade will be for peer comments. If you don’t respond to peer comments, you will lose 30% of your discussion grade.
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