Bus775 Airbnb Going for Gold – Tokyo 2020

Case 1 Airbnb; Going For Gold – Tokyo 2020

Bingbing Zhang

BUS 775 Fall 1

A)        Tokyo Olympics 2020 is only 2 years away and Airbnb still has to figure out the best way to drive its growth in Japan in order to provide as well as dominate the market for the thousands of tourists who will be visiting during the 2020 Olympics. Airbnb’s growth strategy has been to localize in each market, but it’s Japanese market raised some complications. The primary issues facing Airbnb’s management are expanding its market in Japan to the local community. Here are some examples:

Culture difference: Due to Japan is a high-context culture country. There is only a small amount of hosts signing in to open their doors to strangers. They have many concerns doing business only through internet. They rather do business face to face. So this is a big challenge for Airbnb to come over with.

Regulation: Japan has very organized regulations on hospitality industry. It requires a lot of documents and proof for doing business as a hotel or related area. Airbnb is a business that allows homeowner and visitor connect to each other directly, it will be a very big task for meeting the government regulations.

B)         Airbnb is a great example of Globalization business. Starting in the US, it expended to a lot of different countries such as France, Australia and Japan. Also we have learned different political, legal system and economy system difference in chapter 2 which also mentioned in this case such as how regulation different from other countries and how people act against this new kind of business.

C)&D)        Airbnb should follow amongst the third arrow which is the National Strategic Special Zone Law. This law is designed to boost international competition in designated areas of japan through deregulation including the hotel business.

Airbnb should attempt to partner with its competitor in order to gain connection and opportunity through Rakuten’s ties to the government in order to further reduce the regulations on international companies and hotel businesses.  

Airbnb should brand themselves as a home away from home from one brother/sister to another. In other sense Airbnb should advertise that no matter who, no matter from where, at the end of the day they’re all your neighbors and so opening your door to them should not be a problem. Then in further detail explain that there will be background checks done as well as regulations one must meet prior to reserving their home.