How should AirBnB develops a growth strategy in China?
Airbnb Grow in size in China.
Travel is a fundamental part of people’s lives in the 21st century. It is just like what Anita Desai said, “Wherever you go becomes a part of you somehow.”
In china, those businesses, which are related to the tourism, can gain huge benefit due to its economy of scale. Since travelling is getting more and more popular in China, more Chinese travelling around in their mainland as well as to another country, there is a huge opportunity for the travelling business.
As the world’s biggest mainland and outbound tourism market, China has been a major focus for Airbnb,…show more content… Secondary research was from online resources which provided information about the Chinese market and the requirements for foreign businesses to develop in China. The business tools that I have used to analyze the research question such as: STEEPLE and SWOT. Both of primary research and secondary research analyze the most suitable steps for foreign business to develop in…show more content… Tujia has more than 400,000 listings in China and has raised more than $400m from investors. (Tnooz)
Many prominent tech companies have failed to make it in the Chinese market, either because they deemed the discount-based competition to be too brutal, or due to censorship issues. Earlier this year, Uber sold its entire China business to rival Didi Chuxing, in exchange for a stake in its Chinese rival. (Hook, L.)
As Chinese people don’t use cash as often, changes to Airbnb’s payment method is needed. Therefore cooporation with the local Electronic payment company is likely to happen. This will cost lots of money invested to its technology.
In order to summarize some of the problems Airbnb may face with entering the Chinese market, I have applied Lewin’s forcefield