Airbnb: Home Sharing in China
(6 pages of text)
Case (Pub Mat)
In 2015, Airbnb, Inc. began to explore entry into the Chinese market. In August of that year, it announced a partnership with two of its China-based investors to help it navigate the expansion. By January 2016, the company was facing a number of fundamental questions. First, how should it best position itself in China to ensure a successful expansion? Should it work with a local competitor and, if so, who? If it chose to instead continue expanding alone, should it replicate its established global formula or should it localize? If it pursued a localization strategy, what were the different ways it could localize its operations? And which of these should it prioritize?
This case can be used early on in both undergraduate- or graduate-level courses on international business. It would best be used to illustrate the internal and external motivations behind company expansions, and the various entry strategies that can be pursued. After completion of this case, students will be able to
- discuss the regulatory and consumer preference challenges that companies face when expanding to new markets;
- assess the different entry strategies that companies can pursue when expanding, and their advantages and disadvantages; and
- discuss the implications of using a localization strategy and the various ways that a company can localize its operations.
Accommodation & Food Services
United States; China, Large, 2016
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