What should Airbnb do about its legal challenges and competitive threats?
How valid is the legal challenge?
What are the possible solutions – legally and using a PR campaign?
What are the broader implications for the sharing economy?
What should Airbnb do about its legal challenges and competitive threats?
Air bnb has significant tactical issues arising from the very business model it has implemented, bypassing all important legal registration and regulatory requirements that are necessary for hotel business in order to ensure transparency for consumer security. The organization needs to address and overcome efficiently the safety and security shoe that it has addressed to a large extent with my implementation of security measures to promote safe and secure guest and host interaction and crime prevention. Air bnb and online presence with no substantial physical presence with offices around the globe to launch legal action results in different nations viewing the company highly suspicious. The Other difficulty is in the form of cultural adjustment due to the heterogeneity of serviced customers who may be from different countries needing cultural awareness as well as multicultural intelligence among hosts for customer satisfaction and the experience being friendly to both.
How valid is the legal challenge?
Air bnb needs to have a special segment for management of the legal challenges it faces comprising experts having adequate knowledge of applicable loss across the globe to be able to ensure that the company meet SOL legal requirements in every location and does not fall foul of the authorities which can greatly impact its image and business. Certain laws related to the type of business model may vary not only within countries but also in various cities across the nation such as in New York the owners attendance cannot rent the apartment out for periods less than 30 days unless they are living within the property and Sachin action becomes illegal. these experts should also have adequate knowledge of taxation and the taxes applicable for renting out with an area of operations across the globe.
What are the possible solutions – legally and using a PR campaign?
The company is a leader as it introduced in a normative and unique service and capitalized upon its early entry by confiscating a large market share worldwide along with exceptional revenue due to income from both the customer and the host with minimal cost of operation. The business plan is easy to imitate with entry barriers being low the major constraint to entry is the legal and statutory framework within different countries and also extensive resistance and opposition from the hotel industry leading to the external environment for the business being extremely hostile. It has also created exceptional brand value buy adequately meeting customer demands ensuring customer satisfaction through it strong customer engagement model over the social media Facebook connect comma wishlist and heart icons. This has resulted in effective expansion and growth of the business model by facilitating an adequate evolving and growing supply to me to the continuous growth in demand align expansion into new markets. This expansion is further supported by the low operating cost as the entire business is Internet based. the company gains competitive advantage to wide variety of market offering and a user-friendly system with the website and applications being very simple easy to use with minimal requirement of time for completing a transaction optimally. The PR department needs to be extremely sensitive to quick and effective management of crisis which impact reputation of the brand. For the organisation to create a perception within the minds of the customer of being compassionate and responsible to the safety and well-being of all the customers it becomes mandatory for the organisation to have an exceptionally efficient Public Relations department which becomes the face of the company during a crisis.
What are the broader implications for the sharing economy?
There are numerous stakeholders involved within every organisation including the owners, the employees the customers, the regulatory authorities, all other organisations in related segments and society as a whole. Every crisis impacts every stakeholder involved even though the impact may vary in degree of intensity, for the various stakeholders. Until and unless communication is maintained for addressing concerns of all stakeholders, an offering assurances that the required action has been initiated by the organisation through display of the required empathy, social sensitivity and responsibility within its quick and adequate response, the brand and Company image may suffer extensive damage which can threaten the very existence of an organisation or substantially impact its future growth and prospects. Therefore adept handling of communication within a crisis situation true an effective and efficient public relation department can change the outcome of the situation and even lead to enhanced Company image, converting the negative event with efficient management into a positive outcome.
What should Airbnb do about its legal challenges and competitive threats? How valid is the legal...
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