Airbnb And Cabinn Case Study

Introduction

In our assignment we decided to focus on competitive situation between Cabinn and Airbnb as well as other possible competitors. Therefore, we are going to offer several theories, which are proven to be effective in pursuit of competitive advantage. From what we studied during our first two semesters, we have collected the theories that can offer most suitable solution. Our task is only to present best approaches in tackling new challenges Cabinn faces.

The hotel chain CABINN is a Danish-owned hotel chain. The owner and brain behind the brand is Niels Fennet.In 1990, CABINN Express Hotel, the first CABINN hotel, opened by Niels Fennet in Copenhagen, is located in Frederiksberg District. Only three years after, the second CABINN

To get clear view of the weaknesses there are some guideline questions:  What could Cabinn improve?

 What should Cabinn avoid?

 How can Cabinn differentiate itself from competition?

Opportunities

One of the biggest opportunities as we see it, are large potential emerging markets, such as China, India, etc. Some of the questions which could help in utilizing this opportunity may include:  What are the ways of appealing to Asian cultures?

 How to raise awareness of company worldwide?

Threats

By asking the following questions Cabinn can determine their threats:

 Who are our current competitors?

 Who are possible new entries in the market?

 What is the attraction of Airbnb to market segment?

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Experience economy

Experience economy was displayed by B. Joseph Pine II and James H. Gilmore in

1988 as a new economic era. They state, that in the modern society’s customers seek for memories and experiences, therefore they are willing to pay more for a comprehensive and lifelong experience than for the constantly depreciating goods and services.

In the tourist and hospitality industry simple services seem to be pushed into the background. Airbnb and Cabinn share a customer segment: the experience seekers who look

Way of creating a blue ocean for company, in this instance Cabinn, is to think outside of the box and find new and cost efficient ways of creating a major market-making business offering. Main characteristic of this strategy is that it never uses competition as a benchmark. Instead it makes it irrelevant by creating leap in value for both customer and company. In order to successfully implement blue ocean strategy Cabinn would need to make a research into what are most appealing and basic values that customers expect from a hotel and then find the way to offer those values to the customer. This would require a meta-research which is costly and time consuming, as well as open mind and willingness to think outside of the box from Cabinn. But payoff would be secure market place in which competition wouldn’t be a worry. 10

Conclusion

Finally, we managed to get the synopsis done by offering and explaining some theories that can help Cabinn to keep its position in the market. We did our best to choose the theories that we find relevant in a tough competition situation. Working on this real-life case was quite challenging and edifying and we have learnt new things along the