Airbnb McKinsey 7S Model

By John Dudovskiy
September 17, 2019

Airbnb McKinsey 7S model illustrates the ways in which seven elements of businesses can be aligned with positive implications on the overall effectiveness of the business. According to this framework strategy, structure and systems are grouped as hard elements, whereas shared values, skills, style and staff are considered soft elements.

According to McKinsey 7S model, there are strong links between individual elements. Specifically, a change in one element causes changes in others. As it is illustrated in figure below, shared values are positioned at the core of Airbnb McKinsey 7S model; they guide employee behaviour with implications on their performance.

Airbnb McKinsey 7S Model

Airbnb McKinsey 7S model

Hard Elements in Airbnb McKinsey 7S model

Strategy. Airbnb business strategy is associated with platform business model and accordingly, instead of owning the services it offers, the company engages as a broker between suppliers and consumers, receiving a commission of 9% to 15%. Moreover, increasing level of technological integration into various aspects of the business can be specified as one of the critical features of Airbnb business strategy. The global hospitality service brokerage company also places its community and trust among organizational stakeholders at the forefront of its business strategy.

Structure. Airbnb organizational structure can be classified as matrix. The workforce is divided into teams of up to 10 people. Importantly, teams support each-other to a great extent. Team leaders and members feel free to ask other teams if they need resources or capabilities. Airbnb organizational structure can be also branded as holocratic, because decision making power is given to teams throughout organization to a great extent and majority of teams are self-managed. The corporate structure of Airbnb is highly dynamic due to rapidly increasing scale of the business worldwide.

Systems. Airbnb business operations depend on a wide range of internal systems such as employee recruitment and selection system, team development and orientation system and transaction processing systems. Moreover, customer relationship management system, business intelligence system and knowledge management systems are of a great importance for the global hospitality service brokerage company.

Host insurance system can also be specified as one of the critically important systems for the accommodation and experience marketplace. All Airbnb hosts have the protection of liability insurance of up to USD1 million to protect against third party claims for personal injury or property damage. The control of host insurance and claims system is conducted by Airbnb administrators according to relevant internal rules and regulations.

Airbnb Inc. Report contains a full analysis of Airbnb McKinsey 7S Model. The report illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Ansoff Matrix and Value Chain analysis on Airbnb. Moreover, the report contains analyses of Airbnb leadership, business strategy organizational structure and organizational culture. The report also comprises discussions of Airbnb marketing strategy, ecosystem and addresses issues of corporate social responsibility.

Airbnb Inc. Report (2019)

Category: Strategy
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