Posts Tagged ‘IT’


  Porter’s Five Forces analytical framework developed by Michael Porter (1979)[1] represents five individual forces that shape an overall extent of competition in the industry. Airbnb Porter’s Five Forces Analysis are illustrated in Figure 1 below: Figure 1 Airbnb Porter’s Five Forces 1. Threat of new entrants in Airbnb Porter’s Five Forces Analysis The threat of new entrants into pear-to-pear lodging industry is low. Theoretically, setting up a website should suffice to enter the industry. However, in practice there is a number of barriers to potential new entrants into peer-to-peer lodging industry. These include the following: 1. The time of entry. In e-commerce the role of the first mover advantage is usually paramount and it is usually very difficult if at all possible for the followers to even get close to the market disruptor. Once their business model proved to be viable, internet-based market disruptors such as Amazon, Facebook and Uber were able to gain large market share in the global marketplace in a short amount of time. Funding from investors, word-of-mouth, effective management and hype usually play an instrumental role in assisting e-commerce disruptors to secure their niche and strengthen their position in international markets. This was the case with Airbnb as well. Founded in 2008, the company became a leading global hospitality service brokerage company within a matter of a few years. As of summer 2019, Airbnb boasts More than 6 million listings in more than 191 countries and regions worldwide.[2] The word Airbnb became a synonym for peer-to-peer lodging, leaving little room and market for potential new entrants. Nevertheless, it would be naive to claim that the threat of new entrants does not exist. There is no limit on the numbers of times that a market can be disrupted and as such, any new company with another innovative idea…


September 15, 2019
By John Dudovskiy
Tags: ,

Airbnb marketing communication mix as a framework explains how the global lodging company uses individual elements of marketing communication mix. Elements of marketing communication mix according to this framework consist of print and media advertising, sales promotion, events and experiences, public relations, direct marketing and personal selling. The patterns of use of these elements by Airbnb is explained below.   Airbnb Print and Media Advertising Despite the purely online nature of its business model, Airbnb uses print and media advertising extensively. The accommodation and experience marketplace launched Airbnb Magazine in May 2017 distributed in the U.S., with the exception of a small number of copies that will be available for sale in London priced at USD 3,99.[1] Airbnb magazine is a highly dynamic print media platform that responds to the interests of the company’s target customer segment. It has been noted that if Airbnb “algorithms see that users are increasingly searching for ‘Paris’, it notifies the magazine’s editorial staff to whip up a story or two on the French capital.”[2] It has also been speculated that the global hospitality service brokerage company has plans to create its own TV shows in order to encourage people to travel more. As a starting point “Airbnb has reportedly worked on a TV show called Home for Apple’s new TV Plus subscription service; the show focuses on unearthing unique living spaces around the world and the people who reside there”[3] Although Airbnb did not use celebrity endorsements up to date, the global rental and experiences platform effectively uses the use of its services by celebrities as a part of its marketing strategy. For example, the lodging company promotes luxury mansions and villas where celebrities such as Arianna Grande, Lady Gaga,  Britney Spears and Channing Tatum have stayed using Airbnb. Viral marketing is also used by Airbnb…


September 11, 2019
By John Dudovskiy
Category: Marketing
Tags: ,

Airbnb segmentation, targeting and positioning consists of a set of consequent activities that divide customers into different groups and identify specific groups to be targeted. The accommodation and experience marketplace positions its services in a way that best appeals to the needs and wants of members of this group. Airbnb uses the following types of positioning:   1. Multi-segment positioning. The global lodging company uses multi-segment type of positioning targeting more than one segment with different service packages. For example, the company lists cost-effective apartments for rent for cost-conscious customer segment, whereas Airbnb Plus package targets customers who value advanced quality and design and are willing to pay more. Recently, the platform launched its Airbnb Luxe line of premium apartments that has been positioned as ‘extraordinary homes with five-star everything’ targeting premium customer segment.   2. Anticipatory positioning. Airbnb uses anticipatory positioning, launching services for a market segment that has low turnover with the anticipation that the turnover will increase in the future. Adventures services such as ‘Around the World in 80 Days’ and experiences of “Becoming a Beekeeper” can me mentioned as examples of Airbnb services with anticipatory positioning. The following table illustrates Airbnb segmentation, targeting and positioning: Type of segmentation Segmentation criteria Airbnb target customer segment Accommodation Experiences & Adventures   Geographic Region More than 191 countries and regions and about 100000 cities More than 30000 experiences worldwide Density Urban/rural Urban   Demographic Age 18-45 18-60 Gender 54% Females & 46% Males[1] Males & Females Life-cycle stage Bachelor Stage Newly Married Couples Full Nest I Full Nest II Full Nest III Empty Nest I Empty Nest II Bachelor Stage Newly Married Couples Full Nest I Full Nest II Empty Nest I   Occupation Students, employees, professionals, Students, employees, professionals, senior manager, executives Behavioral Degree of loyalty ‘Hard core…


September 10, 2019
By John Dudovskiy
Category: Marketing
Tags: ,

The concept of marketing mix (also known as 7Ps of marketing) comprises elements of the marketing mix that consists of product, place, price, promotion, process, people and physical evidence. Airbnb marketing mix (Airbnb 7Ps of marketing) below involves the analysis of these elements for the global hospitality service brokerage company. Product Element in Airbnb Marketing Mix Airbnb can be used to find places to stay and various tourism experiences around the globe. It is important to note that Airbnb does not own places or does not host the experiences it offers. It is only a platform between service providers and consumers. The global hospitality service brokerage company has been increasing the range of its services regularly. Started only as s website that can be used to find bed and breakfast type of accommodation in 2008, today Airbnb offers a wide range of hospitality services. These include places to stay for various tastes, purposes and budgets, concerts, adventures, experiences and restaurants. Place Element in Airbnb Marketing Mix There are more than 191 countries and regions and about 100000 cities with Airbnb listings[1]. Airbnb offices are located in 34 cities worldwide.[2] The listings of the accommodation and experience marketplace are not concentrated in any single market. Less than 3% of all active listings are in New York City, London, and Paris. No one city accounts for more than 1% of our listings worldwide.[3] Price Element in Airbnb Marketing Mix Airbnb pricing strategy can be described as economy pricing. Airbnb is widely recognized as the most affordable option of finding an accommodation. The global lodging company charges hosts only 3% booking fee and guests are also charged a service fee (which Airbnb collects directly), and it may collect a VAT (value-added tax) in some jurisdictions. Guests usually have access to common facilities such as their…


September 9, 2019
By John Dudovskiy
Category: Marketing
Tags: ,

Established in 1977 in California, Apple Inc. is a global designer, manufacturer and marketer of mobile communication and media devices, personal computers, and portable digital music players. Apple is the largest IT company in the world by revenue and total assets and the second-largest mobile phone manufacturer. The company also sells a variety of related software, services, accessories, networking solutions, and third-party digital content and applications. Apple’s ability to design and develop its own operating systems, hardware, application software and services to provide its customers products and solutions with innovative design is placed at the core of its business strategy. As of September 2022, Apple had approximately 164,000 full-time equivalent employees . The net sales of the world’s largest IT company by revenue increased 8% or USD 28,5 billion during 2022 compared to 2021. Higher net sales in Services and Wearables, Home and Accessories categories played an instrumental role in achieving such a growth. Apple business strategy comprises focusing on design and capabilities of products and ever-strengthening the company’s ecosystem. The first company ever to be valued at USD1 trillion purposefully cultivates a reputation for not paying dividends to investors. In short-to-medium term perspective, Apple is working towards decreasing dependence of the business on the sales of iPhones. Leadership style at Apple is known to be democratic. CEO Tim Cook practices ‘quiet leadership’ and he is widely recognized as an effective leader. At the same time, a number of industry watchers and analysts criticize Tim Cook for the lack of innovative genius his predecessor legendary Steve Jobs used to possess. Apple has hierarchical organizational structure. Moreover, the company’s organizational structure also integrates product-based grouping with a focus on collaboration between different groups and divisions. Organizational culture of the multinational technology company, on the other hand, fosters creativity and innovativeness coupled…


April 1, 2019
By John Dudovskiy
Tags:

Microsoft corporate social responsibility (CSR) is guided by the citizenship mission of the company which is “to serve globally the needs of communities and fulfil our responsibilities to the public”. Moreover, charitable activities of Bill & Melinda Gates Foundation founded by Microsoft founder Bill Gates is also associated with Microsoft in the perception of the general public to a certain extent. The technology giant won a number of awards and achievements for its responsible behaviour. These include ranking #1 on Corporate Responsibility Magazine’s 100 Best Corporate Citizens 2018, ranking #1 for both, Environment and Social Score which measures corporate performance using more than 200 factors. Moreover, Microsoft’s behavior as a socially responsible company has earned number 2 spot on JUST Capital’s Top 10 Tech Companies. Microsoft CSR Programs and Initiatives Microsoft Supporting Local Communities Microsoft employees donated USD158 million to non-profits serving its local communities and the world The Lagos Solar project in Nigeria uses batteries that are charged by solar panels, along with intelligent inverters connected to Microsoft Azure Internet of Things technology International software provider Temenos relies on Microsoft Cloud services to reach people across Myanmar who lack access to banking, giving them opportunities for more financial stability and access to microcredit and other financial services. Microsoft’s 4Afrika Initiative provides a set of programs to empower African youth, entrepreneurs, developers and business and civic leaders YouthSpark initiative aims to empower 300 million young people around the world with opportunities for education, employment, and entrepreneurship Microsoft Educating and Empowering Workers Microsoft collects employee feedbacks through multiple channels and acts on them. As part of this initiative nearly 85 percent of our more than 117,000 employees responded employee survey 92% of surveyed stated they feel proud to work at Microsoft and 87% of employees would recommend Microsoft as a great…


February 10, 2019
By John Dudovskiy
Tags:

Microsoft ecosystem integrates the following types of products and services: Category Products and services Productivity and Business Processes Microsoft 365, SharePoint, Skype for Business, Outlook Mobile, One Drive, Dynamics 365, Microsoft Teams, Linked In Intelligent Cloud Server products and cloud services, including SQL Server, Windows Server, Visual Studio, System Center, and related CALs, as well as Azure Enterprise Services, including Premier Support Services and Microsoft Consulting Services More Personal Computing Windows Devices, including Microsoft Surface (“Surface”), phones, and PC accessories. Gaming, including Xbox hardware; Xbox Live, Search advertising. Products and services within Microsoft Ecosystem It can be argued that Microsoft ecosystem is aimed at enterprise customers to a greater extent compared to individual users.  Specifically, Microsoft enterprise products and cloud services are effectively tied together and this generates strong incentives for businesses to use Microsoft products and services. For example, OneDrive for Business leads into Sharepoint, Teams integrates with Outlook and is about to swallow Skype for Business, Dynamics CRM and SQL Server can integrate and pull data from Azure AD. Moreover, there are many Office 365 programs and services that integrate with each other under a single sign-on. Similarly, Windows ecosystem which includes the platform, games, apps, the Store, and Minecraft, as well as the Windows 10 family of devices, including Surface, Xbox, and HoloLens. the multinational technology company is expected to further invest into its ecosystem to make it stronger in the medium-term and long-term perspectives.   Microsoft Corporation Report contains a full analysis of Microsoft ecosystem. The report illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis, Ansoff Matrix and McKinsey 7S Model on Microsoft. Moreover, the report contains analyses of Microsoft leadership, business strategy, organizational structure and organizational culture. The report also comprises…


February 8, 2019
By John Dudovskiy
Category: Strategy
Tags:

Microsoft McKinsey 7S model shows how seven elements of businesses can be aligned to increase effectiveness. According to this framework, strategy, structure and systems represent hard elements, whereas shared values, skills, style and staff are soft elements. McKinsey 7S model stresses the presence of strong links between elements in a way that a change in one element causes changes in others. As it is illustrated in figure below, shared values are positioned at the core of Microsoft McKinsey 7S model, since shared values guide employee behaviour with implications in their performance.   Microsoft McKinsey 7S model   Hard Elements in Microsoft McKinsey 7S Model   Strategy.  Microsoft business strategy can be classified as product differentiation. The company develops advanced technology products and services and sells them for premium costs. Moreover, Microsoft business strategy is currently focused on “cloud-first, mobile-first”, growth through mergers and acquisitions and exploring business opportunities related to augmented and virtual reality. As the latest addition to its business strategy, the multinational technology company is focusing on the concept of ‘tech intensity’, which aims to position Azure as the worlds’ computer with evident positive implications on the long-term growth prospects of the business. Structure. Microsoft organizational structure is divisional and such a structure resulted from a restructuring initiative introduced by CEO Satya Nadella in 2015. Microsoft engineering group is divided into three divisions: Cloud and AI Group, Experiences + Devices and Artificial Intelligence and Research. Business functions, on the other hand, are divided into nine divisions. Microsoft corporate structure is highly dynamic and ever-evolving to meet the demands of changing external market place. Systems. There is a wide range of systems that are critically important to run Microsoft successfully. These include employee recruitment and selection system, team development and orientation system, transaction processing systems, customer relationship management system, business…


February 7, 2019
By John Dudovskiy
Category: Strategy
Tags:

Microsoft value chain analysis is an analytical framework that assists in identifying business activities that can create value and competitive advantage to the business. Figure 1 below illustrates the essence of Microsoft value chain analysis. Figure 1 Microsoft Value Chain Analysis   Microsoft Primary Activities Microsoft Inbound logistics Microsoft contracts with multiple suppliers internationally, as illustrated in Figure 2 below. Accordingly, the company has to maintain highly complicated supply-chain operations without any disruptions. It is compulsory of all suppliers to adhere to Microsoft Supplier Code of Conduct and The Microsoft Supplier Requirements. The main sources of value for Microsoft inbound logistics include the economies of scale, presence of strategic relationships with suppliers and in-depth knowledge of supply-chain management practices due to selling relevant software i.e. Microsoft Dynamics AX. Figure 2 Microsoft production supplier locations[1]   Microsoft Operations Microsoft Corporation business is divided into the following three operating segments: 1. Productivity and Business Processes. This segment comprises Microsoft products and services related to productivity, communication, and information services. The segment comprises a range of devices and platforms such as Office Commercial, Office Consumer LinkedIn and Dynamics. 2. Intelligent Cloud. This operating segment includes public, private, and hybrid server products and cloud services that can power modern business. Intelligent Cloud segment comprises server products such as SQL Server, Windows Server, Visual Studio, System Center, and related CALs, and Azure, as well as, Enterprise Services, such as Support Services and Microsoft Consulting Services. 3. More Personal Computing. This segment consists of products and services geared towards harmonizing the interests of end users, developers, and IT professionals across screens of all sizes. Microsoft’s regional centre in Ireland supports the European, Middle Eastern, and African region; the centre in Singapore supports the Japan, India, Greater China, and Asia-Pacific region; and the centres in Fargo, North…


February 6, 2019
By John Dudovskiy
Tags:

Porter’s Five Forces analytical framework developed by Michael Porter (1979)[1] represents five individual forces that shape an overall extent of competition in the industry. Microsoft Porter’s Five Forces  are illustrated in figure below: Microsoft Porter’s Five Forces Analysis   Threat of substitute products or services in Microsoft Porter’s Five Forces Analysis Threat of substitute products or services for Microsoft is low. The following factors determine the level of threat of substitute products or services for the multinational technology company: 1. Lack of direct substitutes. Range of products offered by Microsoft include operating systems for computing devices, servers, phones, and other intelligent devices; server applications for distributed computing environments; productivity applications; business solution applications; desktop and server management tools; software development tools; video games; and online advertising. The company also designs and sells hardware including PCs, tablets, gaming and entertainment consoles, phones, other intelligent devices, and related accessories. Additionally, Microsoft offers a wide range of software applications and cloud-based computing services such as Bing, Microsoft Azure, Microsoft Dynamics CRM Online, Microsoft Office 365, OneDrive, Skype, Xbox Live, and Yammer. There is no direct substitution for these products and services, however, indirect substitution exists. Indirect substitution for Microsoft products and services belonging to productivity and business processes segment include a wide range of stationary products, planners and organizers. Indirect substitution for Microsoft gaming and recreation products, on the other hand, include but not limited to music, movies, sports, spending time with friends and family members etc. 2. Low buyer propensity to substitute. The level of buyer propensity to choose substitute products or services to Microsoft’s products and services can be assessed as low. This is because according to its mission ‘to empower every person and every organization on the planet to achieve more’, Microsoft products and services are highly convenient to use.…


February 5, 2019
By John Dudovskiy
Tags:
[]