Global changes and the rate of immigration has profoundly impacted international businesses. As a way of improving their productivity, companies such as Airbnb have moved and dominated the international market. Due to a good market around the world, companies are doing a lot of analyses that assist in understanding all the required factors that different countries have set. With the help of experts, many companies have managed to understand and enter the global marketplace. In some cases, managers rely on information from other established firms such as Coca Cola.
The economic difference is a crucial aspect that management tends to examine before deciding to engage in international business. Understanding the economy gives management a chance to decide the best place to set the company. Airbnb is one of the international business that deals with online marketing by offering tourism experiences and hotel services. Usually, the company does not own any real estate; instead, it acts as an intermediary between customers and hotels, and it is paid on commissions. As a way of understanding the concept of international business, the essay analyzes the video, Interview with Airbnb CEO, Brian Chesky, on how to engage in the business.
Based on Chesky, the success of international businesses rely on how the company travels and searches for information related to the field of operations. As a company, Airbnb has a department that moves around the world, searching for data related to hospitality. The information is then compiled by the management to provide the best experiences that tourists would like to have. Technology development has assisted companies in gathering data from various fields. The knowledge and skills of technology impacted Chesky to think about an aspect that would earn him some income (Fortune Magazine, 2017).
As an entrepreneur, pulling resources is a crucial aspect of business success. In this case, Chesky pulled all he could manage to start an online marketing company. After living in New York, Chesky believed that hospitality was one of the growing industries. A large number of people were moving in different parts to explore the world. For instance, Chesky illustrates that there were about two million individuals that had moved to New York City during New Year's Eve (Fortune Magazine, 2017). All the people were looking for a better place where they can enjoy with their family. As a way of taking the advantage, Airbnb offers assistance services, through providing online hotel selection. Through their platform, a customer who is outside the United States could effectively learn about hotels available and book based on their ability and preferences.
Generally, when engaging in a new business, there are a lot of risks, which require a lot of supports to overcome. In order to overcome the risks, companies are required to have enough resources, and this assists in introducing a new system to combat the challenge. Small businesses find it hard to overcome the risks due to financial challenges (Doh, Rodrigues, Saka-Helmhout, & Makhija, 2017). Therefore, they are forced to look for investors who offer financial support. According to Chesky, he invited about 20 investors who facilitated in raising the startup capital (Fortune Magazine, 2017). Though it was challenging, since most people preferred to invest in already established firms, it required a lot of courage and determination to get investors. The determination may effectively be illustrated by a good business plan.
A business plan is a crucial aspect that most investors consider before engaging in any investment. Hence, businesses are required to illustrate their objectives in a more precious way. For instance, Chesky illustrates that people are concerned about understanding the number of beds the company was aiming to connect (Fortune Magazine, 2017). Chesky used his bedroom to illustrate the expected services to the investors. Despite the description, sometimes investors were reluctant to offer support since they felt they are working with strangers.
In 2008, when Chesky was starting the company, the world was experiencing a financial crisis (Fortune Magazine, 2017). As such, the investors were so careful to avoid engaging in activities that would lead them to lose. The financial crisis had hit the stock marketing, and cash flow was low.
Understanding what customers need is a crucial aspect that a company can use to improve its establishment. All services a company aims to provide should improve customers' experience. As a way of improving the service, there is a need to establish more advance techniques to outweigh competitors. In this case, in collaboration with the bed service, Chesky introduced breakfast to all customers (Fortune Magazine, 2017).
The company was using a new technique to attract customers to experience the new service. At breakfast, the company had introduced new products, which gave new tastes in the city (Fortune Magazine, 2017). For instance, the introduction of cereal breakfast was a crucial aspect the company engages in attracting a large number of customers. People prefer eating whole products, due to issues associated with food products that are offered in most hotels. The aspect gave people a good experience, which was a new aspect in the cities. Additionally, the price was another crucial aspect the Chesky observed during the establishment. The company offered the products and services at a friendly price to attract and maintain customers.
Working in an international requires companies to understand the policies and regulations that different countries have. The variation in rules among countries is highly impacted by the economic level. In most nations, there are heavy tax levels that resist an external market and encourage internal companies (Fortune Magazine, 2017). Violation of market laws among companies has been a critical aspect impacting the success of the international business (Meyer & Peng, 2016).
Additionally, international policies regulate the marketing approaches that a company embraces. Therefore, it is crucial to comprehend all the rules before committing to the service offering Cravino & Levchenko, 2017). The key rules that a company must observe are tax and revenue regulation that a country has set.
The success of a company relies on its effectiveness on human resources. Through human resource, a company is able to deploy individuals who have a different ability; therefore, it is easier for them to introduce new projects which aim at boosting company performance. In Airbnb, the company hired some individuals who had more influence on customers (Fortune Magazine, 2017). The aspect was seen as a crucial way of improving the company affair.
As an approach to improving work performance, Airbnb introduced training. The training was meant to provide the skills and knowledge that workers were required to have to ensure they can effectively handle customers (Cravino & Levchenko, 2017). Since the company was dealing with people from different areas, there was a need to learn new languages and other people's cultures. The technique gave workers the advantage to handle and deal with people from different regional backgrounds. As such, it was easier for the workers to work in different regions, thus boost company performance across the world. Interacting with people gave workers a good chance to introduce new services that customers needed most.
Additionally, the company aimed at creating a platform that would integrate cities across the world, thus promoting tourism. In this case, services offered in one city could easily be allocated to another city (Fortune Magazine, 2017). Through the online system, it is easier for a person to search the same services in different cities. The aspect reduces the time wasted by clients as they search for good areas where they could spend their holiday. Airbnb displayed smart photos showing different attractive rooms that clients can hire. Currently, Airbnb operates in more than 200 cities across the world (Fortune Magazine, 2017). In which, some of the services are long terms of hiring. The technique gave clients peace of mind when in different cities, and hence, it is easier for a person to travel the world.
In conclusion, international business interviews have become a crucial aspect that companies are using to analyze about world market. Through the interview, management gains essential skills and information, which they use when establishing international marketing. Currently, the success of companies relies on how technology is applied in production. Effective application of technology gives a company a good way to introduce new systems that influence their performance.
Cravino, J., & Levchenko, A. A. (2017). Multinational firms and international business cycle transmission. The Quarterly Journal of Economics, 132(2), 921-962. Retrieved from https://www.nber.org/papers/w22498.pdf.
Doh, J., Rodrigues, S., Saka-Helmhout, A., & Makhija, M. (2017). International business responses to institutional voids. Retrieved from https://link.springer.com/article/10.1057/s41267-017-0074-z.
Fortune Magazine. (2017). Interview with Airbnb CEO Brian Chesky: Fortune. Retrieved from https://www.youtube.com/watch?v=GFMeuSIhIYg.
Meyer, K., & Peng, M. W. (2016). International business. Cengage Learning.
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