Overview of the major issues

1. Regulation

Airbnb has experienced regulation challenges in Japan. The law in Japan only allows issuance of hotel licenses to companies that offer accommodation services at a fee.

2. Cultural barriers

Airbnb has been facing challenges when starting its operation in countries whose culture is different from where other regions where the company operates.

Analysis of key themes

Apart from the choice of media that is to be used for an advertisement campaign, the study of the culture of the new market is also crucial in the success of an advertisement campaign. Societies have different cultural dimensions, and as such, one strategy might be successful in a given region and fail to meet its objectives when used in a different area (Taras, Steel & Kirkman, 2016). For instance, Airbnb easily got a space and continue to be a favorable competitor in the U.S. through the use of social media platforms, which is different from the case in Japan. According to Hofstede cultural dimension theory, societies differ and to be appealing to a given market, then the adverts conducted should be in line with the culture in the target market.

Analysis of the case study

The regulation challenges governing the use of social media and strict license requirement should act as an opportunity for the company to settle on other means of getting into those markets. Through a proper study of the new market expansionary campaigns become a success (Johnson, 2018). According to the statistics of the hotel industry, the company continues to enjoy wider market control among its competitors. Meaning, Airbnb has been able to address a member of challenges and effectively succeeded in expansionary campaigns (See fig 1 on the appendix).

Recommendation

The company enjoys a good public image through its partnership in conducting promotion for major events in different countries. To overcome the challenges, Airbnb can engage in the education of its target consumers, in areas where there are strict rules to create a good public image and be able to penetrate the job market. creativity in promotion is essential in ensuring that any company maintains a competitive advantage.

Appendix

Fig 1 Hotel Company cap valuation

Source: Airbnb website

References

Johnson, A. (2018). Elements of Creativity: A Study of the Dimensions that Make for an Effective Advertisement.

Taras, V., Steel, P., & Kirkman, B. L. (2016). Does country equate with culture? Beyond geography in the search for cultural boundaries. Management International Review, 56(4), 455-487.