MNB3701 ASSIGNMENT 2 SEMESTER 1 2026 Question 1: Factors Enabling Airbnb’s Rapid Global Expansion 2 Utilisation of Global Digital Networks and Platforms 2 Implementation of an Asset-Light “Middleman” Business Model 3 Strategic Foreign Market Entry throug

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, Table of Contents
Question 1: Factors Enabling Airbnb’s Rapid Global Expansion ................................ 4

Utilisation of Global Digital Networks and Platforms ............................................... 6

Implementation of an Asset-Light “Middleman” Business Model ............................ 7

Strategic Foreign Market Entry through Acquisitions .............................................. 7

Localized Marketing and Community Recruitment.................................................. 8

Question 2: The Influence of Formal and Informal Institutional Factors on Airbnb’s
Expansion Strategy .................................................................................................... 9

Definitions of Formal and Informal Institutions ...................................................... 10

Influence of Formal Institutional Factors on Airbnb’s Expansion Strategy ............ 10

Influence of Informal Institutional Factors on Airbnb’s Expansion Strategy .......... 11

Evaluation of Institutional Influences on Airbnb’s Expansion ................................ 13

Question 3: Evaluating Airbnb’s Resources and Capabilities Using the VRIO
Framework ............................................................................................................... 14

Airbnb’s Global Digital Platform and Data Ecosystem .......................................... 14

Trust-Building Systems and Reputation Mechanisms........................................... 15

Localised Market Development and Host Recruitment Capability ........................ 16

Evaluation of Airbnb’s Competitive Advantage ..................................................... 17

Question 4: The OLI Paradigm and Its Application to Airbnb’s International Expansion
................................................................................................................................. 18

Definition of the OLI Paradigm .............................................................................. 19

Ownership Advantages in Airbnb’s International Expansion ................................. 19

Location Advantages in Airbnb’s Global Strategy ................................................. 20

Internalization Advantages in Airbnb’s Operations ............................................... 21

Evaluation of the OLI Paradigm in the Airbnb Case.............................................. 22

References ............................................................................................................... 24




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