Highlights
Description
This is an individual assignment, which requires you to develop an understanding of how information and IT can generate business value and improve a business’s overall competitiveness using both IT Portfolio theory and RBV, and then produce a 1,500-word report on your findings. This term we are looking at Airbnb. Note the assigned case organization will also be used for assignment 2.
Learning Outcomes
This task allows you to demonstrate achievement towards the unit learning outcomes. The ULOs are aligned with specific graduate learning outcomes – that is, the skills and knowledge graduates are expected to have upon completion of their studies – and this assessment task is an important tool in determining the achievement of those outcomes.
If you do not demonstrate achievement of the unit learning outcomes, you will not be successful in this unit.
It is good practice to familiarise yourself with the ULOs and GLOs as they provide guidance on the knowledge, understanding, and skills you are expected to demonstrate upon completion of the unit. In this way, they can be used to guide your study.
Specific Requirements
This report should be 1,500 words (excluding the references and appendices). To complete this report, you should conduct research on Airbnb and its competitiveness. Your task is to understand Airbnb’s investments in information and IT for business value returns. You also need to assess its key resources and capabilities to assess its competitiveness in a turbulent disruptive market. More specifically, you should find answers to the following two questions:
1. Focus on the various IT assets that Airbnb has invested in the last 5 years. Using the IT Portfolio theory, provide an example of each type of IT asset class (i.e. transactional, informational, infrastructural, and strategic) with reference to Airbnb. Your chosen examples should be key IT assets for gaining real business value for Airbnb for competitive advantage. Indicate if the business returns are tangible or intangible.
2. In general, firms cannot expect to obtain sustained competitive advantage when strategic resources are evenly distributed across all competing firms and highly mobile. Hence, a competitive advantage does not occur unless heterogeneity and immobility are present. Based on the arguments around imperfectly imitable and the concept of resources and capabilities, discuss each of the four factors of the VRIO framework with respect to the key resources and capabilities to explain Airbnb’s current position in the competitive landscape.
Below you can find a detailed description of the required sections for this report:
• Executive Summary (~150 words): In this section, you need to briefly summarise key IT assets, resources, and capabilities of Airbnb that you have selected for this report. You should also briefly mention how these capabilities helped Airbnb to gain a competitive advantage.
• Introduction and Organisational background (~250 words): In this section, you need to briefly explain the information-based competitive environment of Airbnb and its business model in terms of its market, strategy, operations, and the overall industry. You should use the business model canvas(see useful resources) to structure the arguments in this section.
• IT Portfolio theory view (~350 words): In this section, you should write your response to Question number 1 above. Your arguments should be supported by references from the literature (both practitioner/academic).
• RBV theory and VRIO analysis (~650 words): In this section, you should write your response to Question number 2 above. Your arguments should be supported by references from the literature (both practitioner/academic).
• Conclusion (~100 words): In this section, you should conclude by stating your key conclusions about the competitiveness of Airbnb. You should also include a brief discussion on factors or threats that may affect the sustainability of its competitive advantage in the future.
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