In the highly sophisticated digital and internet age, social media and online communities provide a good platform for business owners in different categories and sectors of life. Social media not only help in marketing through advertisements but also can be a marketplace by itself (Ante 24). Social media marketing can be described as a modern day process that allows websites to gain attention or traffic with the help of sites in a different social media (Bharadwaj 480). This online community is essential in the generation of content that can attract the attention of the target group for business. The main aim however is to allow viewers of this content to share across many different sites. HomeAway has been founded on this idea that a small business can reach the target customers through social media and customer interaction with different brands. As a business based in Austin, Texas in the US, the company has a large customer base especially within the US (Schweidel et al. 396). HomeAway has a business model that aims at providing homeowners as well as property managers a marketplace to rent out their properties to customers for purposes that include conferences, vacations and so on (Ante 24). The company works closely with other organizations in the social media fraternity to establish and determine visits on the company website.
In the US, HomeAway faces huge competition from established brands like Airbnb. With operations in more than 200 countries globally, Airbnb has a significant presence in the US. The huge presence in the US is majorly due to the high population of middle-class income groups (Schweidel et al. 396). Research shows that the middle-class income group does the highest number of spending especially on vacation and holiday visits. The target customer segment for HomeAway is the affluent, highly engaged, well travelled and above the youth age who is looking for a place to stay and not another typical hotel experience (Bharadwaj 480). Business travelers constitute a significant segment of this target group. This is because they are well travelled and are constantly looking for places to stay. Airbnb is a large competitor and helped establish this industry. However, HomeAway differs significantly from it since the focus for us is secondary homes unlike Airbnb that has its focus on primary homes. For this reason, I would position HomeAway as a tough competition to Airbnb.
There are a number of innovations, services, and features that are solely intended to create more attraction to a product that a customer distributes to its customers (Delo 50). Such value propositions are what determine a simple choice from the customer in their decision to buy or not. To this end, Airbnb dwells on shorter visits or stays and the amount offered is relatively lower. Additionally, the company (Airbnb) has a standing service charge for not only the owner but also the customer. HomeAway concentrates on longer vacations and stays and also has no fee for the customer, but the owner of the property that is being traded on. Therefore, there are a number of measures that HomeAway has taken to ensure that the company remains ahead in the competition for customers. The value propositions are only a part of this strategy. With more concentration for the middle-class income group, HomeAway puts on promotions and offers and special features for the continuity of customer loyalty and the extension of the clientele base (Hyoryung and Kannan 30).
In the long term, sustainability is what is expected to maintain the various competitive advantages HomeAway has. Initially, the company majored on the depth and breadth of listings. However, the new strategy will now involve expansion strategies (Hyoryung and Kannan 30). For instance, the company will spend more time and resources on improving and designing more sites. The key to making a company successful in this day and age is a good customer relation. In a time where dissatisfaction is openly aired on social media and shared in multiple channels, the company’s competitive strategy will majorly involve user-friendly websites for quick response and customer care. In keeping up with our competitors, especially Airbnb, HomeAway will ensure that the booking process is made as simple as making a hotel booking. The main aim here is to professionalize the company to make a statement in the industry (Schweidel et al. 396). In this process and strategy, provision of a more secure and simpler system of payment in the US and other countries is essential. Innovation will be the key to maintaining our company’s competitive edge. More products that are user-friendly will be introduced in the long run towards this end.
In conclusion, social media and online communities provide a good platform for business owners in different categories and sectors of life. HomeAway has been founded on this idea that a small business can reach the target customers through social media and customer interaction with different brands. The main competition for this company is Airbnb. In order to maintain competition, the company has come up with long term strategies that will ensure profitability and success in the industry.
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