ONE FINE STAY Harvard Case Solution & Analysis

One Fine Stay  Case Study Solution 

Abstract:

This report discusses the business operations of One Fine Stay.  The nature of the business is very different from other businesses in the market. This report discusses the advantages that One Fine stay has over hotel services and the disadvantages as well. Also, the opportunities and threats that it faces in its business operations. Because the company deals with two different markets, the owners who provide their houses for rent purpose and the travellers who are looking for houses to live in while they are travelling, it deals with the shared economy and the risks involved here is greater. Though the company has been lucky enough to succeed at the start of the business but now to grow further, the management has to make a decision that whether the company should expand by increasing its customer base and the places available for renting in the places that it already deals in or it should try to grow its business by targeting a whole new customer base in totally different locations of the world where it is not currently providing any services. In this report, we have used SWOT analysis and Porter Five Forces analysis to evaluate the company’s overall performance and position in terms of its competitors and by taking into account different internal and external factors that may affect the company’s operations.

Background:

One Fine stay provides services to the travellers who are just travelling for vacations or for a business trip or any other purpose. The CEO of One Fine Stay Greg Marsh had this business idea when he travelled to a different country and had t stay in a local hotel. According to him his stay in the hotel was dreadful, and a friend advised him to rent a home. He observed that his experience in the home was way better than the one in the hotel. This whole event created a business idea for Marsh of One Fine Stay.

One Fine stay came into being in2010 after Marsh started collecting money from people in 2009 with the cofounders in 2009. The goal was not to risk the existence of the industry providing hotel services, but rather they thought that people who prefer staying in luxurious hotels would rather go and live in complete privacy in a home than in a hotel. Also, the homes that were not occupied when the owners were away, would be used, and this way the owners would be getting paid the rent.

Initially, the company had only three homes available for rent purpose, two of them were of the business owners themselves. But not long after its establishment, in the year 2010, the company was able to get 100 different owners of homes on board. The revenues of the company increased rapidly and two years after its start in London, the company expanded its hospitality services in New York. By the end of 2010, One Fine stay has more than athousand homeowners on board and its employee base also increased toa hundred. Later, in 2013. The company expanded its business in Paris and Los Angeles as well.

SWOT Analysis:

To discuss the strengths and weaknesses that One Fine stay possesses over its competitors, and the different opportunities it has to grow further, and the threats it faces from its competitors and other internal and external factors, SWOT analysis is done.

 

ONE FINE STAY Harvard Case Solution & Analysis

 

Strengths:

  • The biggest strength for One Fine Stay is that the awareness among people about the sharing industry is increasing, and this industry is growing rapidly and is expected to grow in the coming years as well.
  • Initially, with all the tax problems that the hotel industry created it was a threat to the company, but later on the government approved of the business, so it can be said that it is supported by the government as well. The reason is that the hospitality industry boosts the economy of a country as well.
  • The range of operating in this business is very wide, it varies accordingly the culture of a nation.
  • The difference in the demand and supply where has a negative effect, it also has a positive impact as well. For example due to this difference the rates of the houses available for rent increases, which in result increases the net revenues of the company.
  • The Net Promoters Score of One Fine Stay was between 60 to 70 and was consistent, which is high as compared to the overall hospitality industry.
  • Sharing industry offers benefits to both the industries it is dealing with.
  • The early expansion of the business has helped the company to grow rapidly and also to make its mark in the hospitality industry. Its growth can be seen in the Appendix.
  • To gain the trust of the homeowners is the most important and difficult thing for One Fine stay. The amount that they earn per year isn’t even ten percent of the cost of their houses and furniture. But it’s all about the free money that they are earning. To the homeowners, the money is not important but rather that if they can trust One Fine stay or not. So far in its business, the company has operated strategically and has succeeded in gaining the trust of the homeowners. It can be proved with the rate the homeowners has increased for the company...........................

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