Monthly Archives: November 2014

What United Nation can offer is financial aid. However, what social enterprise and programs such as Arc can do is more than just offer fund. Because United Nation needs to fund for many less developed places, it is hard for United Nation to know what people in each place really need, perhaps more than just money.

Picture from: The Globe and Mail

What undeveloped places need is to fuel economic growth and economic growth depends on local businesses. This is exactly what Arc Initiative aims to do: Help local business of undeveloped places by providing business advice. Arc initiative, hosted by Sauder school of Business, for example, Shega Shero Eatery, a restaurant in Addis Ababa, is threated by competitors in that area. But the owner of Shega Shero Eatery, Tesfaye, participated Arc Initiative workshop and used new business model she learned in Arc Initiative to make more profits.

Picture from: The Globe and Mail

The growth of local businesses brings many benefits such as increasing employment rate for people in that area. Another example is Salem’s Ethiopia, a craft boutique in Addis Ababa. Under the aid of Arc Initiative, the owner of Salem’s Ethiopia expanded the factory of Addis boutique and hire more people. Hiring more people provides more job opportunity for local people.

Picture from: The Blackboard Blog

To fundamentally solve social problems, fund is far from enough. At this time, social enterprises play roles to change the situation in many ways such as using technology to provide convenience for disability.

Spending least money and maximizing satisfaction of traveling are pursued by travelers. Airbnb exactly provides financial benefits for both traveler and hosts who want to rent out houses for short-term. As Joban mentions, Airbnb is a disruptive innovation compared to traditional hotels. Unlike hotels charging high price, Airbnb offers a platform for traveler to find cheaper place to live and hosts who can not rent out their houses for short-term. Basically, Airbnb uses cost leadership strategy to make traveling more affordable for people especially those with low income.

However, Airbnb’s strength is becoming a threat. For example, many Airbnb hosts are violating states’ short-term rental laws. (Clampet, 2013) At the same time, tax issue also obstructs the development of Airbnb since renting out rooms should pay tax. These benefits to hosts seem to be a problem.

Picture from: Going Local Travel 

Though Airbnb is under pressure of such issues, I still think Airbnb would be a strong competitor in hotel industry. Airbnb not only provides a way to reduce cost of traveling but also provides another choice. By living in house instead of hotels, travelers truly experience local culture and lifestyle. This is what even high-end hotels cannot offer to travelers. This creates point of difference.

Thus, I think as long as Airbnb solve those problems, it would growth faster and faster.

Reference:

Clampet, J. (2013, October 7). New York State Attorney General Subpoenas Airbnb User Records. Retrieved November 12, 2014, from http://skift.com/2013/10/07/new-york-state-attorney-general-subpoenas-airbnb-user-records/

Resources: http://www.theguardian.com/travel/2014/jul/08/airbnb-legal-troubles-what-are-the-issues

Picture from: http://www.goinglocaltravel.com/2012/03/22/airbnb-buys-crashpadder/

As Ariella mentions in her blog, Ebola, a deadly and infectious disease, spreads all over the world and has an impact on business. True, Ebola affects macro environment of travel industry.

Politically, some countries plan to ban flights from Africa to keep virus of Ebola out of countries. Governments spend more money on precaution, forcing governments to find other ways to increase revenue.

Socially, Ebola evokes fear and mistrust in the world, causing social unrest. One direct manifestation is that some airlines to West Africa have been cancelled and fewer people travel to Africa.

Furthermore, Ebola blocks global trade and deeply affects companies which have factors in West Africa because now they have consider about their employees’ health issue.

However, I think Ebola only interrupts the business for short period of time. As doctors innovates more effective treatment, fear would decrease. Also, people who are afraid of traveling to Africa can go to other countries for trip. Thus this would not cause airlines to lose large amount of customers. And so-called travel ban in many economists’ eyes is ineffective and ridiculous and is opposed by economists. Thus, Ebola does not risk business so profoundly, at least for now.

Ariella London’s Blog: https://blogs.ubc.ca/ariellalndon/