Q1) Should onefinestay adopt a depth or a breadth strategy for expanding their business?

Explain.
Ans) Onefinestay should adopt a depth strategy for expanding their business for now, by
focussing in the cities in which the company was already operating by adding more
properties for rent and attracting a more significant share of travellers by increasing their
presence and brand value. Also, because a breadth strategy may affect their service quality
and consistency as their market involved high-end customers who don’t want their services
being compromised. Some of the reasons why depth strategy would be in line with
Onefinestay’s business model are as follows-:

 Building Trust, simplicity and convenience for Customers takes time- As there was a rise
in sharing economy, the main challenges were establishing trust, providing demonstrated
value and addressing the adequate supply and demand. Onefinestay with its luxury and
premium services should retain the trust and create a brand value in existing projects so
that its customers refer Onefinestay as a pioneer in the consistency of service quality.
 Complex Logistic Company Service-Onefinestay’s business model was different as it
served upscale market like homeowner hosts by maintaining the property correctly after
the vacation and also delivering quality service just as home to the guests. The selection
process for Onefinestay’s property included space, character and space. It followed by
Extensive Inventory keeping, maintenance measures and addressing any issues relating
to the estate.
 Attracting Leisure travellers- Onefinestay’s 70% of customers were from leisure
travellers, and 30% were business or mixed purpose guest. As per exhibit 3, it depicts the
guest profile’s country of origin is developed countries like the US & UK forms a
significant part, and their main reason was leisure. So, giving them value style and
convenience with family travel with the help of tech-enabled and use of mobile devices in
the iPhone, iPad etc. The process consisted of registration, provision and meet-greet. The
process was well defined and provided guests with high customization and local
 Brand Awareness and Importance of referrals- By adopting a depth strategy,
Onefinestay can generate hot leads from the community it has already served and has
received a positive response. Also, brand awareness and trust will be higher in known
regions. This will help to position its brand for promoting exclusive customized services to
its customers with a local home experience which no other upscale hotels will be able to
provide.
 Leveraging fixed marketing and Operations Cost- By increasing their market penetration
in existing locations, Onefinestay will be able to strengthen its brand equity in the leading
travel markets with the help of referrals from existing homeowners. As by expanding to
different markets various locations, it may affect the company’s human and financial
resources also risking the company’s brand image in existing markets.
Therefore, Onefinsestay adopting a depth strategy will help its brand to capitalize on its
brand acceptance and also cater to high affluent families in these developed regions where
services like home convenience and local experience is appreciated and in high demand by
clients.