I. Introduction 1
II. Body 1
1. PESTLE 1
2. Porter five forces 2
3. Resource based view 3
4. Generic strategies 3
III. Conclusion 4
IV. References 4
According to Edelman, B. G., & Luca, M. (2014), due to the support of internet, it has led to the foundation of online marketplaces which includes all types of information, such as products, sales persons. Initiating from this new trends, in order to facilitate trust, there has been many new platforms found encouraging sales person to facilitate their sales. In the context of this working paper, the main content would be surrounding the case of Airbnb in terms of performance in global operating environment. In addition, the following frameworks would be taken into account for analysis, such as PESTLE, Porter five forces, resource based view, and generic strategies.
Regarding the political factor, Kaplan, R. A., & Nadler, M. L. (2015) indicates that the performance of Airbnb is supported by strong and deep political connections, most of who used to be the prominent political consultant, chief staffs in attorney general, and political strategies etc. All of the mentioned above has supported for the rapid growth of the company’s Internet platform which benefit guests, hosts, and local communities.
Regarding economic & social factor, Airbnb has contributed to the development of local communities. For instance, in New York, there are 400,000 guests visiting New York in 2012-2013 period, who spent $632 million and created 4,580 jobs.
Regarding the technology factor, Airbnb has installed a world-class payment platforms which is easy to use and secured. This would support guest payments and host payouts such as gift cards, financial reconciliation etc.
With respect to the legal factors, as explained by cofounder Brian Chesky, there are separate laws targeting businesses and people. In addition, the sharing economy also comes up with the third category of people as business. However, it is often unclear for the application of existing laws. As a result, there are complex questions that are not addressed by legislatures or courts.
Regarding the environment factor, via the provided service, Airbnb helps to save energy more than 63% in North America, and 78% in Europe comparing with hotels.
2. Porter five forces
According to Grundy, T. (2006), and Lehr, D. D. (2015), Airbnb has the following five forces:
3. Resource based view
In the context of Airbnb, the resource based view refers to the competitive advantage derived from the novel resources, which must take into account the growth of Google with granted gmail, posted video, web-page hosted. Due to the increasing spare rooms that Airbnb has, there will be more travelers attracted and more spare rooms listed. It should be noted that Airbnb does not own what they sell or possess, instead, the competitive advantage of the company is derived from the ability to consummate the match. In other words, the more matching extent, the more transactions amount, all of which would lead to the more created value amount.
4. Generic strategies
Karnani, A. (1984) defined that there are two types of generic strategies as follows: low cost position, highly differentiated position.
Regarding the low cost position, Airbnb has slowing down expansion in international perspective. This has been conducted via employing more staffs, reassigning existing staffs to new positions as well as moving them to a new locations in Europe. The objective is to avoid too fast growth in abroad. However, it has been due to such strong competition in Europe and Asia, the company has ramped up its operation since 2011. Many encouraged conducted from Airbnb to get more listings via purchasing major competitor Wimdu. It has been due to such fast action that Airbnb has been able to establish its existence in more than 30,00 cities and 192 countries.
Airbnb is a website that allows people to post information rent house, empty room, empty house or even an empty island from around the world. How it works of the same model Airbnb share of Uber is that many people feel dissatisfied and receive opposition from many sides. Opposing the protest but could not accept the fact that the company is following the same pattern sharing is increasingly expanding in its business areas. Typically the owl recent breakthroughs of Airbnb.
Accordingly, in this prototype service while improving our value to 25.5 billion dollars after the end of the latest round of raising capital with a value of $ 1.5 billion. As known earlier, some speculation that the company would only raise about $ 1 billion and raising $ 24 billion worth. However, with $ 1.5 billion raised this time, the current value of greater Airbnb hotel chain Marriott (21 billion dollars) and double the value of the Expedia website. In 2009, Airbnb was almost bankrupt. Like many other startups, they founded the company but hardly anyone noticed. Revenue from the company’s lackluster dispatched at $ 200 a week, divided by three founders in San Francisco, which is a long hole and no growth. According to Joe Gebbia – cofounder of Airbnb recognizes the growth graph of the company is a horizontal line, while everyone knows that venture investors are always interested to find companies with upturns impress. And they were forced to read every pocketbook.
1. Edelman, B. G., & Luca, M. (2014). Digital discrimination: The case of airbnb. com. Harvard Business School NOM Unit Working Paper, (14-054).
2. Grundy, T. (2006). Rethinking and reinventing Michael Porter’s five forces model. Strategic Change, 15(5), 213-229.
3. Kaplan, R. A., & Nadler, M. L. (2015). Airbnb: A Case Study in Occupancy Regulation and Taxation. U. Chi. L. Rev. Dialogue, 82, 103.
4. Karnani, A. (1984). Generic competitive strategies—an analytical approach.Strategic Management Journal, 5(4), 367-380.
5. Lehr, D. D. (2015). An Analysis of the Changing Competitive Landscape in the Hotel Industry Regarding Airbnb.