AirBnB Porters Five Forces Case Study Assignment Help

AirBnB Porters Five Forces Case Study

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Order Number	Y47874HDUEW
Type of Project	Essay/Research Paper
Writer Level	PHD/MASTERS
Writing Style	APA/Harvard/MLA/CHICAGO
Citations	5
Page Count	3-15

Description/Paper Instructions

AirBnB Porters Five Forces Case Study

The idea is to create a discussion-like atmosphere among students. Please note that replies such as “I like what you said,” “That’s a good comment,” and “I disagree with your comment” do not count as a complete reply. You must substantiate these general statements by stating specific reasons that support your opinions, adding additional, relevant thoughts, and/or providing alternative ideas. Replies to your peers should also use credible, external sources. Each reply must use APA formatted in text citation and must have APA style references at the end of the post. Courtesy in any disagreement is expected; thus, personal attacks are not acceptable and will affect your grade. References are required in the responses to the peers posts.

Post 1

Airbnb is a one of a kind business. Individuals offer to lease their homes, lofts, or rooms to outsiders. However, the organization has run into lawful issues. A few locations accessible to lease don’t adhere to state lodging laws and regulations. In certain states, a proprietor should likewise live on the property to lawfully lease lofts for brief timeframes. Moreover, these locations are needed to pay lodging or vacationer charges when leasing their homes during the special seasons. Airbnb has confronted fines and court procedures. Among political influences influencing Airbnb’s model, one should incorporate the risk of illegal intimidation, because of the way that Prague is a capital city with more than 1,000,000 occupants, and with a huge number of guests, there is the conceivable danger of psychological warfare, particularly from ISIS. Accordingly, individuals might be dissuaded from traveling, particularly to significant urban areas (Sedlacek, 2016).

Airbnb is vigorously influenced by the developing ubiquity of social media, which is essential to the sharing stage. The following most huge factor is the level of trust among clients. They are influenced by an expanding measure of single voyagers, which may impact the interest in room sharing. The stage is influenced by the number of individuals ready to burn through cash on “elective encounters,” and by people who are wanting to travel. Furthermore, a receptiveness to encounter distinctive culture has a place among a portion of the more huge social variables. The organization is influenced by a maturing population, since the older are not as open to new encounters, and lean toward movement bundles and great inns. The stage is influenced by society’s pattern toward a better lifestyle and a higher accentuation on wellbeing. Web availability, advancement, and an expansion in the utilization of technology have offered to ascend to stages, for example, Airbnb; thus, technology is exceptionally essential to the organization’s tasks. Information technologies are as yet improving, and to stay serious, Airbnb needs to utilize every single accessible source. The quantity of individuals who use mobiles and portable applications is significantly rising, and this vigorously influences the Airbnb stage. Expanding measures of individuals anticipate availability through virtual networks.

Post 2

Porter’s five forces model is used to analyze the firm’s competitive advantage. Porter’s model is the widely used approach to understand the external opportunities and threats. The model represents five individual forces which include threat of new entrants, bargaining power of buyers, bargaining power of suppliers, threat of substitute products or services and rivalry among existing firms (Lehr, 2015). There are number of barriers to potential new entrants into lodging industry. Time of entry, capital investment and existing legal regulations can serve as a significant barrier. Being able to raise capital is the major success for the company. Airbnb became leading company in just few years. It came into the market at right time when the competition is less. Airbnb raised 119.20 million in two years. That does not make them free from competition. It still faces legal restriction in international business due to the county laws that restrict them from hosting the paid guests. Permits are required that involve registration and the property license will be necessary. Airbnb has grown with the industry and equipped itself to deal with such issues.

Rivalry among existing firms is ignited due to the factors that include rate of growth, diversity of competitors and role of brand equity. The global growth rate of Airbnb is 153% (Nurlansa, 2016). While Airbnb is enjoying its success, the threat coming from diversity of its competitors is causing a limitation in the growth. Flip key, Turnkey and HomeAway are giving a tough fight. Still, Airbnb is a leading global lodging company because of its high brand value. Third factor, threat of substitutes is an existing concern for Airbnb. This threat comes from the client’s dynamic requirements. Hotels and B&B can become a threat in the future.

The fourth factor, bargaining power of buyers is limited due to no direct substitution. This gives an advantage to Airbnb to decide the prices based on demand. Number of Airbnb’s today are less compared to number of travelers. Renter’s have less to no inclination to go for a substitute because of the amenities provided are more advantageous to them compared to hotels.

Bargaining power of Airbnb is limited as it is the middle player between host and client. It gives the hosts liberty to decide the prices while placing certain brand rules to obey. While this can act as a threat to the business, it provides an opportunity to attract more suppliers into the platform thereby expanding business. Airbnb must prepare mindful and practical rules and principle that allow them to keep their brand value while reaching larger business areas and providing service for all types of customers.

Porter’s five forces model is used to analyze the firm’s competitive advantage. Porter’s model is the widely used approach to understand the external opportunities and threats. The model represents five individual forces which include threat of new entrants, bargaining power of buyers, bargaining power of suppliers, threat of substitute products or services and rivalry among existing firms (Lehr, 2015). There are number of barriers to potential new entrants into lodging industry. Time of entry, capital investment and existing legal regulations can serve as a significant barrier. Being able to raise capital is the major success for the company. Airbnb became leading company in just few years. It came into the market at right time when the competition is less. Airbnb raised 119.20 million in two years. That does not make them free from competition. It still faces legal restriction in international business due to the county laws that restrict them from hosting the paid guests. Permits are required that involve registration and the property license will be necessary. Airbnb has grown with the industry and equipped itself to deal with such issues.

Rivalry among existing firms is ignited due to the factors that include rate of growth, diversity of competitors and role of brand equity. The global growth rate of Airbnb is 153% (Nurlansa, 2016).

While Airbnb is enjoying its success, the threat coming from diversity of its competitors is causing a limitation in the growth. Flip key, Turnkey and HomeAway are giving a tough fight. Still, Airbnb is a leading global lodging company because of its high brand value.

Third factor, threat of substitutes is an existing concern for Airbnb.

This threat comes from the client’s dynamic requirements. Hotels and B&B can become a threat in the future.

The fourth factor, bargaining power of buyers is limited due to no direct substitution.

This gives an advantage to Airbnb to decide the prices based on demand. Number of Airbnb’s today are less compared to number of travelers.

Renter’s have less to no inclination to go for a substitute because of the amenities provided are more advantageous to them compared to hotels.

Bargaining power of Airbnb is limited as it is the middle player between host and client. It gives the hosts liberty to decide the prices while placing certain brand rules to obey.

While this can act as a threat to the business, it provides an opportunity to attract more suppliers into the platform thereby expanding business.

Airbnb must prepare mindful and practical rules and principle that allow them to keep their brand value while reaching larger business areas and providing service for all types of customers.

 

AirBnB Porters Five Forces Case Study

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