Airbnb Pestle and Swot Analysis 2020-2021
Prudence is part of our roster of professional writers with a regular contribution to our business strategy sample collection. As a Market Research Analyst by profession, Prudence brings her training in business analysis as well as real life expertise from the world of professional business consulting, to our case study solutions. The result is a robust collection of superb premium business strategy case studies tailored for student revision, faculty and researchers.
Latest posts by Prudence K. Magezi(see all)
Launched in 2008, Airbnb has through the years grown from strength to strength to become the most recognised brand in the online home sharing industry. As of today, the company is, one of the largest privately owned companies with about $75 billion value by the end of 2020. Despite its fast growth, the company continues to experience a number of challenges, with the most notable one being the challenging regulatory environment. The business model has become vulnerable to strict regulations at the local, state and country level. In fact, some locations have considered the business model illegal and put in place regulations and laws banning it. According to the findings, the challenging regulatory environment coupled with the COVID19 impact on the general economy, consumer confidence and growing unemployment among others pose a major threat to the company’s biggest asset, its scale.
Using a pestle analysis, this report firstly examines the macro external environment of Airbnb and how various external factors have/ are likely to impact its growth potential and performance. A swot analysis identifies Airbnb’s internal strengths, plus its weaknesses before examining strategies Airbnb can use to exploit emerging opportunities to leverage available opportunities while mitigating arising threats.
HARVARD
Magezi, K. Prudence (2021) "Airbnb Pestle and Swot Analysis 2020-2021" 123 Writing [Online] at https://www.123writing.com/sample/airbnb-pestle-and-swot-analysis-2020-2021
Magezi, K. Prudence (2021) "Airbnb Pestle and Swot Analysis 2020-2021" 123 Writing [Online] at https://www.123writing.com/sample/airbnb-pestle-and-swot-analysis-2020-2021
APA
Magezi, K.P. 2021. Airbnb Pestle and Swot Analysis 2020-2021. 123 Writing. Retrieved from https://www.123writing.com/sample/airbnb-pestle-and-swot-analysis-2020-2021
Airbnb Pestle & Swot Strategy Case Study
Key Learning Outcomes
By the end of the case, students should be able to:
- Understand the broad global macro-environment of Airbnb and the hospitality/global vacation rental industry in terms of political, economic, social, technological, environmental and legal factors (PESTEL/PEST/STEEPLE).
- Use our swot analysis example to gain an overall understanding of Airbnb's strengths and weaknesses and strategic options arising from the opportunities and threats that have been identified from the Pestle analysis example on it's business environment.
- To apply strategy business models and frameworks such as Pestle/Pest/Steeple, Swot etc to real company cases.
1.0 INTRODUCTION
Company profile
With a market value of $86.2 billion as of 2021, Airbnb has grown from a Silicon Valley start-up to the biggest online travel company in the world (Caville et al 2021). As of February 2021, the company had 7 million listings in more than 220 countries and is still growing strong, irrespective of the regulatory challenges it continues to face. Since its launch in 2008, the company has continued to experience losses year over year. As of 2017, the company’s loss was $70 million a number that has grown through the years to $674.3 million in 2019 and $696.9 million in 2020 (Lyon 2020). As of 2020, its revenue shrunk by 19% from $1.65 billion to $1.34 billion because of COVID 19 impact. Never the less, the company rebound very fast as domestic travel gained momentum (Lyons 2020).
Figure 1: Share of leisure and business travelers using Airbnb in the United States and Europe from 2015 to 2018
As shown in figure 1, the share of Airbnb users across the US and Europe has been growing steadily, with the number growing to 29% in 2018 (Statista 2020).
Industry profile
With a market share of over 20%, Airbnb is today the most popular platform in the whole vacation rental industry. With its fast growth, its market share is forecast to even grow further. Despite the highly competitive market and challenging environment, the company has continued to scale through acquisitions. When it comes to traffic, Booking.com is also gaining momentum, but Airbnb’s command of direct traffic sets it apart as a brand. All in all, Airbnb continues to enjoy its scale advantage and exclusivity over competitors.
Services We are Offering
We are more than a free study and revision tool.
We also provide
on demand research and custom writing services.
123 Writing is the #1 exam revision and assignment study platform in the UK.
Get unlimited access to answered student essays, assignments, past exam questions and sample coursework written by qualified academic writers & tutors.
Our Standard subscription typically retails for £299.88 a year.
Today, you can join at 80% discount.
Here’s a full breakdown of everything you get as a Standard or Premium subscriber...
» Get access to our database of more than 5,770 answered premium strategy case studies
Get unlimited access to a robust database of premium business strategy case studies including more than 5,770 fully answered sample strategy frameworks and tools such as pestle, value chain, value matrix, porters five forces, Ansoff’s matrix, etc., authoritatively written and tailored for student revision, assignment preparation and transformative business research. Our strategy case studies are especially suited for university students wishing to apply strategic frameworks to real-world situations, company cases or simulations. All our strategy case studies come with teaching notes and learning outcomes, making them effective as coursework revision, and essay study help tools.
» Free access to past exam & assignment answers
Revise and prepare for exams and coursework with our fully answered exam notes and sample assignment papers. Furthermore, get quick on-demand answers to past exam question and assignment questions from our writers. Exam answer notes come with personalized lesson plans, and detailed study notes complete with detailed explanations of each answer, for maximum exam revision and assignment preparation. This tool is perfect for readers struggling with exam preparation & assignment study.
» Get extra assignment related help from our writers & tutors
Achieve high grades with a little extra assignment related support. Get extra help with your essays, assignments and general coursework, from our knowledgeable writers and tutors who will provide extra assistance when required for all academic related tasks including proofreading, grammar editing & correction, citations, referencing, etc. at no extra cost for standard and premium subscribers. All our standard and premium subscribers receive free proofreading services, which will include a check for punctuation, grammar, sentence formation, typographical errors, formatting, errors and other consistency issues (broadly).
» Get free assignment & essay writing help worth up to 7K words
Commission an on-demand essay, or assignment title from our knowledgeable writers and tutors on any subject matter. Get up to 7,000* words in on-demand custom assignment help from our writers who can assist with difficult topic in classical business literature. (* 7,000 free word credit exclusive to premium members).
» Fast & speedy answers to on-demand case solutions & assignment questions
Make use of your available free word credit (up to *7,000words) to commission on-demand custom case solutions, case study assignments and receive fast & speedy personalised answers. Receive timely and fast plagiarism-free answers to assignment questions or case solutions in as little as 1-2 business working days. Topics include Strategic Management, Marketing, Business Management, Economics, Operations Management, Organization Studies, International Business & Management, Human Resource Management and more. (* Exclusive to premium members).
» Get exclusive Q&A sessions with our subject matter writers
Ask our qualified, vetted and knowledgeable writers up to *12 essay, assignment and coursework related questions annually and receive accurate, clear, and detailed answers including step-by-step explanations briefs that are easy to follow. (*Exclusive to premium members).
» Free access to test bank questions & answers, study notes and practice quizzes
Test your knowledge on any subject with our quick quizzes and test banks for maximum retention after revision and studying. Test Bank contains questions in a variety of formats including multiple choice, true/false, short answer, and essay questions.
» Free access to video tutorials & study packs
Get free access to exclusive video tutorials to common subject topics. Our subject matter video tutorials, study notes and study packs have been created to help students learn and understand basic course module materials, as well as prepare students for their coursework assignment questions, essays and exams. Our video tutorials, study notes and study packs can be organized by topic, textbook or Question &Answer.
» Access to textbook chapter reviews and answer solutions
Get access to chapter reviews of popular business books, broken down in easy-to-understand simple concepts with simplified English. If English is not your first language, this service will make revising for essay assignments and exams as easy as 123 (Exclusive to premium members).
