Airbnb Porters Five Forces 2019
Founded in 2008, Airbnb has established itself as one of the most profitable business in the sharing economy alongside Uber through its spearheading efforts in using technology to create an opportunity in the global hospitality business. Boosting over 5 million lodging options in over 81,000 cities and 91 countries globally, the company was estimated to be worth at least $38billion as of 2018. Using Porters five forces, this report looks at the competitive forces in the industry in which airbnb is competing and how the five forces of competition including buyer and supplier power, threat of substitutes, threat of entry and rivalry, are affecting Airbnb and industry attractiveness.
Prudence, K. Magezi (2019) "Airbnb Porters Five Forces 2019" 123 Writing [Online] at https://www.123writing.com/sample/airbnb-porters-five-forces-2019
Airbnb Strategy Case Study
Key Learning Outcomes
- Use Porters five forces model to analyse an industry on the basis of the five competitive forces.
- Analyse the global vacation rental industry and how the five forces have affected Airbnb and rival firms and the impact on industry structure, attractiveness, and profitability.
- Understand how Airbnb has managed to defend against intense competition and the strategies it uses to create 'blue oceans' that are defensible, helping it capture market share and maintain competitive advantage.
Analyse Airbnb through the lens of Porters five forces to assess how the five forces affect Airbnb Company and the global Vacation Rental industry
***Updated version***See latest here Airbnb Porters Five Forces 2021
Founded in 2008, Airbnb is a privately-owned company that operates online market place and hospitality services. With headquarters in Francisco, the company’s accommodation on market place provides access to over 5 million unique places to stay in over 81,000 cities and 91 countries globally (Airbnb press room 2018).
The company’s success has mostly been because of its low costs, convenience and ability to expand the capacity of rooms during peak periods among others. As of 2017, Airbnb’s revenue was approximately $2.6billion with $93million in profits, operating income of $450 million and net income of $93 million (Bort 2018). Below, the report looks at the competitive forces in the industry in which Airbnb is competing.
4.0 Airbnb porters five forces 2019
4.1 Bargaining power of buyers
The ability of buyers to push down the prices they pay for certain products, highly depends on their price sensitivity and their bargaining power relative to the firms within the industry (Grant 2016). In the case of Airbnb, the bargaining power of the buyer is high since the cost of switching from Airbnb to hotels is low. Though Airbnb costs may be lower, the competition has resulted in many hotels lowering their costs to the level of Airbnb in order to maintain their customer base. This makes it easy for customers to switch from one to another depending on their needs thus high bargaining power of buyers. Verdict: high bargaining power of buyers
Services We are Offering
We are more than a free study and revision tool.
We also provide on demand research and custom writing services.
With over 1,000 free strategy case studies and reports covering a wide spectrum of companies and industries, revising for your strategy assignment and coursework has never been easier. Use our strategy samples to study and revise on your own. Lacking inspiration? Struggling to meet deadlines? Try our on-demand custom research service.
Use our free coursework samples written by expert writers and professional tutors, to study and revise on your own. Lacking inspiration? Struggling to meet deadlines? Worried about low grades? Order our on-demand custom research to have our professional tutors and expert writers write a custom written coursework assignment on your behalf.
Struggling with your dissertation? Use our free study samples written by expert writers and professional tutors, to study and revise on your own. Struggling to meet deadlines? Worried about low grades? Lacking inspiration? Need extra help with your dissertation? Order our on-demand custom research to have our professional tutors and expert writers write a custom written dissertation on your behalf.
Use our free assignment samples written by expert writers and professional tutors, to study and revise on your own. Lacking inspiration? Struggling to meet deadlines? Worried about low grades? Order our on-demand custom research to have our professional tutors and expert writers write a custom written essay assignment on your behalf.
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).