Menu Close
  • Author
  • Abstract
  • Table Of Contents
  • Citations
Latest posts by Prudence K. Magezi(see all)

    Porter’s five forces is an essential framework in assessing a company’s profitability and attractiveness based on threat of entry, threat of substitutes, bargaining power of buyers and suppliers as well as the degree of rivalry among existing firms. An industry is considered unattractive if all the five forces are high. If an industry is characterized by high competitor rivalry, threat of new entrants, high bargaining power of buyers and suppliers it will be less profitable. In this report, the author will leverage porter’s five forces to discuss the competitive forces in the industry in which Airbnb is competing. Using evidence from the supplied case study, the author will assess the attractiveness and profitability of the home sharing/hospitality/global vacation rental industry, using Porter’s 5 Forces model to guide this discussion. 

    HARVARD
    Magezi, K. Prudence (2021) "Airbnb Porters Five Forces 2021" 123 Writing [Online] at https://www.123writing.com/sample/airbnb-porters-five-forces-2021

    APA
    Magezi, K.P. 2021. Airbnb Porterss Five Forces 2021" 123 Writing. Retrieved from https://www.123writing.com/sample/airbnb-porters-five-forces-2021

    Airbnb Porters Five Forces Case Study


    Key Learning Outcomes

    By the end of the case, students should be able to:
    • Use Porters five forces model to analyse an industry on the basis of the five competitive forces.
    • Analyse the global vacation rental/homesharing industry and discuss the competitive forces in the industry in which Airbnb is competing
    • Understand how the five forces have affected Airbnb and rival firms and the impact on industry structure, attractiveness, and profitability, providing evidence from the supplied case study
    • Use Porters 5 Forces to understand how Airbnb has managed to defend against intense competition, impact of covid-19 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 and the global vacation rental/homesharing industry

    1.0 INTRODUCTION


    Porter’s five forces is essential framework in assessing a company’s profitability and attractiveness based on threat of entry, threat of substitutes, bargaining power of buyers and suppliers as well as the degree of rivalry among existing firms. An industry is considered unattractive if all the five forces are high. If an industry is characterized by high competitor rivalry, threat of new entrants, high bargaining power of buyers and suppliers it will be less profitable. In this report, the author will leverage porter’s five forces to assess the attractiveness and profitability of the home sharing/hospitality/global vacation rental industry.

    2.0 Airbnb porters five forces 2021

    2.1 Bargaining power of suppliers

    Suppliers are those that supply an organization with services and products that are required in the production of a company’s product or service. A supplier is likely to have higher bargaining power in case of supplier-competition threat, higher switching costs, differentiated products and concentrated suppliers (Johnson et al 2017). According to Grant (2016), depending on the above factors, suppliers can have so much power to the extent of leaving the company unprofitable.
    In the case of Airbnb, major suppliers include hosts, and tour guides. When it comes to hosts, the company has put in place exclusive supplier requirements which do not allow hosts on its platform to list on competitor platform. In fact, the company has much power over hosts in that as long as customer has booked, the host must operate even if he/ she is operating in losses (Bainebridge 2018). Verdict: Low supplier power

    Already a Subcriber?

    Forgotten your password? Click Here

    Not a Subcriber?

    GET UNLIMITED ACCESS

    TO ALL OUR FREE SAMPLES

    FOR
    FREE

    OR

    OR

    PURCHASE THIS PDF

    PRICE: 9.99 4.99

    50% OFF

    SAVE 4.99

    Services We are Offering

    We are more than a free study and revision tool.
    We also provide on demand research and custom writing services.


    error: Copying this content is in breach of our Terms and conditions.

    WELCOME

    You are now Logged in.

    To access your Dasboard please click the dashboard button in the Main Menu

    Basic

    Annual pass for 12 months​

    Access to free sample essays
    24/7 help from our expert writers & tutors
    Access To premium strategy case studies
    Free writing help for essays/reports
    Extra writing help upto 2000 words free
    Access to exam preparation study guides

    £0

    Premium

    ***Paid annually at £359.88

    Access to free sample essays
    24/7 help from our expert writers & tutors
    Access To premium strategy case studies
    Free writing help for essays/reports (5000 Words Free)
    Extra writing help upto 2000 words free
    Access to exam preparation study guides

    £29.99

    Popular

    Standard

    ***Paid annually at £119.88

    Access to free sample essays
    24/7 help from our expert writers & tutors
    Access To premium strategy case studies
    Free writing help for essays/reports (2500 Words Free)
    Extra writing help upto 2000 words free
    Access to exam preparation study guides

    £19.9£9.99

    Premium

    ***Paid annually at £359.88

    Access to free sample essays
    24/7 help from our expert writers & tutors
    Access To premium strategy case studies
    Free writing help for essays/reports (5000 Words Free)
    Extra writing help upto 2000 words free
    Access to exam preparation study guides

    £29.99