MBA-FP6012_ShanahanKathleen_Assessment2-1.docx - Running...

Running head: COMPETITIVE ANALYSIS 1
Competitive Analysis
Kathleen Shanahan
Capella University

Running head: COMPETITIVE ANALYSIS 2
Abstract
This research paper explores the competition for Airbnb, a company that operates an online
marketplace to enable people to rent short-term lodging. A competitive analysis can assist
companies in designing marketing strategies to exploit their strengths, minimize or eliminate
weaknesses, to increase market share and profits (Luther, 2011). This document completes a
competitive analysis for Airbnb within the peer-to-peer accommodations market. This analysis
will identify Airbnb’s largest competitor, HomeAway, and its goals and strategies. Furthermore,
this paper will include a SWOT analysis for HomeAway and outline the market strategy and
market focus.

Running head: COMPETITIVE ANALYSIS 3
Competitive Analysis
A competitive analysis is used to design a successful marketing strategy (Ruzo, E,
Barreiro, J.M., Losada, F., 2005). By analyzing the market and the competition, it allows for a
keen insight into the industry and product placement (Luther, 2011). Using the knowledge
obtained from a detailed analysis can assist with creating a marketing strategy that exploits
strengths and minimizes weaknesses.
This paper will detail a competitive analysis for the peer-to-peer accommodation rentals
industry in which Airbnb competes. The analysis will include a SWOT analysis for HomeAway
and include the HomeAway market strategy of focusing on the US market segment for 2017.
Given Airbnb’s weak presence in the US market and HomeAway strategy to target this market, it
would benefit Airbnb to refocus an advertising presence within the United States.
Company Overview
Airbnb is an online marketplace for the public to list and book accommodations around
the world. Airbnb was founded in 2008 in San Francisco as an alternative to the traditional
hoteling accommodations (Airbnb, n.d.). Airbnb offers a unique experience to visit and tour the
world in more than 65,000 cities and 191 countries (Airbnb, n.d.).
Airbnb’s mission statement is “to make people around the world feel like they could
belong anywhere” (Gallagher, 2017). Airbnb wants to stand for something bigger than travel;
“community and relationships and using technology for the purpose of bringing people together”
(Gallagher, 2017). Jonathan Mildenhall, Chief Marketing Officer (CMO) and former Coca-Cola
employee, convinced the founders that the Airbnb’s mission statement should be expanded into
Airbnb’s tagline, “Belong Anywhere” (Gallagher, 2017).

Running head: COMPETITIVE ANALYSIS 4
Airbnb does not fall within the hoteling industry, nor is it government regulated by
hoteling laws and regulations. Airbnb is strictly a marketplace to bring hosts and visitors
together. Airbnb does not own a hotel or any living space; it is a website that allows
homeowners to provide a space to potential renters, short-term or long-term. Some of Airbnb
competitors are Vacation Rentals by Owner (VRBO) and Vacation Rentals; both belong to the