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Running head: COMPETITIVE ANALYSIS1Competitive AnalysisKathleen ShanahanCapella University
Running head: COMPETITIVE ANALYSIS 2AbstractThis 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 3Competitive AnalysisA 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 OverviewAirbnb 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 4Airbnb 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