Airbnb full analysis.docx - Table of Contents A Executive summary.2 B Analysis.3 I Introduction.3 1 Value proposition.3 2 Business model.3 II Changes in

Airbnb full analysis.docx - Table of Contents A Executive...

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Table of Contents A. Executive summary ........................................................................................................................... 2 B. Analysis .............................................................................................................................................. 3 I. Introduction ....................................................................................................................................... 3 1. Value proposition ......................................................................................................................... 3 2. Business model ............................................................................................................................ 3 II. Changes in consumer experience and rate ............................................................................... 4 III. How Airbnb meets the needs ..................................................................................................... 4 IV. Comparison between Airbnb and other tradition businesses ................................................. 5 V. Key factors lead to success ............................................................................................................ 5 VI. Strengths and weaknesses of tradition businesses and Airbnb ............................................... 6 VII. Recommendation ....................................................................................................................... 7 C. Conclusion .......................................................................................................................................... 9 1
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A.Executive summary With the idea of sharing space and rooms between people, Airbnb was founded in 2008 by Chesky and a friend. And until now, the company has seen a tremendous growth and success. However, the company was faced with many problems. The first problem they have to suffer is the resistance from tradition hotel, motels, and bed and breakfast since they claim that the governments don’t put tax on them and it leads to unfair competition. The second problem is the unsafe services without insurance provided by the hosts have drawn the customers to dangerous situations. The final problem is the risk of the hosts because they are not considered individual businesses when they participate in the digital market. There have been stories the hosts have to pay compensation for evicting the guest who would not leave and cause damage to their properties or were exposed to liabilities issues in the instance of injury and death of a guest. The problems are needed to solve immediately. For reducing the risks of both hosts and guest of Airbnb, they can develop a recommendation and rating systems or a forum for the people can freely share comments about the hosts and the hosts can give their own opinion about the guests too. Airbnb also can create some requirements for the hosts like about the insurance to be sure safety for customers. The company can negotiate with other tradition business and the government about the regulations and taxations. Airbnb’s unique business model presents a plethora of regulatory issues that if unsolved, can compromise both public welfare and Airbnb’s future success. Therefore, Airbnb has an incentive to work with regulators to create feasible and pragmatic solutions. I. 2
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B.Analysis I. Introduction 1. Value proposition Airbnb is an online marketplace, which can be accessed via either the Airbnb websites or mobile applications for iOS , Apple Watch , and Android . On one side the platform enables people to list their available space and earn extra income in the form of renting . Airbnb brings valuable service for both hosts and travelers. + Hosts - Hosts can earn money by their spare capacity (homes) - Airbnb offers insurance to house owners - Free photo shoots for house listings by photographers + Guests - Airbnb provides travelers easy access to renting private home with over 1,500,000 listings in 34,000 cities and 190 countries, its wide coverage enables travelers to rent private homes all over the world.
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