The Case of Airbnb.. - The Case of Airbnb by[Name Course Professor\u2019s Name Institution Location of Institution Date 2 Contents EXECUTIVE SUMMARY.2

The Case of Airbnb.. - The Case of Airbnb by[Name...

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The Case of Airbnb by [Name] Course Professor’s Name Institution Location of Institution Date
2 Contents EXECUTIVE SUMMARY ............................................................................................................. 2 The Case of Airbnb .......................................................................................................................... 3 1. Introduction ........................................................................................................................... 3 2. Report and Analysis ................................................................................................................. 6 TASK 1 ............................................................................................................................................ 6 Porter’s Five Forces on the Online Marketing and Hospitality Industry ..................................... 6 Rivalry ......................................................................................................................................... 6 The threat of Substitutes .............................................................................................................. 6 Buyer Power ................................................................................................................................ 7 Supplier Power ............................................................................................................................. 7 Barriers to Entry .......................................................................................................................... 7 Internal Business Environment of Airbnb ................................................................................... 8 SWOT Analysis of Airbnb ......................................................................................................... 10 Summary .................................................................................................................................... 11 TASK 2 .......................................................................................................................................... 12 Competitive Advantage of Airbnb ............................................................................................. 12 Cost Leadership ......................................................................................................................... 12 Differentiation ............................................................................................................................ 12 Focus .......................................................................................................................................... 13 Innovation at Airbnb .................................................................................................................. 13 Task 3 ............................................................................................................................................. 14 Growth and Business Strategies at Airbnb .................................................................................... 14 Organization at the Company .................................................................................................... 14 Conclusion ..................................................................................................................................... 15 References ...................................................................................................................................... 16 Appendix 1 ..................................................................................................................................... 17
3 EXECUTIVE SUMMARY This report is an analysis of the Airbnb as a Unicorn that includes a review of the industry in which the company exists and the strategic plan Airbnb has employed to ensure that it continues to grow amidst challenges. Airbnb is a private American company that exists in the online market place and hospitality industry. The platform hosted by Airbnb allows people to be hosted by individuals in their homes in the laces those individuals are visiting. Founded in 2007 by Joe Gebbia and Brian Chesky, Airbnb has been defined as one of the most valuable unicorns valued at 4 25 billion as of 2015. This paper, therefore, will offer insights into the Airbnb business with the aim of evaluating their business structure, their competitive advantages, and their business strategy. In doing so, the paper will: Provide a critical analysis of the competitive advantage in which Airbnb operates in using the Porters Five Forces framework, Provide a resource analysis of the strategic capabilities of Airbnb and how such strategies are sustainable, discuss the competitive advantages of Airbnb and highlight the growth strategies that Airbnb is utilizing to ensure it continues to grow in such a competitive business environment.
4 The Case of Airbnb 1. Introduction The US venture capital industry describes unicorns as startups with valuations that exceeds 0.6 billion or 0.75 billion Euros. One of such startups is Airbnb. Founded in 2007, the company has grown to tremendous valuations begging the question of how the company was able to shoot up so high and fast in terms of not only the valuation but also the international growth. The company was founded on humble begins and mostly out of need and necessity circumstances. The founders who were former schoolmates had no rent for their rented apartments in San Francisco. Therefore they turned their living room into a guest house with air mattresses and rented them out to strangers hence giving birth to the idea of Air bed and breakfast. The company ever since has grown into a venture that is worth investing in by many external investors. Some of the notable investors that walked the journey with the founders of the company include Paul Graham who provided funding in exchange for a small interest in the company at the earlier stages.

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