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“Airbnb Case Analysis”Jordan Martin Anya’ WestShaniah Williams October 5, 2019MGMT 440Professor Knight
“What is AirBnB and who created it?”Airbnb is an online marketplace for arranging and/or securing your lodging, homestays, and tours around the world. Through Airbnb, customers receive the best rates and have a wide variety ranging from the nicest areas to the more common areas in the world. Many people who have used Airbnb will consider the business as convenient in terms of being in a comfortable place while traveling. Though Airbnb works directly through real estate properties, the company does notown the properties, and as a broker who receives commission as rooms are booked.Business Models Before we dive into the threat of Airbnb, we must be aware of the key differences in ourbusiness models. We use a traditional brick and mortar business model where the retailers,wholesalers, and manufacturers deal with customers face-to-face in an office, a shop, or a storethat the business owns or rents. While Airbnb business model is an E-Commerce business model,which is an upgraded version of the traditional brick-and-mortar business model, it focuses on
selling products by creating a web-store on the internet. The Airbnb’s business model allowsconsumers to create the safe space of a B&B while having competitively low prices of largehotel chains such as ourselves. Below is a SWOT analysis of Airbnb to help breakdown thesuccess and flaws of their business model.Strengths of Airbnb Airbnb business model has huge growth potential in the age of quick technologicalinnovations.Airbnb has a global presence in 192 countries and 34000 cities with over 1 millionlistings. With high valuation and brand reputation, investors are easily available globally.Airbnb implements a special rating system where not only guests can rate their hosts, buthosts can rate the guests which allows others host to better compare offers they receiveand identify guests that may cause trouble for them. Weaknesses of Airbnb ●Airbnb relies on how the hosts accommodate their guests if horrible service is provided itinstantly reflects on the host.●Also, since Airbnb is located in many countries hosts have different guidelines they mustfollow pertaining to their specific country.●Airbnb business model can easily be replicated and improved by others.●Another weakness of the business is that because it acts as a third party in terms ofproperties, there is only so much the company has control over if things go wrong.
Opportunities for Airbnb●In the past couple years Airbnb has been picking up a lot of steam on how they