A Situational Analysis: Airbnb

Running head: A SITUATIONAL ANALYSIS: AIRBNB
A Situational Analysis: Airbnb
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1A SITUATIONAL ANALYSIS: AIRBNB
Table of Contents
1. Introduction........................................................................................................................2
2. Company Background........................................................................................................2
3. Macro Environmental Analysis..........................................................................................3
3.1. PESTEL Analysis........................................................................................................3
4. Micro Environmental Analysis..........................................................................................5
4.1. SWOT Analysis...........................................................................................................6
5. Relation of Micro-Macro Environment Analysis..............................................................7
6. Conclusion..........................................................................................................................8
References................................................................................................................................10

2A SITUATIONAL ANALYSIS: AIRBNB
1. Introduction
Present scenario of the market is in a very dynamic state with fierce competition in
the market. Thus, decision making becomes significantly important process for any
organization. However, decision making cannot be something based on the instinct. It needs a
very in-depth analysis of the market to support and modify the decisions to adapt with the
consistently changing environment of the market (Bolman and Deal 2017). This study is
primarily focused on the analysis of the macro environmental factors that are influencing the
market. The study also emphasizes on the micro environmental factors that are responsible
for the finding the key strengths and weakness of the organization. For the study, Airbnb is
chosen, as it is one of the major player in the lodging industry. Lodging being one of the
major contributor towards the economy of the United Kingdom, it becomes significantly
important to analyze the issues that will be liable for influencing the organization
(Airbnb.com 2019). Thus, the study will be elaborating about the macro and micro
environmental factors that will be responsible for influencing the decision making process.
2. Company Background
Airbnb is one of the widely known name in the lodging industry as it became one of
the major player in the lodging industry by not owning any of the hotels. The story of Airbnb
started from the year of 2008. Founded by Brian Chesky, Joe Gebbia and Nathan
Blecharczyk it is one of the giants in the global lodging industry (Airbnb.com 2019). Airbnb
have played a vital role in providing the customers with the potentially cheaper and
comfortable alternative of the hotels. They have a market place for accommodation currently
having to serve more than 5 million places that are unique. They are existing in 81000 cities
in more than 191 countries which is a major presence in the whole world (Airbnb.com 2019).

3A SITUATIONAL ANALYSIS: AIRBNB
Thus, it is one of the major duty for the organization to get indulged into correct decision
making which needs the support of the correct situational analysis.
3. Macro Environmental Analysis
Macro environmental analysis is one of the most vital analysis that will be liable for
the contribution in a strategic decision making process. Macro environmental analysis
requires analysis of the influential environmental factors, which are Economical, Social,
Political, Technological, Environmental and Legal. So the analysis is stated below:
3.1. PESTEL Analysis
 Political Environment: The business of Airbnb is one of the most unique ideas that
is being the aggregator or more precisely a marketplace for the accommodation. This
can be impacted by the political environment of UK while the organization is
operating in the country. The organization must follow the rules and regulations that
are prescribed by the government for regulation purposes. There are numerous
political impacts on the industry one of which is the BREXIT (Filimonau and Mika
2019). This has significantly impacted the country and the tourism and the hotel
industry. According to World Bank data (2017), the stability of the politics has
increased to 0.26 in 2017 compared to 2009 when it was 0.12. However, UK was
more stable in 2015 with 0.52 in the political stability index of World Bank.
Fig 1: Political Stability Index
Source: World Bank (2019)