Strategic Analysis of Airbnb

Running head: STRATEGIC ANALYSIS OF AIRBNB
STRATEGIC ANALYSIS OF AIRBNB
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1STRATEGIC ANALYSIS OF AIRBNB
Description of the business model of Airbnb
Airbnb mainly operates in the accommodation based market which an important part
of the huge tourism based industry. The business organizations that operate in this industry
are mainly differentiated by the ways by which the different amenities are provided to the
customers. The business model that is followed by Airbnb is mainly based on the concept of
sharing economy (Airbnb.com, 2018).
Airbnb mainly operates with the help of a technological platform in which the
individuals are supposed to share their capacities in order to offer services to the consumers.
The business model of the company has been implemented in such a manner in which it is
supposed to receive a specific percentage from the amount which the host receives. The
lodging based services that are thereby offered by the company are quite different from the
traditional styles of lodging (Durand, Grant & Madsen, 2017).
PESTEL analysis of Airbnb and stating the opportunities and threats
Political – The unique business based operations of Airbnb have led to many legal
issues which have been faced by the company. The non-compliance with housing laws is able
to act as a threat to the operations. – Threat
Economic – Airbnb has gained a leadership position in the industry with the help of
the concept of sharing economy which is followed by the business operations of the firm. The
operations of the firm have grown in an effective manner with the help of the cheaper options
which it provides to customers (Ethiraj, Gambardella & Helfat, 2017). – Opportunity
Social – The business operations of Airbnb are considered to be social in nature. The
guests have higher levels of interaction with the communities in the areas where they travel. –
Opportunity