Airbnb: Porter's Five Forces Analysis, Innovation Model Phases, and SWOT Analysis

NEW TECHNOLOGIES &
INNOVATIONS
Running Head: NEW TECHNOLOGIES & INNOVATIONS 0

NEW TECHNOLOGIES & INNOVATIONS 1
Table of Contents
Introduction................................................................................................................................2
Five forces analysis of Airbnb...................................................................................................2
Competition between existing competitors............................................................................2
New entrance threat................................................................................................................2
Customers bargaining power..................................................................................................3
Suppliers bargaining power....................................................................................................3
The threat of substitute...........................................................................................................3
Technological cycle...................................................................................................................3
The era of ferment for Airbnb................................................................................................3
The era of incremental change for Airbnb.............................................................................4
Innovation model phases............................................................................................................5
Fluid phase..............................................................................................................................5
Transitional phase...................................................................................................................5
Specific phase.........................................................................................................................6
SWOT analysis...........................................................................................................................6
Strengths of Airbnb................................................................................................................6
The weakness of Airbnb.........................................................................................................6
Opportunities for Airbnb........................................................................................................7
Threats of Airbnb...................................................................................................................7
Conclusion..................................................................................................................................7
References..................................................................................................................................8

NEW TECHNOLOGIES & INNOVATIONS 2
Introduction
This paper discusses the Airbnb. Airbnb is an organization website that permits ordinary
people to rental residence as visitor accommodation. People can rent lodgings that suit their
budget. This organization was established in 2008 (Georgios & Proserpio, 2017). After
completing eight years organization gets a rapid growth as reaches at a millions turnover of
rooms every year. Industries within the nations are rapidly enhancing competitions. The
development of an organization or industry is driven by the system of information to serve
customers. This discussion of the paper includes an analysis of Porter's five forces model as
the nature of the industry is competitive. Competition at a high level is the essence of success.
The purpose of the analysis is to define the competitive analysis. Further discussion covers
the discussion about technology cycle, three phases of innovation model, and SWOT
analysis.
Five forces analysis of Airbnb
This model of a competitive analysis is an approach to improve a strategy in various
industries (Naraynan & Fahey, 2015). Porter referred that competitive nature of the
business is seen as a arrangement of five powers, namely competition among existing
opponents, new entrants’ threats, substitute threat of services or products, suppliers
bargaining power, and buyers bargaining power.
Competition between existing competitors
This is the best between porter’s five competitive forces (Pines, 2016). An organization that
holds a competitive advantage over rivalry organization, it is going to be successful. There
are many organization that delivers similar services like Airbnb is either low or moderate. It
has high-quality competitors by outstanding websites and network that are same to websites
of Airbnb. Websites like HomeAway.com, Expedia.com, OneFineStay.com, and
Tripping.com are regularly working around the clock to Airbnb from market domination.
Organization to overcome from the threat of the competitors has simplified existing system
relating to tenants Airbnb accommodation and lodging deliver regarding booking and
payment. There are still issue regarding room as providers are declared illegal for not
remitting taxes as hotels do.
New entrance threat
The source of barriers consists of differentiation of product, changing suppliers cost, indirect
costs, requirements of capital, and access towards channels of distribution (Indiatsy, 2014).