Get Full Essay Get access to this section to get all help you need with your essay and educational issues. However, for this course, we will use it as an example of applying information systems theory to the real world.
With over 3, lodging listings in 65, cities and countries; Airbnb www.
The business does not own any lodging; it is merely a broker and receives percentage service fees commissions from both guests and hosts in conjunction with every booking. Users can hunt for lodging using a variety of filters including lodging type, dates, location, and price Airbnb can be accessed via either the Airbnb websites or mobile applications for iOS, Apple Watch, and Android.
With the use of Airbnb App, travelers can easily search the database for available properties by entering details about when and where they would like to travel. They can additionally upgrade searches by: Room style — whole place, secluded room or joint room Fee — range from minimum to maximum Size — number of bedrooms, bathrooms, and beds Amenities — Internet connection, kitchen, pool, etc.
According to Porter, competitive nature of the industry could be seen as a combination of top five strengths, namely rivalry among existing competitors, the threat of new entries, threat of alternative products, and the negotiating power of suppliers and customers.
Airbnb Porter Five Forces Analysis: The potential threat of new entries The threat of new entries into the market for Airbnb is considered weak and flexible. However, Airbnb is not only well funded but is in operation in nearly countries. For any company to pose a threat, they will need both access to millions in capital to venture into the account and an excellent brand equity to capture the requirements and demands of customers and compete with Airbnb.
The threat of substitutions The threat of substitutes is quite high because switching costs are non-existent to individuals who utilize Airbnb. As Airbnb is growing, so is its competitors or companies who offer the same concept.
These companies usually fall into three principal categories: They considered as the Porter essay readily available and well-known way for every traveler to stay.
With the existence of Airbnb, hotels have noticed the changes in consumer preferences due to the availability of new social-oriented products, homier settings, and more functional apps. Hotels have thus managed to achieve this demand by growing their portfolios by adding brands that are intended to appeal to millennial customers and those who want less service and more connectivity — both technologically and with shared space.
Hostels tend to be attractive for backpackers traveling alone and wanting a great way to meet like-minded travelers because these accommodations not only provide ample opportunities for social interactions in the communal areas but are cheaper and have a more youthful, intimate vibe than a traditional hotel.
Features such as communal breakfasts, weekend party occasions, and fun little structures like book exchanges and rooftop cinemas create a delightful atmosphere is attractive to many travelers who would rather waive modern amenities of pools, room service, and polite if impersonal customer service that are mostly offered in other establishments.
This is a web platform founded in where hostess of all over the world offers their sofa or a place to stay for overseas people with no cost at all. The main reasons why budget travelers prefer using couch surfing are; There is a significant possibility of finding free lodging all around the globe.
A traveler can choose a host based on location thereby enabling them to stay downtown instead of a low-priced motel a few minutes away.
Individuals on couch surfing are interesting people who are well traveled and always glad to teach and share life stories with their host. This trait makes their trips much more exciting and may even turn some hosts to longtime friends.
Negotiating power of customers The negotiating power of clients with regards to Airbnb is high because at the moment they have a broad range of services to choose price, location, and host rating. The economic growth has always been helpful in developing the tourism and hospitality of a country.
Compared to other options like hotels or motels, Airbnb has been considered as a cheaper option for most travelers. Though travelers have no avenue of price negotiation of the rooms or apartments with the host in the Airbnb web platform, they, however, have the buyer power in the alternatives of prices and styles available for them to choose from and can thereby quickly decide on the residence where they will stay without hurting their finances.
Bargaining power of suppliers The bargaining power of vendors is meager because Airbnb who control the connection between the two parties has made it hard for individuals trying to rent out their rooms and apartments do not have an alternative method to connect with customers using the Airbnb App.
For Airbnb, the supplier is the host that offers the room or apartment to travelers; they are the ones that make the business happen. The hosts are the basic level that provides potential clients services that they require.
Airbnb works in tandem with the host to avoid problems with the customers. Though there is nothing comparable to a union for these suppliers to work together to place demands on Airbnb, Airbnb, however, offers hosts the liberty to decide the conditions to their boarders, always following some rules and brand principles.
The host can choose if he or she wants to alter the price depending on any situation. The rents are exclusive and focus on unusual places for a high volume of travelers thereby providing a range of prices for all types of customers. Inter-firm rivalry Rivalry among Existing Firms is usually the greatest force in five competitive forces.
The inter-firm rivalry is moderate or even low. There are several high-quality Airbnb competitors with networks and websites similar to Airbnb. Sites such as OneFineStay. One competitor that has inevitably caught the attention of Airbnb shareholders is Onefinestay.
Onefinestay is a 5-year-old London startup that operates as an upmarket Airbnb service, renting out expensive homes and apartments to tourists in cities around the world while the owners are away.
Onefinestay also washes each property before and after people stay and offers linen and skincare product, just like a hotel would.
This, according to the CEO Grey Marsh, means that the company will be enabled to penetrate an identified market in cities around the world. Gaining Competitive Adavantage in Competitive Business Environment The development of the industrial world is rapidly increasing competition.
In the 21st century, the development of a company is driven by the information system to serve its customers.An Essay on Katherine Anne Porter - Good writing should entertain you and great writing should stay with you and cause you to think.
When I first read some of Miss Porter’s work, I came away feeling depressed, empty and wondering why she even wrote. Her stories seemed unfinished, incomplete and pointless.
porter five forces Essay This theory is based on the concept that there are five forces that determine the competitive intensity and attractiveness of a market.
Porters five forces help to identify where power lies in a business situation. Porter Five Forces Essay Michael Porter's framework uses concepts developed in IO economics to derive 5 forces that determine the attractiveness of a market. Porter referred to these forces as the microenvironment, to contrast it with the more general term macroenvironment.
Michael Porter 5 Forces Porter's five forces of competitive position analysis is a simple framework for assessing and evaluating the competitive strength and position of a business organization that formed by Michael E.
Porter of Harvard Business School in Porter’s Five Forces in Pepsi Essay Introduction The model of the Five Competitive Forces was developed by Michael E. Porter in his book „Competitive Strategy: Techniques for Analyzing Industries and Competitors“ in We will write a custom essay sample on Porter’s Diamond Model For China specifically for you.
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