SUMMARY ANALYSIS OF THE Airbnb CASE
The strength of the company lies in the constant need of the service being provided across countries in the world. This means they are less likely to run out of business as long as they play their cards right. However, the evident weakness is the inability to decipher the characters of the potential clients, which may turn out to be a security risk to the hosts and tentatively a downfall for the company if the issue is swept under the carpet. Further, the company holds a lot of opportunities as it has yet to extend to all the countries in the globe. The few who are already involved have shown great success, and the social media platforms have positive feedback as regards the numbers of potential clients. Threats against the company lie mostly on the social media attacks that have been experienced mostly after incidences of unpleasant guests and unsatisfied service users.
In light of the case presented, some of the growth strategies that would apply would include:
- The company needs to have a contract system with two types of contracts. The first one would be between the company and the service user who would be the host. The second contract would need to be a form uploaded online for every potential service user who would be a guest at one of the houses across the world.
- The company would also need to build more on their website and market the same as opposed to fulltime dependence on social media.
- The company would need to modify the website to specify categories of targeted audiences. This will expand the business as users will have a variety to choose from depending on their pockets.
Strengths
Airbnb gives an opportunity for the guests to have an interesting experience that cannot be gotten in hotel rooms. The homes are unique setups, and the guests get to pick their preference depending on the prices and the duration of time they intend to be there (1).
Airbnb also has an added advantage of having flexible prices that depend on the location and the specifics that a guest may be looking for. The houses are not fixed to a particular price and thus gives room for all kinds of guests from different societal backgrounds. This is not common with hotel rooms as they usually have standard prices for all the rooms in most cases (1).
Airbnb provides an opportunity for guests to interact with locals as they visit the country and give the guests a starting point as regards the social aspect of their visit. This helps guests maneuver around with ease with the local host helping as a guide when necessary (2).
Weaknesses
Social media
The company has faced a lot of defamation and challenges of dissatisfied customers and hosts on different social medias. This is a weakness that may fuel into a threat for the company in the near future (1).
Weak contracts
The clauses in the contracts are rather vague and do not fully protect the company or outline the policies that govern the relations between the guests, the hosts and the company itself. This needs to be improved to prevent any possible legal action against the company and also to let the guests and hosts know the limits in which they get to function (2).
Stranger hosts
The hosts are basically strangers who are not know to the company except for their location and the description of their houses. This can be argued to be a risk as the hosts may turn out to be unkind or uncomfortable in different ways for the guests. Such experiences would work against the company.
Violation of zoning laws and tax laws
The hosts do not pay taxes to the government as the laws would expect hotel and lodging businesses to do. This is a violation that is a great weakness on the side of the company. It may tentatively grow into a threat where the governments may limit the scope of operation for companies if the tax evasion continues (2).
Opportunities
The company holds a lot of opportunities as it has yet to extend to all the countries in the globe. The few which are already involved have shown great success and the social media platforms have positive feedback as regards the numbers of potential clients.
Threats
Threats against the company lie mostly on the social media attacks that have been experienced mostly after incidences of unpleasant guests and unsatisfied service users.
Growth strategies
Firstly, the company needs to invest in marketing its website and build on the information provided on the website. This brings the second point which is to avoid focusing more on social media information and instead direct users to their website to avoid diluting its authenticity. Thirdly, the company should look into the information in the contracts and aim at achieving specificity holistically for the users to understand the company policies fully.
REFERENCE
- https://pestleanalysis.com/swot-analysis-of-airbnb-is-its-business-model-flawed/
- https://www.cayenneapps.com/blog/2015/03/07/airbnb-swot-analysis/