PEST analysis is a model that uses environmental scanning to analyze the four factors, such as political, economic, social-cultural and technological. PEST analysis is a part of external analysis when making market research, giving the company an overview of the different factors in the overall environment. This strategy tool can also effectively understand the growth or decline of the market, the business situation, potential and operational direction.
Political factor include government type and stability, freedom of press, rule of law, Bureaucracy, Corruption, environmental controls, trade restrictions, tariffs and likely political change.
Economic factors include business cycle stage, economic growth, interest rates, exchange rates and…show more content… Hundreds of thousands of hosts worldwide have welcomed these travelers into their homes. Hosting helps make ends meet. Airbnb is the industry leader in “Shared economy”. This is a development trend that shares resources between companies and individuals. Another example is Uber and Grab car.
Airbnb has grown and is a major competitor to hotels and motels. Airbnb offers cheap rental alternatives. It is exponentially growing in a short time. Now, they serve more than 900 million people worldwide. The benefit of shared economy of Airbnb is positive impacts on consumers and the tourism industry, positive impacts on neighborhoods and local businesses, and positive impacts on residents and house holds. Airbnb provides work to "hosts" - people who regularly provide homes for the guests. For a city that lacks a hotel or motel, this type of service is very popular and beloved. Airbnb benefited the state by creating millions of dollars in spending and full-time-like jobs. In New York, the economic activity totaled $ 60 billion, providing more than four thousand…show more content… The hosts provide their houses to guests in exchange to money. Visitors will record their experiences online social media. Social media allows stories to spread. Airbnb growth strategy is evolving around features that touch non-users – referrals, wish lists, neighborhoods, listings, references, and their amazing blog, through word of mouth.
In addition, the hosts will share their experience to other. Although visitors often left a comment, the host also discusses tenant activities. Hosts and visitors are openly discussing their needs and experiences on social media.
The company also has a program of "experience". The user booked a three-day funny course experience. Or participate in special events. Participants can also make 100% of the "social impact experience" of nonprofit and profit benefits.
Airbnb may not provide the final end product, but will certainly sell the experience when the brand promotes P2P service, the user must be trusted. In the case of Airbnb, this means cosseting hosting and guests.
Technological factors: Tech