Swot Analysis : Dropbox 's Core Asset

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Airbnb The following is a case analysis of Airbnb; whose nature of business is a privately-owned online marketplace for temporary housing [Question 3]. Airbnb uses a reputation system to facilitate transactions between hosts, or suppliers, and renters, or buyers. On two separate publicized occasions, Airbnb hosts were victims of burglary and vandalism committed by renters. Airbnb’s three co-founders and senior executives, consisting of the Chief Executive Officer, Chief Procurement Officer, and Chief Technology Officer, were pressured to react and develop a plan to solve the problem of user confidence, specifically amongst the hosts. The following analysis will consist of the strengths, weaknesses, opportunities, and threats of Airbnb,…show more content…
Airbnb has several opportunities within the short-term rental industry. Since Airbnb is already a highly vertically integrated concept, the threat of forward integration is low; thus, the hosts have limited power because their rooms would otherwise go unoccupied (Galliani, 2014). Airbnb has an economy of scale because they can do large volumes at low transaction costs, which keeps the threat of new entrants low. Airbnb is not subject to high fixed or variable costs, which gives the company an advantage over its rival hotel industry. Airbnb also has an opportunity in the availability of substitutes, which are limited to couchsurfing.org and traditional camping. Despite the aforementioned opportunities, there are external threats to Airbnb’s position in the industry. Airbnb has a high threat of new entrants, intense competition, and is threatened by the suppliers and buyers for a variety of reasons. Renters do not pay a membership fee to participate in the marketplace; thus, the switching cost is buyers is low. Capital requirements are also low and Airbnb does not have any propriety knowledge; thus, new entrants have the ability to replicate an online marketplace. Capital requirements are also low because Airbnb does not own or manage the rental units, which can intensify competition. The switching costs are low or the hosts and renters because there are no contracts or membership fees. Information Technology

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