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Airbnb SWOT Analysis - Coursework Example

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In the study, the SWOT analysis of the Airbnb has been performed to find the internal and the external environmental situation of the company. The concept of collaborative consumption is essential in the realization of web-powered interaction at Airbnb…
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Airbnb SWOT Analysis
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Airbnb SWOT Analysis
The determination of the strategic position of Airbnb as a company is subject to a detailed and comprehensive SWOT analysis. The analysis describes the business position at any particular time. The concept of collaborative consumption is essential in the realization of web-powered interaction at Airbnb (Pine and Gilmore, 2011). The present paper aims to present strengths, weaknesses, opportunities, and threats of the company and the potential ways of the growth.
Strengths
One of the most prominent advantages associated with Airbnb is its business model. It is best described as peer-to-peer collaborative consumption. The technological and advanced platform is instrumental in enhancing trust among various players (Botsman, 2012). It allows for the sharing of resources among the public. Secondly, Airbnb enjoys a strong and admirable image and reputation. Its presence is recorded in almost all streets in Paris. The number of users has grown significantly over the last two years, especially in France (Botsman, 2012). Thirdly, Airbnb is known for its cohesive team of employees with brilliant skills. This team is made up of young entrepreneurs who are innovative and hard working. Airbnb has a beautifully crafted online system with a unique design. The other strength of Airbnb is its focus on hospitality.
Weakness
One of the main weaknesses associated with the Airbnb is its limited internal capability when handling legal issues as defined by the local and federal governments. Some of these matters involve hospitality laws, which were adopted long before the introduction of modern technologies. The company has a low rate of sharing and exploitation of finite resources due to the failure to focus on environmental impacts of the business. Several users of Airbnb have been subjected to heavy fines for renting out apartments to users for a short time. In several states and cities, this is regarded as illegal one is subjected to heavy fines (Mills, 2014).
Airbnb lacks differentiation for the business. The nonexistence of differentiation has interfered with the competitiveness, especially in the development of new products and services (Pine and Gilmore, 2011). Airbnb also lacks a robust customer service that allows customers to have products and services at their doorstep.
Opportunities
Despite having weaknesses, Airbnb has several opportunities, which could be turned into meaningful growth if seized in good time. The company experiences a unique advantage presented by travelers looking for best deals. This is related to their position on economic climate and culture. The other opportunity of Airbnb is their involvement in the definition of rules based on their business model that advocates for sharing. The exponential growth of mobile devices also presents an excellent opportunity for Airbnb. Internet and technology also present Airbnb with an opportunity for global reach to its potential customers.
With the rising demand for accommodation and housing in the current age and generation, Hosting companies like Airbnb offer a place where guests and homeowners interact.
Threats
The threats facing this company include are associated with health, safety laws, and taxes. For example, the city of Los Angeles has warned people to pay hotel-type taxes (Reyes, 2014). This could lead to a situation where the company is discredited through litigations. The company also faces threats from other companies that have resorted to copying their business model. Another threat is associated with bad press in the social media. Entities and actors often act in bad faith, eventually threatening the development process. For example, the company faced criticism from the social media when it changed its logo (Kelion, 2014). Many people believed that the logo looked like sexual organs.
Conclusion
Airbnb stands a better chance of success and growth from its current position based on the SWOT analysis. The concept of collaborative consumption gives the company an edge over its competitors. The environment is favorable for the company if it changes its strategy to address the emerging needs.

References
Botsman, R. (2012). Rachel Botsman: The currency of the new economy is trust.
Retrieved from http://www.ted.com/talks/rachel_botsman_the_currency_of_the_new_economy_is_trust
Kelion, L. (2014). Airbnb's new logo faces social media backlash. BBC
Retrieved from http://www.bbc.com/news/technology-28343130
Mills, D. (2014). Airbnb hit with class-action lawsuit over Tenderloin hotel guests.
Retrieved from http://www.bizjournals.com/sanfrancisco/blog/2014/09/airbnb-hit
with-class-action-lawsuit-over.html
Reyes, E. (2014). L.A. to warn Airbnb hosts to start paying hotel-type taxes.
Retrieved from http://www.latimes.com/local/lanow/la-me-ln-tax-warnings-airbnb-hosts-la-20140908-story.html
Pine, B. J., & Gilmore, J. H. (2011). The experience economy. Boston, Mass: Harvard
Business Review Press. Read More
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