Airbnb Porter Five Forces Analysis
HOSPITALITY MANAGEMENT, TOURISM AND GASTRONOMY FACULTY
Hospitality Management
Airbnb: Porter Five Forces
Subject: Strategic Management
Teacher: Marina Cassilha
Group Members:
Cheng Bustamante, Rebeca
Trillo Murrieta, José
Lima – Peru
2015
Index Page
1. Bargaining power of customers (buyers) 3
2. Bargaining power of suppliers 3
3. Threats of new entrants 4
4. Threats of substitute products or services 4
5. Intensity of competitive rivalry 5
6. Bibliography 5
1. Bargaining power of customers (buyers)
The economic growth in Peru helps to develop tourism and hospitality in this country. The percentage of business in this country increased in these years and people is starting to know about the brand. The guest has no bargaining power because they know the price of the room or the apartment when they are looking that online. There are few exceptions when the customer can negotiate with the host but it is not usual. The customer has different options to decide which is going to be the place where he or she will stay during their visit in Peru. They have different prices and styles to decide so the buyer power is high. Comparing to other options like hotels or motels, Airbnb is cheaper so the customer would consider the price at the time to make a decision.
2. Bargaining power of suppliers
For Airbnb, the supplier will be the host that offer the room or apartment to rent, they make the business happen. The hosts is the basic level to provide a guest service. In Peru, as in Latin America, Airbnb works hand by hand with the host to avoid problems with the customers. They know that the market in Peru will increase a lot in the next years. Airbnb offers freedom to the host to decide the conditions to their guests, always following some rules and brand standards. The host can decide if he or she wants to change the price depending on any situation. The rents are unique and
Hospitality Management
Airbnb: Porter Five Forces
Subject: Strategic Management
Teacher: Marina Cassilha
Group Members:
Cheng Bustamante, Rebeca
Trillo Murrieta, José
Lima – Peru
2015
Index Page
1. Bargaining power of customers (buyers) 3
2. Bargaining power of suppliers 3
3. Threats of new entrants 4
4. Threats of substitute products or services 4
5. Intensity of competitive rivalry 5
6. Bibliography 5
1. Bargaining power of customers (buyers)
The economic growth in Peru helps to develop tourism and hospitality in this country. The percentage of business in this country increased in these years and people is starting to know about the brand. The guest has no bargaining power because they know the price of the room or the apartment when they are looking that online. There are few exceptions when the customer can negotiate with the host but it is not usual. The customer has different options to decide which is going to be the place where he or she will stay during their visit in Peru. They have different prices and styles to decide so the buyer power is high. Comparing to other options like hotels or motels, Airbnb is cheaper so the customer would consider the price at the time to make a decision.
2. Bargaining power of suppliers
For Airbnb, the supplier will be the host that offer the room or apartment to rent, they make the business happen. The hosts is the basic level to provide a guest service. In Peru, as in Latin America, Airbnb works hand by hand with the host to avoid problems with the customers. They know that the market in Peru will increase a lot in the next years. Airbnb offers freedom to the host to decide the conditions to their guests, always following some rules and brand standards. The host can decide if he or she wants to change the price depending on any situation. The rents are unique and
Bibliography: Airbnb. (2014). About Airbnb. 04/04/2015, from Airbnb website: https://www.airbnb.com.pe/ Griselda Morales. (2014). Airbnb: La Revolucion del alojamiento turistico. 04-05-2015, from ADE website: https://repositori.upf.edu/bitstream/handle/10230/20971/TFG-Airbnb%20pdf.pdf?sequence=1 Emprende Pymes. (2013). LAS CINCO FUERZAS COMPETITIVAS DE PORTER. 04-05-2015, from Emprende Pymes website: http://www.emprendepymes.es/las-cinco-fuerzas-competitivas-de-porter/ Wikipedia. (2014). Porter five forces analysis. 04-05-2015, from Wikipedia website: http://en.wikipedia.org/wiki/Porter_five_forces_analysis Wikipedia Spanish. (2014). Análisis Porter de las cinco fuerzas. 04-05-2015, from Wikipedia website: http://es.wikipedia.org/wiki/An%C3%A1lisis_Porter_de_las_cinco_fuerzas