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This week you listened to an episode of “How I built This” featuring AirBnB. Thi
This week you listened to an episode of “How I built This” featuring AirBnB. This company has an interesting story in that it created a unique business model inside of a competitive hospitality industry. For this assignment you will be analyzing the external environment of AirBnB. Please do whatever additional research is necessary outside of the podcast to satisfactorily answer the following questions. Remember to justify your answers with evidence. Questions: 1.What area(s) of the general external business environment do you believe changed in order to provide an opportunity for a company like AirBnB to form. Is there a changing area of the general environment that you believe will be a threat to their business model in the future? 2. If we consider AirBnB to be a new entrant into the hospitality/short stay vacation industry. According to Porter’s Five Forces, how attractive is this industry (remember attractiveness is determined by more or less of the Five Forces in total)? What might be particularly difficult for a new startup? 3. AirBnB created a new business model focused on peer-to-peer short stay exchanges. They faced difficulty in progressing from the startup to the growth phase. How did AirBnB finally overcome entry barriers and experience explosive growth? 4. What industry phase is the short stay peer-to-peer vacation industry in? How might this affect future planning at AirBnB? Recommended length: 500 words
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