Elementsof a Marketing Plan Report
Airbnbis an online marketplace where people offer, discover, and rentaccommodations across the world (Airbnb, 2016). The focus of thecompany is to connect travelers with property owners to enhance theirtenancy experiences. As a result, apartments, castles, and villasamong others are regularly rented depending on the needs of therenters. Both parties can access the company`s platform usinginternet enabled gadgets such as smartphones, laptops, and electronictablets among others. The firm’s customer base has been expandingrapidly as the general public continues to realize the benefits ofsharing their assets with others, thus generating profits.
TheSpecific Environment Forces that Facilitated the Creation of Airbnb
Thepast financial recessions encouraged conservative spending. Peoplecontinue to be ready should they be faced with similar or relatedchallenges. As a result, they are no longer interested in purchasingproducts which would only be used once or a few times. Airbnb wasfounded on the principle of increased economic awareness. The ownersof the company realized that many people had properties which theyrarely used. Consequently, they prefer to rent them out to otherpeople when they are not using them to generate revenues. On theother hand, they also apprehended that people like to minimize theirexpenditure. Thus, they will always go for affordable accommodations.Therefore, Airbnb provides a platform where people can rent out theirrarely used accommodation places to travelers, tourists, andindividuals in holidays at relatively lower rates compared totraditional hotels. Additionally, the development of web 2.0technologies also provided the perfect opportunity for the emergenceof the company. The related tools allow users to connect with oneanother through various sites. Airbnb seems to have borrowed theconcept from the famous social sites such as Facebook and turned itinto an online marketplace.
TheChanges in Purchasing Patterns of Airbnb’s Target Market
Airbnb`starget market comprises of hosts and travelers. The hosts are theowners of accommodation facilities. Their reasons for renting themout include the desire to meet other interesting people and developnew insights into issues through association (Lehr, 2015). Those whoopt to share their places rather than renting them out for exclusiveoccupancy are in need of company. The rest list their assets fortenancy because they want to generate revenues. Travelers consist ofbusiness people, those visiting relatives, workers, and touristsamong others (Lehr, 2015). They also include individuals who do notwant to spend a lot of their resources in high caliber hotels. Atfirst, both property owners and occupants were not concerned about alot of things. Finding a convenient place to stay seemed to be theonly underlying reason for occupancy. However, lately, people havebecome conscious about their safety and the security of theirproperties. As a result, both parties check the profiles of theirpotential partners before committing to a contract. Social mediasites such as Facebook have made it possible to learn about peoplebefore meeting them face to face. Correspondingly, comfort has alsobecome a primary concern for travelers. The change in the purchasingpatterns has been facilitated by high demand. It provides a leveragewhich enables both the hosts and travelers to be choosy regarding thedeals they want to make.
EnvironmentalAnalysis of Airbnb
Thezoning laws and codes in most countries compromise the capacity ofpeople to rent out their houses to others (Oskam & Boswijk,2016). Additionally, people are also at a high risk of lawsuits ifthey accommodate customers with questionable activities. Forinstance, the tenant can be a drug dealer or a rapist, thusimplicating the host. Lastly, property owners are required to paytaxes according to government regulations in most states. Theseaspects may discourage individuals from listing their houses on theAirbnb`s website.
Thebusiness is likely to be boosted by a global economic recession asmany people put up their assets for rent with the aim of enhancingtheir resources (Lehr, 2015). It also contributes to the growth ofthe economy by improving the local market, facilitating foreignexchange, and creating job opportunities.
Thecompany is likely to be widely accepted because it cultivates andsustains a culture of sharing (Oskam & Boswijk, 2016).Consequently, it provides affordable housing options for travelerswith few resources, as well as those who would like to conserve theirfinances for future use. The company is also instrumental infostering a sense of community by enhancing a sense of connection.The low rates of accommodation encourage many people to travel aroundand develop new perspectives on various issues. Lastly, it alsofacilitates cultural awareness and sensitivity among people, thuspromoting peaceful co-existence.
The emergence of Airbnb was catalyzed by the progress in informationtechnology and internet applications. Therefore, it is likely to stayeven more relevant in the future as technology continues to improveand provide more opportunity for growth and expansion (Oskam &Boswijk, 2016).
Each country has unique rules and regulations regarding trade.Therefore, Airbnb is likely to experience a mixed reception andsuccess depending on the impact of such policies on organizationalprocesses. For instance, Airbnb has been successful in the UnitedStates because the government is committed to supporting smallbusinesses. In another country, it may fail because of retrogressivepolicies.
Thesharing economy industry is not exempted from business practiceswhich have traditionally characterized business operations in thepast. Like any other sector, customers will always go to companieswhich offer the greatest value in their products and services. As aresult, the company should differentiate its services from otherfirms by ensuring that the rental places listed on their website arehigh quality, safe, and affordable. This approach will attract peoplewho previously preferred hotels because of the mentioned issues. Thecompany can also adopt efficient vetting measures to ensure thathosts deal only with travelers who are legitimate and do not havequestionable traits. Its competitors such as Amazon cannot have thesame level of focus because they offer a lot of products on a singleplatform.
Lessonsfrom Geek Squad Case Study
Theanalysis of the Geek Squad Company underscored the legitimacy of blueocean strategy. Companies can still create space within the alreadysaturated market. The business idea had not been comprehended beforeby any company. Today, the firm offers services which have become anintegral part of value chain processes of various corporations. Infact, its partnership with Best Buy has cut the rate of return ofgoods, thus expanding the retail store’s profit margin. The casestudy also revealed that technology plays a vital role in variousbusiness processes. For instance, technology has enabled Geek Squadto communicate effectively with their customers. It has also allowedthem to do research on emerging products and establish customizedresponses to consumers in advance.
Airbnb(2016). Airbnb company. Retrieved August 07, 2016, fromhttps://www.airbnb.com/about/about-us
Lehr,D. D. (2015). Ananalysis of the changing competitive landscape in the hotel industryregarding Airbnb.Dominican University of California
Oskam,J., & Boswijk, A. (2016). Airbnb: the future of networkedhospitality businesses. Journalof Tourism Futures,2(1),22-42.