Business management
assignment 2
Subject: BMNG5121w_VCOL5
Name:Tanya Laubscher
Student number: 21007755
Due date: 14 June 2021
Page 1 of 24
,Content page
Question1............................................page 3-9
Q1.1.................................................................... page3-4
Q1.2.1……………………………………………………………. page 5
Q1.2.2…………………………………………….… page 6
Q1.3.................................................................... page 6-7
Q1.4.................................................................... page 8-9
Question2............................................page 10-16
Question 3......................................page 17-18
Referencing page.........................page 19-23
Page 2 of 24
, Question 1
Q1.1)
Introduction
There are a few competitive forces that act as a threat to Airbnb. The first factor is
the number of competitors in the market, Airbnb is in competition with a few other
companies such as booking.com which lists over 6 million hotels, villas and
apartments to rent, the difference is that booking.com is a platform that rents out
private property as well as . Vrbo rents out beach houses, condos, cabins and villas
New entrants to the market:
The threat of new entrants into the industry is determined by existing entry barriers,
as well as existing competitors' reactions, (which can be foreseen by the new
entrants). Although it seems easy for any individual to simply build a peer-to-peer
lodging website and start a company, however, access to funding is on the opposite
side of the spectrum. This is true as Airbnb has already taken a hold of this niche in
the market, therefore investor scepticism is almost guaranteed.
Number of competitors in the market:
There are many competitors in the short-term rental market, and they differ, for
example, bookings.com rents out private property including villas, apartments and
hotels where Arbnb rents shared accommodation in the individuals houses another
competitor would be Vrbo, Vrbo rents out premium holiday stays such as beach
houses, villas and condos, they cater for a much wealthier cliental (Rentals united.
2021). Airbnb having good brand equity and being the leading lodging company,
definitely makes it more recognised and highly rated compared to the other
companies. Each peer-to-peer lodging website accommodates a different audience.
Therefore, competitors are diverse in terms of offering a wider variety of
accommodation options (Dudovskiy, J. 2019).
Page 3 of 24
assignment 2
Subject: BMNG5121w_VCOL5
Name:Tanya Laubscher
Student number: 21007755
Due date: 14 June 2021
Page 1 of 24
,Content page
Question1............................................page 3-9
Q1.1.................................................................... page3-4
Q1.2.1……………………………………………………………. page 5
Q1.2.2…………………………………………….… page 6
Q1.3.................................................................... page 6-7
Q1.4.................................................................... page 8-9
Question2............................................page 10-16
Question 3......................................page 17-18
Referencing page.........................page 19-23
Page 2 of 24
, Question 1
Q1.1)
Introduction
There are a few competitive forces that act as a threat to Airbnb. The first factor is
the number of competitors in the market, Airbnb is in competition with a few other
companies such as booking.com which lists over 6 million hotels, villas and
apartments to rent, the difference is that booking.com is a platform that rents out
private property as well as . Vrbo rents out beach houses, condos, cabins and villas
New entrants to the market:
The threat of new entrants into the industry is determined by existing entry barriers,
as well as existing competitors' reactions, (which can be foreseen by the new
entrants). Although it seems easy for any individual to simply build a peer-to-peer
lodging website and start a company, however, access to funding is on the opposite
side of the spectrum. This is true as Airbnb has already taken a hold of this niche in
the market, therefore investor scepticism is almost guaranteed.
Number of competitors in the market:
There are many competitors in the short-term rental market, and they differ, for
example, bookings.com rents out private property including villas, apartments and
hotels where Arbnb rents shared accommodation in the individuals houses another
competitor would be Vrbo, Vrbo rents out premium holiday stays such as beach
houses, villas and condos, they cater for a much wealthier cliental (Rentals united.
2021). Airbnb having good brand equity and being the leading lodging company,
definitely makes it more recognised and highly rated compared to the other
companies. Each peer-to-peer lodging website accommodates a different audience.
Therefore, competitors are diverse in terms of offering a wider variety of
accommodation options (Dudovskiy, J. 2019).
Page 3 of 24
