Airbnb Has Been Attacked for not Paying Housing and Other Taxes - Law Assignment Help

Assignment Task

Q 1.1 POWER OF SUPPLIERS

The bargaining power of suppliers can impose threat to Airbnb which receives input from one supplier only.

Suppliers use the bargaining power against Airbnb by reducing the standards of the products or services on increasing the prices.

A powerful supplier can decrease profits to keep up with the rising prices.

POWER OF BUYERS

Buyers have the power to choose from different price ranges through Airbnb.

Compared to hotels or motels, Airbnb is a cheaper option for travellers.

Currently, Airbnb is in high demand as the app has 50M+ downloads.

COMPETITION

There are similar websites such as: OneFineStay.com,Tripping.com,HomeAway.com which increase competition for Airbnb.

Research suggests that Airbnb is further ahead from its competitors.

THREAT OF SUBSTITUTION

Customers who use Airbnb will face no loss if they switch from Airbnb thus increasing the threat of substitution.

As Airbnb came into existence, hotels have noticed changes in customer's taste.

Customers seem to prefer the homier setting that Airbnb easily offers, this caused hotels make changes to suit the needs and wants of their customers.

THREAT OF NEW ENTRANTS IN THE MARKET

It is not as easy for new entrants to impose threat to Airbnb as they would have to gain access to millions of people and start operating in 200 countries.

Loyal customer bases would not easily leave Airbnb as they may have fear of not receiving the same services as Airbnb.

New entrants in the market would need lots of venture capital for the start-up which Airbnb already has.

 Q 1.2 Airbnb has been attacked for not paying housing and other taxes.

Factors such as exchange rates, inflation and growth of economy impact Airbnb as an organisation.

Airbnb needs to follow certain rules and regulations which affects the operations of the business.

Some Airbnb hosts may not follow these laws and guidelines and may face lawsuits and court proceedings.

Different seasons/climate changes will affect the profitability of Airbnb hosts as tourists may not be visiting the place.

Research suggests that Airbnb has reduced waste, water consumption and increased environmental awarenes.

Airbnb uses technology to connect hosts and customers in order to make reservations.

Airbnb uses a technological system to verify the profiles of hosts and customers.

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