Porter Five Forces Analysis

Threat of new entrants:

I would say that the threat of new entrants is moderate for Airbnb. On the surface it seems like
there aren't many barriers to entry and that any website could pop up to compete. But Airbnb is
well funded and operating in nearly 200 countries. To pose as threat to new entrants will need
access to millions in capital and they will need to compete with Airbnb's brand equity.

Threat of substitutes:
The threat of substitutes is quite high in my opinion, because the switching costs are non-existent.
Customers can very easily choose a traditional hotel, b&b, hostel, couch surfing, etc. as an
alternative in the future.

Bargaining power of customers:

This is low because customers don't have any real alternatives at the moment. There's also no way
for customers to join together to benefit from group buying.

Bargaining power of suppliers:

This is also very low because people trying to rent out their rooms don't have much in the way of an
alternative for connecting with customers. Airbnb really controls the connection between the two
parties. There's nothing comparable to a union for these suppliers, so they can't work together to
place demands on Airbnb.

Inter-firm rivalry:
This is moderate or even low. There are other services like this, but none as large or as successful as
Airbnb.

Diversification
Airbnb Company is providing diverse and unique serves form its competitors.
Variety of services to attract customers.
Increasing efficiency by using advance technology.
The company has increased buying power by providing effective quality to its
customers.
Online database system for customers is one of the main examples of decortication.