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ABSTRACT
This paper discusses about Airbnb. Airbnb is a company website that allows ordinary people to rent their
residence as tourist accommodation. Anyone can rent rooms to suit their budget. The company established in
2008, and eight years later by a very rapid growth, the company reaches a turnover of millions of rooms per
year. Airbnb analyzed using Porter's Five Forces Model. According to Porter, the competitive nature of the
industry could be seen as a combination of top five strengths, namely Rivalry Among Existing Competitors,
Threat of New Entrants, Threat of substitude Products or Services, Bargaining Power of Suppliers, Bargaining
Power of Buyers. Data were processed using descriptive analysis. Analysis Airbnb terms of Porter's Five Forces
Model concluded that from the fifth models of Porter, Rivalry Among Existing Competitors system, Threat of
New Entrants, Threat of substitude Products or Services, Bargaining Power of Buyers robust system and one
student Bargaining Power of Suppliers found to be very weak
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computer networks, including the Internet. e- trends and internal capacity, capability and
Commerce will change all marketing resources; and (2) the effective planning,
activities and also while cutting operational implementation, and evaluation of the
costs for trading (trading). strategy that plays a major role [4].
There are four business models: Asset
Builders: these companies build, develop, The Five Forces that Shape Industry
and lease physical assets to make, market, Competition
distribute, and sell physical things. Examples The purpose of the analysis of Porter's
include Ford, Wal-Mart, and FedEx. Service five forces is to determine competitive
Providers: these companies hire employees advantage and competitive advantage of
who provide services to customers or companies [9]. Porter's Five Forces Model of
produce billable hours for which they charge. competitive analysis is a widely used
Examples include United Healthcare, approach to develop a strategy in many
Accenture, and JP Morgan. Technology industries [2]. According to Porter,
Creators: these companies develop and sell competitive nature of the industry could be
intellectual property such as software, seen as a combination of top five strengths,
analytics, pharmaceuticals, and namely Rivalry Among Existing
biotechnology. Examples include Microsoft, Competitors, Threat of New Entrants, Threat
Oracle, and Amgen. Network Orchestrators: of substitude Products or Services,
these companies create a network of peers in Bargaining Power of Suppliers, Bargaining
which the participants interact and share in Power of Buyers [3].
the value creation. They may sell products or
services, build relationships, share advice,
give reviews, collaborate, co-create and
more. Examples include eBay, Red Hat, and
Visa, Uber, Tripadvisor, and Alibaba. [12]
E-Commerce Strategy
Definition of the strategy from the
perspective of what would be done by an
organization is a comprehensive program to
define and achieve its mission tumuan
organizations and acted upon. Meanwhile,
from the perspective of what is ultimately
carried out by an organization, is the effort
done from the beginning had been planned or Fig. 1. The Five Forces That Shape
not. The strategy is a response pattern Industry Competition [19]
organization committed to the environment 1) Rivalry Among Existing Competitors
over time [22]. The main aspects of the Competition between rival companies
environment and the company is an industry, (Rivalry Among Existing Firms) is
a company should strive to reach a usually the greatest force in five
sustainable competitive advantage, such as competitive forces. Strategy pursued by
(1) continue to adapt to changes in external the company can be successful if it
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excess cash and unused borrowing limit on the price that can be set before
power, available productive consumers move to replacement
capacity, or clout with distribution products. The strength of competition
channels and customers from substitute products is best measured
Incumbents seem likely to cut prices by market share captured by the
because they are committed to products, in addition to the company's
retaining market share at all costs or plans to enhance the capacity and market
because the industry has high fixed penetration [4]
costs, which create a strong The threat of a substitute is high if:
motivation to drop prices to fill [19]
excess capacity. It offers an attractive price-
Industry growth is slow so performance trade-off to the
newcomers can gain volume only by industry’s product. The better the
taking it from incumbents relative value of the substitute, the
3) Threat of Substitude Products or tighter is the lid on an industry’s
Services profit potential.
When the threat of substitutes is high, The buyer’s cost of switching to the
industry profitability suffers. Substitute substitute is low.
products or services limit an industry’s 4) Bargaining Power of Suppliers
profit potential by placing a ceiling on Suppliers Bargaining Power
prices. If an industry does not distance it (Bargaining power of supplier) can be a
self from substitutes through product threat to the company that is obtaining
performance, marketing, or other means, input from a supplier in the event of the
it will suffer in terms of profitability – company's dependence on one supplier
and often growth potential.[19] which become larger over time.
All Performance Management in a Indicators that can be used to view the
competitive industry, in the broadest company's dependence to one supplier is
sense with the industries which produce an indicator of the concentration ratio
analogs. Replacement products limits the (concentration ratio) to indicate the ratio
potential profit of the industry with between the amount of supply of a
menetpkan price ceiling (ceiling price) specific supplier with an overall value of
which may be provided by the company inventories supplied by various suppliers.
in the industry. The more attractive Suppliers can use the bargaining
prices offered by alternative replacement power against industry participants with
products, tighter restrictions on industry threat that will raise prices or reduce the
profits. Recognize products of quality of the products or services
substitution (replacement) is a matter of purchased. A strong supplier industry
looking for other products that can therefore can suppress the profitability to
perform the same function as the product keep pace with the increase in the price
in the industry. The position in the face [16].
of possible substitute products is a matter
of collective industrial action.
Replacement products put an upper
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Companies depend on a wide range of services to gain customer loyalty that the
different supplier groups for inputs. A bargaining power of customers is
supplier group is powerful if: exceptional. Consumers often can
It is more concentrated than the negotiate selling prices, warranties, and
industry it sells to. accessories packing up to a certain level
The supplier group does not [4].
depend heavily on the industry for As with suppliers, there may be
its revenues distinct groups of customers who differ
Industry participants face in bargaining power. A customer group
switching costs in changing has negotiating leverage if: [19]
suppliers. There are few buyers, or each one
Suppliers offer products that are purchases in volumes that are large
differentiated. relative to the size of a single
There is no substitute for what the vendor.
supplier group provides. The industry’s products are
The supplier group can credibly standardized or undifferentiated. If
threaten to integrate forward into buyers believe they can always find
the industry an equivalent product, they tend to
5) Bargaining Power of Buyers play one vendor against another.
Powerful customers–the flip side of Buyers face few switching costs in
powerful suppliers–can capture more changing vendors
value by forcing down prices, demanding Buyers can credibly threaten to
better quality or more service (there by integrate backward and produce the
driving up costs), and generally playing industry’s product themselves if
industry participants off against one vendors are too profitable.
another, all at the expense of industry A buyer group is price sensitive if:
profitability. Buyers are powerful if they [19]
have negotiating leverage relative to The product it purchases from the
industry participants, especially if they industry represents a significant
are price sensitive, using their clout fraction of its cost structure or
primarily to pressure price procurement budget. Here buyers are
reductions.[19] likely to shop around and bargain
Bargaining power of consumers is hard, as consumers do for home
also higher when purchased is a standard mortgages. Where the product sold
product or not differentiate. When the by an industry is a small fraction of
conditions are like this, consumers can buyers’ costs or expenditures, buyers
often negotiate a sale price, warranty are usually less price sensitive.
coverage, and accessory package up to a The buyer group earns low profits, is
higher level [2]. In addition, consumers strapped for cash, or is otherwise
bid Strength is also greater if the under pressure to trim its purchasing
purchased product standard or different. costs.
Competing company is offering the The quality of buyers’ products or
warranty may be longer or specialized services is little affected by the
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Further, trend data over the past decade models on both compound annual growth
indicates that this valuation gap is widening rate and profit margin. We believe this
over time. We call this degree to which a occurs because the value creation performed
business model drives the gap between by the network on behalf of the organization
revenues and valuation “the multiplier reduces the company’s marginal cost, as
effect”. [12] described in Jeremy Rifkin’s The Zero
Marginal Cost Society. For example,
TripAdvisor.com benefits from its
customer’s reviews and Airbnb leverages its
network’s housing assets. [12]
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$1,000,000 insurance policy against damage following test to see top web based browser
caused by guests. These are precisely the (from whom so). Even the Airbnb website
kind of quality and safety controls that city using local domain for a special state,
regulators enforce for traditional lodgings, https://www.airbnb.co.id/
and for which they collect taxes. But using The results compare with rivals from
the same technology that makes the service existing competitors Among Airbnb is
possible, Airbnb has replicated much of the Homeaway using analytic data SimilarWeb
regulatory structure in what is arguably a
more efficient format
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2 Ease of getting a If just booked the hotel a lot, but the comfort low threat
replacement and experience yag obtained if a message on
product Airbnb is still superior and yet that rival it.
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