Question

"Even though Airbnb is at $31 billion one of the most valu-able private startups in the world and offers more accommo-dations than the three largest hotel chains (Marriott, Hilton, and Intercontinental) combined, not all is smooth sailing. In particular, PESTEL factors discussed in this chapter are creating major headwinds for Airbnb. Take regulation, for example. In late 2016, New York state strengthened legisla-tion first passed in 2010. In particular, it is illegal in New York to rent out entire apartments in residential blocks for less than 30 days. (It still remains legal if the renter is living in the apartment at the same time, so “true space sharing” is still possible.) Fines increased to $1,000 for the first offense, rising to $7,500 for repeat offenders. This creates major prob-lems for Airbnb because New York City is by far the largest market for the internet venture, with some 35,000 accommo-dations available for rent. Consider This . . . and to offer them via Airbnb than to sign long-term rentals with just one tenant, which often fall under some sort of rent control in New York City. Although this tactic increases the landlord’s return on investment and profits, it creates all kinds of negative externalities. Neighbors complain about noisy tourists partying all night. Some apartments get ransacked or are used for illegal activities such as drug deals and prostitu-tion. New Yorkers expressed their frustration by scrawling on Airbnb posters: “The dumbest person in your building is pass-ing out keys to your front door!” On a more macro level, some argue that Airbnb drives out affordable rental space in many metropolitan cities where apartments are already scarce. Other cities such as Paris, Berlin, and Barcelona face similar problems and passed laws with stiff penalties, fining offend-ers over $100,000!QuestionsThe issue for Airbnb is that about one-third of those list-ings are from hosts with multiple offerings in the same city. In particular, commercial landlords found out that it is more profitable to convert some apartments into short-term rentals

1.) Why is it that PESTEL factors can have such a strong impact on the future of a business? Do you support legislation such as passed in New York (and elsewhere), or do you think it has more to do with protecting vesting interests such as the hotel industry.

2,) Citing the Digital Millennium Copyright Act (DMCA), This chapter demonstrated various approaches to analyzing the firm’s external environment, as summarized by the following learning objectives and related take-away concepts.LO 3-1 / Generate a PESTEL analysis to evaluate the impact of external factors on the firm.■ A firm’s macroenvironment consists of a wide range of political, economic, sociocultural, technological, ecological, and legal (PESTEL) factors that can affect industry and firm performance. These external factors have both domestic and global aspects.Airbnb is challenging the New York law and others in the United States, arguing that it merely operates a digital marketplace, and thus is not responsible for the content that users place on its site. Do you think Airbnb has a strong argument? Why or why not?

3.) Are you concerned that the concept of the sharing economy could be abused by unscrupulous “entrepreneurs” and thus give the entire novel concept a bad reputation? Why or why not? Explain.

Answer 1

1..PESTEL elements are the outside components that can influence a business. Initially, I trust PESTEL factors are so solid because of the word to mouth strategy for purchasers, and financial specialists which can inspire an organization or demolish it. In conclusion, government guidelines can stunt the development of an organization and restrain their benefit potential. I am at an impasse on this following inquiry, "Do you bolster enactment, for example, that went in New York (and somewhere else), or do you think it has more to do with ensuring personal stakes, for example, the inn business? Because of them paying lobbyist and legislators to make laws against Airbnb.

Presently in a more drawn out tirade, I do trust New Yorkers reserve the privilege to lease their home. Then again, habitation in loft and houses need to have a sense of security and on the off chance that Airbnb doesn't make method for individuals to feel ensured, at that point I pose the inquiry, "Does a couple of people groups advantage legitimize putting every other person in danger?" This contention can go much via Airbnb influencing lodging industry multimillion-dollar rewarding organizations. We as a whole know when rivalry turns into a competition, you need to obliterate the other organization capacity to infringe on your region. I think this inquiry is difficult to reply because of one people win can be another person's misfortune, this doesn't just relate to a huge business.

2..I don't accept that Airbnb has a solid contention. I accept in the event that you are offering assistance, at that point you ought to control it. I realize that is more difficult than one might expect, because of the tremendous measure of the host on Airbnb; in any case, they ought to have the option to make calculations to implement non-desiredable data on their site. What's more, on the off chance that they don't take possession for the substance that clients place on their site, at that point what obligation does the site have other than profiting? I accept each organization has a duty to keep its clients safe and on the off chance that you're not ready to do as such, at that point you should be closed down.

3..I am not worried that the idea of the sharing economy could be manhandled by deceitful "business people" and in this way give the whole novel idea awful notoriety. Perhaps I don't have concern since I realize that it just takes one individual to destroy anything. On the off chance that I lived in dread for the defilement of anything, I would live in suspicion each and every day. Toward the day's end, every individual should be wary when utilizing the sharing economy as opposed to being trusting to an individual you just met.