The story of Airbnb is used in this chapter to help us understand the PESTEL Framework better. PESTEL is concept that is used by companies to track the environment they’re operating in or are planning to launch a new project/product/service etc. PESTEL stands for Political, Economic, Social, Technology, Environmental and Legal. This is a good tool to use to evaluate Airbnb. This is how they measured using PESTEL:
Political -Airbnb operates in a non-licensed market. This has led to pressure of the traditional market causing political pressures to arise.
Economic- It has created opportunities for people who have rooms to share with others. Society is both supply and demand.
Social – Has created positive value and has kept people from foreclosure and eviction.
Technology- Created interaction between buyers and sellers that verifies profiles and makes it easier for check ins and outs.
Environmental- Through the need that started it all, created a model that makes use of all resources and has added value to the brands reputation.
Legal- Airbnb has had some issues with taxes and renting laws.
Airbnb has faced legal and political issues. But through it all has generated economical and social value. Its popularity is growing and is creating financial value.
Airbnb, Disrupting the Hotel Industry. (n.d.). In Strategic Management (pp. 65;97). Retrieved September 8, 2018.