In this report, the discussions of the sharing economy companies have been considered such as Airbnb and Uber. The information about the selected companies business models, their individual strategies regarding their individual sustainability has been mentioned based on the traditional firms and the sharing economy firms. In the later part of the report, the discussions of analyzing the particular global entry mode as well as their individual strategies, individual internal and external strengths and limitations have been emerged by following the business models and strategies. The report includes the matters of the two companies value creation cycle along with the ethical issues associated with the sharing economy.Internal/external strength – Sharing economy has become an important part of the economy, as it is capable of matching demand and supply seamlessly. Airbnb provides alternatives to the guests to stay in an assortment. The sharing economy has many benefits on traditional mode:
Creates new services- A transportation company to run efficiently requires a fleet of cars and drivers, which can incur huge expense on the operating cost. By employing the advanced model, Uber avoided the hurdles, which has arisen by working on the traditional model. In other words, it has helped in the creation of new and valuable service (Sarangi, 2009).
Provides flexibility in workplace – The workforce can work on the time they feel comfortable. With the aid of technology, the employee can connect themselves with the company from any part of the globe. The advantage of changing locations is an added benefit.
Along with providing services, it helps in recycling and reusing the product, which can be beneficial for the maintenance of the sustainable environment. It helps in empowering the citizen by making them more productive. New ideas of businesses are being developed on a daily basis.
Limitation – It has been argued that sharing economy model reduces the profit of the existing firms and causes a loss in the tax revenues as most of the businesses over the internet is unregulated. Moreover, this method allows the people from other parts of the globe to get the services and avoid tax. It can lead to scams as the sellers and buyers are not protected totally.