What are Priceline’s internal strengths and weaknesses?
Priceline, which was established in 1997 on the business model of Name-Your-Own-Price, is the most respected companies and high earning company, which is operating in the particular segment of the industry. The business model benefits from the e-commerce, as the business primarily exists online. Therefore, the company does not have to spend enormous funds to maintain its physical presence, which adds to its strengths. In addition, the company operates in various segments of the travel industry. For instance, it not only facilitates potential buyers in buying an air-tickers, but also it aids in acquiring hotel rooms and cars for rent. As the business operations are diverse, operating in different segments of the global travel industry; therefore, the risk attached to a business is low, which is its strength. However, the weakness is that it only operates in the travel industry.
Who are Priceline’s competitors?
From the detailed study of the provided case study, we learn that Expedia is a major rival of Priceline, which was established one year before Priceline; in 1996. Though the Priceline’s business is four times the size of Expedia, still, the two rivals compete aggressively and they learn from the strategies of others.
Do you see Priceline’s strategy as effective or ineffective? Why?
It is quite apparent that the strategy, of Priceline, is definitely more potent and it is producing desired results. It must be acknowledged that a strategy is considered potent and effective when it produces results and achieve identified goals. The ultimate goal of any firm is to earn and swell profit and from the statistics, we learn that Priceline is earning profits, which is why it is one of the most respected companies in the global travel industry. The size of the returns, on its share, is an evidence regarding the success of its strategy, which seems to be evolving as per economic and market realities. It is essential that a company evolves with time, as a company that could not evolve further is gradually pushed out of the industry (Hunt, 2017).
Reference
Hunt, J. (2017, December 1). What Determines a Company’s Profitability? Retrieved from Chron: http://smallbusiness.chron.com/determines-companys-profitability-16116.html
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