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Priceline Presentation

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  • Hi I would like to know where you found the question 4 grafics, I would like to copy it for a project but I need the source. Thanks :)
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  • 1. Priceline.com and the Search for a Business Model that Works N AME Y OUR O WN P RICE “ NO ONE DEAL LIKE WE DO” Present by Group 2
  • 2. Contents 1 Case Background 2 Priceline.com Business Model 3 The future of Priceline.com 4 Travel Industry Impacts 5 Current Situations
  • 3. Background Start Business One Stop Shopping!! Hotel Reservation “ Reverse Auction ” Products Airline Ticket Financial Service Car Rental “ Name Your Own Price ® ” Start Operation by “ Jay Walker” 1998
  • 4. Background Expansion Phase “ Priceline Webhouse Club” Beginning of 2000 Extend Model - Groceries - Gasoline - Used Goods Shut Down!! Oct 2000 Jay Walker Resigned Dec 2000
    • Unable to deal with major Brands
    • Incovenient to pick up
    Factors
  • 5. Background Reorganization Phase Core Business “ Richard Braddock” New Chairman “ Discount Retail” 2003 – 2004 Extension ** First Annual Profit **
  • 6. Background Boom!! “ International Business” 2004 - Active Hotels Integration 2005 – Booking.com 2007 – Agoda
  • 7. Question1
    • W hat are the core
    • components of Priceline’s
    • business model?
  • 8. Components of Business Model
    • Value Proposition
    • Revenue Model
    • Market Opportunity
    • Competitive Environment
    • Competitive Advantage
    • Market Strategy
    • Organizational Development
    • Management Team
  • 9. Components of Business Model
    • Consumer Side
    • Low Cost with some
    • additional conditions
    • Vendor Side
    • New channel for
    • excessed products
    1) Value Proposition
  • 10. Components of Business Model
    • Transaction Fee
    • Booking & Handling Fee
    • Adaptive Marketing Program - Adaptive Promotion
    • - Adaptive Cross Selling
    • Sales
    • Gain between
    • the offer price and
    • the vendor price
    2) Revenue Model
  • 11. Components of Business Model
    • Marketspace
    • Travel Service Industry
    • started from domestic (U.S.)
    • 1978–2007 => $253.29 billion
    • Realistic Market
    • Consumer side:
    • Budget Concern
    • Vendor side:
    • Excessed Demand Product
    • Rapid Aging
    3) Market Opportunity
  • 12. Components of Business Model
    • Direct Competitors
    • Travel Agencies
    • e.g. expedia.com,
    • orbitz.com
    • Vendor itself !!!
    • Travel Industry
    • High-Revenue
    • Attractive
    • Price-War
    • Information-War
    • Indirect
    • Competitors
    • Online Market Maker
    • e.g. eBay.com, Amezon.com
    High Competitive Segment !! 4) Competitive Environment
  • 13. Components of Business Model Lower Price from “Reverse Auction” Fast Response, Reliability & Standard First Mover Advantage & Brand Product Mix 5) Competitive Advantages
  • 14. Components of Business Model
    • New Trading Model “Name Your Own Price ® ”
    • Brand Ambassador “William Shatner”
    • Published Price Model “No One Deals Like We Do ® ”
    6) strategies
            • International Expansion
  • 15. Components of Business Model
    • O rganization
    • Development
    • &
    • M anagement
    • Team
  • 16. Core Components of Priceline.com
    • V alue Proposition
    • R evenue Model
    • C ompetitive A dvantage
    M arket C reator
  • 17. Question 2
    • D o you think Priceline will
    • ultimately succeed or fall?
    • Why?
  • 18. Question 2 Success Factors
    • Focus on Core Business
      • Travel Reservations
    • Financial Controls
    • Extent Inter-Market
    • Pricing Strategy
      • Discount fee
    • Flexible Services
      • Specific Information
      • Group Services
    • Technology Channel
      • I-Phone
    • Uncertaint y
      • 2 Sides Effects
    • Direct & Indirect
    • Competitors
      • Price War
    • Inflexible Services
    • Digital/Internet
    • Effect
      • Brand Image
    Risk Factors
  • 19. Question 3 H ow has Priceline (and similar online services) impacted the travel services industry?
  • 20. Question 3 Customer Effects
    • Positive Effects
      • Increase Customer
      • Easy/Direct to Target
    • Negative Effects
      • Price War
      • Value vs. Volume
    Entrepreneur Effects
    • Positive Effects
      • Matching Demand
        • Price/Budget
      • Cost Savings
      • Almost Perfect Information
    • Negative Effects
      • Limitation
        • Acceptable Prices
        • Comparable Prices
  • 21. Question 4
    • F ollow up on developments at Priceline since Sep 2008 when this case study was prepared.
      • Has its business model and/or strategy changed at all,
      • and if so, how?
      • Who are its strongest competitors?
      • Is it profitable or operating at a loss?
  • 22. Question 4
      • H as its business model and/or strategy changed at all,
      • and if so, how?
  • 23. Iphone Application
  • 24. Priceline Competitor
      • Who are its strongest competitors?
  • 25. Question 4
      • Who are its strongest competitors?
  • 26. Question 4
      • Is it profitable or operating at a loss?
  • 27. Question 4
      • Is it profitable or operating at a loss?
  • 28. Class Discussion
    • Q & A