Case study priceline.com (from takow)

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Case study priceline.com (from takow)

  1. 1. Copyright © 2010 Shinawatra University Case Study: Priceline.com and The search for a business model that works Instructor: Dr. Rachanee Ungrangsi     Presenter: Mohamed Hussein (Takow)
  2. 2. Copyright © 2010 Shinawatra University
  3. 3. Copyright © 2010 Shinawatra University Name Your Own Price Save Money Now
  4. 4. Introduction Priceline.com is one of the leading online travel booking portals launched in 1998. Priceline is not a direct supplier services but they bring buyers and sellers together to facilitate their transactions. Priceline brought a new concept and business model which uses a simple and persuasive consumer proposition called " Name Your Own Price ". Copyright © 2010 Shinawatra University
  5. 5. Introduction - Continue Priceline offers a compelling value proposition to customers , allowing them to save money by trading off flexibility about brands, product features, and/or sellers in return for lower princes. Vendors can gain additional revenue by selling products. Copyright © 2010 Shinawatra University
  6. 6. What is a Business Model? A  business model – is a s et of planned activities designed to result in a profit in a marketplace and describes the basic framework of a business. It is the method of doing business by which a company can generate revenue to sustain itself. Business Models are never as simple as seems. Copyright © 2010 Shinawatra University
  7. 7. Business Model …cont. In Relation with business areas, Business Models have been defined and categorized in many different ways: Brokerage Advertising Merchant Manufacturer Affiliate Community Subscription Copyright © 2010 Shinawatra University
  8. 8. Priceline Bus. Model Elements Hiding the name of Suppliers Hiding the Name of Providers Powerful technology Copyright © 2010 Shinawatra University
  9. 9. Back to the History The Original vision of Priceline founder was called “demand collection” Early history Priceline was not profitable. In 1999- it lost over $1 billion. By 2001 it pared the losses to 15 Million After 11 sep 2001 attack at WCT. By 2002 it lost $23 million. However, in 2003 it recorded $10.4 million in net income Copyright © 2010 Shinawatra University
  10. 10. How Priceline works At Priceline, consumers can enter a bid for Travels , Hotels, Rental Cars, & Home financing Priceline, then queries its Database… The Company determines if it can fulfill the customer’s offer. Copyright © 2010 Shinawatra University
  11. 11. Important rules for Customers The customer must accept Any major airline Leaving any time of the day Accept at least one Stop Ticket can not be refunded Ticket cannot be changed Copyright © 2010 Shinawatra University

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