1. Mélissa Nadal
Oliver Quix
Graduate Student – UIBS 2013
Teacher: Hubert Joo
Contact: oliverquix@hotmail.com / melissa.nadal@espeme.com

2.  Companies’ presentations
 Online Travel Industry
 Porter’s 5 forces
 SWOT Analysis
 Mission & Vision
 Some competitors
 Strategy
 Implementation Strategy
 Screening process

3.  American multinational corporation
 Specializing in Internet-related services and products
 Include search, cloud computing, software and online
advertising technologies
 Most of its profits derive from AdWords
 Target Market:
› Organizational customers: Business Advertisers
› Individual customers: under 35 years old / 55% are male / middle-
upper class

4.  World largest travel website
 Travel website  assists customers in gathering travel information,
posting reviews and opinions of travel-related content and
engaging in interactive travel forums
 Free to users  provide most of the content
 Supported by an advertising business model
 Target Market: Leisure travelers

6.  Orbitz Worldwide, Inc. is a leading online travel company
 Headquarters  Chicago, Illinois
 Travellers can research, plan and book a broad range of travel
products online
 1.5 million flight searches and one million hotel searches every day.
 publicly traded company listed on the New York Stock
 Largest investor  Travelport, one of the world’s largest networks of
travel brands, content and service offerings.
 Target market  Young, leisure and business travellers

7.  Part of the hospitality industry
 Internet  continue to revolutionize the hospitality industry
 52% of today's travelling population relies on social media when
planning a vacation
 Lots of competitors: priceline.com, HomeAway, Expedia…
 More and more competitors are entering the market

8.  Threat of new entrants: High  very easy to create a website /
free / more and more competitors
 Threat of substitutes: High  many competitors / offline travel
agencies
 Consumers bargaining power: Low  lots of consumers so very
small influence on prices / low dependencies on distributors
 Suppliers bargaining power: High  don’t decide on the final
prices (hotels, air tickets, restaurants…)
 Intensity of competition: High  lot of competitors / Large
industry size/ Fast industry growth rate

9. Strengths Tripadvisor Strengths Orbitz Weaknesses Tripadvisor Weaknesses Orbitz
- Good brand image
- Good position
- Very well known
- Easy to use
- User-friendly web site
- Low rates and fares for
the general public
- Customer-oriented
- Seen as expensive
website
- People think that some
reviews are fake
- Web site may not
attract customers’
attention (bland)
- Slow response to
corporate inquiries
Opportunities Tripadvisor Opportunities Orbitz Threats Tripadvisor Threats Orbitz
-Growing demand
- Growth rates
- Global reach of business
- New markets
- Attract other partners*ù
- Expand the target
market
-Growing demand
- New markets
- Expand resources
- Attract other partners
- Improve upon website
recognition – promote on
t.v. and radio
-External risks: crisis
- Increasing rates of
interest
-Competitors may offer
better incentives to the
consumers
- Increasing costs
- High competition
- Government regulation
- External risks: crisis
- Competitors may offer
better incentives to the
consumers
- Travel disruptions
- Government regulation
- Market volatility
- High competition

10.  Mission: Create a website to make traveling easier and more
appealing for the people
 Vision: The customer first. Provide user friendliness, create and
maintain customer relationships

11. • Initial Mission Statement: “Develop a travel web site that
would serve people better.”
• Orbitz’ ultimate goal is “to help better serve the interest of
the traveling public.”

12. 32%
9%
12% 18%
21%8%

13.  Combination  Focus & Differentiation
 Focus  Same industry (online sales and marketing)
 Differentiation  Different services
 Google: business advertising
 Orbitz: Provide cheap holidays
 Tripadvisor: Provide knowledge about locations and prices +
cheap holidays
 The three companies work online

14.  Acquisition  Google buys Tripadvisor
 2 Strategies
 1st: Improve the target company’s performance
 Improving the performance  one of the most common
value-creating acquisition strategies
 Buy a company and radically reduce costs to improve
margins and cash flows
 Google may also take steps to accelerate revenue growth

15.  2nd strategy:
 Second strategy  winning strategy involves making acquisitions
early in the life cycle of a new industry or product line
 Long before most others recognize that it will grow significantly
 This acquisition strategy requires a disciplined approach by
management in three dimensions.
 First, you must be willing to make investments early, long before
your competitors and the market see the industry’s or
company’s potential.
 Second, you need to make multiple bets and to expect that
some will fail.
 Third, you need the skills and patience to nurture the acquired
businesses.

16.  Why Google should acquire one of these companies?
› Broader range of services
› Marketing on hotels, restaurants etc  same industry
› Bigger target / More consumers
 Between Orbitz and Tripadvisor  Tripadvisor
› World largest travel website
› More market shares
› More profitability
› Better known
› More customers

17.  Recommendation: Tripadvisor  stilll young
 Lots of potential
 Provide online knowledge
 Easy to merge services