Can Business Model of Priceline.Com Be Saved
With the introduction of its innovative "Name Your Own Price" services program in April 1998, Priceline provides this unique transaction service allowing consumers and businesses to leverage the Internet for the buying and selling of leisure airline tickets, hotel rooms, rental cars, cruises, vacation packages and even home mortgages. Since launching its business, priceline.com has sold millions of airline tickets, hotel room nights, and rental car days.
Priceline.com is the patented Internet pricing system that enables consumers to achieve significant savings by naming their own price for goods and services. Priceline.com takes consumer offers and then presents them to sellers who can fill as much of that guaranteed demand as they wish at price points determined by buyers. Priceline.com licenses its business model to independent licensees, including priceline mortgage and certain international licensees.
Priceline become a famous e-business company and make great success very quickly. However Priceline encounters big problem such as poor management, too much expanding cause the economic burden, facing more and more competitors.
This assignment firstly is to analyse the current competitive environment of Priceline.com by using Porter’s five force model, using SWOT analysis tool to discuss the strengths and weakness, next is to analyse the business model and what Priceline.com create value for its customer, then analyse why Priceline.com will ultimately succeed, last is to introduce the Priceline model to be applied in other industry area.
Table of Contents
Q1: Analyse the current competitive environment of Priceline.com and discuss strengths and
Weakness of Priceline.com………………………………………………………………..P5
Q2: What are the core components of Priceline.com’s business model? What values can Priceline.com create for customers? ..................................................................................P11
Q3: Do you think Priceline.com will
Priceline.com is the patented Internet pricing system that enables consumers to achieve significant savings by naming their own price for goods and services. Priceline.com takes consumer offers and then presents them to sellers who can fill as much of that guaranteed demand as they wish at price points determined by buyers. Priceline.com licenses its business model to independent licensees, including priceline mortgage and certain international licensees.
Priceline become a famous e-business company and make great success very quickly. However Priceline encounters big problem such as poor management, too much expanding cause the economic burden, facing more and more competitors.
This assignment firstly is to analyse the current competitive environment of Priceline.com by using Porter’s five force model, using SWOT analysis tool to discuss the strengths and weakness, next is to analyse the business model and what Priceline.com create value for its customer, then analyse why Priceline.com will ultimately succeed, last is to introduce the Priceline model to be applied in other industry area.
Table of Contents
Q1: Analyse the current competitive environment of Priceline.com and discuss strengths and
Weakness of Priceline.com………………………………………………………………..P5
Q2: What are the core components of Priceline.com’s business model? What values can Priceline.com create for customers? ..................................................................................P11
Q3: Do you think Priceline.com will