INTERNAL STRENGTH AND WEAKNESES
Internalstrength and weakneses
Internalstrengths and weaknesses
Pricelines.comenjoys the power of being a first mover. The company has diversifiedinto five different products which include air travel tickets, hotelrooms, rental cars, cruises and vocational packages (Goldberg, 2014).The high performance indicated by $4 billion and a total return of972 percent on Priceline`s Common Stock (PCS) between 2007 and 2011is due to the reputation that has grown fast. The growth is due toits demand collection system which allows the customers to chooseprices they are willing to pay (David, 2014).
Overrelianceon the brand identity and low customer service satisfaction are themajor weaknesses of pricelines.com.The customer service qualitysuffers a lot due to online retailing, the priceline.com customersatisfaction has been rated low due to poor online retailing. Onlinebidding does not provide a hassle-free shopping online that manycustomers need. Priceline.com has this weakness, having an excellentcustomer service is imperative for any online business (David, 2014).
Expediais the biggest competitor of priceline.com the company offers sameproducts but with added value to customers. Travelocity.com isanother competitor which offers online discount tickets. Finally,Hotwire, another competitor offers discount fairs and customers donot set their prices with this company (Goldberg, 2014).
Effectivenessof Priceline strategy
Priceline.comstrategy is not very effective the strategy has its merits anddemerits. The survival of priceline.com will be difficult because itis dealing with price-cautions customers (David, 2014). The companyshould also concentrate on travel related products only and attemptto improve customer service. The company should consider changing thestrategy slightly to adopt changes in the market to increase theability to compete well (Goldberg, 2014).
David, F. R. (2014). Strategic Management: A Competitive AdvantageApproach, Concepts & Cases, 15th Edition. VitalBook file:Pearson Learning Solutions.
Goldberg, W. (2014). The Priceline Group Client Report SontagSolution. Norwalk, Connecticut: Priciline Group.