Expedia inc. can be an online booking machines which provides corporate and business and leisure travellers with the info required to plan and book a fully offered travel. expedia is situated in Washington and it is the parent or guardian company that was founded in 1996 as a section of Microsoft. as expedia inc. is a joint venture it supplies its services through a variety of brands which will be the pursuing ''expedia. com, hotels. com, hotwire. com, expedia internet marketer network, classic vacation trips, expedia local expert, egencia, expedia cruiseshipcenters, elong, inc. ("elong") and venere world wide web spa ("venere")'' in addition, expedia inc. serves as a realtor for 145, 00 hotels in 200 countries and for 300 airlines, car renting and cruises.
Expedia Inc. 's primary goal is ''to revolutionize travel through the energy of technology. '' as it publicized. The company also objectifies to reduce the losses made when exchanges currencies, thus programs to only admit one currency. Furthermore, the incorporation blueprints to advance the call center technology for customers to have better support.
Data collection / Strategy used
To answer the question 'XXXXXXXXXXXX' several theoretical principles will be used to analyze Expedia Inc. To contemplate this essay, research has been conducted both mainly and secondarily. Although the key way to obtain the essay is Expedia Inc. 's 2011 Annual Report.
Primary Research
The undertaking of key research involves first-hand data. By means of principal research I conducted an interview with the director I done during the summer months which is a shareholder of Expedia Inc. being to several conferences of the incorporation he could give me an understanding of the backdrop of the company and how it works.
Secondary research
The term of secondary data is defined as second-hand information. My main supplementary research was through the internet where I found the 2011 Total annual Survey of the incorporation. In addition, I used several sites to source the financial information of the business and its own managing strategy.
The theoretical basis of the article includes a SWOT examination, PESTEL evaluation, Ansoff Matrix and financial analysis mainly through ratios and XXXXXX.
SWOT Analysis
A SWOT analysis consists of proper assessment of a organisation identifying interior talents and weaknesses and external opportunities and threats which will impact the future path and success of any business. Carrying out this analysis will help to identify the key issues of the incorporation that ought to directed to be tackled. Moreover it will aid to identify the strengths and opportunities of the incorporation which the managers should try to built upon.
PESTEL Analysis
The acronym PESTEL are a symbol of Political, Economic, Sociable, Technological, Ethical and Legal. It is a organized mean of evaluation of possible external factors which could affect business objectives and strategies.
2. Internal Environment
SWOT Analysis
Strengths
Has a global market space, dispersing risks.
Consumer's devotion and strong brand name.
Offers a sizable selection of travel products / services
bought travel keywords
multilingual content and has local currencies
technical assistance a day a day
Weaknesses
rely greatly on Information Technology
provide undifferentiated services compared to those of competitors
sales are influenced by the services provided by hotels, airlines and car local rental companies
Difficulties in managing staff and operations
share price highly volatile
amortization !!!!
Opportunities
an increasing number of people get access to the internet.
Expand in low competitor countries
Threats
competitors
internet terrorism and hackers
fraudulent trade
Expedia Inc. sells travel packages from all over the world, meaning that the company can spread risk. Furthermore, Expedia Inc. has a large brand stock portfolio; every product is top quality individually, which is an ample edge that increases brand devotion.
Moreover as each compartment of the incorporation has a brand it has its passive loyalty from customers, which is a large advantage as there may be customer base that may always buy services from Expedia Inc.
In addition, Expedia Inc. retails through e-commerce exclusively, having low deal costs which allows it to impose lower prices. Subsequently, as Expedia Inc. provides online it has the benefit for having a global audience, but also internet individuals are swiftly growing.
Last however, not least, people think it is easier in our days to book their travel bundle on their own rather then having to rely on the travel firm (OPPORTUNITY).
Having bought travel keywords from head internet search motors, i. e. such as Google, Expedia Inc. has a marketing privilege of approaching between the first results.
Expedia Inc. services are translated in many languages, and therefore its services can be used internationally. Justifiably, Expedia Inc. can be an award wining company in customer experience as it gives the ability to customers to reserve travels in their own local currencies.
Being a incorporation that retails online it has a section of specialized assistance which is wide open 24 hours, 1 week a week.
as Expedia Inc. retails only through the internet, it relies on technology, and therefore its services are only accessible by internet surfers. In this manner, it might lose prospects that don't have IT knowledge or don't have usage of the internet.
Furthermore, all the brands managed by Expedia Inc. sell the same travel packages as competitors meaning they all aim at the same market.
As Expedia Inc. sells travel deals which an authorized provides the customer, thus the service provided by the hotel, air travel or car local rental company can determine the sales of incorporation.
There are challenges in managing staff as it is a multinational and between different quarters there are ranges, different time zones and often language may be considered a problem
There are huge fluctuations in the show price of Expedia Inc. this is mainly anticipated to seasonality of the travel industry, high share price volatility is a weakness to the incorporation as it becomes an extremely risk baring investment.
an increasing amount of people have access to the internet increasing possible customers
the incorporation could grow in countries with low rival competition so that it could have a high market share in that region.
competitors is a menace as potential buyers have a lot of power. Moreover, competitors on the market also have a large market show.
As Expedia Inc. sells only through the internet it's very susceptible to hackers and breakdowns.
as the incorporation investments even through local currencies it is threatened by gratitude mainly and fluctuation of a certain currency meaning it will lose cash.
Due to deceptive trade many people are frightened to use the internet to buy services thus potential prospects are lost.
External Environment
PESTEL
Political
Political instability in some countries
Economic
finance charges
exchange rate fluctuations
economic turmoil / Unemployment
Social
greater affluence/ more leisure time
Technological
higher internet coverage
Ethical
Legal
Deregulation
Political
In countries like Greece and Spain where Expedia Inc. has invested there is high political instability. Expedia Inc. could make a great damage if Greece exits the euro zone as people might not buy any Greek travel services from Expedia Inc.
Economic
Credit cards companies impose a finance charge whenever a customer purchases something online making the cost of a service rise
Expedia Inc. markets product in several currencies which in turn exchanges into US Us dollars, there might be several fluctuations in the exchange rate and the incorporation might lose money credited to these appreciations or depreciations of currencies.
For recent year there has been a global financial crisis which has led to many people being unemployed and so having less income, as Expedia Inc. sells a tertiary product and will not offer an essential good it may have an impact as people could see it as a ======
Social
In modern times people have higher affluence meaning that they have more money and free time to travel, this may have a direct positive impact on the sales of the incorporation.
Technological
As the internet coverage improves people are more alert to online selling, being a great advantage for Expedia Inc. as this escalates the number of potential clients.
Legal
Through deregulation it is becoming easier to turn into a multinational as there's a wider liberalization of trade
Growth strategy
Product Innovation
Each of the brands held by Expedia Inc. has a technology team dedicated to provide the best possible service experience to tourists. Very significant ventures have been manufactured in the incorporation's technology programs which were developed further in order for improvements to be sent in a quicker paste to the sites. Moreover, the business is making a substantial effort to assist in customers for the best possible travel option that suits them best and down the road make the arranging of the travel bundle easier.
Global expansion
Expedia Inc. has made intense initiatives in this section concerning become international and sell hotel-rooms all around the globe. More descriptively in Asia, the business owns the majority show of eLong, the next biggest travel company in Asia. Eventually, in Europe the company possesses Venere, which focuses entirely with the Western european market. Furthermore, the incorporation has a 50/50 joint venture with AirAsia which really is a low-price carrier in the Asia-Pacific region.
New Route Penetration
Expedia Inc. is constantly trying to develop tools that will enhance both operations and customer satisfaction, by extending further; supplying customers the possibility to book flights through portable gizmos, such as phones and iPad's. To achieve this accretion, it includes taken over a leading company, Mobiata, a credit card applicatoin manufacturer deciding on contrivances. Through this, Expedia Inc. seeks to ease customers when arranging their holiday.
Ansoff Matrix
The Ansoff Matrix can be used to show how high-risk it is ideal for a company to grow into the four expansion strategies being market penetration, market development, product development and diversification.
New
Existing
Products
Existing
Increasing
risk
New
Markets
Increasing risk
Market Penetration - producing mobile phone and gizmo applications.
Product Development - innovating sites and services and selling day-tours.
Market Development -
Diversification-
Financial Analysis
Ratio Analysis
With aid from performance ratios, the improvement of a firm is conducted.
Using the profit margin percentage in a intra-firm evaluation basis will help in being able to access the efficiency of the management of Expedia Inc. in transforming sales revenue into income.
Profit Margin Ratios
The profit percentage ratio can be used to look for the percentage of sales that have been converted into gross revenue and net earnings. A comparison between your two is utilized to assert what size the costs and overheads of sales are.
Gross Profit Margin (%) = gross profit
In 2010 the price of sales were 22. 6% going out of the gross income to be 77. 4% although the net profit is 16. 5% this means that that the incorporation has very big over head costs. Checking these ratios to those of 2011 where cost of sales were somewhat less at 22% making the gross revenue 78%. The net income of the organization in 2011 was lower than 2010 at 13. 7% suggesting that the firm acquired even higher overheads.
