BSB119 Lecture Notes - Country Risk, Wotif.Com, Hotels.Com
Document Summary
Industry leader share price has dropped recently: how has wotif. com maintained its competitive advantage in the marketplace? (6 marks) First mover advantage no one had tried to do this before. In the us, big players such as expedia, Hotels. com operate a merchant model where the companies buy the hotel rooms at wholesale and then market them up and sell at retail prices. This is quite an unyielding model and involves a great deal of investment. You may or may not sell the asset. You establish brand, image and you are the competitor everyone has to overtake. First person to make a connection with suppliers and resources. First to take on government agencies and departments gain imperative market knowledge. Economies of scale more clients they get the more economies of scale. What we do is concentrate on doing one thing really . We approached it from a very low cost model. Everything we do we try and do very efficiently, internally.
