For Your Compfort (FYC) Industry Analysis
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Choose ONLY ONE of the following successful (or one-time successful) e-biz companies: Netflix, Orbitz, Truste, Ofoto, or Etrade. Research articles in the Library and Internet, analyze your chosen company, and bring forth their successes and failures and what FYC can learn from them. Then, answers the questions below:
1. Describe the company's primary business model, revenue model, and industry.
2. Who are the competitors? What makes the company stand out from its "pure play" Internet as well as brick-and-mortar counterparts? [specific USPs, strengths, and weaknesses]
3. What are the benefits and limitations to the user? What's the value proposition?
4. Is it the industry's online bellwether? How has it changed the industry and the way business was transacted in the industry?
5. Had the company's model failed before? If so, why and how did it turn around?
6. What are the potential risks and challenges it faces now? Is it profitable?
7. What's in the future? [plans/goals]
8. What are your recommendations for competitive advantage/corporate strategy?
9. In a brief capsule, what lesson did you learn?
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This solution talks about For Your Comfort (FYC) primary business model, revenue model and industry.
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Company selected is Orbitz.com
1. Describe the company's primary business model, revenue model, and industry.
The core capabilities of Orbitz is to use its online website to book airline tickets at the best possible rate, the partner network is the network of five airlines that have come together to start Orbitz, the value configuration was that Orbitz would eliminate the cost charged by other online travel agencies and pass on the benefit to the customers. The value proposition is the tickets of airlines at the best possible price to the customers. The target customers were those that were interested in booking airline tickets online at the lowest possible costs. The distribution channel was through the Orbitz website and the call centers that were added later on. The customer relationship was maintained through the booking of tickets through the Orbitz website. The cost was initially financed by the five airlines that came together to form this website and the revenue was generated because the five airlines that represented 80% of the air business in the US contributed to the airlines.
The company's primary business model is that of an internet travel business. However, this is an internet travel company with a difference. It has been promoted by five airlines namely Continental Airlines, Delta Air Lines, Northwest Airlines, and United Airlines, and American Airlines. This business was stated with a joint investment of $145 million and was meant to counter the strangle hold of other internet travel business.
The revenue model was that these five airlines would not sell their tickets through other sites at lower prices than what it offered Orbitz, the result would be that revenue would flow to the site. In addition, the airlines would issue certain discount fares only to Orbitz leading to increased revenue for Orbitz, there would low computer reservation fees extended to the five airlines and attracting revenues in the bargain. Finally, the airlines could coordinate their sales policies so that they would not indulge in a price war. Currently the brands of Orbitz are Orbitz Worldwide, Galileo and GTA.
The industry is the internet ticketing industry where the competitors at the time it was launched were Expedia, Sabre, Galileo and Travelcity. The industry is marked with sharp price cutting and attracts customers mainly on the basis of the attractiveness of the ticket prices offered.
2. Who are the competitors? What makes the company stand out from its "pure play" ...
Education
- BSc , University of Calcutta
- MBA, Eastern Institute for Integrated Learning in Management
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