BK306 Strategic Marketing Individual Assessment 2022

BK306
BK306 Strategic Marketing
Individual Assessment
Jonathan Coker
MIT190406
29/4/22
—
Strategic Marketing
—
Jasbir Kaur

Assessment Cover Sheet
Student ID Number/s: Student Surname/s: Given name/s:
MIT190406 Coker Jonathan
Course: Bachelor of Business School: MIT
Unit code: BK306 Unit title: Strategic Marketing
Due date: 29/4/22 Date submitted: 25/4/22 Campus: Sydney
Lecturer: Jasbir Kaur Tutor: Jasbir Kaur
Student Declaration
I/We declare that:
1. the work contained in this assignment is my/our own work/group work, except
where acknowledgement of sources is made;
2. certify that this assessment has not been submitted previously for academic credit
in this or any other course;
3. I/we have read the MIT’s Plagiarism and Academic Misconduct Policy Procedure,
and I/we understand the consequences of engaging in plagiarism, collusion and
Contract Cheating;
4. a copy of the original assignment is retained by me/us and that I/we may be
required to submit the original assignment to the Lecturer and/or Unit Co-ordinator
upon request;
I/we have not plagiarised the work of others or participated in unauthorised collaboration
(collusion) or Contract Cheating when preparing this assignment.
MIT ID Signature Date
MIT190406 JC 25/4/22
For Assessor Use Only (if not marked on Moodle)
Name:
Position
Date:
Signature:
Marks/Grades:
Individual Assessment PAGE 2

Table of Contents
1. Table of Contents --------------------------------------------------------------- 3
2. SWOT Analysis ------------------------------------------------------------------- 4-6
3. Competitive of This Industry ------------------------------------------------- 6
4. Amadeus Key Competitive Advantage -------------------------------------7
5. Strategy Focus Option for Amadeus --------------------------------------- 7
6. References ------------------------------------------------------------------------- 8
Individual Assessment PAGE 3

SWOT Matrix for Amadeus
Strengths
1. Provides the technology behind airline flight bookings
2. Benefits from a 40 % share of a growing air travel market
3. Has other revenue sources (hotel reservations, IT solutions business)
4. Manages transactions between customers and about 120 of the world’s airlines
5. Expertise in airline booking software
6. Relationship with airline services
Amadeus' strengths are quite apparent, the reason for its success is all because of the technology it provides for
the airline services. People book and use their services; they are in a very strong position as a company to create
a large amount of revenue. Its relationship with the airlines services is also another example of their strength,
they are co-dependent on each other to create a successful system and source of revenue.
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Weaknesses
1. Its growth is therefore linked directly to an increase in global air traffic.
2. ‘Travel is very much linked to the economy... This is coming more from Asia due to the size of the
populations there’
3. Its dependent on airline co-operating with them to stay viable as a business
Amadeus’ main weakness is connected to its growth. Amadeus can only be successful and grow as long as
global air traffic continues to increase and flourish. During a time like COVID19, Amadeus would severely
suffer as global air traffic hits all-time lows. Also mentioned in the strength section, they are co-dependent on
airline companies to remain viable, that's most likely why they saw the need to expand their business into other
revenue sources.
Opportunities
1. Expansion from flights into hotel reservations and the growth of its IT solutions business.
2. Ryan Air Partnership
3. Amadeus has already begun to sell aggregated user information to airlines, revealing customers' search
habits
Amadeus’ partnership with Ryanair is its current outlying opportunity, especially as airline companies start
providing their own software’s that Amadeus would normally provide. This partnership is an opportunity for
them to stay relevant in these changing times.
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Threats
1. Competition: US group Sabre and UK-based Travelport
2. Being made obsolete: Airline companies have also attempted to provide their own IT
infrastructure
3. Its growth is therefore linked directly to an increase in global air traffic.
4. COVID19 (Kaitano Dube PhD, 2021)
For a long time, Amadeus was unopposed as a company, but now there is competition with Sabre and
Travelport, leaving Amadeus with the need to adapt and sell themselves further.
Competitiveness of This Industry
Amadeus business has seen a great number of successes but currently faces new challenges in competition. The
threat of new entry is very prevalent for them with ‘Sabre and Travelport are trying to gain market share’. The
software market is a very open market with new companies being able to offer services very easily and this
enables the threat of substitution to loom over all businesses in this market as some airline booking software’s
can offer better deals which encourage other customers to start preferring Sabre over Amadeus for example.
Even with the fact that most Airlines themselves are starting to provide their own booking methods/software’s,
leaving companies such as Amadeus with less revenue and less options. This creates more competition and less
room for growth as more airline companies become independent, not needing companies like Amadeus.
Especially with times like a pandemic, competition becomes even more fierce as revenue decreases and
companies get desperate. Amadeus did a very smart move by expanding their business into other ventures as
they may have predicted the current market growth and change. This really shows how volatile and competitive
this industry is, what was once an easy market for Amadeus is now a risky venture.
Individual Assessment PAGE 6

Amadeus' Key Competitive Advantage
One of Amadeus key competitive advantages is its aggregated customer information that contains the customers
search habits. Amadeus has been able to sell this unique and valuable information to airline companies.
Information such as search habits allows airlines to understand what the customers wants, and needs are which
is extremely valuable for airline companies to be able to target the market correctly. They have been able to
exploit this information, which other booking vendors can’t specifically replicate and sell it to airline
companies. Customer search habits help a company understand consumer behaviour, this is important as it
enables the business insight on what influences a consumers’ buying decisions. So, for Amadeus to have this
information is a key advantage it can waiver over its competition and leave the airline services that use their
service with valuable information they very much need. The main problem with this competitive advantage is
that it is only valuable as long as customers are using Amadeus’ platform. If more traffic goes to Sabre or
Travelport, they will lose the amount of customer search habit records which could potentially interfere with
this advantage. Essentially this advantage has not seen its full potential throughout the organisation.
Strategy Focus Option for Amadeus
With the competition in the booking market getting very crowded lately, one focus strategy they should focus
on is data collection and distribution. They are already using the advantage of consumer search habits and
distributing that data and creating a good revenue from this; expanding on this and focusing on this strength and
creating software that can track data and breathe valuable information that other companies or vendors would
need (N. Kumar, 2005). “Information search is defined as the stage of the decision-making process wherein
consumers actively collect and integrate information from numerous sources” (Lisa R. Klein, 2003). Focusing
on the strategy would be smart as the external threats of new services and new technologies are becoming more
apparent, focusing on data collection and distribution will allow Amadeus with a new avenue to good ahead in,
especially with booking companies which are their bread and butter.
Individual Assessment PAGE 7

References
 Agrawal, A. (2021). Sustainability of airlines in India with Covid-19: Challenges ahead
and possible way-outs. Springer Link. Retrieved 29 April 2022, from
https://link.springer.com/article/10.1057/s41272-020-00257-z.
 Antitrust Goes Global. Google Books. (2022). Retrieved 29 April 2022, from
https://books.google.com.au/books?
hl=en&lr=&id=d3MlK_f7wagC&oi=fnd&pg=PA195&dq=amadeus+airline&ots=StxAQ
34546&sig=6CvRXyZB8wZR-IvbWNLLeb7Ocno#v=onepage&q=amadeus
%20airline&f=false.
 Consumer Search Behavior in Online Shopping Environments. Ieeexplore.ieee.org.
(2022). Retrieved 29 April 2022, from
https://ieeexplore.ieee.org/abstract/document/1385588.
 Dube, K. (2021). COVID-19 pandemic and prospects for recovery of the global aviation
industry. Science Direct. Retrieved 29 April 2022, from
https://www.sciencedirect.com/science/article/pii/S0969699721000053#!.
 Klein, L. (2022). Consumer search for information in the digital age: An empirical study
of prepurchase search for automobiles. Science Direct. Retrieved 29 April 2022, from
https://www.sciencedirect.com/science/article/pii/S1094996803701388.
 Kuzminykh, N. (2022). Testing Models of Consumer Search Using Data on Web
Browsing and Purchasing Behavior. Science Direct. Retrieved 29 April 2022, from
https://www.sciencedirect.com/science/article/pii/S2212567114003529.
 Radulović, L. (2022). The role and potential of global distribution system amadeus for
tourism development at the global level. Journal.singidunum.ac.rs. Retrieved 29 April
2022, from https://journal.singidunum.ac.rs/paper/the-role-and-potential-of-global-
distribution-system-amadeus-for-tourism-development-at-the-global-level.html.
 Testing Models of Consumer Search Using Data on Web Browsing and Purchasing
Behavior. America Economic Assosiation. (2012). Retrieved 29 April 2022, from
https://www.aeaweb.org/articles?id=10.1257/aer.102.6.2955.
Individual Assessment PAGE 8