Strategies & Innovation in Expedia: A Study

Strategy & Innovation

Table of Contents
INTRODUCTION...........................................................................................................................1
PART 1- CONTEXT.......................................................................................................................1
1.1 Strategies ..............................................................................................................................1
1.2 Mission Statement.................................................................................................................1
1.3 Vision Statements..................................................................................................................2
1.4 Long term Objectives ...........................................................................................................2
1.5 Positioning.............................................................................................................................2
1.2 Key strategic issues or challenges ........................................................................................3
PART 2 – STRATEGY ..................................................................................................................5
2.1 Porters Five Forces Model ...................................................................................................5
PROJECT 3- INNOVATION..........................................................................................................5
3.1 Strategy Overview ................................................................................................................5
3.2 Product Life Cycle................................................................................................................9
PART 4 – DEVELOPMENT ........................................................................................................10
4.1 Strategic Choices ................................................................................................................10
4.2 Increased Market Share.......................................................................................................13
4.3 Environment .......................................................................................................................13
4.4 Growth Going......................................................................................................................13
4.5 Reduction of cost.................................................................................................................13
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15
APPENDIX....................................................................................................................................18
PESTLE ANALYSIS................................................................................................................18
SWOT ANALYSIS ..................................................................................................................19
INFLATION RATE IN UK......................................................................................................20

INTRODUCTION
The term innovation & strategy is the significant term to create and amazing experience with
the company. Innovation is the essential requirement for the business to stabilize their future
growth or meet out the current strategical issues (Stanford and Guiver, 2016.). Present study
based on strategic innovation of Expedia Groups which is leading travel and tourism company in
American global travel technology sector. It provides best or under budget plans for clients such
as cheap tickets, Home Away, Hotels, Trivago etc. as per the research Expedia derived from two
key words exploration and speed.
In further in this study will be presenting the company situations as per the
organisational, sectorial, technological or geographical context. In addition to that, report will
also be presenting the growth strategies to meet out the key issues in strategic management of
Expedia. Therefore, how company can make the new technological trend and meet out the
current needs and wants of the buyers. For that, report introducing some new innovation trend so
that situation could be change in upcoming three years.
PART 1- CONTEXT
1.1 Strategies
Expedia is the most well-known brand in across the world of online travel and owns several
others such as Trivago, Hotels etc. Over the past few years Expedia has made excellent flow in
acquisitions being as a parent company (Aloini and et.al., 2015). Expedia is the only big online
company where number of people plan a holiday with full satisfaction. The most current plan of
the company is to focus on to improve its strength capabilities in integration and particularly
technologically (Trevisan, 2016).
1.2 Mission Statement
As per the situation of the industry, it has been analysed that travel and tourism industry
should need to adopt new areas of development and make tour plans as per the behaviour of
customers and fulfil their needs and wants.
In terms of technology Expedia has number of ways to make client happy in order to
book a holiday plan or a long trip. In the last, if customer wont happy with the services of the
company they will switch to another company.
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1.3 Vision Statements
In order to expand the new technology, Expedia needs to invest on IT technology for
routing of flights and attract the buyer’s attraction level (Dodgson, 2018). In order to expand the
business growth Expedia latest acquisition is with HomeAway for $3.9 billion. It helps or reduce
the most difficult or disruptive force that facing by the company.
As per the sectorial context, company deal with heavy competition market where
pressure of new technology has been increasing day by day. Such as Airbnb is the biggest threat
for Expedia that should be removed by the company to beat the level of competition. Besides,
booking plan, Airbnb also deals with many services and available via its websites and mobile
apps. So, in this sector, level of services and trend has been introduced to gain the customer
attraction. In order to come over from the level of competition company should need to adopt the
high advanced strategic action plan to sustained the market growth. As per the sectorial context,
travel companies also facing the issues of customer dissatisfaction due to having issues in
websites or insecurities involved in the technologies (Fitzgerald and et.al., 2017). For companies
it is required for them to adopt the quality and established corporate travel management
strategies to make the level of business more effective and productive.
1.4 Long term Objectives
Travel technology has truly helped millions of vacation and management effective goals
and new management task and goals. Travel technology is the most effective vacation to enjoy
their holiday at their best (Trevisan, 2016).
1.5 Positioning.
At geographical basis online travel tourism has been facing high range of development
growth and managing the new development area growth. In other words, geographically Expedia
offer services as per the need of target customers and locations. Travel and tourism industry
should need to follows the current trends of the marketing order to meet the current geographical
needs and goals in order to meet out the customer satisfaction.
Swot analysis of Expedia group
Strength
High level of customer satisfaction gained Expedia in the market that helps company to
grow in the travel and tourism industry (Aloini and et.al., 2015). In other words, it helps to
generate the market opportunity and leading the best development opportunity goals.
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Successful track of developing new products is the another strength of the company
that makes it more competing in the market.
Strong distribution network will help to reach the customer and enhance the revenue
standards. In other it will help to managing the business approach and attract the best business
performance target (Berry and Berry, 2018). An effective go to market strategies Consistency in
quality of products.
Weaknesses
High alteration rate among workforce : this is the weaknesses of the company that
minimize their growth in several manners. This also affect the company ineffective performance
in within the market.
Ineffective financial planning : due to ineffective or lack of financial planning company
has facing low profit revenue growth.
Opportunity
Market development opportunity : this is the opportunity for Expedia to gain market
development approach in order to develop the best developing result growth.
New environmental policies – The new opportunities will create a level playing field for
all the players in the industry (Expedia SWOT Analysis, 2018). It represents a great opportunity
for Expedia to drive home its advantage in new technology and gain market share in the new
product category.
Threat
Increase in competitions : This is threat for the company to face high rate of ineffective
management and bring lack of ineffective response of the management.
Changes in social factors : Due to uncertainty in the market will help to determine the
leading the managing task (Fitzgerald and et.al., 2017). Social factors are uncertain and
inefficient to managing the work into proper manner. Due to failure to comply with legislation an
organisation might have to face legal issues.
1.2 Key strategic issues or challenges
E-commerce is now changed the way of doing the business. With the help of strategic
management approach an organisation uses in order to survive in the market as long the
company wants to survive with their new idea of innovation (Holgersson, Granstrand and
Bogers, 2018). All the company inventions and innovation leverage its existing resources and
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capabilities in order to providing the product or services that the market place values. But on the
other hand, company also facing some issues and challenges while performing the online
services due to which customer has facing high pressure from customer dissatisfaction. Key
challenges and growing the development areas and make the good impact on the new
development areas and make the good impact on the company development goals.
Challenge 1: Investing in the correct technologies as per the emerging technologies.
Emerging technologies has been the most important for the travel and tourism companies
who deals with the customer needs. Many travel companies adopt this EC and attract the
customer attraction towards the company services. Issue in this strategic management that,
company sometimes will not decide to take which technology or have not full faith on the
success as well. Will it prove beneficial for the company to beat the level competition or not. In
order to critically analyse that how such issue can give the negative impact on the company
performance
Challenge 2: Attracting & Retaining Customers
Another major challenge in online servicing is not having the advanced technology in
place to support the business model successfully but also need to have a site that can attract and
retain customers with the services of better growth and market (Mi, 2015). In order to beat the
long-lasting results in order to beat the level of customers and growth. This will help to
recontinue the long-lasting goals and new development areas. In order to beat the long-lasting
image and goals. In order to beat the competition, Expedia needs to adopt effective technological
way of promoting the new advanced growth. This is the long-lasting way of promoting the new
ways of performing deals and new development growth. Moreover, this brings new way of
perfuming the way of doing work in an efficient manner. In order to critique that, this issue can
be harm the company reputation in front of the customers.
Challenge 3: E-Commerce Security
E-commerce security is the main concern and long-lasting range of development areas
that affect the new customer service. E-commerce is the main concern or the level of doing work
into more appropriate manner (Nylén and Holmström, 2015). Due this challenge affects the
overall customer dissatisfaction and reduce the customer growth in further development areas. E-
commerce merchants are still vulnerable to fraud committed with stolen information obtained
electronically or in the physical environment. It has been argued with the issue that security
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