Business Strategy and Innovation: An Analysis of Expedia Group

This report provides a comprehensive analysis of Expedia Group's strategy and innovation within the travel and tourism industry. It begins with an introduction to Expedia's business model, mission, vision, and long-term objectives, followed by an examination of its positioning and key strategic issues, including technological advancements and customer retention. The report then delves into strategic analysis using Porter's Five Forces model and explores innovation strategies, including the product life cycle. Furthermore, it discusses strategic choices, market share expansion, and the impact of environmental factors. The report also presents SWOT and PESTLE analyses and concludes with recommendations for future development, emphasizing the importance of adapting to emerging technologies, attracting and retaining customers, and ensuring e-commerce security. The analysis highlights the challenges and opportunities Expedia faces in a competitive market, offering insights into its potential for sustainable growth and innovation in the travel sector.

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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issues might be harmful for the company. This issue can also harm the customer positive
behaviour towards the company.
PART 2 – STRATEGY
2.1 Porters Five Forces Model
Threats of new Entrants
Threat of new entrant are high in the industry which indirectly affect the company
performance and growth.
Threat of substitute products
The availability of products create environment more competitive and challenging. High
substitute services will make pressure on the company performance. Substitute products are
available in cheaper way in the market.
Rivalry among existing firms
Company facing high competition in the market which makes high pressure on the
industry (Pisano, 2015). But in terms of Expedia rivalry companies pressure is low because there
are only few numbers of players which affect company regular performance.
Bargaining power of Suppliers
Bargaining power of suppliers are also high in terms of Expedia where company trying to
make the best developing results in order to get the best developing results from the market.
Suppliers are trying to make company more competitive and challenging.
Bargaining power of Buyers
Consumer behaviour is dynamic in nature which brings negative impact and bring new
effective marketing objective. Consumer behaviour can be examined as its is a decision making
of an individual when consumer engaged in evaluating, acquiring and using or disposing goods
services. Travel and tourism is the best sector where customer satisfy their needs in an effective
manner. Further it is necessary for the Expedia to attract people into more expanding manner. In
other words, bargaining power of buyers is High in order to demand highly perceived quality and
growth.
PROJECT 3- INNOVATION
3.1 Strategy Overview
Travel and tourism are the fast-growing industry in across the world. It brings different
exciting offers for customers and create new trend for the market. As such company can make or
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opt their won app for their potential buyers and attract number of clients towards the industry. In
other words, it helps to make the long-lasting challenge and deal with new learning goals and
objectives (Pisano, 2015). Expedia has to develop the new strategies and adopt new innovation to
create the challenging behaviour within the industry. In present time, with the help of company
mobile app servicing will help more to the company and develop long lasting range of
productive development.
Innovation is the most required and challenging task for the company that builds the long range
of growth and effective working task. In other words, Expedia should need to adopt new trend in
the market in order to sustained the customer behaviour and stabilised the market growth (Berry
and Berry, 2018). Here its is explained some of the new emerging trend that should abide by the
company to get more success in the market. In order to make the best following results and long-
lasting opportunity and make the best outcome results.
Theory of Innovation (Diffusion of Innovation Theory)
Innovators : This is the first element of the innovation theory in this first task it has been
defined that businesses want to be the first to try the innovation. In this stage company could
invent or innovate something different from others. They are venturesome and interested in new
ideas. In which businesses are taking to new risk.
Early Adopters : Next stage towards innovation is early adopters early adopters are
those who innovate something before any other can innovate. These kinds of businesses are
represent opinion leaders.
Early Majority : In this next element those leaders are include which adopt new idea
before average person. According to them they require evidence that the innovation works before
their rarely leaders (Diffusion of Innovation Theory, 2019).
Late Majority : Late Majority of people are skeptical of change and only acquire
innovation after it has been tired by the majority.
Laggards : Last element which includes or bound by tradition and very conservative.
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Personalization – The biggest priority among the modern travel industry trends.
As per the research conducted by Aloini, D. and et.al., 2015, it has been found out that
90% of travellers worldwide admit that standard travelling process in not enough any longer.
Personalized approach is become fruitful approach for the Expedia to attract the large number of
travellers. Personalized experience relates to the approach and will help to modify the long-
lasting way of performing task and build up the new emerging market growth (Brennan, Previte
and Fry, 2016). In other words, Personalised is now most priority trend among the modern trends
in travel and tourism industry. In other words, it helps to bring new customer’s and new
opportunity for the level of in other words it helps to build up the long-lasting customer
relationship with the customers.
Expedia should need to customizes offerings and personalized services to their clients.
For example, Expedia can give customers more option such as Expedia can adopt service, for
instance, has already introduced account specific messaging with corporate clients. It concerns
their exclusive benefits.
Recognitions technology
This is another innovation that can adopted by the Expedia, such as high-tech technology
includes fingerprints, facial recognition, retina scanning in order to handle the process of
identification. This new technology could change the environment of overall industry in next
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Illustration 1: Innovation Theory Model
(Source : Diffusion of Innovation Theory, 2019)

three years (Dodgson, 2018). Besides, company can also adopt the new changing behaviour of
customers in order to gain market opportunity.
Augmented and virtual reality (AR and VR): AI is behind many evolving technologies
and innovations in the travel and tourism sector. Expedia can adopt some of the measure
terminologies and goals. This technology can be used by the company in order to promote the
content of marketing or to improvise the customers experience.
Internet of things: Internet of thing is the potential tool to shape the effective and
productive future in travel and tourism industry (Fitzgerald and et.al., 2017). Expedia can adopt
internet of things to providing the facility to customers that they are free and liable to track their
luggage throughout the travelling. This can help clients to feel free and reduce the anxiety and
stress.
Voice Technology: It is the new managing and developing results to make the best outcome
results. This new trend can also have adopted by the Expedia to make the new services or plan
for the new expansion process. For example: Expedia can adopt the services for their customers
to experimenting with voice activated devices. In order to attract customer in the direct
performing manner.
Wearable devices: Despite a sluggish start, travel and tourism companies and gradually
using the technology to offer customers a more personalized and united experience (Frederiks
Stenner and Hobman, 2015). This new technology or trend will help clients to reduce the time
and get easily connected with the situation and make good outcomes and goals.
Travel drives technology has been at the forefront of digital innovation and continues to
be transformed at an exponential rate across the globe. Travel and tourism is the best source or
development sector across the other sectors. Travel and tourism also provides many
opportunities for the development of national or global economic growth in terms of providing
job opportunities, economic growth, reduce poverty scale etc. it will help to recontinue the
process or making long lasting results (Hall, Gossling and Scott, eds., 2015). To build up the new
opportunity and goals, it will help to recontinue the long-term way and new opportunity and
goals to enhance the best and developing results.
Redefining travel with big data analytics: A traveller leaves behind a vast quantity of
data from multiple stages including planning, research, price search and booking. This will help
to recontinue the development sources and growth. In travel industry client leaves their lots of
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data behind with the company through company can easily meet out the needs and take lots of
data with the company making growth and opportunity talent. In other words, new players as
well as old version in the travel and domain. Expedia should need to collect data and make the
best outcome results in order to meet out the best developing growth results (Holgersson,
Granstrand and Bogers, 2018). Expedia can use these all data with some advanced technologies
and approach new stay connected with the old clients. Big data analytic is the best tool to keep
the client data and make better use of that.
Eco Friendly travel options: This is the best innovation that should Expedia needs to
adopt to change the industry in next three years. In which Expedia can give many travel options
such as Choose a Carbon Offset Adventure, Avoid Bottled Water, Be at Hone in a Hotel, Travel
Overland, Share the Load, Pack light etc. this innovation strategy can make the environment
more safe and secure in future as well (Berry and Berry, 2018). Customers can also get choose
the destinations where they feel relaxed and healthy such as green destinations to nearby
countries. Vacations for green destinations can affect new developing growth for the new
development areas (Jensen and et.al., 2016). This is the best strategy or innovation which keeps
environment healthy and motivate the customers to feel healthy and satisfied with the new
innovation processes.
Innovation will always help to make clients happy and satisfied. On the other hand, this
technologies and new trend change the business environment in next three years. In upcoming
trend mobile application play a most significant role in the next three years. Half of the booking
is taken place with the help of mobile application. This is the easiest way to stay connected with
clients and understand their interest to offer deal accordingly (Mi, 2015). Apart from that, it
keeps the new managerial growth and long lasting developing resultant in other words, it makes
the new developing sources and new management working criteria which keeps me long lasting
and new management source.
3.2 Product Life Cycle
In order to launch new product or services or analysis the actual situation of the product
performance it is required to analyse the product life cycle. This is the concept of marketing
which describes the stages a product goes through from when it was first thought of until it
finally is removed from the market.
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Research and development : Researching and developing a service Expedia required to
research the market and analyse the growth of the result oriented. This is the first stage that helps
to think about the new concept which helps in creating a new concepts and product ideas.
Introduction : This is the second phase of product life cycle. That contains the services
or products according to the needs and wants. Besides, it requires launching the service in the
market with some potential marketing growth (Phaal, Farrukh and Probert, 2015). This
introduction process has to be implemented in proper manner. This is the effective stage that
helps to explore the systematic growth and following the different departmental goals and
objectives. PLC is the best way to accomplish the business objectives.
Growth : In order to sale in the market, third phase of cycle at the point product or
services are at booming level. In this company earn high sales volume from the market and
profit. In other words, distribution increases and promotion focuses on product benefits. In this
stage, innovation idea has been encouraged and develop into the new method. In this prices
growth system has been evaluated and evaluating in different manner.
Maturity : The product competes with alternatives at this phase where they facing highly
competitive environment from the market. Distribution becomes intense and promotion focuses
on the differences to competitors products. Maturity is the stage where the new innovation has to
be created to maintained the sustainability in the market. Also mainly it requires the challenging
business task.
Decline : This is the end point of product life cycle where product start decline their sales
and earn less amount of attracting process from buyers. In this stage of product life cycle product
growth has been decreased. In this stage company market has been decreased and company
required new product development approach.
PART 4 – DEVELOPMENT
4.1 Strategic Choices
In order to influence the consumer behaviours as per the above situation that is changing
consumer behaviour. For which Expedia should need to develop or promote sustainable tourism
development growth to manage the effective working conditions and opportunity for new
expansion and innovation (Mowforth and Munt, 2015). Expedia should need to focused on
sustainable tourism in order to attract customer attention and interest towards the company
services. As per the research UK has facing the issues and challenges in developing the travel
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