Strategic Management Plan for Trivago: A Comprehensive Report

This report provides a comprehensive analysis of Trivago's business strategy. It begins with an introduction to the company, highlighting its focus on internet-based products and services within the hospitality sector. The report then delves into a macro-environmental analysis using the PESTEL framework, examining political, economic, social, technological, environmental, and legal factors influencing Trivago's operations. Following this, an internal environmental analysis is conducted, employing SWOT and VRIN analyses to assess the company's strengths, weaknesses, opportunities, threats, and core capabilities. The competitive landscape is evaluated using Porter's Five Forces model to determine the bargaining power of suppliers and customers, the threat of new entrants and substitutes, and the intensity of competitive rivalry. Finally, the report outlines strategic management plans, including Porter's generic strategies and Bowman's strategy clock, to recommend strategies for enhancing Trivago's market positioning and achieving its objectives. The analysis provides a detailed understanding of Trivago's strategic position within the competitive landscape of the hospitality industry.

Hospitality Business Strategy

INTRODUCTION
With objective of remaining in the market it is very essential for the business
organization to take into account the various factors that might have an impact over the
business operation and the functioning. The business organization is required to is required to
undertake various types of market analysis which might to required to be taken into account
for accomplishing the business objectives. This report is about the trivago company is the
German based company which is specialized in the internet based products and services.
Expedia group owns the majority of the stakes in the company. This report undertakes the
macro and micro environmental analysis along with the competitive analysis of the company.
Further it will also study on the strategies that can be implemented by the company for
attaining higher market positioning and objectives by formulating a strategic plan.
TASK 1
Macro environmental analysis to identify and inform strategic management decisions
PESTEL Analysis
Political factor
The hotel industry is majorly influenced and dependent upon the tourism and the
regulations pertaining to it. In territories that are under political difficulty, the lodging
business performs inadequately. While the United Kingdom is a generally considered as the
free market, the administration will at present will closely look on what is happening in the
non-public sector in order to guarantee that organizations are working within the eventual
benefits of the nation (Mak and Chang, 2019). The immigration policy is the main worry for
the country’s hospitality industry. Limits on the immigration exterior to the EEA leads to
shortage of skills. For example, unavailability of hotel and catering managers with relevant
qualification an affect the workforce requirement and quality of service of the hotel. Thus, it
is having a negative impact.
Economic factor
It refers to the any major monetary variation greatly impacts the hotel business. A
massive portion of this industry is created of the lavish hotels and inns. Hard times, inflation,
and other financial aspects have a greater influence over the individuals' capacity to manage
the expenses associated with it. And yet, this additionally led to a rise in demand for budgeted

accommodations accordingly growing certain verticals in this hotel industry. The foreign
exchange rate is another factor that effects the size of the foreign explorers to exploit
accommodation services. For instance, inflation will lead to increase in hotel service price
affecting the demand or reducing the travel plans.
Social factor
The current age has demonstrated a strong example towards journeying alongside
social media tools where people can share their experience and thusly make companions to
travel. This is extra to the increasing cost limits is ensuring that a broader class of people can
use the motel business (Arif and Hossin, 2016). This trend will develop more in future
prompting significantly more interest for lodgings. Hotels are likewise accepting different
classes of people and are ensuring they are more ready to assist the necessities. Mostly
governments have made it through laws that any sort of discrimination is permitted to occur.
For example, if any of discrimination happens it will affect the reputation of the company
leading to loss of customers. Therefore, this factor has a huge impact over the Trivago.
Technology factor
Hospitality industry have become increasingly more innovative. For all intents and
purposes all of them are close-fitting with CCTV cameras to provide safety and various
features that make the guest's stay more pleasant. Wi-Fi organizations, intercoms, and so
forth, are likely the most generally perceived creative innovation that can be institute in any
hotel. This moreover encourages them to determine all the fundamental facts smoothly. For
instance, hotel not having the option of online booking will lose wide range of customers as it
is not attractive. Thus, having impact over Trivago.
Environmental factor
Countries having extreme climate conditions struggle prospering their inn industry.
Not solely do these lodgings need to have the advancement that can counter such common
effects, yet they furthermore face a nonattendance of intrigue due to the failure of voyagers to
withstand such conditions (Robin, Pedroche and Astorga, 2017). For instance, if the company
fails to meet with the environmental regulations then it will face downfall in demand
affecting business thus, Trivago needs to consider this factor.
Legal factor

The legitimate state of a country is extremely important to the improvement of the
hospitality business. Basically, all countries by and by have discrimination laws set up which
has benefitted the tourism business and thus the hotel business. The government is offering
tax benefits as well. Therefore, Trivago requires to comply with all the legal laws for
avoiding government intervention.
Internal environmental analysis and capabilities
SWOT Analysis
Strengths: Trivago is having large number of outlets with the strong distribution network.
Also, the low-cost structure of it assist it in producing at the lower cost and also selling it at
the low price which makes it affordable for the customers. It is having a good financial
position and a good relationship with the suppliers.
Weaknesses: Trivago is spending more than average in its R&D but it is comparatively
lower than its rivals. A significant portion of the property that Trivago owns is rented on
which it pays huge taxes (Köseoglu and et.al, 2019). Its cultural structure has resulted into
failure of mergers which is aimed at vertical integration.
Opportunities: Trivago can make an earn by making use of social media platforms in a more
effective manner. Implementation of latest technology will help gathering customers data and
in enhancing the marketing efforts.
Threats: The increasing competition in the industry has putted downward pressure on the
Trivago’s price (Martinez, 2017). The changing consumer tastes and preferences puts
pressure on Trivago to bring changes according to it.
VRIN analysis
Resource or
capabilities
Valuable Rare Inimitable Non-
substitutable
Global
distribution
network
The association
has an overall
transport
structure with
specialist and
understandings
in countries

over the world.
This helps the
association in
guaranteeing
that its items
are commonly
available and
successfully
open to all
purchasers
(Nieves and
Diaz-Meneses,
2018).
Experience in
expansion to
other countries
The experience
of development
to different
countries really
has allowed the
association to
gain exposure
and inclusion
with universal
business,
culture and
trades.
Usage of
progressive
technology
The association
uses dynamic
advancement
and places
assets into new
development to
help it with
making the

business more
reasonable and
viable. This is
huge for
keeping up
competitive
distinction. The
innovation used
by the
association
decreases
human
mistakes.
The
uniqueness of
product
portfolio
The
organization
has an
exceptional and
differentiated
portfolio. This
has allowed it
to invade
unmistakable
client social
gatherings.
Moreover, keep
up pay from
different
streams. Into
urn, that gives a
strong fiscal
help to the
business.
Human The

resource
management
organization has
taken initiative
in exemplified
HRM in all its
functions –
from enrolment
to preparing of
ability of
management
(Florea and
et.al, 2020).
This has
allowed the
association to
develop a
supreme
resource that is
agreed with the
progressive
destinations,
and key, which
is
interchangeable
to the affiliation
itself.
R&D The
association's
continued with
enthusiasm for
R&D grants it
to make reviews
for new things,
similarly as test

these new
things in limited
market settings
(Touil and
Jabraoui, 2019).
This allows the
association to
assess the
achievability of
weighty
thoughts,
similarly as
produce
analysis for
improvement
where required.
This is a
supreme
resource for the
association
since it has
become part of
the association's
structure and
culture.
Brand
recognition
The brand worth
and
acknowledgment
increased in
value by Trivago
is a non-
substitutable
resource. The

high brand
affirmation
across different
client social
affair's in
different
countries allows
the brand to
acknowledge
high customer
transport, high
arrangements,
and an
outstanding
bond with the
buyers (Pervan,
Ćurak and Pavić
Kramarić,
2017). This can't
be imitated at all
by the restriction
as the brand
acknowledgment
and resonation
has been worked
during the time
through
troublesome
work and quality
redemption.
Brand equity The Trivago
appreciates high
brand esteem.

This has been
made through
the different
stages presented
by Keller in his
model for brand
esteem. The
high brand
esteem similarly
reflects a high
energetic
interest that
Trivago has for
the buyers.
Determining the competitive edge of the company by using Porter’s five forces model
Bargaining power of suppliers
All most all the associations in this industry buy their raw material from the different
suppliers. Providers in top position can lessen the edges trivago N.V. can secure in the
market. Pivotal and ground-breaking providers in innovation division use their negotiating
ability to get more noteworthy costs from the associations in this exploration field. The
overall impact of higher dealing intensity of provider is that it cuts down the overall
efficiency and gainfulness of examination-based data suppliers.
Bargaining power of consumers
Buyers are often a demanding part. They want to buy the best item available by
tending to the base expense as could sensibly be normal. This put centre around trivago N.V.
profit as time goes on. The little and even more momentous the customer base is of trivago
N.V. the higher the bargaining intensity of the customers and higher their ability to search for
greater offs and offers.
Threat of new entrance

New members in Internet Information Providers brings progression, better
methodologies for completing things and put focus on trivago through lower value procedure,
reducing costs, and giving new motivators to the customers. trivago N.V. requirements to
manage all of these challenges and amass incredible impediments to guard its serious edge
(trivago N.V. Doorman Five Forces Analysis. 2019). Building capacities and putting
resources into R&D is a powerful method to handle it. New members are less willing to enter
the business where the current players, for instance, trivago N.V. keep describing the norms
consistently.
Threat of new or existing substitute’s products
Right when another thing or organization meets an equivalent customer needs in
different habits, industry profitability endures. For example, services like Dropbox and
Google Drive are substitute to capacity drives (Jones, Hillier and Comfort, 2017). The peril
of a substitute thing or organization is high if it offers a motivator that is phenomenally
unique comparable to current contributions of the business.
Competitive rivalry
If the opposition among the current parts in an industry is uncommon, by then it will
drive down expenses and decay the overall advantage of the business. Trivago N.V. works in
a very serious industry. This opposition takes cost for the overall long term profitability of the
entity.
Task 2
Strategic management plan
Porter’s Generic Strategies
In this model, there are 4 sorts of conventional techniques which can be embraced by the
business associations which are expressed underneath.
Low cost leadership: This procedure includes picking up the competitive edge through
bringing down the expense. It alludes to dealing with a wide range of cost and working
practices at the most reduced expense in the business.
Differentiation: It includes differentiating the item and administrations from the contenders
for pulling in more clients (SABBENA and JAMES, 2018).