(Question and Answer): Showcased at the beginning of this chapter. Priceline and rival Expedia rely almost

Showcased at the beginning of this chapter. Priceline and rival Expedia rely almost exclusively on their website for business. Thus, it is obviously essential in this industry to have the most effective, efficient, and user-friendly website possible. This exercise gives you practice identifying key strengths and weaknesses for two rival firms.

Expert Answer

Priceline.com

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Strengths

1. High growth rate since its inception

2. Enjoys economies of scale

3. Pioneer company in travel bookings and discounts for travelers in US

3. Robust customer loyalty program

4. Derives customer from other websites too.

5. Popular services and good user experience make it a popular brand

Weaknesses

1. Low entry barriers to new players

2. High concentration of operations in the US and high reliance upon intermediaries and travel suppliers

Expedia.com

Strengths

1. Broad range of hospitality service and online travel offerings

2. Strong portfolio of travel brands

3. It has presence in global market space with wide global presence in about 60 countries, so the risk in revenue growth is less

4. Strong brand name coupled with high customer loyalty

5. It has partnered with hotels apart from airlines and provides different kind of packages to customers

6. Acquisition of smaller players has strengthened its position

7.Offers a wide range of products

Weaknesses

1. Intense competition from other service providers means limited margins and slow market share growth

2. Provides undifferentiated services compared to that of competitors.

3.Low margin, and intense competition in host countries due to presence of local competitors

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