The Client Is A Small Luxury Travel Company

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1.Introduction The Client is a small luxury travel company and is looking to expend by introducing a website and increase the access to the services provided. Assume the objective of the client is profit maximization. Thus value configuration, which is to add value in certain way that makes customers willing to pay (), becomes a crucial business activity. Also assume the client does not own any hotels or transport, only acts as an intermediary. The business model is shown as figure 1. At last, assume the business operates in a monopolistic competition market, where it faces a large number of competitors, providing differentiated services (different hotels, personalised services, etc.). Since this is a luxury business,…show more content…
2. Value configuration Consumers will only purchase goods or services from a particular firm only if it offers certain value that the competitors cannot offer. Thus create and capture this consumer value is a vital business activity. Since the client act as an intermediary. Thus according to Thompson’s typology of organizational technologies, mediating technology, which is to provide service of a connection between two or more parties (), can facilitate the client. The value configuration associate with brokering business is called value network. Unlike manufactory business focus on logistic and production, intermediary business should focus on the network promotion and contract management, service provisioning and infrastructure operations. Network promotion and contract management is to promote and construct the network, in this case will be marketing, and customer relationship management. Service provision includes linking people in the network and collecting payment for making the connection. Infrastructure operations allow the business to operate efficiently and remain in a state of readiness to provide service to the next customer. In this cases, will be supply chain management, which is manage the relationship between the hotels, transports and etc. By adopting e business, the client can increase value in all three sections above and thus lead to an increase in profit. Network promotion/
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