The Value Chain of Expedia Essay

949 Words Mar 15th, 2013 4 Pages
The Value Chain of Expedia
HMGT 5580
He Huang

Value chain analysis is a useful tool for working out how you can create the greatest possible value for your customers. The value chain program design consists of selecting and analysis an entire value chain, identifying and assessing appropriate market-based solutions and determining and prioritize suitable facilitation activities (or interventions) for the development organization to undertake to ultimately increase economic benefits for the target population. ‘The value chain describes the full range of activities which are required to bring a product or service from conception, through the different phases of production (involving a combination of physical transformation and the
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Online costs are typically much lower than traditional retailing so that prices are often lower. Expedia is parent company to several online travel brands including Expedia.com, Hotels.com, Hotwire.com, Egencia, Venere, Expedia Local Expert, Classic Vacations and eLong. Expedia, Inc.’s companies operate more than 100 branded points of sale in more than 60 countries (Thomson, 2008). Expedia manages information to make these value chains more efficient and create value for their customers, and it uses information networks provided by third-party information technology integrators to coordinate their value chains. The market in which Expedia operates in is hugely diverse and challenging. Customers want to organize a vacation: hotels take care of accommodation; restaurants of meals; trains, taxis and airlines of transport; mountain guides, museums, diving schools, and event bureaus of on-site entertainment and relaxation. Expedia can create complete packages from the different options. Local or Internet-based travel agencies help customers to select the package that is right for them. Moreover, consumers are searching the globe for new travel experiences and destinations. The Internet enables even the most remote holiday destinations to be presented to an international clientele. Expedia is marketing their services alone or teaming up

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