Travel Business Franchise and Market Structure

Increase the frequency of purchases by your customers. No matter how poor your current product or service, you must have some customers or clients. One key strategic dimension that you should be thinking about is how to augment and reposition your product in order to sell more to this group.

Before the days of the Internet, if a family wanted to travel to a far-off, exotic locale, they would have to either find a local travel agent or call a travel agency and plan their getaway. In the 1990’s, the Internet became a staple of everyday life and began entering many homes. As the availability of the Internet increased, so did the services available to clients. With the increasing availability of the World Wide Web the travel industry found itself faced with revolutionizing changes. All of the tools that were once solely available to travel agents now became readily available to anyone with access to the Internet and a search engine. Websites quickly formed around the idea of providing consumers with quick vacation planning ideas at low costs. Getting

Franchise ownership structure has the ability to be more profitable for the league and its owners because it allows all owners the ability to maximize their own profits. And then all league wide revenues are divided evenly among the owners. However, there are problems with this league structure. In this type of league structure there is the issue of collective bargaining agreements. Which allows the players a share of all league wide revenues. It also allows players other rights that are negotiated during CBA negotiations that allow players to become more profitable themselves. In this type of league structure all franchises must have a significant amount of financially backing so that they can be competitive in the league and continue to increase revenue. Also in a franchise ownership model the league has the ability to prevent teams from relocating. In the legal case City of San Jose v. Office of the Commission of Baseball the City of San Jose sued the MLB from preventing the Oakland A’s relocating to San Jose, California. MLB argued that the A’s moving to San Jose would infringe on another franchises territory.

Forging a new horizon of traveling, Allegiant Travel Company is an airline company that offers airline travel from smaller cities to vacation destinations, for competitively lower prices (3). What makes this company different from others is their plan itself - most of the cities they fly from rarely get attention from the larger airlines (4). In addition to their cheap fares, Allegiant Travel Company offers bundle deals with hotels, rental cars, and other amenities that might be useful when traveling (3), a major factor in the purchasing decisions of their customers, and ultimately the company’s economic state.

Target your best customers and find a way to interact with them on a somewhat frequent basis, spending more time on high value customers. Forums and public events are both great ways to do this and helps educate your consumer base as well.

However, with monopolistic competition the competition is very high especially, in restaurants due to a large number of firms that compete. There is a great variety of different foods from which to choose from. Although each firm produces a differentiated product monopolistic competition firms compete on product quality, price and marketing. In monopolistic there are fast food restaurants such as Taco Bell, Mcdonalds, KFC, and Burger King each fast food restaurant compete with offering and advertising different products to increase demand for their product. Perfect competition is more efficient because of several reasons firms maximize profit and produce on their supply curve, firms also minimize their average total cost of producing good and consumers get a real bargain and pay a price that is below the value they place on the good. I believe perfect competition is more efficient because it has more available substitutes and no firm can influence the market

| franchise organizations are consistently more profitable than non- franchise organizations in the same industry

A third factor that actually classifies the structure of the fast food market as monopolistic competition and not oligopolistic is the fact that though the fast food industry implements non-price competition through coupons, promotions and advertisements, the industry also experiences price wars. There is no tendency to keep prices fixed within the fast food industry. Oppositely, there are constant price wars between fast food competitors (AmosWEB). In 2008, Taco Bell began offering products at prices ranging between $0.79-0.99 in order to undercut the dollar menus at McDonald’s and Burger King. Wendy’s has taken on a similar strategy, offering a double hamburger for one dollar. Many companies are following this trend in congruence with their competitors and this is creating a possibly detrimental price war (Motley Fool). These price wars have led to losses for many fast food companies trying to keep up with their leading competitors’ dangerously low pricing. The giants of the industry can afford to set their prices extremely low; however, companies such as CKE Restaurants Inc. are experiencing large losses in 2010 due to their inability to price as low as front-runners, including McDonald’s and Burger King. Due to the damaging price wars, “CKE Restaurants Inc. (CKR) recently reported a loss of 6 cents per share for the first quarter of fiscal 2011” (Seeking Alpha). Prices remain fairly rigid within an oligopolistic

More sales, that’s what every business owner want after all. But what if I told you that you can increase specific products and offers sales and steer your customer towards the more expensive choice of products and services?

When a good or service has only a limited number of sellers and offers the product with little attention to the competition, this is known as an oligopoly. An oligopoly is different than a monopoly because there are multiple firms that are involved; however, the consumer can be affected in the same way. Competition can usually be seen as what’s best for the customer; however, that’s not always the case for the firm. If we observe two firms that have the leading sales in soda, Pepsi Cola and Coca-Cola, we can see how they form a great example of oligopoly. As the information provides, we can see that these two drink companies share about half of the soft drink market.

In this section we look at who are our competitors in the same industry and how can we gain the large portion of the market share and profits. However, if the level of competition becomes too high it can ultimately lead to a decrease in profits. There has been an increase in the amount of competitors on the tourism industry over the last 10 years, with the introduction of online sales and new airlines. For the tourism industry the level of competition can be quite high as

Complement this with the price sensitivity of buyer insufficient in terms Of switching costs, then the buyer power appears stronger. This is by focusing on customer service. A strong company's performance is usually linked to less employee turnover rates. While employees has experienced is more advantage because of their knowledge of the products. Buyer power is moderate.

I. Introduction 1. There are several basic approaches to competing successfully and gaining a competitive advantage, but they all involve giving buyers what they perceive as superior value compared to the offerings of rival sellers. 2. This chapter describes the five basic competitive strategy option for building competitive advantage and delivering superior value to customers – which of the five to

The bargaining power of consumers has also been deemed as the market of outputs. This is the power of consumers to put the company under pressure. This can markedly influence the consumer's sensitivity to price changes by the firm. Buying power is high for the consumers if they have a number of alternatives to choose from. In terms of coca cola, there is not much competition for their products since they are the dominant players in the beverage business. This has made it possible for coca cola to contain its buyer's purchase power through establishing loyalty for their products.

This is affected by the ability of the customers to find a different way or different substitute products in the market. If substitution is easy and is viable enough, it will certainly weaken our power. Therefore, we need to reach and get in touch with the customers faster than any