Case study of lastminute.com
- Managerial summary
- The Issues
- State's risk
- The market
- The environment
- Marketing Mix
- The Product
- The Packaging
- Product positioning
- Business / Operations
- Development Plan
- Financing Plan
Lastminute.com was founded by Brent Hoberman and Martha Lane Fox in 1998. Its creation was encouraged by the economy that was there around the Internet. Subsequently, it witnessed great success in Britain.
Today, it is the company of online travel and entertainment and is the largest in Europe. It operates directly in fourteen European countries and has won over 7 million customers. Its turnover is around 948 million euros. Through 14 acquisitions, it offers a wide range of travel, flights, reservations in hotels and leisure facilities (spa, gourmet dinner, skydiving), thus allowing it to differentiate itself from competition.
What is the strategy followed by a start-up like Lastminute.com to survive in an environment as competitive as tourism? Initially, the study will present the strategic location of Lastminute.com by the study of business, its offer, its organization and particularly external growth. Then, it will analyze the competitive environment through tools such as the 5 +1 Force of Porter's PESTEL and SWOT analyses.
The offer of lastminute.com France is characterized by a complete range of accommodation spread all over France. Lastminute.com is the only vendor to offer a range of products as diverse: the possibility of renting an apartment, mobile home, home stays in holiday villages, hotels available for all budgets, spa, river cruises or stays in a Theme Park.
In addition, the company seeks to differentiate itself by offering packages and delivering products and services in a practical and original manner. The company has successfully developed a unique and widely recognized brand, which aims to convey a certain spontaneity and a sense of adventure. The company offers a rangeof leisure just as wide: evenings at restaurants clubs, tickets to shows, parachute jumps, gift boxes, massage, food, theater
Consumption patterns in the tourism sector are more different. Indeed, the rise of low cost transport companies and the development of e-commerce have resulted in a decrease in consumption of the package until the standard for tourism. However, traditional tour operators have faced competition from e-tourism by strengthening their advisory role. In addition, the e-tourism has challenged the supremacy of travel agencies as a preferred distribution channel.
The specificity of the start-up due to the fact they are based on a potential customer unrealized and could generate an extraordinary growth. The value chain of tourism has completely changed because of start-ups like lastminute.com that have restructured the strategic segment.This is one of the few start-ups to survive the Internet bubble in 2000.
Sabre Holdings is a major player in its sector. It sells travel products and provides distribution solutions and technology. It operates on multiple travel distribution channels: the network of travel agencies and through Travelocity, the network of direct sales to consumers and businesses. With the Sabre global distribution system (managed by the operating Sabre Travel NetworkTM), subscribers have access to information about flights, hotel stays, car rentals, cruises and tours,they can also book .
In addition, Sabre Airline Solutions ? is aleading provider of technology and development services and adviceto airlines and other travel suppliers. Failing to establish itself through internal growth, Sabre decided to afford the European leader: lastminute.com through acquisitions.
Tags: Lastminute.com online portal for toursim, strategies, Sabre holdings acquistion on lastmintue.com