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
[...] Porter's model is an external business diagnostic: the objective is to detect in the business environment with the opportunities for development on one hand, and other potential threats on the other. It measures the intensity of competition, which will influence the strategies followed by the company. Several criticisms are made. Thus, the first is the lack of reactivity and dynamics in an environment competitive increasingly. The second is that the very idea of a clearly defined area no longer exists. [...]
[...] The value chain of tourism has changed completely because start-ups like lastminute.com have restructured the strategic segment. This is one of the few start-ups to survive the bursting of the Internet bubble in 2000. The company survives thanks only to the cash collected at its capitalization. It managed to raise 182.94 million Euros. The company shares were traded at 555 pence on the day of its IPO. Lastminute.com was worth more than the largest stationery chain of UK, WHSmith, while its revenues did not exceed that of the thousands of stores of the latter. [...]
[...] Hoberman as Deputy CEO of the combined company, and Ian McCaig, the COO of lastminute.com would become the Managing Director of the Group. On 1st January 2005, the company hired 2,000 employees. Its human resources management was specific and the staff is generally very qualified. The work is done in a small team and is very hierarchical. There is homogeneity in age and socio-cultural context among employees, because average age of the employees is 26 years. In start-ups such as Lastminute.com, the preferred structure is under the adhocracy of Mintzberg. [...]
[...] A year later, lastminute.com lost more than 90% of its stock value. The online travel company sustained record losses over the period 2000 to publish a negative result before tax of 20.42 million Euros, or a worsening of over the fiscal year 1999/2000. Despite the crisis in the sector which is regularly shaken by terrorist attacks, Lastminute recorded positive results in 2002, but it was not until 2003 that it posted its first overall profits. In 2004, it earned a turnover of € 648 million, which represents a growth of However, it still suffered a loss of EUR 69.5 million between October 2004 and March 2005. [...]
[...] It also holds the brand onlinetravel.com. The Key Success Factors are resident in the supply as it is integrated and is able to implement cost control on the market through its use of online sales. Purchases such as the business of event-Exhilaration feed its diversification strategy with related business and technology hubs. Indeed, the company diversified its offering with an unprecedented range of leisure and very varied activities, from going sky diving, to the reservation at a restaurant or buying comics online. [...]
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