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IT601-0903B-07 Information Technology in Business Management - Phase 2 Discussion Board - Essay Example

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The main industry of focus here is the online travel services. This website has been formed on a business model when American, United, Northwest, Delta and Continental Airline came together to sell their…
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IT601-0903B-07 Information Technology in Business Management - Phase 2 Discussion Board
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"IT601-0903B-07 Information Technology in Business Management - Phase 2 Discussion Board"

Download file to see previous pages The main competitive advantage that the company has over the others is the fact that it is started by companies that hold as much as 80% of the sir travel industry. The biggest competitor however is Travelocity. The company has created a strong database for itself and gives the Orbitz as well as the companies a huge competition.
This site is very beneficial to the users as it allows the users to get the lowest possible fares as well as allows users to book for hotels and complete vacation packages online itself. The website provides exceptional benefits to the users by providing offers and reasonable discounts. This site creates value since it allows the users to avoid the reservation fees that are generally charged by the other websites and hence it is very beneficial to the customers.
Orbitz is definitely the industry’s bellwether. The website provides the other websites with stiff competition because it has removed the reservation charges and the high costs of operations. This created a complete revolution to the online travel world and it has helped create a more fair deal for the customers and avoiding the operational costs of the website to be charged upon the customers. This website is more customer centric than any other.
The company’s business model has been through a number of issues in the past. It has been charged for creating a monopoly in the market and for creating a higher hand over other due to the backing of the five major companies. Also it has been accused of being under the antitrust act and also being a cartel. However the company was then recognised not to be a cartel and the growth of the company was justifiable.
The company now faces a number of risks as there are several newer companies and better facilities that are available by the other companies. The company has already sold a part of the travel port to Blackstone Group for as much as $4.3 billion.
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