Trip Essay

2868 Words12 Pages
Tripadvisor Key Business Problem The key business problem identified in the Tripadvisor (TA) case is focused on how Kaufer, founder and CEO of TA, should address and prioritize its growth plans for the company, considering the new challenges present to him in the areas of flight service, vacation rental and the entrance in the new and highly competitive market which is China. According to the case, Kaufer’s main objective is to follow a strategy that maximizes profitability but keeping in perspective the core business of the company. Assessing the problem To better evaluate the alternatives Kaufer should base his analysis on the following steps: i) revise the positioning and context of TA, by considering the 5Cs analysis ii) perform a SWOT analysis; iii) review Porter’s 5 forces and iv) analyze and evaluate each of the possibilities, to assess how each one can or cannot promote the maximization of profit and growth in the long term. Company: TA is the most popular and largest travel community in the world and is operating in 24 countries and 16 languages. It has listings for 455 thousand hotels, 92 thousand attractions and 564 thousand restaurants in over 71 thousand destinations worldwide. Monthly visitors accounted for in May 2010, are 35 million. TA is a website where travelers can rely on other travelers’ reviews to plan their trips, or at least be satisfactorily helped in their decisions by them. Therefore, the company is focused on creating good user experience for people while searching for new travel locales, but keeping in mind the generation of revenues. Sources of revenues can be identified as text links, business listings (B&B, hotels, inns, restaurants) and advertising. Finally, in 2009 the company has presented revenues of $352 million and operating income of $196 million. Customers: Online social travel networking has changed

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