Internet Travel Company

1: Routes to take in starting an internet travel company

1.1 The survival-base strategic route

This route puts heavy emphasis on organisations being able to survive a hostile and highly competitive context. It does this through an emergent process, seeking out opportunities in strategy content as they occur. ”Lynch 5th edition p416 STRATEGIC MANAGEMENT”

As explained by Brent Hobermanin the case study that this is a scale game and you’re always facing global competitions. The real success Is to attract enough customers more than your competitors to generate more sufficient business.

And with small internet business the fixed costs of operations in the early days are small no expensive office premises, no major colour printers and brochure costs, direct contact with potential customers, etc.

They are two mechanisms in operation

1 adaption to the environment

2 selections among those present for survival

1.2 Network base strategic route

The network based strategic route forward explores the links and degree of co-operations present in related organisations and industries and places a value upon that degree of co-operation. ”Lynch 5th edition p429 STRATEGIC MANAGEMENT”

They are two major aspects of networks from strategy perspective covered

* Network Externalities

Network externalities-these arises when an organisation is part of an external network that is seeking to standardise some aspect of operations across the industry. The key moment is the tipping point which is reached when the installed base of network users moves from one company supplying the network and away from rival suppliers.

As in a case of Europe when they introduced the Package tours of which it is a complete package covering flights, transfers, hotels and other activities. These packages are famous because they are complicated for individuals to organise, all inclusive of children’s activities, accompanied by comprehensive travel insurance and...