Porter's 5 Forces on Orbitz

Topics: Travel agency, Orbitz, CheapTickets Pages: 4 (1294 words) Published: October 4, 2011
Report 3: Organization Structure and Strategy of Orbitz Worldwide, Inc. (OWW) -------------------------------------------------

Orbitz Worldwide Inc. (NYSE: OWW) is a leading global online travel agency (OTA) that uses innovative technology to enable leisure and business travelers to research, plan, and book a broad range of travel services. Orbitz owns and operates a portfolio of consumer brands that includes Orbitz, CheapTickets, ebookers, HotelClub, RatesToGo, the Away Network, and the corporate travel brand Orbitz for Business. Orbitz has 800 employees in their Chicago headquarters and 1,500 employees worldwide with offices in 20 countries. In this report we discuss the organization structure of Orbitz from a strategic perspective. Strategy and Mission

Orbitz’s mission is “to be one of the world’s three primary hotel distribution platforms.” Their strategy for achieving this mission is to focus on three key drivers: demand, supply, and retail. To increase demand, strategies include further increasing brand awareness and customer loyalty, developing sophisticated statistical analytics to enhance efficiency of search engine marketing spending, and increasing the traffic coming to websites through search engine optimization, customer relationship management, private label channel, and Orbitz for Business. To increase supply, strategies include providing customers the ability to book a broad and deep range of highly competitive hotels, investing in enhanced hotel connectivity and infrastructure solutions, and expanding supply of the most popular hotels in top markets. Orbitz’s retail strategies include improving their ability to convert website visitors into customers, enhancing the customer shopping experience on their websites, enhancing existing mobile offerings and launching new mobile applications, and migrating the remaining consumer brands to the global technology platform in 2011. Current Organizational Configuration

Henry Mintzberg’s...
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