Their success meant that last year they were in a position to sell the original core distribution business to the global player McKesson who have the economies of scale necessary to capture strategic value. So today UDG are in a different business than the one they competed in a decade ago. They used their strategic insight and knowledge of the pharmaceutical industry to pivot away from a business where they could see that the moat could spring leaks and to build up a strategic position in sectors of the industry where they could see that pharmaceutical companies would be keen to partner with a business with particular expertise and the scale to compete globally.
Even for businesses that have very robust business models, the discipline of systematically assessing all aspects of how the external environment is changing is critical to both seeking out growth opportunities and avoiding nasty surprises. This works best, in my experience, when the analysis is very clearly future focused. So a well-structured and robust external analysis of a business will help to identify the likely threats to the moat and to provide guidance as to the question of whether our current business model is fit for purpose.
Too much undifferentiated choice.
Is your current business model fit for purpose?
Not even AI can sort this out. However I can see TripAdvisor desires to have reviews for every tour on the planet.
- Is Viator's strategy fit for purpose? - DestinationCTO;
- How Much Innovation is Enough? The Innovation Matrix.
- Pharmacoeconomics in Psychiatry?
It is a practical brand. If there is a review, there should be a booking link.
- Dom Juan, oder Der steinerne Gast (German Edition).
- A la colle (French Edition)!
The solution to this is to split TripAdvisor and Viator and run a different model for each brand:. This is similar to how leading online travel agents split hotel supply and models between brands — e. Top line, you can curate by itinerary differentiation — e. Or you can curate by persona — e. Marketing has to correlate to the curation strategy.
Curation strategy is another post for another time — are you subscribed? Viator do not currently show the supplier brands on their website. Instead the customers only find out who they booked with after booking. This position worked when Viator was originally curated as there would only be a single tour of each type on the website, and all tours were high quality.
However now with all direct competitors featured, there is no way for a consumer to compare properly as they are faced with multiple itineraries that all look the same, from different providers. My strategy would be to embrace supplier brands. Let the supplier explain their differentiation and why a customer should book via them rather than another local company e.
Maybe some booking leakage due to billboard effect, however the benefits of enabling supplier differentiation are likely to outweigh this.
- Fear Of De Sade?
- City Boy: My Life in New York During the 1960s and 1970s;
- Fit for Purpose: Changing in a Changing World.
- Is Viator’s strategy fit for purpose??
First step is move away from lowest common denominator API. I outlined this last week so no need to go through this again.
These are the necessary foundations for new sector-wide innovation projects. Second step is to look at how tours are matched with customers. This is where GetYourGuide is focussed and Viator has to invest resources to stay ahead. Create a competition to enable startups to address this specific problem. Make the prize meaningful. Not only would Viator then have the best solution but they would be back enhancing their innovation credentials to the industry, a PR win.
TripAdvisor has amazing under-utilised assets to create a wonderful mobile experience — Viator has the tour guide marketplace. TripAdvisor has destination experts. In the Viator app, focus on what people do ON a tour, not just the initial booking experience. Any real strategy would be more nuanced than I am able or willing!
However hopefully even without too many execution specifics, this is a helpful push in the right direction. Traveler, whoever you are, wish the dead an eternal rest.
This content is protected by copyright. Link sharing is encouraged but duplication and redistribution is illegal. I think what will counter that is enhanced personalisation that OTAs are able to undertake — delivering value to consumers for booking via a central marketplace on a repeat basis.
Fit for Purpose: Changing in a Changing World | HuffPost
The more the marketplace knows the customer, the better it can help. However no one is making this argument to consumers at the moment, mainly because no one has any really amazing personalisation functionality perhaps….. Also assistance with customer service arbitration with suppliers etc etc — something consumers find hard to do if only a single transaction, never again, customer….. The other OTAs e. Expedia and others DO show basic supplier brand name….. So if this was a major problem, that would be evident today already??
Clients are often familiar with brands in the hotel list, while maybe not familiar with all, and yet there is huge effort made to filter and differentiate between them. Clients are aware that they can book directly with travel suppliers. Then they can start to showcase suppllier branding without worry. I believe that the new Viator supplier cancellation policy of full refund 24 hours before tour which is to be introduced May 8 will also have a detrimental effect on the private guide suppliers who should be, as you say part of a curated platform that highlights the best suppliers, their unique offerings and the quality of their guides.
Related Fit for Purpose: Strategy and Innovation
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