Harvard Case - Computer Reservation Systems : An Industry of Its Own
"Computer Reservation Systems : An Industry of Its Own" Harvard business case study is written by Ali F. Farhoomand, Andrew Lee. It deals with the challenges in the field of Strategy. The case study is 17 page(s) long and it was first published on : Jan 1, 2000
At Fern Fort University, we recommend a strategic shift for Sabre, focusing on business model innovation and digital transformation. This involves leveraging their existing core competencies in technology and data analytics to create a value proposition that goes beyond traditional reservation systems. Sabre should aim to become a comprehensive travel platform, offering a seamless experience for travelers and travel agents alike. This strategy involves a combination of organic growth and strategic acquisitions, focusing on emerging technologies like AI and machine learning to enhance customer experience and drive revenue.
2. Background
The case study focuses on the evolution of the computer reservation systems (CRS) industry, specifically highlighting Sabre's position within it. The industry has witnessed significant changes, driven by technological advancements and the rise of online travel agencies (OTAs). Sabre, initially a dominant player, faces challenges from both established competitors like Amadeus and Travelport and newer entrants like Google and Expedia. The case study explores Sabre's strategic options in this dynamic environment.
The main protagonists are:
- Sabre: A leading CRS provider, facing the need to adapt to the changing industry landscape.
- Amadeus and Travelport: Key competitors in the CRS market, posing significant challenges to Sabre's dominance.
- Google and Expedia: Emerging players with disruptive potential, leveraging technology and data to offer alternative travel solutions.
- Airlines and Travel Agents: Sabre's primary customers, whose needs and expectations are evolving rapidly.
3. Analysis of the Case Study
Industry Analysis:
- Porter's Five Forces:
- Threat of New Entrants: High, due to the relatively low barriers to entry for technology-driven players.
- Bargaining Power of Buyers (Airlines and Travel Agents): Moderate, as they have multiple CRS options but are reliant on Sabre's services.
- Bargaining Power of Suppliers: Low, as Sabre has a strong network of suppliers.
- Threat of Substitutes: High, with the rise of OTAs and direct booking options.
- Competitive Rivalry: High, with established players like Amadeus and Travelport, as well as new entrants like Google and Expedia.
SWOT Analysis for Sabre:
- Strengths:
- Strong brand recognition and established customer base.
- Extensive network of airlines and travel agents.
- Expertise in travel technology and data analytics.
- Weaknesses:
- Legacy systems and processes may hinder agility.
- Dependence on traditional CRS revenue streams.
- Lack of a comprehensive travel platform.
- Opportunities:
- Growing global travel market.
- Increasing demand for personalized and seamless travel experiences.
- Emerging technologies like AI and machine learning.
- Threats:
- Competition from OTAs and direct booking platforms.
- Technological disruption and innovation.
- Regulatory changes and evolving customer expectations.
Value Chain Analysis:
- Primary Activities:
- Inbound Logistics: Managing data from airlines and travel agents.
- Operations: Processing reservations and providing travel information.
- Outbound Logistics: Delivering travel information to customers.
- Marketing and Sales: Promoting services to airlines and travel agents.
- Service: Providing customer support and resolving issues.
- Support Activities:
- Infrastructure: Maintaining technology infrastructure and data centers.
- Human Resource Management: Recruiting and training skilled professionals.
- Technology Development: Investing in research and development of new technologies.
- Procurement: Sourcing and managing relationships with suppliers.
Strategic Options:
- Defensive Strategy: Focus on cost leadership and operational efficiency to maintain market share.
- Offensive Strategy: Invest in innovation and technology to disrupt the market and create new revenue streams.
- Hybrid Strategy: Combine elements of both defensive and offensive strategies, focusing on both cost efficiency and innovation.
4. Recommendations
Sabre should adopt a hybrid strategy, focusing on both cost leadership and innovation. This strategy involves:
Business Model Innovation:
- Expand beyond traditional CRS: Develop a comprehensive travel platform that integrates booking, planning, and ancillary services.
- Leverage technology and data: Utilize AI and machine learning to personalize travel experiences, offer dynamic pricing, and provide predictive analytics for travelers and travel agents.
- Focus on customer experience: Create a seamless and intuitive platform with a strong customer support system.
Strategic Acquisitions:
- Acquire niche technology providers: Integrate emerging technologies like AI and machine learning to enhance the platform.
- Acquire travel-related businesses: Expand into new markets and service offerings, such as travel insurance, car rentals, and travel experiences.
Organic Growth:
- Invest in R&D: Develop new features and functionalities for the platform, focusing on personalization, automation, and data analytics.
- Expand into emerging markets: Target high-growth regions with a focus on mobile-first solutions.
- Partner with airlines and travel agents: Develop strategic alliances to offer exclusive services and promote the platform.
5. Basis of Recommendations
This strategy aligns with Sabre's core competencies in technology and data analytics, while also addressing the evolving needs of its customers. It considers both external customers (travelers) and internal clients (airlines and travel agents). By focusing on innovation and customer experience, Sabre can create a sustainable competitive advantage in the rapidly changing travel industry.
The attractiveness of this strategy is supported by:
- Increased revenue potential: Expanding beyond traditional CRS services opens up new revenue streams.
- Improved customer loyalty: A comprehensive and user-friendly platform enhances customer satisfaction and loyalty.
- Enhanced market position: Sabre can become a dominant player in the evolving travel ecosystem.
6. Conclusion
Sabre needs to embrace digital transformation and business model innovation to remain competitive in the travel industry. By leveraging its strengths in technology and data, Sabre can create a comprehensive travel platform that caters to the needs of travelers and travel agents alike. This strategy will enable Sabre to capture new market share and secure its position as a leading player in the future of travel.
7. Discussion
Alternative strategies include:
- Focusing solely on cost leadership: This may lead to a decline in market share as competitors innovate.
- Focusing solely on innovation: This could be risky and expensive, potentially leading to financial strain.
Key assumptions include:
- Continued growth of the travel market: This assumption is essential for the success of Sabre's strategy.
- Acceptance of Sabre's new platform by customers: The platform needs to be user-friendly and provide a valuable experience.
- Ability to execute the strategy effectively: This requires strong leadership, effective communication, and a culture of innovation.
8. Next Steps
- Develop a detailed strategic plan: Define specific goals, objectives, and timelines for implementing the recommended strategy.
- Invest in technology and talent: Hire skilled professionals and invest in emerging technologies to support the platform development.
- Engage with stakeholders: Communicate the strategy to airlines, travel agents, and investors, seeking their support and collaboration.
- Monitor progress and adapt as needed: Regularly evaluate the effectiveness of the strategy and make adjustments based on market conditions and customer feedback.
By taking these steps, Sabre can position itself for long-term success in the dynamic and evolving travel industry.
Hire an expert to write custom solution for HBR Strategy case study - Computer Reservation Systems : An Industry of Its Own
more similar case solutions ...
Case Description
Computer Reservation Systems (CRS) vendors have enjoyed an indispensable role in the travel industry--75% to 80% of all airline bookings are made by travel agents using CRSs. But by mid-1998, their solid position in the industry is being threatened by two forces: the Web Sites run by airlines that are capable of accepting bookings directly from customers, and a new CRS, supported by travel agencies around the world, called Genesis. It is scheduled to go on trial in fourth quarter of 1998 and for launch in 1999.
🎓 Struggling with term papers, essays, or Harvard case studies? Look no further! Fern Fort University offers top-quality, custom-written solutions tailored to your needs. Boost your grades and save time with expertly crafted content. Order now and experience academic excellence! 🌟📚 #MBA #HarvardCaseStudies #CustomEssays #AcademicSuccess #StudySmart Write my custom case study solution for Harvard HBR case - Computer Reservation Systems : An Industry of Its Own
Hire an expert to write custom solution for HBR Strategy case study - Computer Reservation Systems : An Industry of Its Own
Computer Reservation Systems : An Industry of Its Own FAQ
What are the qualifications of the writers handling the "Computer Reservation Systems : An Industry of Its Own" case study?
Our writers hold advanced degrees in their respective fields, including MBAs and PhDs from top universities. They have extensive experience in writing and analyzing complex case studies such as " Computer Reservation Systems : An Industry of Its Own ", ensuring high-quality, academically rigorous solutions.
How do you ensure confidentiality and security in handling client information?
We prioritize confidentiality by using secure data encryption, access controls, and strict privacy policies. Apart from an email, we don't collect any information from the client. So there is almost zero risk of breach at our end. Our financial transactions are done by Paypal on their website so all your information is very secure.
What is Fern Fort Univeristy's process for quality control and proofreading in case study solutions?
The Computer Reservation Systems : An Industry of Its Own case study solution undergoes a rigorous quality control process, including multiple rounds of proofreading and editing by experts. We ensure that the content is accurate, well-structured, and free from errors before delivery.
Where can I find free case studies solution for Harvard HBR Strategy Case Studies?
At Fern Fort University provides free case studies solutions for a variety of Harvard HBR case studies. The free solutions are written to build "Wikipedia of case studies on internet". Custom solution services are written based on specific requirements. If free solution helps you with your task then feel free to donate a cup of coffee.
I’m looking for Harvard Business Case Studies Solution for Computer Reservation Systems : An Industry of Its Own. Where can I get it?
You can find the case study solution of the HBR case study "Computer Reservation Systems : An Industry of Its Own" at Fern Fort University.
Can I Buy Case Study Solution for Computer Reservation Systems : An Industry of Its Own & Seek Case Study Help at Fern Fort University?
Yes, you can order your custom case study solution for the Harvard business case - "Computer Reservation Systems : An Industry of Its Own" at Fern Fort University. You can get a comprehensive solution tailored to your requirements.
Can I hire someone only to analyze my Computer Reservation Systems : An Industry of Its Own solution? I have written it, and I want an expert to go through it.
🎓 Struggling with term papers, essays, or Harvard case studies? Look no further! Fern Fort University offers top-quality, custom-written solutions tailored to your needs. Boost your grades and save time with expertly crafted content. Order now and experience academic excellence! 🌟📚 #MBA #HarvardCaseStudies #CustomEssays #AcademicSuccess #StudySmart Pay an expert to write my HBR study solution for the case study - Computer Reservation Systems : An Industry of Its Own
Where can I find a case analysis for Harvard Business School or HBR Cases?
You can find the case study solution of the HBR case study "Computer Reservation Systems : An Industry of Its Own" at Fern Fort University.
Which are some of the all-time best Harvard Review Case Studies?
Some of our all time favorite case studies are -
Can I Pay Someone To Solve My Case Study - "Computer Reservation Systems : An Industry of Its Own"?
Yes, you can pay experts at Fern Fort University to write a custom case study solution that meets all your professional and academic needs.
Do I have to upload case material for the case study Computer Reservation Systems : An Industry of Its Own to buy a custom case study solution?
We recommend to upload your case study because Harvard HBR case studies are updated regularly. So for custom solutions it helps to refer to the same document. The uploading of specific case materials for Computer Reservation Systems : An Industry of Its Own ensures that the custom solution is aligned precisely with your needs. This helps our experts to deliver the most accurate, latest, and relevant solution.
What is a Case Research Method? How can it be applied to the Computer Reservation Systems : An Industry of Its Own case study?
The Case Research Method involves in-depth analysis of a situation, identifying key issues, and proposing strategic solutions. For "Computer Reservation Systems : An Industry of Its Own" case study, this method would be applied by examining the case’s context, challenges, and opportunities to provide a robust solution that aligns with academic rigor.
"I’m Seeking Help with Case Studies,” How can Fern Fort University help me with my case study assignments?
Fern Fort University offers comprehensive case study solutions, including writing, analysis, and consulting services. Whether you need help with strategy formulation, problem-solving, or academic compliance, their experts are equipped to assist with your assignments.
Achieve academic excellence with Fern Fort University! 🌟 We offer custom essays, term papers, and Harvard HBR business case studies solutions crafted by top-tier experts. Experience tailored solutions, uncompromised quality, and timely delivery. Elevate your academic performance with our trusted and confidential services. Visit Fern Fort University today! #AcademicSuccess #CustomEssays #MBA #CaseStudies
How do you handle tight deadlines for case study solutions?
We are adept at managing tight deadlines by allocating sufficient resources and prioritizing urgent projects. Our team works efficiently without compromising quality, ensuring that even last-minute requests are delivered on time
What if I need revisions or edits after receiving the case study solution?
We offer free revisions to ensure complete client satisfaction. If any adjustments are needed, our team will work closely with you to refine the solution until it meets your expectations.
How do you ensure that the case study solution is plagiarism-free?
All our case study solutions are crafted from scratch and thoroughly checked using advanced plagiarism detection software. We guarantee 100% originality in every solution delivered
How do you handle references and citations in the case study solutions?
We follow strict academic standards for references and citations, ensuring that all sources are properly credited according to the required citation style (APA, MLA, Chicago, etc.).