DUETTO: industry Transformation with Big Data Harvard Case Solution & Analysis

DUETTO: industry Transformation with Big Data Case Solution


The company was founded in 2012, Marco Benvenuti and Patrick Bosworth decided to create their own business, and name the business as Duetto Consulting. Both founders want to improve the capability of the hotels in order to respond to their volatile customers. Along with that, they are recognizing the new technology in order for their hotels to achieve their opportunities. The Duetto is evaluating long-term options of the hotels and helping them by providing the superior revenue strategy; so that hotels can maximize their revenues. The company is providing the revenue strategy with the introduction of the internet; the industry has become more complex and extensive.

The revenue management is a critical element to control the distribution and pricing. In simple words, we can say that they are trying to make a modern cloud application tailored in order to meet the specific need of the travel industry and hotel companies. This will also help the hotels run their business more efficiently and optimize the demand, so that company maximizes their profit. The target market of the Duetto is hotel or tourism industry, the reason is that it is the largest global industry. IDeaS, EasyRMS, Rainmaker, and Maxim are Duetto’s competitors.

 Problem statement:

The main problem for the hotels is how to manage their revenue. As the companies grew in the size, they are trying to identify as how to maximize their profit, they are forecasting the demand and manage the room available to their customer, so that they can manage their revenue. Duetto felt that it is not a right approach to manage revenue. The revenue manger should implement some optimal strategy in order to maximize the profit, such as set the price of each room independently on the basis of distribution channel and customers segment. Along with that, they can designe the spreadsheet to adjust the room rates, but a drawback of spreadsheet approach is the lack of scalability because it require massive amount of the data in the database to power its forecasting.

Analyzing the facts:

The profitability of the company is only possible if the company is expected to expand the market. The company's growth is depends completely on the word of mouth marketing. The adaptation of other marketing strategies will also add the number of users to the database of Duetto, which will help it to make huge revenues from them. In order to achieve this objective, the company needs more funds from the investors so that they can invest in the company and make more profit by attracting the customers.

The hotel industry has a large number of competitors that lead the huge competition in the industry. The huge competition in the industry leads the revenue to disperse among the companies present in the market. The sharing of the revenues and the competition leads the online firms to cut down their margin on profits and provide better costs to their customers in order to achieve the maximum share of the industry.

Porter's five competitive forces model

Bargaining Power of Suppliers

There are a huge number of suppliers present in the market; this shows that higher competition in the market provides the suppliers the flexibility to work on their terms. There is also a huge advantage for Duetto, it is advising their suppliers companies on the internet. It shows the low switching cost associated with the switching of the suppliers................

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