Expedia Incorporation Harvard Case Solution & Analysis

Question No. 3: Can Expedia translate its successful formula from western markets to the Asia Pacific markets – are there enough similarities for replication?

Definitely the formula of Expedia was very successful in the western markets and it was comparatively focused on those markets with respect to their cultures and norms. But entering in the Asia Pacific market is totally something else. Expedia will have to translate its successful formula but with different aspect. It should mold and adapt it accordingly with the nature of Asia Pacific market. Target market of western region has comparatively different taste and likeliness and Asia Pacific market has other. Further if the nature of Asia Pacific country will be analyzed, it can be also subcategorized into different sub-markets with classification in terms of culture, norms, race and demographics. The strategy of Expedia is to expand its business in terms of sales and revenue and it can be done through increasing the new customers, frequent business of existing customers and converting the guest visitors into paying customers. Definitely it will remain same in Asia Pacific market even because it is the ultimate objective of Expedia and it will remain same in any market. The objective of Expedia will remain same but with different action plan depending upon the nature of the market. Both markets have different nature and are not similar to each other.

Therefore, entering in the Asia Pacific country with the same strategy can cause difficulty for the company. For example, Chinese market has different culture and norms comparatively with the other Asia Pacific country like Australia or India. Therefore, it will be beneficial for the company if it will enter the market with thorough pre-analysis of that specific region. E-commerce is a global retail strategy and it is very well known in the western region. There are several factors which affect the likeliness and business of e-business and those factors varies depending upon the target market. For example, western customers do have trust factor and reliability over the e-business while in Asia Pacific market especially in South Asian countries, people do not mostly trust e-transactions and prefer retail business model. Payment method is a problem in South Asian region and people usually do not use credit card therefore, Expedia should keep in mind these factors before entering these regions.

Asia Pacific regions have different challenges and are totally different from the western market therefore Expedia will need to modify its strategies accordingly with the certain regions where it is entering. They will need to have specialized personnel team for every country. The reason behind the local team is because they are more familiar in that country or region as comparing with others. Additionally, they know the trends and requirements of the market. Furthermore, Expedia can do mergers or acquisitions with the local companies because they are already in the market and know how to work in the specific region. The most important factor is that Expedia will have to adapt its traditional strategies into the Asia Pacific markets accordingly with each country. Asia Pacific is a huge market and every country has population with different demographics, cultures, religions, etc. So they will need to sub categorize further each of the country where they will be entering. Taking Asia Pacific will not be useful for them and Expedia will have to take initiatives with respect to each country. Primarily Expedia will need to have research for the specific target region to find out the factors, which can positively impact over the likeliness of the websites.

Question No. 4: Websites are vital as the first contact with clients. Can Expedia just customize its website from its original American design and development or does something entirely specific and new have to be created for specific and new markets and clients?

Websites are the essential channel of any company especially for Expedia because their whole business is based upon its website. Customers hire the services online through the website of Expedia. It is the first contact of clients with the company therefore it should be strong enough to make good brand image of the company in their minds. Every market has different culture; therefore it is not desirable to keep the same content from its original design which is American based. Expedia will have to make its website accordingly with the nature and culture of that specific region. It will be having positivity in their websites.......................................

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