make my trip business model

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IT Model

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  • PRESENTATION ON MAKE MY TRIP

    Presented By:

    Anurag Kumar Verma - 221031

    Anvesh Reddy Methuku - 221032

    Apoorva Gupta - 221033

  • Historical Evolution

    Started operations in

    US in 2000

    2011-2013 made 5

    acquisitions.

    In 2011, focus on

    mobile apps.

    In 2010, Makemytrip

    went public, listed

    on NASDAQ

    Slowly also offered

    non business

    packages

    Started operations in

    India in 2005

  • Business Model

    Interaction

    System

    Makemytrip Interface Offering

    Search Engine

    Booking Facility

    CRM

    Airline Tickets

    Hotel

    Reservations

    Holiday Packages

    Railway Tickets

    Bus Tickets

    Car Rentals

    Customer Care

    Support

    Website

    Call Centres

    Travel Executives

    Makemytrip.com

    Makemytrip

    Stores

  • Marketing Strategy

    Mission:- Gra the attetio of the user ad ifor aout MMTs USP- lowest air fare provider.

    Message: The underlying behind the advertising campaign were that consumers

    were dual hunters and looked for the cheapest price with assurance.

    if you fid the lower fare we pay the differee was desiged to serve the purpose of grabbing the attention.

  • Brief Financial Summary:

  • Segment wise revenue

    Air Ticketing

    Domestic:

    International

    Revenue: $60.9million

    No of Transactions:3794.1

    Hotels And Packages

    Hotels: Domestic and international

    Packages

    Conferences and Evets

    Revenue: $164.1 million

    No of Transactions: 568.1

    Other Segments

    Rail

    Bus

    Car

    Revenue: $3.8 million

  • Revenue

    Revenue increased by 16.4% in 2013 to $228.8 million over revenue of $196.6 in 2012

    Major source of revenue has been the hotel booking and the packages

    The company ended the year at the loss of $27.6 million as compared to profit of $7 million

  • Porters Model

    Industry Rivalry

    Threat of New

    Entrants

    Bargaining Power of

    Customers

    Threats of Substitutes

    Bargaining Power of Suppliers

  • Threat of New Entrants

    Threat of new entrants is moderate:

    It demands huge capital requirement to set up an e-commerce based online travel portal

    Developing web portals, mobile applications and maintaining 24x7 customer support requires expertise

    Brand establishment requires value addition which has to be unique from the existing market players

  • Threat of Substitutes

    Threat of substitutes is low:

    Airline companies, Travel companies, Hotels could pose a threat as substitutes Considering the complexity involved in the online business model, substitutes

    may restrict to their conventional platform

    Substitutes cannot offer product comparisons to the customer as they focus on their individual products

  • Bargaining power of Suppliers

    Bargaining power of suppliers is High:

    Suppliers provide the actual products and set the base prices on which MMT earns margins

    Any fluctuations in the prices or the quality of the products from the suppliers could adversely affect the business

    Role of suppliers is crucial in maintaining B2B relations which is the core activity in online travel business

  • Bargaining power of Customers

    Bargaining power of customers is low:

    Since MMT offers the lowest prices available in the market, there is nothing customer could bargain

    Base prices are already fixed by the suppliers and the role of customers on influencing the buying decision is limited

    Product customization is very low in online travel market which further reduces the power of the customers

  • Industry Rivalry

    Industry rivalry is moderate:

    Being the market leader with a market share of 47%, MMT attracts high customer visibility

    Competitors such as yatra.com, cleartrip.com are the market challengers having a market share of 20% each

    Maintaining the top position in the market from the competitors is the prime focus

  • focus this yea fo MakeMyTrip is to move

    beyond customer satisfaction

    and towards creating

    customer DELIGHT!!

    Consolidation, dynamic packaging, offering more for less, creating a memorable experience

  • ADVERTISING STRATEGY

    With more and more players entering the segment, it is necessary to advertise to ensure you have captured sufficient mind-share.

    Again, the product basket that we offer is growing and our customers have to be updated accordingly.

  • WAY AHEAD

    In the coming 2 years, revenues from air ticketing and hotels & packages ill hae an eual shae of 50:50, Deep Kalra, CEO & Founder of the ticketing company said

    in May this year.

    The online ticketing company, which at the time of going public three years ago had 85% of its revenues coming

    from air ticketing,

    now gets only 68% from selling flight tickets. Whereas

    revenues from hotels and packages have gone up.

  • 13% of Total Domestic Online Hotel Booking

    via mobile

  • Customer Centric Strategies to Drive Online

    Hotel Booking

  • THANK YOU