Stratege management Case Study Example | Topics and Well Written Essays - 500 words

Stratege management - Case Study Example The services have relatively low switching cost since they are of similar quality and price. The ratio of fixed to variable costs over the past five years averages is lower than the industry average of 0.79. The company is not on excess capacity but acceptable capacity (Leibsohn, Moy and Okagaki 2012). Threat of new substitutes is necessitated by customers’ willingness to switch to another similar service offered by a competitor. Competitors, however, face a difficulty in closing in on performance and relative price. Web Reservations International is a globally recognized brand name and does not face a greater threat from substitutes. Customers are willing to pay premium prices for the services offered (Leibsohn, Moy and Okagaki 2012). Customer’s willingness to switch is very low since the company has established good relations with its clients. The company should least take on a defender and prospector strategies because it is not scared of new competitors and scarcely experiments on potential responses to new environmental trends. The company is likely attempting an analyzer strategy in maintaining current businesses and innovativeness (Hoyle 2013). Marketing research encompasses features and benefits of the product, price sensitivity to customers, effectiveness of distribution channels and advertising and promotions initiatives. This is the marketing mix that every company must learn to balance. The services of Web Reservations International Company are essentially hospitality services, thus highly valued and on high demand (Goldberg 2012). The advertisement captures the mind of the contemporary generation Y to a greater extends as compared to oldies in their sixties and seventies. By undertaking a marketing mix, the company is destined to make a full cycle of hotel and reservation success (Creswell 2012). The importance of market segmentation is to capture the array of customers who are sensitive to price and