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Rosenbluth International- A New Way to Compete

Rosenbluth International- A New Way to Compete. By: Tyler Greff. Agenda. Brief History of Rosenbluth International Competitors Case Problem and Solutions Case Questions Conclusion. History of Rosenbluth International. Evolved from modest company in 1892

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Rosenbluth International- A New Way to Compete

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  1. Rosenbluth International- A New Way to Compete By: Tyler Greff

  2. Agenda • Brief History of Rosenbluth International • Competitors • Case Problem and Solutions • Case Questions • Conclusion

  3. History of Rosenbluth International • Evolved from modest company in 1892 (headquartered in Philadelphia, PA) • Hal Rosenbluth took over company in 1974 • Travel operations in 24 countries • Now 2nd largest presence in travel management

  4. History Cont… • Took from $20 Million to $6 Billion company • Taken over by American Express (AMEX) in 2003 • Solidified AMEX’s position as top dog in corporate travel industry (worth $18.5 Billion) http://www.gettthere.com/news/pressreleases/view.cfm?art=79

  5. Competitors • Travelocity • Expedia • Orbitz • CheapTickets • And many more…….

  6. Case Problem • Digital Revolution poses threats • Bypass travel agents • Commissions reduced • Large number of new online companies • Rebates reduce commissions • Innovations add competitive pressures

  7. Solutions • Became pure corporate travel agency • Rebate customers with entire commission • Bills according to services provided

  8. Solutions cont… • New E-comm tools • DACODA • E-Messaging • E-ticket tracks • Res-Monitor • IntelliCenters • Network Operations Center (NOC)

  9. Describe the strategy the company uses to counter disintermediation. • Specialized in purely corporate travel • No longer dealt with leisure travel due to fierce competition • Rebated customers with entire commission • Bills according to the service provided

  10. Explain how EC facilitated the strategy. • Rosenbluth implemented several innovative E-Commerce tools that helped to facilitate their new business strategies.

  11. Analyze the competitive solution using Porter’s five forces model. • Bargaining power of suppliers. • Rivalry among existing competitors. • Buyers • Threat of substitute products or services • Barriers to entry

  12. Check carlson.com to find its EC initiatives. Compare these to Rosenbluths. • Use customer relationship management software. • Optimize customer travel savings with innovative software. • Has Destination marketing services to make sure your trip goes smoothly.

  13. Conclusion • Company History • Competitors • Case problems and solutions • Case Questions

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