Rosenbluth International- A New
Way to Compete
By: Tyler Greff
Agenda
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Brief History of Rosenbluth International
Competitors
Case Problem and Solutions
Case Questions
Conclusion
History of Rosenbluth International
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Evolved from modest company in 1892
(headquartered in Philadelphia, PA)
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Hal Rosenbluth took over company in 1974
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Travel operations in 24 countries
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Now 2nd largest presence in travel
management
History Cont…
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Took from $20 Million to $6 Billion company
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Taken over by American Express (AMEX) in
2003
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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
Competitors
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Travelocity
Expedia
Orbitz
CheapTickets
And many more…….
Case Problem
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Digital Revolution poses threats
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Bypass travel agents
Commissions reduced
Large number of new online companies
Rebates reduce commissions
Innovations add competitive pressures
Solutions
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Became pure corporate travel agency
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Rebate customers with entire commission
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Bills according to services provided
Solutions cont…
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New E-comm tools
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DACODA
E-Messaging
E-ticket tracks
Res-Monitor
IntelliCenters
Network Operations Center (NOC)
Describe the strategy the company
uses to counter disintermediation.
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Specialized in purely corporate travel
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No longer dealt with leisure travel due to fierce
competition
Rebated customers with entire commission
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Bills according to the service provided
Explain how EC facilitated the strategy.
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Rosenbluth implemented several innovative
E-Commerce tools that helped to facilitate
their new business strategies.
Analyze the competitive solution using
Porter’s five forces model.
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Bargaining power of suppliers.
Rivalry among existing competitors.
Buyers
Threat of substitute products or services
Barriers to entry
Check carlson.com to find its EC
initiatives. Compare these to
Rosenbluths.
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Use customer relationship management
software.
Optimize customer travel savings with
innovative software.
Has Destination marketing services to make
sure your trip goes smoothly.
Conclusion
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Company History
Competitors
Case problems and solutions
Case Questions