• The Transformation Process of Ctrip.com International LTD.

Abstract

As a leading Online Travel Agent (OTA) in China, Ctrip.com is one of the major OTAs in the world. It has maintained a 3% to 4% market share in overall travel categories in China, and a greater than 50% market share in the online travel agency segment. Ctrip provides services for accommodation reservation, transportation ticketing, package tours, and corporate travel management through an advanced transaction and service platform consisting of its mobile apps, Internet websites, and centralized, toll-free, 24-hour customer service center. The purpose of this case study is to discuss how to leverage organizational capabilities to understand external environment and develop an appropriated strategy in hyper-competitive market. Through the discussion of Ctrip’s case, students would have a basic knowledge about how to develop pricing strategy and business model of a retailing channel in responding the dynamic competitive marketplace and the changing consumer preference.

Keywords: Internet, channel transformation process, organizational capability, exploration, xploitation