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Assessment 3b: Case Studies
Online travel/accommodation services
The ever-growing trend for online purchasing of travel services has developed rapidly since the 1990’s. Companies, such as Expedia commenced as airline ticket purchasing systems but have grown to encompass plane, hotel and car reservations. This has had huge implications for the ‘bricks and mortar’ hotel, airline and car rental businesses and their consumers. Recent developments in this industry include Expedia taking over its long-time rival Travelocity and, in Australia, wotif.com.au reporting flatter than expected growth figures, due largely to the strong Australian dollar.
Borders
In February 2011, Borders Inc. filed to restructure under bankruptcy protection in the US. In July 2011, it announced it was liquidating all its remaining stores. The demise of Borders occurred even though a sizable portion of the book business was still taking place in actual stores at that time, rather than moving to digital sales and e-books. For example, Barnes and Noble, as the US’s largest book retailer, did not have to close any of its 700 US stores.
Toyota
Between 2009 and 2011, Toyota, the world’s largest and most profitable car maker was forced into a series of damaging recalls, involving over five million vehicles. It was also forced to suspend sales of many of its bestselling models, until issues with faulty floor mats and gas pedals could be resolved.
Lenovo (PC/tablet/smartphone)
This week (3 September 2013) the CEO of Lenovo (Yang Yuanqing) announced that he would be sharing his three million dollar bonus with lower salaried workers, after the company reported record sales. About 10,000 workers at the world’s largest PC maker will receive payments in recognition of their contributions to the company’s success. Lenovo's first quarter 2013 financial results included a record $8.8bn in revenue and $174m net profit, an increase of 23 percent over the previous quarter. In contrast, Hewlett-Packard posted a net loss for the 2012 year and Dell posted lower sales and earnings for the same period, with a subsequent decline in share price.

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