Analysis of Priceline.com :: Internet Online Purchasing E-Commerce Essays

Analysis of Priceline.com Incomplete Paper Priceline.com (PCLN) may have been able to bring a dynamic reverse auction model to the market, but a cloud of doubt now hangs over the company's headquarters in Norwalk, Connecticut. Consumer adoption has been hurt by poor Web site functionality and a rigid bidding system that locks customers into buying products such as plane tickets without any control over specific flight details. On a bullish note, the company was recently reinstated into Connecticut's Better Business Bureau after making improvements to its Web site and customer service. But the bigger problem facing Priceline is a lack of support from investors, who have driven the company's stock down 98% from its 52-week high. Executive departures and layoffs aside, the company's delayed march toward profitability and inability to scale successfully might very well exemplify a doomed model, or a solution in search of a problem. Perhaps an emphasis on price has blinded Priceline to intangibles like quality service and a satisfying experience. It's unclear whether consumers are willing to sacrifice brand and product features to save a few bucks. The announcement in early October that the company's WebHouse Club subsidiary for groceries and gas would close, was a shot heard 'round the Web and Wall Street and signaled the model might be broken. Introduction Which is the one place where you can satisfy your every need (almost every need) at your price? Be it airline tickets, hotel rooms, rental cars, mortgages, new automobiles, or even long distance calling time. The answer would be Priceline.com. All you have to do is know your need, state your terms, and make your offer. It doesn’t get easier than this! Priceline.com was one of the pioneer online companies to traverse the traditional limitations of the Internet and revolutionize online purchasing. It’s strategy – letting the consumer name his/her price, and matching it with a seller who is willing to fill the demand at that price and those conditions, there by providing the required service the consumer desires. Thus Priceline.com is basically an integrated, Web-based e-marketing automated system, which was one of its kinds when it started its business in the consumer marketplace. In simple word it is the ideal middleman, who gets you what you want, wh en you want it through a unique dotcom experience. Priceline.com was formed on April 6, 1998 as a limited liability company, but looking at its potential and rapid success it was soon converted into a corporation.