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Expedia Inc. Essay

Expedia Inc. is one of America’s largest online travel agencies. The company arranges holidays and vacations for holiday makers through its expedia. com website and other customized regional websites. The other companies in this industry are Travelocity, GetThere. com, and Priceline. com among others (Expedia, 2009). Market domination by Expedia incorporated is not good for the society in the sense that it denies consumers the variety in services and products.

Market domination creates a monopoly like environment that may result in high product prices that may not really be matched with the quality of services and products Domination of the market by one company may also lead to inefficiencies in service provision due to lack of competition. The effect of this is poor service delivery hence lack of value for money The prices of products and services may increase in case one company controls a bigger market share tan the competitors.

This is shown by the fact that if the dominant company has operations in a wide geographical area, such that only its products and services are available, the company might charge premium prices as a result of lack of competitors. The other major disadvantage of market domination by one company is

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the lack of variety in products and services. The consumer will be denied access to a variety of products and hence may not get the best quality. On the other hand, market domination may not necessarily be bad.

This can be so if the competitors, in a bid to capture market share reduce the prices of their products hence customers are able to enjoy lower prices (Forbes, 2005). Market domination by a company can also have benefits to the shareholders and society in general. The high profits earned by the company will translate into more earnings to the consumers and therefore shareholders wealth maximization.

References

Calladine, P. (2009, April 08th). Why an MBA is important. Retrieved April 09th, 2009, from Study overseas. com: http://www. studyoverseas. com/mbamagazine/articles/mbazine2. htm. Expedia. (2009, April 08th). About Expedia. Retrieved April 09th, 2009, from Expdia. com: http://www. expedia. com/daily/service/about. asp? rfrr=-950 Forbes. (2005, November 08th). Market Scan. Travelocity could grow market share by 25% in 2005. Retrieved April 08th, 2009, from Forbes. com: http://www. forbes. com/2005/08/11/travelocity-expedia-earnings-0811markets14. html Fussell, E. (2003, january 01st). How important is an MBA to anEngineer? Retrieved April 09th, 2009, from Intech: http://www. isa. org/MBA.

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