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Lonely Planet Cases

In: Business and Management

Submitted By shaka12345
Words 965
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Requirement 1 Recently, since the smart phones and wireless technologies for mobile devices are becoming more and more popular, the traditional industries have to think about their revolutionary about their new productions which can face new challenges. New products that can take advantages of internet can survive in this competitive world. Over the past years, the Internet has developed into a valuable tool for consumers searching for unbiased and extensive product information. With the goal to take a rational buying decision, consumers frequently access price comparisons, technical specifications, consumer reviews, or similar information in the web. Online shops utilize the availability of this information and integrate according functionalities in to their websites, creating a better experience and positively influencing sales. But although revenues in online shops are increasing, physical stores still retain their attractiveness to customers. A reason for that is certainly that the overall shopping experience created in a shopping mall or a corner store is very different from shopping with a web browser. As for a traditional travel guide book publisher, Lonely Planet, it also can use this good opportunity to release new product in order to change customers’ ideas about this company, which can help the company to change its impression of traditional consumers. Besides, it can also address consumers’ concerns about the timelessness and currency because the new products that used in mobile devices can provide real-time information and update information constantly, which traditional travel books cannot do.
Requirement 2 As we know from the case, Lonely Planet was always looking for ways to expand its market and brand image through new technologies. For example, it offers audio phrasebooks and city guides that can be downloaded to several brands of smart phones. However, despite its excellent Web site and its use of new technologies, most of Lonely Planet’s revenues are still generated by book sales. Most of all, here is a new problem, which is the conflicts and cannibalization between two marketing channels. The first marketing channel is the traditional channel that sells book annually, and the second channel is the new products that using technologies for mobile devices or internet website. Channel conflict and cannibalization are increasingly important for Lonely Planet to balance the context of an increasingly competitive marketplace employing so many new technologies with the traditional book selling. The first issue is the information sharing problem. Since the company contracts many authors who write books for them, but the authors who they hired is the same group. So the information can be shared in both channels. In this way, if consumers want to know travel information, they can just visit their own website instead of purchasing the book. It this way, Lonely Planet has to suffer the loss of revenue that comes from book selling. The other issue is that Lonely Planet book marketing channels are so hesitant to push their online channels. They're worried about cannibalizing their existing store traffic. And it's no small concern. To the consumer, a dollar spent at a Web store is the same as a dollar spent at the traditional store. But the retail community isn't ready to see it that way. Book marketing channels see even their own Web sites as new competition. Book marketing channels have to cope with the fact that their downtown store may take a hit when the online store opens. Many companies, even as they forge ahead online, are clearly treading lightly to avoid this problem. Home Depot's prelaunch of its Web site is designed to "drive traffic into our stores. On the other hand, if Lonely Planet close their online products and mobile devices service channel, they cannot be competitive enough as other companies, because most of the companies even the traditional ones are building their new technologies networks. Additionally, there are book marketing channels conglomerates which are very desirable for manufacturers and vendors and there is developing intense competition for access to these. If you can't get into the major chains, you will not have the volume of sales to grow from a medium sized company to a larger sized company will be eliminated by the modern market. For Lonely Planet, it is imperative that to find the balance between the traditional books selling channel and new technologies internet based channel. In addition, due to handheld’s limited memory and bandwidth, the new applications focus on cities, not countries. They obviously cannot replace a guidebook. But for the traveler who wants to figure out how to spend a free afternoon or where to go for dinner, these mobile guides plus a good map are ideal substitutes for printed guides. Lonely Planet therefore should continue to invest in product development to work with the likes of Apple, Google, Amazon, Nokia, etc.
Requirement 3 The product that might be used in future market is using interactive e-book travel guides, travelers doing longer trips do not need to carry three or four guidebooks during travelling. Travelers can buy the content directly and save it in their hand-held or e-book or just purchase few chapters they need instead of buying the whole book before they are going to travel on board if the current destination does not provide good internet connection. It is also an ease to carry around. Moreover, travelers can bookmark the places they don’t want to miss and make notes on the page, just like a print guidebook. Besides, the product can also be an application on Apple Store or Android system, once the customer download the application, they can choose their favorite subscription plans, such as monthly, seasonally, or annually. In this way, they can use their phone or other mobile devices to get the newest travel information.

References http://www.academia.edu/1951098/Mobile_Device_Evaluation_Project_Phase_1_Report_September_2012_ http://www.witiger.com/ecommerce/cannibalization.htm…...

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