This report is an analysis of the company Wotif.com's effort of framing market opportunity.com is an online company operating in the last-minute hotel room industry. By allowing hoteliers to advertise their unsold hotel rooms at reduced rates on their regularly updated website, Wotif.com has revolutionized the accommodation industry, by increasing capacity rates and boosting the market for cheap last minute accommodation (Tovia, 2002). Their strategy is analyzed using the following 5-condition market opportunity framework. .
1.0 Determine how you might be able to create value.
Wotif.com has succeeded in creating value for a basis of customers, which includes the users of hotel rooms and hoteliers regularly burdened with a supply of unsold rooms. This value originates from an established practice of offering un-booked rooms at a reduced price. While this practice has offered somewhat of a solution for hoteliers and the one-off bargain for some travelers, it has always been viewed as unreliable and highly inaccessible for many. .
By redeveloping this practice on its easily accessible website, Wotif.com has identified clusters of trapped value. The previous offline market for unsold hotel rooms has a high degree of asymmetric information, consumes high amounts of time and resources in bringing people together, and does not allow easy collaboration between customers and hotels; three common sources of trapped value (Mohammed, 2002). By bridging this market inefficiency gap, Wotif.com has lowered transaction costs, disrupted pricing policies, and extended customer power and reach in the hotel room industry. .
2.0 Uncover your opportunity nucleus.
Recently, there has been an increasing trend towards last-minute travel plans and bookings (Herald, 2003). This leads Wotif.com to seek to satisfy the increasing need of consumers who requires last-minute accommodations at discount rates. Therefore, Wotif.