The invention of the affordable home computer sparked the internet boom which in return brought about the dot-com bubble and subsequent bust. Dot.com investment was heavy in late 1990s and began to deflate in the early to mid-2000s. This turbulent boom-bust cycle was the birth place of many failed dot-com business ventures. Priceline.Com is the exception, a fledging start-up, who under the same condition witnessed many others businesses fail, grew into the giant it is today. The brain child of entrepreneur Jay Walker, Priceline’s patented business model, ”Name you own Price” is credited for its unique success. The company has had its share of problems, but continues to provide service to its customers and profits to its shareholders. Priceline.Com is currently listed as Fortune Magazine’s 34th of Americas top Fastest-Growing Companies of 2013. (Birger, 2014). Priceline utilizes technology systems in its day-to-day operations that are critical to its daily operations. (FIGURE 1) (FIGURE 2)
Keywords: internet boom, dot-com bubble, information systems, business model.
Priceline.Com “Name Your Own Price”
Priceline.Com’ business model “Name your own price” was developed by the think tank Walker Digital in 1994. Entrepreneur Jay Walker began the think tank in order to take advantage of all the new money being invested in the dot.com boom. The 1990s were ripe with new concepts thanks to the popularity home computing. The idea of a patented business plan came to Walker after reading about the success of a public key encryption system that was patented by a company called RSA Data Security. (History of Priceline.com Incorporated, 2014)
The Name Your Own Price Concept
The business model is based on a reverse auction concept where a buyer places a bid on a desired good or service with specific characteristics (hotel rating, location, travel dates, etc.), with the amount they want to pay for the service or item. Priceline.Com first checks its own data...