Loveholidays’s year, due to strong sales on the

Loveholidays’s
strategy is focused on offering lower prices to its customers. This
is due to the information contained on their website, among other
things, the technologies that lead to finding the lowest prices
(About Us — Loveholiday). In the strategic report of the chief
executive, he emphasizes that the ”company is focused on the
exploitation of intellectual property created through the design and
development of new technologies that are used to manage an online
travel platform” (We Love Holidays Ltd, 2016). Loveholidays have
”Price Match Guarantee” which guarantees the lowest price. Company
follows daily millions of prices to offer on its site the lowest. If
the customer will find the same offer at the lower price
on different site, Loveholidays returns the difference.By
guaranteeing the lowest price that the company promises, it has
achieved very high growth. On Fast Track 100, Loveholidays, currently
occupies 2 positions, showing annual sales of 183.90% in 3 years
(Fast Track 100). In Annual Report and Financial Statement for the
year ended 31 October 2016, executive director showed that ”Turnover
of company increased by £8.7m (60%) during the year, due to strong
sales on the online travel platform” (We Love Holidays Ltd,
2016).Keeping the Loveholidays opinion portal offering the lowest
price, which encouraging customers to purchase, continuous upgrading
technology to reduce prices, and returning the difference in price,
when customers will find the same offer at a lower price. These
factors indicate that Loveholidays strategy is focus on low
costs and low prices for customers.

The
strategy adopted by Loveholidays can be identified in this proposed
by Porter (1980). Porter (1980) described, competitive strategy,
quite broadly, as a combination of goals to which the company is
going, and the means by which it seeks to reach them. (Porter, 1980).
According to Porter Generic Strategies, company can distinguish cost
advantage, advantage by differentiation and
focus advantage
(Porter, 1980). So, can conclude that Loveholidays is guided by cost
advantage strategy.
Cost advantage of an enterprise may be due to external factors that
may be related to the location of the business in the environment
(e.g. access to cheaper resources), internal factors, mainly related
to resource allocation and time factor, and experience increases
performance and specialization of the company. Moreover, it usually
leads to the adoption by the company of a price competition strategy,
i.e. that the company offers its goods or services at prices lower
than its competitors. In other words,
cost
leadership strategy is based on the occupation of a position in the
market, which will reduce costs enabled.
Lower costs mean lower prices, and lower prices, where quality
remains at the same level, is a competitive advantage. The use of
such strategies is only possible if the company is reasonably well
managed and has a sufficiently good market position, it means, that
market share is high enough to be able to benefit from economies of
scale or reduce the costs of promotional activities.