“Amadeus IT Group: Grow or Go. The Strategic Role of Growth in the Digital World
2018, The Case Centre
Growth & expansion
Travel & tourism industry
Global distribution systems
Digital disruption
Digital service
Digital strategies
Business to business (B-to-B)
Innovation as growth strategy
External growth
Acquisitions and mergers (M&A)
Incumbent strategies
Organic growth strategies
Global leadership
Global strategy
Innovation as a competitive advantage
Abstract
Amadeus IT Group is a leading technology company dedicated to global travel and the tourism industry. In 2017 it is the leading Global Distribution System (GDS) but it has also diversified its activities in IT services. The company is directly affected by the emergence of innovative and disruptive business models in the travel and tourism industry. As an incumbent, Amadeus IT Group is now confronting new competitors such as venture-funded start-ups and consumer technology giants - such as Google, Facebook, and Instagram. Up to very recent years, the success of the company has been achieved only with organic growth. However, Amadeus IT Group recently decided to accelerate its innovation strategy and to develop external growth through the acquisition of other companies in order to adapt to the constant technological evolution of the travel sector. The case study examines Amadeus IT Group's profitable growth strategy and how the company has managed to become a global leader in the GDS (and tourism) industry. Then it introduces the recent disruptive models in the tourism industry in 2017 and their implications for Amadeus IT Group. Finally, the case study details the new acquisition strategy of Amadeus IT Group since 2013.