Name your own change : the success history of Priceline.com

Abstract

The Dynamic Capabilities View emerged from the work of several researchers, aiming to provide an explanation for a firm’s success in a fast-changing environment. This Thesis strives for the analysis of the Dynamic Capabilities literature through the real life business history of Priceline.com, an online travel agency founded in United States. The case shows that the company has a high propensity to sense opportunities and threats, to make market oriented decisions and to change their resources base while having a medium propensity to make timely decisions. In addition, evidence suggests that dynamic capabilities were key for the Priceline.com's success within a fast-changing environment, giving support to the literature that defines Dynamic Capabilities as the “firm’s potential to systematically solve problems”.