1.                A Brief Introduction

Corporate Travel Management Limited (CTM) was mainly founded in 1994 with its headquarters in Brisbane, Queensland, Australia. The company was explicitly listed on the Australian Securities Exchange (ASX) on December 15, 2010. Currently, Allison Dodd is the Chief Executive Officer of CTM. The company is under the industry of Hospitality General, Transportation General, Hospitality and is mainly focused on offering various business travel management services. Besides, the organization has a revenue of $316.36 million as of 2020.

2.                Capital Market Analysis

Source: Corporate Travel Management Ltd. (2020). Retrievedfrom https://www.marketindex.com.au/asx/ctd?_

In comparing the results, it is clear that Australian All Ordinaries prices are always higher than the Corporate Travel Management Limited (CTM) prices. For instance, as of September 17, 2020, CTD prices was at $16.77, while Australian All Ordinaries Prices was 6,069 (Corporate Travel Management Ltd, 2020).

As of September 15, 2020, Credit Suisse Equities (Australia) Limited seized to be a substantial holder at Corporate Travel Management Limited (CTM). This even mainly affected the common stock. For instance, on the same day, -15,000 common stock and 36,000 common stock were all affected since they were all returned under ASLA. At the same time, on March 11, 2020, Morgan Stanely and its subsidiaries listed on Annexure A became a substantial holder with 5, 690, 065 ordinary shares. This event also potentially affected the share price of Corporate Travel Management Limited (CTM) due to the new substantial holder.

The bid-ask spread refers to the differences between the bid price and a security’s ask price. CTM’s bid-ask price is better than that of its two main competitors in the industry.

3. Business Analysis

3.1 Macro-economic Analysis

This will be completed using the TEMPLES framework (technological factors, economic factors, media factors, political factors, legal factors, environmental/ethical factors and sociocultural factors). As per the current technology, Corporate Travel Management Limited (CTM) has developed various apps that enable it to survive in the market. This app helps the company’s clients to save a lot of money which makes them loyal to the business. Besides, the economic factors that substantially impact on CTM include government intervention in the free market, the market interest rates, economic growth rate of the countries in which it operates and the labor costs as well as productivity in the current economies (Harpa, 2017). The political factors include incentives and taxation rates, mandatory employee benefits and trade regulations and anti-trust laws regarding consumer services. At the same time, legal factors that affect CTM are the health and safety laws, discrimination laws, employment laws and intellectual property laws. Besides, critical environmental factors are water and air pollution, waste management strategies, climate change, environmental pollution laws. On the other hand, the main sociocultural factors affecting Corporate Travel Management Limited (CTM) include the population’s skill’s levels, societal hierarchy and power structure, leisure interests and various attitudes such as those associated with health and environment.

3.2 Industry Analysis

In this regard, Corporate Travel Management Limited faces the threat of new entrants, precisely because it is challenging to attain economies of scale in the industry in which the company operates. This implies that those producing in large quantities are more likely to have various cost advantages. Also, it increases the production costs for new firms, making it difficult for them to enter the market. As such threats of new entrants remains a weaker force in the industry. Besides, it should be noted that there are many suppliers in the industry compared to the buyers, implying that suppliers usually have less control over the market prices. All these factors render the bargaining power of suppliers a significantly weaker force (Bruijl, 2018). On the contrary, there are many buyers in the industry compared to the firms. As such, the buyers have a limited choice of firms, making bargaining power of buyers another weaker force. Another element of Porter’s five force is the threat of substitute products or services. In this essence, there are comparably fewer substitutes for the industry’s products. At the same time, these few substitutes are mostly produced by low profit-earning industries, implying zero ceilings on the maximum profit that a company can receive in the industry. These make a threat of substitutes another significantly weaker force in the industry.  The last force is the rivalry among the existing firms in the industry. Notably, there are a few but large firms in the industry, meaning that no firm can make any move without other competitors’ awareness. This renders rivalry among firms another weaker force (Bruijl, 2018).

3.3 Business Strategy

Notably, Corporate Travel Management Limited mainly uses product differentiation as its principal strategy that enables it to achieve a competitive edge in the market (Yuan et al., 2020). As a technological strategy, the company developed various apps which primarily reduce costs for customers, and this has significantly increased its sales by expanding its market shares. The use of technology saw the company’s revenues grow from 369, 086 in 2018 to 446,739 in 2019.

4.                Corporate Governance and Management Quality Analysis

The board of Corporate Travel Management Limited (CTM) consists of Ewen Crouch AM (Chairman Independent Non-Executive Director), Sophie Mitchell (Independent Non-Executive Director), Jon Brett (Independent Non-Executive Director), Jamie Pherous (Executive Director) and Laura Ruffles (Executive Director, Global COO). Primarily, this board is more experienced and skillful than that of the company’s key competitors based on the firm’s better performance. At the same time, Corporate Travel Management Limited (CTM) has two central board committees, including the regional and global leadership committees. These two boards are independent in terms of their duties, but they are also interrelated since they are pursuing the same goals and objectives laid out by the leading management.

On the other hand, the remuneration structure of the top management staff is based on a reward structure. This is different from the key competitors’ structures that are not based on rewards. Generally, this structure is reasonable since rewards are a source of motivation for most employees, and it usually makes them work harder to achieve various company goals and objectives. Besides, the rewards system ensures that the top management staff remain loyal to the company as their efforts are effectively compensated. It makes them not want to move to other companies offering better deals in terms of payment.

5.                Conclusion

As described in the above-concluded report, Corporate Travel Management Limited (CTM) remains one of the key leaders in the industry in which it operates due to its competitive edge and better performance.