MakeMyTrip and Goibibo Merger: Minimum People Disruption For Maximum Customer Advantage

MakeMyTrip and Goibibo Merger: Minimum People Disruption For Maximum Customer Advantage

Debolina Dutta, Anupama Kondayya

In 2016, MakeMyTrip, a prominent player in the online booking of travel space in India, moved to acquire arch-rival Goibibo (GI) to consolidate market share, build complementary synergies, and enable profitable growth. MMT was a leader in the online travel and premium hotel booking segment. GI penetrated the economy hotel segment and acquired redBus (RB) to diversify into the online bus booking space. Due to the merger, the processes of policies of the three entities in various aspects of business had to be aligned for smooth operations so as to capitalize on the expected synergies of the separate entities. Key priorities during a merger are in engaging and retaining critical talent and aligning human resource management policies and practices, including employer branding, talent acquisition (internal and external), performance management, benefits and policies, and separation and exits. Strategic talent decisions and cultural alignment can significantly influence the capabilities and performance needed of the workforce after a merger and acquisition (M&A). An integration project team had been commissioned for this and was expected to make recommendations to achieve this standardization. The case examines the challenges of identifying all aspects of people systems and processes that influence organizational culture. Alignment and standardization of the disparate organizational policies of the merging entities and communication of the final policies and practices require balancing organizational and employee needs and expectations. The case highlights the need to prioritize the integration of functions based on strategic organizational requirements.

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