IntroductionBusiness models are perhaps the most discussed and least understood aspect of the web. Brokerage models, like Priceline.com, are market makers: they bring buyers and sellers together to facilitate transactions. Priceline.com pioneers a unique new type of e-commerce known as a “demand gathering system.” Priceline.com is the world's first online shopping service through which consumers nominate the price they are willing to pay. By taking advantage of the unique characteristics of the Internet, Priceline.com finds sellers willing to match buyers' needs and price points. Jay Walker, the founder of Priceline.com, created a new concept and business model. This model shifts pricing from sellers to buyers. The company seeks to use its patented system on products such as airplane seats, hotel rooms, gasoline and groceries. Using a simple and persuasive consumer proposition called “Name Your Price,” Priceline.com collects consumer requests for a product or service at a desired price. Priceline.com redirects the question within their databases or simply directly to participating suppliers. Priceline.com fulfills customer offers from inventory provided by participating sellers. Priceline.com allows sellers to generate extra revenue without disrupting existing distribution channels or retail pricing structures. In this sense it exploits the communication and information capacity of the Internet to overturn the usual retail sale; alternatively, it opens up a form of transaction to the individual consumer that was previously open only to corporate entities. Key Issues Priceline.com achieved tremendous success in its early years. However, the success story was put on hold in 2000. Priceline.com is now facing many critical issues. Recently, Priceline.com took a hit from its investors and is now on the verge of survival due to the failures of WebHouse Club and Perfect Yardsale. Key areas of concern, which will be explored in more detail later, for Priceline.com include: contested patent techniques, poor customer service, need for a new brand identity, reliance on the travel industry, declining stock price, and fierce new competitors. Now, facing enormous problems, Priceline.com faces a daunting future and questionable long-term success. Will Priceline.com find itself driven out of business by imitators, despite its patent? Basically, can Priceline.com survive?SWOTAn evaluation of Priceline.com's strengths and weaknesses begins as an inspection of the company's internal workings, which are relatively easier to control than external factors. On the other hand, opportunities and threats were analyzed as part of an external environmental analysis; over which Priceline.com has no control.