Business strategy is a plan of action which is designed to achieve organization's goal or simply we can say it is a planning which give direction to the business growth. Veena world uses a combination of PEST and SWOT analysis to evaluate their business strategy.
PEST and SWOT analysis for Veena world
• The trustworthy image of Mrs.Veena patil in tourism industry.
• Company is strongly active on all social networking sides like Facebook, Google, Twitter and YouTube.
• Packages for all age group and gender.
• Packages available from budget packages to luxurious packages
• Recruit trained professional staff
• As Veena world is newly established company they have limited branches and need to expand their branch network
• As Veena world newly entered in tourism industry they continuously focused on increasing their customers and for that they focus on to identify requirements of guests like:
a. Searching for new destinations
b. Innovating new and different packages
• They have opportunity to expand their business globally by opening more branches and getting into joint ventures for business growth
• Present leading competitor is Kesari tours Pvt. Ltd because of 50% of business strategies of veena world shows similarity with Kesari tours strategies
• Other small scale travel agencies who is offering a budget group tours
Political factors looks at how government rules, regulations and legal issues affect a company's performance.
This factor include issues like:
• Political stability
• Social and environmental policy
• Trade regulations
• Tax guidelines
• Safety regulations etc.
This factor create impact on the growth and performance of the company. Veena world faces many political issues on its path of success like taxation policies of government and the government decisions about the increasing prices of fuel have affected the buying capacity of the individuals.
Economic factor is an important factor for tourism and hospitality industry because it will create effect on cost, profit and demand.
This factor include issues like:
• Economic growth
• Inflation and interest rates
• Credit availability
• Economic stability
• Exchange etc.
Group tour is the specialty of Veena world. Group tour is the flexible business for income because it is income rises as well income decreases business. The spending capacity is increasing because of best deals offered by Veena world. This has left a good income in hand.
Social factors includes cultural and demographic aspects of company market.
This factor includes issues like:
• Age distribution
• Population growth rate
• Religious and ethical beliefs
• Health consciousness
• Lifestyle change
• Demographics etc.
The customer demands have changed because of continuous change in their lifestyle and effect of globalization on society. Today's generation has become more price sensitive and they like to explore new destinations and people have also started to give first preference to their interests. Veena world always updated their strategies as per public demands and time needs.
For example: Veena world newly started their ‘short break packages' for those people who like to travel for only shopping, adventure, only for fairs and festival, wellness, for food testing etc. These packages are for people who are not only interested in exploring destinations.
This factor looks at how an organization delivers their services and products in the market place with the use of technology.
This factors includes issues like:
• Generation change and their expectations
• Technological changes and expectations etc.
The use of Information technology has given a boost to the reservation and administration operations in tourism business. Veena world strongly focused on electronic marketing. They provided daily updates to the customers through face book, twitter, google and you tube. They also provide tour status, weather status and travel tips on their veenaworld.com and also has FAQ's (frequently ask questions) facility on social networking sites for their customers.
1.2 STRATEGIC BUSINESS DEVELOPMENT THEORIES TO IDENTIFY THE STRATEGIC OPTIONS AVAILABLE FOR TOURISM ORGANISATION
Strategic planning is an important for a business growth. The strategy planning of an organization is a systematic process of envisioning a desire future and translating their vision into their defined goal.
Veena world is always updating their strategies as per customer demands and time requirement. “PRODUCT DIFFERENCIATION” is the main strategy of veena world and they are segmenting market based on AGE AND GENDER. To fulfill public demands and to create new bench mark in travel industry they adopted the following theories of business strategy:
Veena world uses ANSOFF MATRIX STRATEGIC PLANNING.
Ansoff matrix shows four different business strategies for business growth:
Market penetration : existing product for existing customers
Product development : new product for existing customers
Market development : existing product for new target audience
Diversification : new product for new target audience
From which strategies of veena world shows similarity with product development and market development which can be seen in the following examples:
• PRODUCT DEVELOPMENT: - in which they focus on innovating new product to their existing customers.
1. ‘Grandparents and grandchildren special tours'
Here target audience are from their senior citizen special tours and student special tour but they did innovation with emotional values.
2. ‘Veena world special short breaks'
Here they offer shopping short break, foodie short break, fairs and festivals short break, wellness short break and many more. Here also they focus on their existing customer but they do innovation by giving options to the customers about their likes and dislikes
• MARKET DEVELOPMENT: - Here they focus on to introducing existing product for new target audience.
1. Jubilee special tour
Here their package show similarity with existing products like with couple special tours and honeymoon special tours but they try to break age limit by offering same enjoyment to the jubilee couples who completed 20- 30 years of their married life.
Veena world also uses COST LEADERSHIP STRATEGY where they work at lowering the cost and broad target that's why company mainly focusing on group tours.
Company also focus on COMPETITIVE BASE STRATEGY. Veena world always updated about their competitor's activities and try to innovate their tour packages as per industry requirement and at the same time they try to fulfill their customer's demands with affordable budget.
1.3 EVALUATE THE RANGE OF STRATEGIC OPTIONS AVAILABLE TO A TOURISM ORGANISATION
A strategic options provides choice to an organization for business expansion. These options could be related with new product, new service, new geographical segment, new target audience etc.
The strategic priorities of Veena world for their business growth and development are listed below:
• Product differentiation
• Their employees
• Age and gender based market segmentation
• Behavior based market segmentation
• Group targeting
• And value based strategy.
Group tours are specialty of Veena world in which company have their niche tours like women's special tour, student special tour and senior citizen special tour.
Veena world segmented their market on the basis of age and gender. They have tour packages for all age group and gender.
• On the gender basis like:
Women's special tour and men's special tour.
• On the age basis like:
Student special tour, senior citizen special tour etc.
Also veena world starting to focus on Behavior based segmentation. In which they launched “ Veena world special short breaks” which provide number of varieties to customer by providing list of packages like:
• Shopping short break
• Foodies short break
• Divine short break
• Fair and festival short break
• Wellness short break
• Camping short breaks
• Coastal short break
• Adventure short break etc.
Veena world mainly focus on Product differentiation and cost controlling.
• Veena world package of “Let's visit 50 countries in next 5 years with Veena world''
Here they provide an opportunity to the customers to plan and book holidays for next 5 years with offering facility of ‘pay payment in installment's' and company successfully achieved fix and regular customer and regular income.
Veena world also use value based strategy in which they mainly focus on two values like;
Emotional value – Veena world always focus on creating packages where you can enjoy unforgettable and unique moments with your lovely relations and you can spend quality time with your loved one. They have packages like;
• Family special tour
• Honeymoon special tour
• Jubilee special tour
• And recently they added one more different package into it is ‘grandparents and grandchildren special tour'.
Product value – In which they create package in such a way where this package get its own worth. These packages are specially for those who like to enjoy their life with status and who live their life on their own demands. Where you can fulfill your dream as you want and where you can reach anywhere on the world map.
For this Veena world have their special package of “signature holidays” where guests can enjoy;
• Treetop stay
• Make your own perfume
• Dine in underwater restaurant, in a cable car and on beach
• Enjoy bush spas in the wild
• Helicopter rides
• Cruise holidays
• Cooking classes
• Self-drive holidays for India
• Island gateways
And other number of services they will provide as per customer demands.
Company also adding value in products by offering various offers and discount like:
• Discount on group booking, double tour discount, senior citizen discount and special discount for signature holidays
• They provide complimentary and gifts like Veena world voyager, cap and dry snack hamper and camper for children's who is below 12 years etc.
• Company celebrate combine birthday of guests on tour.
1.4 IDENTIFY THE RISKS TO A TOURISM ORGANISATION OF ADOPTING A STRATEGIC OPTION
Risk is an inseparable part of a business. Without taking any risk you cannot create new bench mark in industry. There are various types of risk faced by organizations when they adopted strategic options like;
Risk related with strategic uncertainty
Risk about company image
Risk in use of technology etc.
Veena world adopted following risk management program to avoid possible reduction in company growth:
Provide proper training and education program for their customers to avoid the general travel risk and medical risk in specific country. Also company added ‘Travel tips' column on their social networking sites which also provide risk related education. Company provide map of respective country to each customer on the tour and Veena world is always clear about documentation part of the customers.
Company always take care of their social networking sites. Social networking sites are updated daily with new updates which provides complete, true and recent information about packages, offers and contact details to the customers.
In crisis situation on any tour they allocate the traveler tracking system which allow company to communicate with their travellers.
Providing pre and on trip information reports covering medical information, destination risk assessment and country profile powered by trusted sources
If necessary they provide 24 hours assistance service for their personal support to their guest.
Veena world maintain multi - lingual and well qualified staff and provide training to their employees to handle any type of guest.
Company strictly avoid stereotyping and any type of service gap.
Company always try to maintain friendly relations with their competitors and with sales partners.
1.5 RECOMMEND AND JUSTIFY STRATEGIC OPTIONS AVAILABLE TO A HOSPITALITY OR TOURISM ORGANISATION
Going through the internal and external analysis of Veena world and by observing their adopted business strategy options few growth strategies are recommended:
As per my research:
Veena world adopted market segmentation on the basis of age, gender, behavior and value based strategy. Company also can divide their market on the basis of economic income. They can innovate new packages on the basis of high economy earners, middle class and low economy people.
Veena world shows similarity with Ansoff matrix theory because they focused on product development and market development. They also can focus on diversification by launching new product for new target audience.
As Veena world completed only 2 years of their service they have limited branches and company need to expand their network. Company should plan of systematic way of expanding their organization by opening more branches or getting into joint ventures so that they can expand their business in India and overseas market.
Company is strongly active on all social networking sites and less active in printing advertisement but they need to focus on print media also for those people who are not able to use social networking sites. They need to invest more money in printing advertisement also.
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