Harvard Case - Savannah Discovery Kenya: Doing Well to Do Good
"Savannah Discovery Kenya: Doing Well to Do Good" Harvard business case study is written by Nava Emilia Anvar, Diego Cobian, Heinrich Liechtenstein. It deals with the challenges in the field of Entrepreneurship. The case study is 18 page(s) long and it was first published on : Jul 25, 2023
At Fern Fort University, we recommend Savannah Discovery Kenya (SDK) pursue a strategic expansion strategy focused on leveraging its existing strengths in technology and analytics to develop a comprehensive sustainable tourism platform. This platform will integrate web and mobile applications, data analytics, and community engagement to offer a unique, responsible, and enriching experience for tourists while promoting sustainable development in Kenya.
2. Background
Savannah Discovery Kenya is a social enterprise founded by two Kenyan entrepreneurs, David and Josephine, with a mission to empower local communities through sustainable tourism. They have developed a successful model of community-based tourism, where local communities are directly involved in planning, managing, and benefiting from tourism activities. SDK leverages technology and analytics to create a platform that connects tourists with local communities, offering unique experiences and promoting cultural exchange.
The case study highlights SDK?s success in creating a profitable and impactful business model. However, it also presents challenges related to scaling the business, managing growth, and ensuring sustainability.
3. Analysis of the Case Study
SWOT Analysis:
Strengths:
- Strong social mission: SDK?s commitment to empowering local communities is a key differentiator.
- Innovative business model: The platform combines technology, community engagement, and sustainable practices.
- Strong team: David and Josephine demonstrate entrepreneurial leadership and a deep understanding of the local context.
- Positive brand image: SDK is recognized for its ethical and responsible approach to tourism.
Weaknesses:
- Limited resources: SDK faces financial constraints for scaling operations.
- Dependence on external funding: Reliance on grants and donations creates instability.
- Lack of marketing and outreach: SDK needs to expand its reach to attract a broader audience.
- Limited technology infrastructure: The platform needs further development to enhance user experience and functionality.
Opportunities:
- Growing demand for sustainable tourism: There is a global trend towards responsible travel.
- Emerging markets: The African tourism sector offers significant potential for growth.
- Partnerships with international organizations: Collaboration with NGOs and tourism agencies can expand reach and resources.
- Technology advancements: New technologies can enhance the platform?s functionality and user experience.
Threats:
- Competition: The tourism industry is highly competitive, with established players and new entrants.
- Economic instability: Global economic downturns can impact tourism demand.
- Environmental challenges: Climate change and environmental degradation pose risks to tourism destinations.
- Political instability: Political unrest can disrupt tourism activities.
Porter?s Five Forces Analysis:
- Threat of new entrants: Moderate - The tourism industry has relatively low barriers to entry, but SDK?s unique model creates a competitive advantage.
- Bargaining power of buyers: Moderate - Tourists have choices, but SDK?s focus on authentic experiences and social impact can attract loyal customers.
- Bargaining power of suppliers: Low - Local communities are key suppliers, and SDK?s model empowers them.
- Threat of substitutes: Moderate - Other tourism options exist, but SDK?s focus on sustainability and community engagement differentiates it.
- Rivalry among existing competitors: Moderate - The tourism industry is competitive, but SDK?s niche focus and strong brand image provide a competitive advantage.
4. Recommendations
Strategy:
- Develop a comprehensive sustainable tourism platform: This platform will integrate web and mobile applications for booking tours, managing itineraries, providing information, and facilitating communication with local communities.
- Leverage data analytics: SDK should utilize technology and analytics to understand tourist preferences, optimize tour offerings, and personalize experiences.
- Focus on community engagement: SDK should actively involve local communities in developing and managing the platform, ensuring their ownership and benefits.
- Expand marketing and outreach: SDK needs to invest in marketing strategies to reach a wider audience, including online advertising, social media campaigns, and partnerships with travel agencies.
- Seek strategic partnerships: SDK should explore partnerships with international organizations, NGOs, and tourism agencies to expand its reach and resources.
Implementation:
- Phase 1 (Short-Term):
- Develop a minimum viable product (MVP) of the sustainable tourism platform.
- Pilot the platform in selected communities.
- Launch a targeted marketing campaign to attract early adopters.
- Secure funding through angel investing or crowdfunding to support platform development and marketing.
- Phase 2 (Medium-Term):
- Expand the platform to new communities and destinations.
- Integrate additional features and functionalities based on user feedback.
- Develop partnerships with travel agencies and tour operators.
- Explore venture capital funding for further expansion and growth.
- Phase 3 (Long-Term):
- Establish SDK as a leading sustainable tourism platform in Kenya and beyond.
- Develop a robust supply chain management system to ensure the quality and sustainability of tourism experiences.
- Explore international expansion opportunities in emerging markets.
- **Consider going public to access capital markets and further scale the business.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core competencies and consistency with mission: The proposed strategy leverages SDK?s existing strengths in technology and analytics while aligning with its social mission of empowering local communities.
- External customers and internal clients: The platform addresses the needs of tourists seeking authentic and responsible experiences while empowering local communities.
- Competitors: The strategy differentiates SDK from competitors by focusing on sustainability, community engagement, and a unique technology-driven platform.
- Attractiveness: The proposed strategy has the potential to generate significant revenue and social impact, attracting investors and supporting sustainable growth.
6. Conclusion
By embracing a strategic expansion strategy focused on a comprehensive sustainable tourism platform, SDK can leverage its existing strengths, address its weaknesses, and capitalize on emerging opportunities. This approach will enable SDK to achieve its social mission, generate sustainable profits, and establish itself as a leading player in the responsible tourism sector.
7. Discussion
Alternatives:
- Focus solely on community-based tourism without technology: This approach would limit SDK?s growth potential and ability to reach a wider audience.
- Partner with an existing travel platform: This option could provide access to a larger customer base but might compromise SDK?s control and independence.
- Expand into other sectors: Diversifying into other sectors might dilute SDK?s focus and brand identity.
Risks and Key Assumptions:
- Technology development and adoption: Successful implementation requires ongoing investment in technology and user adoption.
- Community engagement and participation: Maintaining community buy-in and active participation is crucial for the platform?s success.
- Competition and market dynamics: SDK needs to adapt to changing market conditions and competitive pressures.
- Financial sustainability: Securing sufficient funding for platform development, marketing, and expansion is essential.
Options Grid:
| Option | Strengths | Weaknesses | Risks |
|---|---|---|---|
| Comprehensive Sustainable Tourism Platform | Leverages strengths, aligns with mission, high growth potential | Requires significant investment, technology development, community engagement | Technology failure, market acceptance, financial sustainability |
| Community-Based Tourism Only | Low investment, strong community focus | Limited growth potential, low reach | Competition, lack of scalability, dependence on grants |
| Partnership with Existing Platform | Access to larger customer base, reduced investment | Loss of control, potential compromise on values | Partner reliability, brand dilution, limited impact on communities |
| Expansion into Other Sectors | Diversification, potential for new revenue streams | Dilution of focus, brand confusion, increased risk | Market entry barriers, operational complexity, potential for failure |
8. Next Steps
- Develop a detailed business plan outlining the platform?s features, functionalities, marketing strategy, and financial projections.
- Secure funding through angel investing, crowdfunding, or venture capital.
- Assemble a team of experienced software developers, marketing professionals, and community engagement specialists.
- Pilot the platform in selected communities and gather user feedback.
- Continuously iterate and improve the platform based on user feedback and market trends.
- Expand the platform to new communities and destinations.
- Explore partnerships with travel agencies, tour operators, and international organizations.
- Monitor progress and adjust the strategy as needed.
By following these steps, SDK can create a sustainable and impactful tourism platform that empowers local communities, attracts tourists, and contributes to Kenya?s economic and social development.
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Case Description
Savannah Discovery Kenya (SDK) is an ecotourism company that operates four camps in two of Kenya's wildlife conservancies. Their model is based on delivering top-notch safari experiences while leaving a positive footprint in the places where they operate. Through their long-term partnership with the Maasai people, Savannah Discovery seeks to bring together community empowerment and nature conservation. At the base of SDK's concept lies the fundamental belief that the protection of the Mara Ecosystem can only succeed if the local communities are given fair substitutions to alternatives such as agriculture. The land known as Ol Kinyei Conservancy -where SDK operates- consists of 530 individual land plots, each entitled to a specific Maasai family. Every month, Savannah Discovery, together with their four tourism partners, pay a set lease fee to the landowners. Savannah Discovery also offers training schemes to promote local capacity and career opportunities for local people. Together with their Maasai partners, they have institutionalized a bottom-up management culture that fosters local ownership and a sense of responsibility. More than 95% of their employees are local Maasai, most of who have been trained by them. SDK had just renegotiated a 25-year lease renewal with the landowners when the world was struck by the COVID-19 pandemic, and the tourism sector was among the worst hit. The collapse of the tourism-based revenue structure put thirty years of effort and investment in community-based conservation at risk. With tourism revenue nearly non-existent, most of the employees at tourism facilities across the Mara were furloughed, and lease payments to over 14,528 landowners were at risk of being reduced if not eliminated completely. Due to the significant loss of conservancy revenues, local communities considered increasing the size of their cattle herds, fencing land for grazing, converting land to agriculture or, in the worst-case scenario, selling their parcels.
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