Harvard Case - Wilderness Safaris: Responses to the Covid-19 Crisis
"Wilderness Safaris: Responses to the Covid-19 Crisis" Harvard business case study is written by James E. Austin, Megan Epler Wood, Herman Leonard. It deals with the challenges in the field of General Management. The case study is 7 page(s) long and it was first published on : Nov 3, 2020
At Fern Fort University, we recommend Wilderness Safaris implement a multi-pronged strategy to navigate the COVID-19 crisis and emerge stronger. This strategy will focus on resilience, innovation, and responsible growth, leveraging the company's strong brand, commitment to sustainability, and existing partnerships.
2. Background
Wilderness Safaris, a leading ecotourism operator in Africa, faced unprecedented challenges in 2020 due to the COVID-19 pandemic. Travel restrictions, lockdowns, and plummeting demand forced the company to adapt rapidly. This case study examines the company's initial responses, including layoffs, cost-cutting measures, and pivoting towards domestic tourism. It also explores the potential for long-term growth and the need for strategic planning in a post-pandemic world.
The main protagonists of the case study are:
- Keith Vincent, CEO of Wilderness Safaris, who faces the difficult task of navigating the company through the crisis.
- The Wilderness Safaris team, who are tasked with implementing new strategies and adapting to the changing landscape.
- The stakeholders, including employees, investors, and local communities, who are impacted by the company's decisions.
3. Analysis of the Case Study
SWOT Analysis:
Strengths:
- Strong brand reputation for sustainable tourism and conservation.
- Deep expertise in remote wilderness operations.
- Existing partnerships with local communities and conservation organizations.
- Experienced and dedicated workforce.
Weaknesses:
- Heavy reliance on international tourism.
- Limited diversification of product offerings.
- Potential for financial instability due to COVID-19 impact.
Opportunities:
- Growing demand for domestic tourism in Africa.
- Increased focus on sustainable travel and responsible tourism.
- Potential for new partnerships and collaborations.
- Expansion into new markets and product offerings.
Threats:
- Ongoing travel restrictions and uncertainty.
- Economic downturn impacting travel spending.
- Increased competition from other tourism operators.
- Climate change and its impact on wildlife and ecosystems.
Porter's Five Forces:
- Threat of New Entrants: Moderate, as entry into ecotourism requires significant investment and expertise.
- Bargaining Power of Buyers: Moderate, as tourists have a range of options but value Wilderness Safaris' unique offerings.
- Bargaining Power of Suppliers: Low, as Wilderness Safaris has established relationships with local suppliers and communities.
- Threat of Substitutes: Moderate, as alternative travel experiences exist, but Wilderness Safaris' focus on sustainability and conservation provides a distinct advantage.
- Rivalry Among Existing Competitors: High, as the ecotourism industry is competitive, particularly in popular destinations.
Strategic Framework:
Wilderness Safaris can utilize a Blue Ocean Strategy to create a new market space and differentiate itself from competitors. This involves:
- Value Innovation: Offering unique experiences that combine luxury, sustainability, and cultural immersion.
- Uncontested Market Space: Focusing on niche markets, such as responsible luxury travel and wildlife conservation experiences.
- Differentiation: Emphasizing Wilderness Safaris' commitment to conservation, community empowerment, and responsible tourism practices.
4. Recommendations
Short-Term (0-12 Months):
Diversify Revenue Streams:
- Expand Domestic Tourism: Target local and regional markets with tailored itineraries and pricing.
- Develop New Product Offerings: Introduce virtual tours, online learning experiences, and wildlife conservation programs.
- Partner with Other Businesses: Collaborate with airlines, travel agencies, and local businesses to offer bundled packages and attract new customers.
Optimize Operations:
- Implement Cost-Cutting Measures: Streamline operations, reduce non-essential expenses, and renegotiate contracts.
- Enhance Efficiency: Utilize technology to automate processes, improve communication, and reduce waste.
- Focus on Employee Retention: Implement programs to support employees during the crisis and retain valuable talent.
Enhance Digital Presence:
- Improve Website and Online Marketing: Optimize website for search engines, leverage social media platforms, and invest in digital marketing campaigns.
- Develop Virtual Tour Experiences: Offer immersive online experiences to showcase destinations and attract potential customers.
- Utilize Data Analytics: Track customer behavior, identify trends, and personalize marketing efforts.
Long-Term (12-24 Months):
Invest in Innovation:
- Develop Sustainable Tourism Solutions: Explore new technologies and practices to minimize environmental impact and enhance guest experiences.
- Embrace Digital Transformation: Integrate technology into all aspects of the business, from booking systems to guest communication.
- Foster a Culture of Innovation: Encourage employees to share ideas, experiment with new concepts, and drive continuous improvement.
Expand Global Reach:
- Target Emerging Markets: Identify new growth opportunities in regions with increasing travel demand and a growing interest in sustainable tourism.
- Develop Strategic Partnerships: Collaborate with international organizations, NGOs, and travel companies to expand reach and access new markets.
- Invest in Global Marketing: Implement targeted marketing campaigns to reach international audiences and promote Wilderness Safaris' unique brand proposition.
Strengthen Corporate Social Responsibility:
- Increase Community Investment: Expand programs that empower local communities, support conservation efforts, and create economic opportunities.
- Promote Sustainable Practices: Implement rigorous environmental standards, reduce carbon footprint, and promote responsible tourism practices.
- Foster Transparency and Accountability: Share progress reports, engage with stakeholders, and demonstrate commitment to ethical business practices.
5. Basis of Recommendations
These recommendations are based on a comprehensive analysis of Wilderness Safaris' strengths, weaknesses, opportunities, and threats. They align with the company's mission of providing authentic and sustainable travel experiences while contributing to conservation efforts.
External Customers and Internal Clients: The recommendations cater to the changing needs of both international and domestic tourists, while also prioritizing employee well-being and fostering a positive work environment.
Competitors: By embracing innovation, focusing on niche markets, and strengthening its brand reputation, Wilderness Safaris can differentiate itself from competitors and create a sustainable competitive advantage.
Attractiveness: The recommendations are expected to generate positive returns on investment through increased revenue, improved efficiency, and enhanced brand value.
Assumptions:
- The travel industry will gradually recover in the coming years.
- Consumers will continue to prioritize sustainable and responsible travel.
- Wilderness Safaris will be able to adapt and innovate to meet evolving market demands.
6. Conclusion
Wilderness Safaris has a strong foundation for navigating the COVID-19 crisis and emerging as a leading ecotourism operator. By implementing a strategic approach that combines resilience, innovation, and responsible growth, the company can capitalize on new opportunities, strengthen its brand, and solidify its position in the evolving travel landscape.
7. Discussion
Alternatives:
- Downsizing: This option could lead to significant cost savings but would also result in job losses and potentially damage the company's reputation.
- Merger or Acquisition: This could provide access to new markets and resources but may compromise Wilderness Safaris' commitment to sustainability and community engagement.
Risks:
- Slow economic recovery: The tourism industry may take longer to recover than anticipated, impacting demand and revenue.
- Increased competition: New entrants and existing competitors may aggressively target the same markets as Wilderness Safaris.
- Unforeseen events: Future pandemics or other global crises could disrupt the travel industry and impact the company's operations.
Key Assumptions:
- The travel industry will eventually recover.
- Consumers will continue to value sustainable and responsible travel.
- Wilderness Safaris will be able to adapt and innovate to meet changing market demands.
8. Next Steps
- Develop a detailed strategic plan: This plan should outline specific goals, timelines, and resource allocation for each recommendation.
- Implement short-term initiatives: Focus on diversifying revenue streams, optimizing operations, and enhancing digital presence within the first 12 months.
- Invest in innovation and long-term growth: Allocate resources for developing sustainable tourism solutions, expanding global reach, and strengthening corporate social responsibility over the next 24 months.
- Monitor progress and adjust strategies: Regularly track key performance indicators (KPIs) and make necessary adjustments to the plan based on market conditions and company performance.
By taking these steps, Wilderness Safaris can navigate the COVID-19 crisis, emerge stronger, and continue to lead the way in sustainable and responsible tourism.
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Case Description
This case is an epilogue to "Wilderness Safaris: Impact Investing and Ecotourism Conservation in Africa" (2-321-020), which ends with the emergence of the pandemic in March 2020. The final discussion area for that case can be "What should Wilderness Safari CEO Keith Vincent do to confront the challenges of the pandemic?" This case documents, in the CEO's own words, what actions and plans Vincent and the company had taken or formulated as of July 2020. The areas covered are: Governance and Decision Making, Cash Management, People, Communities, Travel Agencies and Customers, Conservation, Reopening, and Investor Reactions and Future Projects. The case is only five pages, so it could be used as an in-class handout after the discussion of the previous case, with the follow-up class discussion taking place then, if sufficient time is available, or in the subsequent class. The focus of the discussion is on the students' analysis and evaluation of Vincent's actions and plans. The case particularly offers learning opportunities for risk assessment, leadership, and management in crisis situations.
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