Harvard Case - Abelana Game Reserve: Community Partnership Driving Shared Value in Ecotourism
"Abelana Game Reserve: Community Partnership Driving Shared Value in Ecotourism" Harvard business case study is written by Amy Moore, Verity Hawarden. It deals with the challenges in the field of Strategy. The case study is 10 page(s) long and it was first published on : Apr 30, 2021
At Fern Fort University, we recommend Abelana Game Reserve (AGR) adopt a multi-pronged strategy focused on sustainable growth and community empowerment to solidify its competitive advantage in the ecotourism market. This strategy will involve a combination of business model innovation, digital transformation, and strategic partnerships to maximize value creation for both AGR and the local community.
2. Background
Abelana Game Reserve is a privately-owned wildlife sanctuary in Tanzania, committed to conservation and community development. Facing increasing competition from established players and the need to address growing community demands, AGR seeks to expand its operations and enhance its impact. The case study highlights the challenges and opportunities associated with balancing conservation efforts with economic development, particularly in the context of a rapidly evolving ecotourism landscape.
The main protagonists of the case study are:
- Abelana Game Reserve (AGR): A privately-owned wildlife sanctuary seeking to expand its operations and strengthen its impact on the local community.
- Local Community: The surrounding communities who rely on the reserve for economic opportunities and are increasingly demanding a greater share of the benefits generated by tourism.
- Management Team: The AGR leadership responsible for developing and implementing strategies to achieve the organization's goals.
3. Analysis of the Case Study
SWOT Analysis:
Strengths:
- Unique wildlife and ecosystem: AGR boasts a diverse ecosystem and abundant wildlife, offering a unique experience for visitors.
- Community focus: AGR's commitment to community development strengthens its brand image and fosters positive relationships.
- Experienced management team: The team possesses valuable experience in conservation and tourism management.
Weaknesses:
- Limited marketing reach: AGR's marketing efforts are primarily focused on local markets, hindering its ability to attract international tourists.
- Lack of infrastructure: Limited infrastructure restricts the range of activities and services AGR can offer to visitors.
- Dependence on tourism: AGR's revenue is highly dependent on tourism, making it vulnerable to economic fluctuations and external factors.
Opportunities:
- Growing ecotourism market: The global ecotourism market is experiencing rapid growth, providing significant potential for expansion.
- Digital marketing: Leveraging digital platforms can significantly enhance AGR's marketing reach and attract a wider audience.
- Partnerships: Collaborating with other organizations and stakeholders can unlock new opportunities for growth and resource sharing.
Threats:
- Increased competition: AGR faces competition from established players in the ecotourism industry.
- Climate change: Changing weather patterns and environmental degradation pose a threat to the reserve's ecosystem.
- Political instability: Political instability in Tanzania could negatively impact tourism and investment.
Porter's Five Forces Analysis:
- Threat of New Entrants: High due to the relatively low barriers to entry in the ecotourism industry.
- Bargaining Power of Buyers: Moderate, as tourists have a range of options available, but AGR's unique offerings can attract discerning travelers.
- Bargaining Power of Suppliers: Low, as AGR relies on local communities and suppliers for essential services.
- Threat of Substitutes: Moderate, as alternative leisure activities and destinations exist, but AGR's focus on conservation and community engagement provides a distinct value proposition.
- Competitive Rivalry: High, as the ecotourism industry is characterized by numerous players vying for market share.
Value Chain Analysis:
AGR's value chain encompasses the following key activities:
- Inbound logistics: Managing supplies, equipment, and resources.
- Operations: Conducting tours, managing accommodation, and maintaining the reserve.
- Outbound logistics: Facilitating visitor departures and transportation.
- Marketing and sales: Promoting AGR's services and attracting visitors.
- Service: Providing exceptional guest experiences and ensuring visitor satisfaction.
Business Model Innovation:
AGR can leverage business model innovation to enhance its value proposition and achieve sustainable growth. This can be achieved through:
- Diversification: Introducing new tourism products and services, such as wildlife photography tours, cultural experiences, and educational programs.
- Vertical integration: Expanding its operations to include accommodation facilities, restaurants, and other amenities.
- Strategic alliances: Partnering with local communities, NGOs, and other tourism operators to leverage complementary resources and expertise.
4. Recommendations
1. Digital Transformation:
- Develop a comprehensive digital marketing strategy: Utilize social media, search engine optimization (SEO), and online advertising to reach a wider audience.
- Implement a user-friendly website: Create a website that showcases AGR's unique offerings, provides detailed information, and facilitates online bookings.
- Adopt digital payment solutions: Offer convenient payment options, such as online payment gateways and mobile money services.
2. Community Empowerment:
- Establish a Community Advisory Board: Include local community representatives in decision-making processes to ensure their voices are heard.
- Develop sustainable livelihood programs: Support local communities through training, employment opportunities, and income-generating activities.
- Invest in community infrastructure: Improve access to healthcare, education, and other essential services for local communities.
3. Business Model Innovation:
- Expand product and service offerings: Introduce new tours, experiences, and activities to cater to diverse visitor interests.
- Develop a sustainable tourism model: Promote responsible tourism practices, minimize environmental impact, and maximize local benefits.
- Explore partnerships with international organizations: Collaborate with NGOs, conservation groups, and travel agencies to expand reach and access new markets.
4. Strategic Partnerships:
- Form alliances with local communities: Partner with community-based organizations to promote sustainable tourism and empower local communities.
- Collaborate with other tourism operators: Partner with lodges, tour companies, and other tourism stakeholders to offer combined packages and enhance visitor experiences.
- Engage with international conservation organizations: Seek financial and technical support from international conservation organizations to enhance conservation efforts and build capacity.
5. Strategic Planning:
- Develop a comprehensive strategic plan: Outline clear objectives, strategies, and action plans for achieving AGR's goals.
- Implement a performance monitoring system: Track key performance indicators (KPIs) to measure progress and adjust strategies as needed.
- Foster a culture of innovation and continuous improvement: Encourage creativity and experimentation to adapt to changing market demands and opportunities.
5. Basis of Recommendations
These recommendations are based on a thorough analysis of AGR's strengths, weaknesses, opportunities, and threats. They are aligned with the organization's mission to promote conservation and community development while ensuring financial sustainability. The recommendations also consider the evolving ecotourism landscape, the growing demand for sustainable travel experiences, and the importance of building strong relationships with local communities.
Assumptions:
- The global ecotourism market will continue to grow, providing opportunities for AGR to expand its operations.
- AGR's management team will be committed to implementing the recommended strategies and fostering a culture of innovation and collaboration.
- Local communities will be willing to participate in partnerships and benefit from the opportunities created by AGR's growth.
6. Conclusion
By embracing a multi-pronged strategy focused on sustainable growth and community empowerment, Abelana Game Reserve can solidify its competitive advantage in the ecotourism market. Through digital transformation, business model innovation, and strategic partnerships, AGR can maximize value creation for both the organization and the local community, ensuring a thriving future for both conservation and economic development.
7. Discussion
Alternative Options:
- Focusing solely on cost leadership: While cost leadership can attract price-sensitive tourists, it may compromise AGR's commitment to conservation and community development.
- Expanding operations without community engagement: Expanding operations without involving local communities could lead to resentment and undermine AGR's sustainability.
Risks:
- Implementation challenges: Implementing the recommended strategies requires significant resources, commitment, and coordination.
- Market volatility: The ecotourism market is subject to external factors, such as economic downturns and political instability.
- Community resistance: Some community members may resist changes or perceive AGR's growth as a threat to their interests.
Key Assumptions:
- The global ecotourism market will continue to grow.
- AGR's management team will be committed to implementing the recommended strategies.
- Local communities will be willing to participate in partnerships and benefit from the opportunities created by AGR's growth.
8. Next Steps
Timeline:
- Year 1: Implement digital marketing strategy, establish a Community Advisory Board, develop sustainable livelihood programs, and explore partnerships with international organizations.
- Year 2: Expand product and service offerings, invest in infrastructure improvements, and strengthen community engagement through joint ventures.
- Year 3: Evaluate progress, refine strategies, and expand operations based on market demand and community feedback.
Key Milestones:
- Launch of a new website and digital marketing campaign: Within 6 months.
- Establishment of a Community Advisory Board: Within 1 year.
- Implementation of sustainable livelihood programs: Within 1 year.
- Development of new tourism products and services: Within 2 years.
- Expansion of infrastructure and facilities: Within 3 years.
By taking these steps, Abelana Game Reserve can become a leading force in sustainable ecotourism, generating economic benefits for the local community while preserving the unique natural heritage of Tanzania.
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Case Description
In 2020, the chief executive officer of Abelana Game Reserve in South Africa was considering the arrangement between the game reserve and the Mashishimale community, who owned the land. He had promised to provide added value to the land by highlighting four pillars of focus: land, community, business, and investors. Two lodges were formally opened to guests in March 2020, but the outbreak of the COVID-19 pandemic stopped all business activities-until September 2020, when the government began easing lockdown restrictions and the shareholders met to discuss tourist bookings and expansion plans. The management team had an ambitious and exciting overall vision for the game reserve, but there were more pressing challenges to consider, including a collaborative cross-sector partnership, training and developing workers, creating jobs in the community, and supporting local businesses. Were there other shared value ideas to consider for more employment opportunities and growth within the community?
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