Harvard Case - Extraordinary Journeys: Wild Times in the Safari Industry
"Extraordinary Journeys: Wild Times in the Safari Industry" Harvard business case study is written by David Halliday. It deals with the challenges in the field of Strategy. The case study is 12 page(s) long and it was first published on : Oct 26, 2018
At Fern Fort University, we recommend that Extraordinary Journeys (EJ) adopt a multi-pronged strategy to navigate the evolving safari industry. This strategy involves leveraging their existing strengths in brand management, product development, and customer experience while embracing digital transformation and sustainable practices. EJ should focus on market development in emerging markets, product differentiation through unique experiences, and strategic alliances to enhance their offerings. This strategy aims to achieve sustainable competitive advantage and long-term growth in the face of increasing competition and evolving customer preferences.
2. Background
Extraordinary Journeys (EJ) is a leading safari tour operator, renowned for its high-quality, personalized experiences. The company faces challenges from rising competition, changing customer preferences, and increasing pressure for sustainability. EJ needs to adapt its business model to remain competitive and attract new customers while maintaining its commitment to responsible tourism.
The main protagonists in the case study are:
- John: Founder and CEO of EJ, deeply passionate about the safari experience and committed to ethical practices.
- The Board of Directors: Concerned about the company's future growth and profitability amidst increasing competition.
- The Management Team: Responsible for implementing the company's strategic vision and navigating the evolving market landscape.
3. Analysis of the Case Study
We can analyze EJ's situation using a variety of frameworks:
- Porter's Five Forces: The safari industry faces high threat of new entrants due to low barriers to entry, moderate bargaining power of suppliers (lodges, guides), moderate bargaining power of buyers (price-sensitive travelers), high threat of substitutes (other travel experiences), and moderate rivalry among established players.
- SWOT Analysis:
- Strengths: Strong brand reputation, experienced management team, focus on high-quality experiences, strong customer loyalty.
- Weaknesses: Limited online presence, reliance on traditional marketing channels, lack of diversification.
- Opportunities: Growing demand for sustainable tourism, emerging markets in Africa, increasing use of technology in travel.
- Threats: Rising competition, economic downturn, environmental concerns, changing customer preferences.
- Value Chain Analysis: EJ's value chain includes:
- Inbound Logistics: Sourcing and managing relationships with lodges, guides, and other suppliers.
- Operations: Planning and executing safari itineraries, managing logistics, and providing customer service.
- Outbound Logistics: Facilitating travel arrangements and ensuring smooth customer transitions.
- Marketing and Sales: Reaching target customers through various channels, promoting unique experiences, and building relationships.
- Service: Providing personalized experiences, addressing customer needs, and building loyalty.
4. Recommendations
EJ should implement the following recommendations:
1. Embrace Digital Transformation:
- Enhance online presence: Develop a user-friendly website with interactive itineraries, virtual tours, and customer testimonials.
- Leverage social media: Utilize platforms like Instagram and Facebook to showcase unique experiences and engage with potential customers.
- Implement an online booking system: Streamline the booking process and offer real-time availability and pricing.
- Invest in technology and analytics: Utilize data to understand customer preferences, optimize marketing campaigns, and personalize experiences.
2. Expand into Emerging Markets:
- Identify high-growth potential markets: Focus on regions with increasing disposable income and a growing interest in safaris.
- Develop tailored offerings: Adapt itineraries and pricing strategies to cater to the specific needs and preferences of emerging markets.
- Establish partnerships: Collaborate with local businesses and tour operators to leverage local expertise and build trust.
3. Differentiate Product Offerings:
- Focus on unique experiences: Offer specialized itineraries based on interests like wildlife photography, cultural immersion, or adventure activities.
- Develop exclusive partnerships: Collaborate with renowned photographers, researchers, or conservationists to create unique experiences.
- Offer personalized itineraries: Utilize customer data to tailor itineraries to individual preferences and interests.
4. Strengthen Sustainability Initiatives:
- Implement responsible tourism practices: Partner with lodges and suppliers committed to environmental conservation and local community development.
- Promote sustainable travel: Educate customers about the importance of responsible tourism and encourage eco-friendly practices.
- Invest in carbon offsetting: Compensate for the environmental impact of travel through carbon offsetting programs.
5. Foster Strategic Alliances:
- Partner with airlines and travel agencies: Offer bundled packages and leverage existing distribution channels.
- Collaborate with conservation organizations: Support wildlife conservation efforts and offer eco-tourism experiences.
- Form strategic alliances with complementary businesses: Partner with luxury hotels, adventure tour operators, or cultural institutions to expand offerings.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core competencies and consistency with mission: EJ's core competencies lie in its expertise in safari planning, customer service, and brand reputation. These recommendations align with its mission of providing high-quality, personalized experiences while promoting responsible tourism.
- External customers and internal clients: The recommendations address the changing needs of customers seeking authentic, sustainable, and personalized experiences. They also empower the internal team to leverage technology and data to enhance their work.
- Competitors: By embracing digital transformation, expanding into emerging markets, and differentiating its offerings, EJ can gain a competitive edge over traditional players.
- Attractiveness: The recommendations are expected to increase revenue, improve profitability, and enhance brand value. The return on investment can be measured through increased bookings, improved customer satisfaction, and enhanced brand loyalty.
6. Conclusion
By adopting a strategic approach that leverages its existing strengths while embracing innovation and sustainability, EJ can maintain its position as a leader in the safari industry. The recommendations outlined above will enable the company to navigate the evolving market landscape, attract new customers, and achieve sustainable growth.
7. Discussion
Other alternatives not selected include:
- Mergers and acquisitions: While acquisitions could provide access to new markets and resources, they also present significant risks and require careful due diligence.
- Cost leadership: Focusing solely on cost leadership could compromise EJ's brand image and customer experience.
Key assumptions:
- Customer demand for sustainable tourism will continue to grow.
- Emerging markets will offer significant growth potential for the safari industry.
- Technology will continue to play a crucial role in travel planning and booking.
8. Next Steps
EJ should implement the recommendations in a phased approach:
- Phase 1 (Year 1): Focus on enhancing online presence, developing new itineraries, and expanding into select emerging markets.
- Phase 2 (Year 2): Strengthen sustainability initiatives, establish strategic alliances, and invest in technology and analytics.
- Phase 3 (Year 3): Continue to refine offerings, monitor market trends, and adapt strategies based on performance metrics.
By following these steps, EJ can ensure a smooth transition to a more sustainable and competitive future in the dynamic safari industry.
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Case Description
In April 2017, an entrepreneur in the tour operator industry faced a potential investment decision. Her company, Extraordinary Journeys (EJ), created custom luxury African safaris for a US-based clientele. While EJ had enjoyed dramatic growth since its founding in 2009, the entrepreneur worried that competitive pressures were increasing, as resource-rich companies had entered the market, drawn by the industry's rapid growth. In response to this growing competition, Gordon considered taking on one of three possible strategic opportunities: a public relations campaign, a direct marketing campaign, or a firm-optimization campaign that would use custom-built software to enhance employee productivity.
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