Harvard Case - Lebanon Mountain Trail Association: Aiming for Sustainability
"Lebanon Mountain Trail Association: Aiming for Sustainability" Harvard business case study is written by Mira Thoumy, Omar Sakr. It deals with the challenges in the field of Strategy. The case study is 15 page(s) long and it was first published on : Mar 13, 2018
At Fern Fort University, we recommend that the Lebanon Mountain Trail Association (LMTA) adopt a multi-pronged strategy to achieve sustainable growth and ensure the long-term viability of its operations. This strategy involves a combination of business model innovation, strategic alliances, digital transformation, and enhanced marketing efforts. The LMTA should prioritize the development of a sustainable business model that balances its commitment to environmental preservation with the need for financial stability. This will involve exploring new revenue streams, leveraging technology for greater efficiency, and engaging in strategic partnerships to expand its reach and impact.
2. Background
The Lebanon Mountain Trail Association (LMTA) is a non-profit organization dedicated to preserving and promoting the Lebanon Mountain Trail (LMT), a 450 km hiking trail traversing the Lebanese mountains. The LMT is a significant asset for Lebanon's tourism industry, attracting hikers and nature enthusiasts from around the world. However, the LMTA faces challenges in ensuring the trail's sustainability, including limited funding, lack of infrastructure, and competition from other tourism destinations.
The case study focuses on the LMTA's efforts to overcome these challenges and achieve its goals of preserving the trail, promoting sustainable tourism, and contributing to Lebanon's economic development.
3. Analysis of the Case Study
To analyze the LMTA's situation, we can utilize several frameworks:
- Porter's Five Forces: This framework helps analyze the competitive landscape. The LMT faces competition from other hiking trails in Lebanon and the region, as well as alternative tourism activities. However, the unique beauty and cultural significance of the LMT provide a strong competitive advantage. The bargaining power of suppliers (e.g., trail maintenance contractors) is moderate, while the bargaining power of buyers (hikers) is relatively low due to the limited availability of similar experiences.
- SWOT Analysis: This framework highlights the LMTA's strengths, weaknesses, opportunities, and threats.
- Strengths: Unique trail, strong volunteer base, positive brand image, potential for eco-tourism.
- Weaknesses: Limited funding, lack of infrastructure, dependence on volunteers, limited marketing reach.
- Opportunities: Growing interest in hiking and adventure tourism, potential for partnerships with international organizations, development of eco-friendly tourism initiatives.
- Threats: Political instability in Lebanon, competition from other destinations, climate change impacting trail conditions.
- Value Chain Analysis: This framework helps understand the activities that create value for the LMTA and its stakeholders. The LMTA's value chain includes:
- Inbound logistics: Trail maintenance, infrastructure development, waste management.
- Operations: Trail management, safety protocols, volunteer coordination.
- Outbound logistics: Trail information dissemination, marketing and promotion, partnerships with tourism agencies.
- Marketing and sales: Branding, outreach, online presence, event organization.
- Service: Trail guide services, accommodation recommendations, emergency response.
4. Recommendations
The LMTA should implement the following recommendations to achieve sustainable growth:
Develop a Sustainable Business Model:
- Diversify Revenue Streams: Explore new revenue sources beyond trail fees, such as:
- Eco-tourism packages: Partner with local businesses to offer sustainable tourism experiences, including accommodation, food, and cultural activities.
- Corporate Social Responsibility (CSR) Programs: Partner with businesses for trail restoration projects and environmental initiatives.
- Membership Programs: Offer tiered membership levels with exclusive benefits, such as access to guided hikes and discounts on merchandise.
- Online Merchandise Sales: Sell branded merchandise through an online store.
- Optimize Operations:
- Leverage Technology: Implement an online booking system for trail permits, develop a mobile app with trail maps and information, and utilize social media for communication and engagement.
- Improve Infrastructure: Invest in trail signage, rest stops, and basic amenities to enhance the hiker experience.
- Volunteer Management System: Develop a system for efficient volunteer recruitment, training, and management.
- Diversify Revenue Streams: Explore new revenue sources beyond trail fees, such as:
Strategic Alliances:
- Partner with International Organizations: Collaborate with international hiking organizations and conservation groups to gain access to funding, expertise, and marketing opportunities.
- Local Partnerships: Partner with local businesses, tourism agencies, and government entities to promote the LMT and develop joint marketing initiatives.
- Strategic Alliances with NGOs: Partner with NGOs focusing on environmental protection and sustainable development to leverage their resources and expertise.
Digital Transformation:
- Enhanced Online Presence: Develop a user-friendly website with detailed trail information, booking systems, and interactive maps.
- Social Media Marketing: Utilize social media platforms to engage with potential hikers, share trail updates, and showcase the beauty of the LMT.
- Content Marketing: Create engaging content, such as blog posts, videos, and photo galleries, to attract visitors and promote the LMT's unique features.
Marketing and Branding:
- Target Market Segmentation: Identify specific target audiences, such as adventure enthusiasts, nature lovers, and families, and tailor marketing campaigns accordingly.
- Develop a Strong Brand Identity: Create a distinctive brand identity that emphasizes the LMT's natural beauty, cultural significance, and commitment to sustainability.
- Public Relations and Media Outreach: Engage with media outlets and influencers to generate positive publicity and raise awareness about the LMT.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core Competencies and Consistency with Mission: The recommendations align with the LMTA's mission to preserve and promote the LMT while ensuring its long-term sustainability.
- External Customers and Internal Clients: The recommendations focus on enhancing the experience for hikers while providing value to stakeholders, including volunteers and partners.
- Competitors: The recommendations aim to differentiate the LMT from competing destinations by emphasizing its unique features, sustainable practices, and cultural significance.
- Attractiveness - Quantitative Measures: The recommendations are expected to increase revenue, improve efficiency, and enhance the LMTA's brand image, leading to increased visitor numbers and positive financial outcomes.
6. Conclusion
By implementing these recommendations, the LMTA can achieve sustainable growth, ensure the long-term viability of the LMT, and contribute to Lebanon's economic development. The organization should prioritize building a strong brand identity, leveraging technology for greater efficiency, and forging strategic alliances to expand its reach and impact.
7. Discussion
- Alternative Options: Other alternatives include focusing solely on fundraising efforts, seeking government subsidies, or merging with a larger organization. However, these options may limit the LMTA's autonomy and long-term sustainability.
- Risks and Key Assumptions: The success of these recommendations depends on factors such as the political stability in Lebanon, the growth of adventure tourism, and the LMTA's ability to attract and retain qualified staff and volunteers.
- Options Grid:
- Option 1: Status Quo - High risk, low reward.
- Option 2: Focus on Fundraising - Moderate risk, moderate reward.
- Option 3: Strategic Partnerships - Moderate risk, high reward.
- Option 4: Digital Transformation - Low risk, high reward.
8. Next Steps
- Develop a detailed implementation plan: This plan should outline specific actions, timelines, and resources required for each recommendation.
- Establish a dedicated team: Assign responsibility for implementing the recommendations and monitoring progress.
- Secure funding: Explore funding sources, including grants, corporate sponsorships, and membership fees.
- Communicate with stakeholders: Regularly update stakeholders, including volunteers, partners, and the local community, on progress and achievements.
By taking these steps, the LMTA can secure a sustainable future for the LMT and continue to contribute to Lebanon's tourism industry and environmental conservation efforts.
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Case Description
In December 2016, the president of the Lebanon Mountain Trail Association (LMTA) was getting ready for a board of directors meeting during which the members had to vote on whether to hire an executive director-a first for the association. If hired, the association would face a new financial hurdle that could threaten its sustainability. The LMTA was a non-profit mountain trail association that was implementing socially responsible tourism practices on and around a 470 kilometre trail. The association was struggling to sustain itself financially, to protect and maintain the trail, and to secure the succession of its board.
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