Harvard Case - Wilderness Safaris: Ecotourism Entrepreneurship
"Wilderness Safaris: Ecotourism Entrepreneurship" Harvard business case study is written by James E. Austin, Megan Epler Wood, Herman B. Leonard. It deals with the challenges in the field of Strategy. The case study is 24 page(s) long and it was first published on : Apr 5, 2018
At Fern Fort University, we recommend Wilderness Safaris (WS) pursue a strategic growth strategy focused on sustainable expansion through a combination of market development, product development, and strategic alliances. This strategy should prioritize environmental sustainability and community engagement while leveraging digital transformation and data analytics to enhance operations and customer experience.
2. Background
Wilderness Safaris, founded in 1989, is a leading ecotourism company operating in Southern and East Africa. The company's mission is to create 'exceptional wilderness experiences that contribute to the conservation of Africa's wild places.' WS has a strong commitment to corporate social responsibility and environmental sustainability, evident in its community engagement initiatives and its focus on low-impact tourism.
The case study focuses on the challenges and opportunities facing WS as it seeks to expand its business amidst a rapidly evolving ecotourism landscape. Key protagonists include:
- Dereck Joubert: Co-founder and CEO, passionate about conservation and driving WS's growth.
- Beverly Joubert: Co-founder and Chief Conservation Officer, spearheading the company's conservation efforts.
- The WS team: Dedicated to delivering exceptional experiences and contributing to conservation.
3. Analysis of the Case Study
To analyze the case, we will leverage several frameworks:
- Porter's Five Forces: The ecotourism industry is characterized by moderate competition, high threat of new entrants due to low barriers, high bargaining power of suppliers, and moderate bargaining power of buyers. The threat of substitutes is moderate, with alternative travel experiences like cultural tours or adventure tourism.
- SWOT Analysis:
- Strengths: Strong brand reputation, commitment to conservation, experienced team, unique and high-quality experiences, strong relationships with local communities.
- Weaknesses: Limited geographic reach, dependence on external factors (weather, political stability), potential for high operating costs.
- Opportunities: Growing demand for sustainable travel, increasing disposable income in emerging markets, technological advancements in tourism, partnerships with conservation organizations.
- Threats: Climate change, political instability, competition from mass tourism, potential for negative environmental impacts.
- Value Chain Analysis: WS's value chain includes activities like:
- Inbound logistics: Managing supplies and equipment.
- Operations: Conducting safaris, managing lodges, and offering activities.
- Outbound logistics: Transporting guests to and from destinations.
- Marketing and sales: Promoting experiences and managing bookings.
- Service: Providing exceptional customer service and fostering memorable experiences.
- Business Model Innovation: WS's core business model revolves around offering high-end, immersive ecotourism experiences. The company can innovate by:
- Expanding product offerings: Introducing new experiences like wildlife photography tours or cultural immersion programs.
- Leveraging technology: Utilizing digital platforms for online booking, guest management, and communication.
- Developing partnerships: Collaborating with local communities, conservation organizations, and other tourism operators.
- Strategic Positioning: WS occupies a niche position in the ecotourism market, focusing on high-quality, sustainable experiences. This positioning differentiates them from mass tourism operators and allows them to command premium pricing.
4. Recommendations
WS should implement the following recommendations to achieve sustainable growth:
1. Market Development:
- Expand into new geographic markets: Focus on emerging markets with high growth potential and a growing interest in ecotourism, such as South America, Southeast Asia, and parts of Africa.
- Develop new market segments: Target specific demographics like families, adventure seekers, or luxury travelers with tailored experiences.
- Leverage digital marketing: Utilize social media, search engine optimization, and online travel agencies to reach new audiences and build brand awareness.
2. Product Development:
- Introduce new experiences: Develop innovative and immersive experiences that cater to specific interests, such as wildlife photography, cultural immersion, or conservation volunteering.
- Enhance existing offerings: Upgrade facilities, improve guest amenities, and incorporate new technologies to enhance the guest experience.
- Focus on sustainability: Develop eco-friendly practices and sustainable tourism initiatives to further strengthen WS's commitment to conservation.
3. Strategic Alliances:
- Partner with local communities: Collaborate with communities to develop sustainable tourism projects and create economic opportunities.
- Form strategic alliances with conservation organizations: Partner with NGOs and research institutions to support conservation efforts and enhance the educational value of experiences.
- Explore joint ventures with other tourism operators: Collaborate with complementary businesses like airlines, travel agencies, or other ecotourism companies to expand reach and offer integrated travel packages.
4. Digital Transformation:
- Invest in technology: Implement data analytics tools to track customer behavior, optimize operations, and personalize experiences.
- Develop a robust online platform: Create a user-friendly website and mobile app for bookings, guest management, and communication.
- Leverage social media: Utilize social media platforms to engage with customers, share stories, and build brand loyalty.
5. Basis of Recommendations
These recommendations align with WS's core competencies, mission, and external factors:
- Core Competencies: WS's expertise in wildlife conservation, experience design, and community engagement are leveraged to create unique and sustainable experiences.
- External Customers: The recommendations cater to the growing demand for authentic, sustainable travel experiences and the desire for personalized and digital-driven interactions.
- Competitors: By focusing on market development, product innovation, and strategic alliances, WS can differentiate itself from competitors and maintain its market leadership.
- Attractiveness: The recommendations are expected to generate positive financial returns through increased revenue, improved operational efficiency, and enhanced brand value.
6. Conclusion
By embracing a strategic growth strategy focused on market development, product development, strategic alliances, and digital transformation, Wilderness Safaris can capitalize on the growing ecotourism market, solidify its leadership position, and continue to deliver exceptional experiences while contributing to the conservation of Africa's wild places.
7. Discussion
Alternative options include:
- Horizontal Integration: Acquiring or merging with other ecotourism companies to expand geographic reach and product offerings.
- Vertical Integration: Acquiring or partnering with suppliers like airlines or transportation companies to control more of the value chain.
- Outsourcing: Outsourcing certain functions like logistics or marketing to focus on core competencies.
Risks associated with the recommendations include:
- Competition: Increased competition from other ecotourism operators or mass tourism could erode market share.
- Economic Downturn: A global economic downturn could negatively impact demand for luxury travel.
- Political Instability: Political instability in key operating regions could disrupt operations and deter tourists.
Key assumptions include:
- Growing demand for sustainable travel will continue.
- Technological advancements will continue to enhance the tourism experience.
- WS can successfully implement its digital transformation strategy.
8. Next Steps
To implement the recommendations, WS should develop a detailed strategic plan with specific timelines and milestones. This plan should include:
- Market research: Conducting in-depth research to identify new target markets and develop tailored marketing strategies.
- Product development: Investing in research and development to create new and innovative experiences.
- Strategic alliance development: Identifying potential partners and negotiating mutually beneficial agreements.
- Digital transformation implementation: Investing in technology and personnel to implement a robust digital platform.
- Performance monitoring: Regularly tracking key performance indicators to measure progress and make adjustments as needed.
By taking these steps, Wilderness Safaris can position itself for continued growth and success while remaining true to its commitment to conservation and sustainability.
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Case Description
Wilderness Safaris sees itself as a conservation company that is built on a business model of providing high-end, premium-priced wildlife safaris in various locations in Africa. Dependent on functioning, healthy ecosystems for its long-term survivability as a business, it invests heavily in conservation efforts, both directly, with communities and governments, and with partners and competitors. It may be reaching saturation of the high-cost, high-priced, low-volume, luxury travel product in its existing locations, so to continue its growth it is now trying to expand into East Africa, where the traditional safari approach by most providers has been a high-volume, low-cost, low-priced product. As a publicly- listed company, can Wilderness Safaris find a sustainable growth path that will allow it to profitably expand its business and meet its shareholder's interests while still achieving its priority purposes of protecting and investing in the ecosystems and communities on which its services are based?
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