MKT 19J53 - Strategic Management
Second Semester, School Year 2010-2011
Submitted by:
Hernaez, John Eleazar I.
Singh, Gurdeep
Talag, Paul Andrei
Wang Fei Liang
Wang Fei Ying
He Jiying
Yuanyaun Wu
Ungriano, Byron
Section: MO534
WOW Philippines Travel Agency
STRAMA Papers
Table of Contents Page
I. Acknowledgement 3
II. Executive Summary 3
III. Internal Assessment 4
Company Background 4
· Mission and Vision 4
· Corporate Board of Directors 5
· Business Functions 6
· Product Lines and Packages 6
§ Boracay 6
§ Palawan 7
§ Bohol 7
§ Cebu 8
§ Internal Factor Evaluation (IFE Matrix) 9
III. External Assessment 10
· External Forces
§ Economic Forces 10
§ Cultural Forces 10
§ Demographical Forces 11
§ Legal Forces 12
§ Government / Political Forces 14
§ Technological 15
· Porter’s Framework 17
· External Factor Evaluation (EFE Matrix) 19
· Competitors Profile Matrix (CPM) 20
IV. Strategy Formulation
§ S.W.O.T. Matrix 21
§ S.P.A.C.E. Matrix 25
§ B.C.G Matrix 27
§ I.E. Matrix 28
§ G.S.M. Matrix 30
§ Q.S.P.M. Matrix 32
V. Conclusion 34
VI. Recommendation 35
VII. Appendices 36
I. Acknowledgement
First of all, I would like to say praise be to God , for giving us the strength and health to do this work until it’s done not forgetting our family who provided everything that we need, such as money, books and other resources to complete our work.
And also for their moral support that has motivated us to pursue this.
Then I would like to thank our professor, Sir Sofronio Dulay I for guiding us throughout this project. We had some difficulties in doing this task, but she taught us patiently until we knew what to do.
Last but not least, my group mates who gave everything they got in order for us to complete this work. They were helpful that when we combined and discussed together, they were willing to stay up late every time we have something to finish in a rush. It’s because of them,I was able to lead this group with lesser burden.
II. Executive Summary
Traveling, for some have its different purposes. It’s been know that people travels for two reasons only, for business or pleasure purposes. but no matter the purpose is, travelers need a fast and reliable way to get to their destinations stress and hustle free. And traveling with WOW Philippines travels and tours provides that. Now you can go almost anywhere in the Philippines with ease thanks to WOWPhilippinestravelagency.com, traveling around the country is literally just one click away.
Founded by Rick St. John and his Filipina wife Mary Jane Bangga in 2005 under the name of WOW Philippines travel company, a private company not affiliated with the Philippine Government. Right after a year of operation the company incorporated with (SEC) and expanded its business to include all the Philippine islands. Now, the company have offices around the Philippines and the USA.
The group would like to look into how that company maintain it strong reputation after almost 6 years of operation. Different tool were used to devise for the group to understand what was done these past years for it to be steady and huge. The researchers would also like to learn for one of the most popular travel agency here in the Philippines in terms how to approach different kinds of management dilemmas.
The paper will contain various tools on which helped the group into attaining facts and data crucial for the accomplishment of this research. Also, The paper will contain recommendation which the groups feels beneficial for the company in terms of reaching their goals in improving the quality of service they provide to their loyal customers.
III. Internal Assessment
Company Background
On July 05, 2005 WOW Philippines Travel Agency Inc. opened its doors to the general public and started to facilitate travel throughout the Philippines for tourist, local and foreign. Since opening our doors our name has become synonymous with being trustworthy and providing reliable service at a great price.
Since opening our doors over 5 years ago we have helped hundreds of tourist coming to the Philippines, from over 125 countries plan their vacations and by arranging there hotel accommodations, inter-island flights, and land and sea transfers, and putting together affordable and adventuress Philippines packages.
WOW Philippines Travel Agency, Inc. has become one of the world’s most popular travel and tour portals providing a wide range of travel related services to local and foreign tourist alike. We are very proud of our reputation for excellence; a reputation based on our commitment to always exceed our clients expectations.
WOW Philippines Travel Agency, Inc. is privately owned and operated by a husband and wife team, Mary Jane P. Bangga of Aklan Philippines, and Ricky Lee St. John of North Carolina, USA.
Our Philippines travel agency is not in any way affiliated with the Philippines Government or the Department of Tourism, we are a legal and licensed Philippines Travel Agency. Verify Us - Philippines Securities and Exchange Commission
Mission and Vision
WOW Philippines Travel Agency Inc. was founded as a Manila Philippines Travel Agency, in 2005. Since our inception, WOW Philippines Travel Agency Inc. has earned two very important placements:
1. A reputation for excellence in customer service and reliability
2. Dedication and loyalty to our valued clients.
First and foremost, WOW Philippines Travel Agency Inc’s, mission is to build even stronger client relations with increased Hotel & Resort offerings that are packed with features and savings. The goal of WOW Philippines Travel Agency is to provide all guests with multiple resort choices, professional service and price integrity. WOW Philippines Travel Agency Inc. will accomplish these tasks by developing web based travel sites that offer hundreds of Boracay Resorts with accurate and detailed Boracay Hotel Accommodation information.
White WOW Philippines Travel Agency Inc. constantly endeavors to respond to the ever changing travel trends, our commitment to personal service remains unchanged WOW Philippines Travel Agency Inc. works with clients individually and pro-actively, approaching each travel engagement thoughtfully and with attention to our clients specific travel needs. We do not limit our client’s online search to just a few popular hotels resorts, imposing static, assembly-line type solutions.
Most importantly, WOW Philippines Travel Agency Inc. believes that dynamic, ongoing client relationships creates a more open exchange of ideas. This leads not only to more responsive, but also to creative, proactive thinking that is keenly focused on our particular client’s travel goals and needs. This form of personal partnership constitutes the – 1 – travel advantage we offer our clients, and is the cornerstone of WOW Philippines Travel Agency Inc.
WOW Philippines Travel Agency Inc.
Company Board and Directors; Officers
· Mary Jane Bangga St. John (Filipino) - President / CEO
· Rick St. John (American) - Vice President
· Marli Bermudo (Filipino) - Senior Accountant
· Relly Magundayao (Filipino) - General Manager
Travel Agents
· Mary Jane Bangga
· Relly Magundayao
· Maria Andrea Fulgencio
· Flordeliza Gubar
· Cheezle Marie Yutuc
· Alexanne Marie Cardoza
Corporate Objectives
· To promote Philippines tourism in a positive and ethical manor.
· To offer the widest selection of hotels and resorts at the best possible price.
· To staff qualified, and professionally trained travel agents that know the destinations.
· To maintain sustainable growth and seek proactive ways to increase profit for the company.
Corporate Function
· Hotel & Resort Reservations
· Group Bookings
· Group Incentives - (Free Airline Ticket to parties of 15 & more)
· Meet and Greet Assistance - (additional cost may apply)
· Inter-Island Domestic Flights (E-Tickets Provided)
· Airport Transfers - (Roundtrip)
· Car Rental - (includes driver)
· Visa Assistance - (extensions for foreign clients)
· Sightseeing Tours
Product Lines
Wow Philippines travel agency of offers instant confirmation of Flights, accommodations and Packages that will surely satisfy is tourist customers.
BORACAY
Discovery Shores Boracay Beach Resort
3 Days and 2 Nights Package
Twin Occupancy
Junior Suite Php.14,750.00 per night x 2 nights = Php.29,500.00
One way airfare Cebu-Boracay via Cebu Pacific Php.3,000.00 per person x 2 persons = Php.6,000.00
Inclusions:
• 3 Days and 2 Nights Accommodation
• Daily Breakfast
• Roundtrip airport transfers
• 2 Bottles of Mineral water per day
PALAWAN
The Legend Palawan Resort
3 Days and 2 Nights Package
Twin Occupancy
Php.10,999.00 per person x 2 persons = Php.21,998.00
Inclusions:
• 3 Days and 2 Nights Accommodation
• Half Day Honda Bay Island Tour
• Palawan Underground River Adventure Tour
• Meals ( 2 breakfast, 2 lunch, 2 diner )
• Roundtrip airport transfers with assistant
• Welcome Drinks
BOHOL
Amorita Bohol Resort
3 Days and 2 Nights Package
Twin Occupancy
Php.10,000.00 per person x 2 persons = Php.20,000.00
Roundtrip airfare Boracay-Manila-Tagbilaran-Manila via Cebu Pacific Php.12,000.00 per person x 2
Persons = Php.24,000.00
Inclusions:
• 3 Days and 2 Nights Accommodation
• Complimentary Breakfast
• Welcome Drinks
• Complimentary airport transfers
Countryside Bohol Tours:
• Chocolate Hills
• Baclayon Church
• Baclayon Museum
• Loboc River Cruise w/ Lunch
• Tarsier Encounter
• Blood Compact Monument
CEBU
Plantation Bay Cebu Hotel
3 Days and 2 Nights Package
Twin Occupancy
Lagoon View Room Php.10,800.00 per night x 2 nights = Php.21,600.00
One way airfare Puerto Princessa-Cebu via Cebu Pacific Php.6,000.00 per person x 2 persons = Php.12,000.00
Breakfast Php.1,200.00 per person x 2 persons x 2 days = Php.4,800.00
Inclusions:
• 3 Days and 2 Nights Accommodation
• Daily Breakfast
• Roundtrip airport transfers
• 2 Bottles of Mineral water per day
Airlines Companies:
Cebu Pacific Philippine Airlines Air Philippines
Zest Air SEAIR
Internal Factor Evaluation
Key Internal Factors
Weight
Rating
Weighted Score
STRENGTHS
1. Competitive offers
0.15
4
0.60
2. Has a wide range of hotels and resorts affiliation
0.11
2
0.22
3. Strong financial standing of the company
0.07
2
0.14
4. Has a direct business relationships with affiliation
0.09
3
0.27
5. Instant communication response capabilities
0.12
4
0.48
6. Provides 24/7 customer support
0.10
4
0.40
7. Been operational for 6 years
0.02
1
0.02
WEAKNESSES
1. No insurance schemes for customers
0.09
4
0.36
2. Has ever few international flight offers
0.03
2
0.06
3. Has ONLY one branch
0.12
4
0.48
4. Under staffed
0.05
1
0.05
5. Now known compared to competitors
0.05
3
0.15
TOTAL
1.00
3.23
Internal Factor Evaluation (IFE) Analysis
WOW Philippines Travel Agency has a score of 3.23 with is a very strong score. The company has very effective strength set, these strengths obviously mostly focuses on the consumer which makes them very likable. Taking advantage on the strength they have and coming up with new product lines and promos will be a very effective way of making company bigger and better.
By having only on branch will affect their business but that “hump” is covered by the company’s ability to instantly respond to concerns. But an option for expansion will definitely help WOW Philippines become better and bigger.
IV. External Assessment
External Forces
Economical Forces
In the interview we ask why the beautiful country of the Philippines has fallen behind many of its neighbors in terms of visitor arrivals, what plans are in place for the country to regain its rightful place as one of the top 5 destinations within Asia, how sports can help boost tourism, as well as education programs such as English as a Second Language (ESL) and Medical Tourism, which markets they are targeting the most and much, much more.
With over 7,000 islands, some of the most stunning beaches in the world, a populace that, in the whole, speaks excellent English, an ideal climate, and some of the best hotels in the region, the Philippines has all the right ingredients to be one of the world’s top tourism destinations.
Between January to November 2010 the Philippines recorded 3.126 million visitor arrivals, the highest numbers in 30 years and a 15.6% increase over 2009. Korea bounced back as the number one source market with 49% growth during the period to record 659,397 visitor arrivals. Combined, China, Japan and Taiwan made up 36.9% of all visitor arrivals during that period in 2010. Taiwan alone was up 38% after 2 years of consecutive declines. Tourism receipts were estimated at US$ 2.2 billion, up 11% over the same period in the previous year. The average spend is US$ 672.63 with an impressive average length of stay of 8 days.
The Philippines is aiming to double its visitor arrivals by 2016, and is promoting itself heavily in markets such as China, India, Russia and the Middle East. The India target will be assisted with PAL set to launch flights to India in March 2011.
To achieve its goals, the Department of Tourism, this year, has a budget of around 1.3 billion Pesos, but this could easily more than double if it gets its share of revenue from Pagcor.
Cultural Forces
The hospitality of the Filipino people is one of the reasons why tourism in the Philippines is steadily growing.
Foreigners and tourists who have experienced the Philippine culture and being with Filipinos find them very hospitable. This is a common trait that Filipinos are known for to most foreigners who have traveled around the country.
The attitude of Filipino people towards foreigners and other people is said to be exceptional. Even the humblest home along the road can serve as a shelter for a stranger who has lost his way. For Filipinos, serving other people the best of what they have gives them an honor and a promise of true friendship. A typical Filipino house is not completely called a home without any facility ready for guests. It is filled with new and nice-looking items reserved only for them while ordinary ones are for everyday use.
Arriving at your host’s house during mealtime may be awkward but if it’s in a Filipino house, you will be asked to sit down and share what they have on the table. Because eating alone without asking others according to Filipino customs is considered rude. These manners picture how Filipinos accept and properly respect the presence of their visitors. A form of hospitality that comes truly from the heart, just like how the country made its image as the land of true smiling people considering the struggling economy, political confusion and rising poverty in the country.
You may be surprised to see how such situations are handled in Philippines culture. It is like taking everything from them but not their love of joking. Joking and laughing at everything perhaps give them relief and makes them see things more positively.
Traveling in this country means more of building rapport with its people and understanding the Philippine culture, customs and traditions. Filipinos love entertaining foreign visitors; as to help, or for whatever reasons, interacting with them is unavoidable. Hence, aside from the country’s stunning natural assets, meeting the Filipinos gives a promise of a true friendship and memories to keep.
Demographic Forces
The Philippines are records of human population in the country, including its population density, ethnicity, education level, health, economic status, religious affiliations, and other aspects of the population. According to the 2010 Census, the population of the Philippines was 99,900,177. As of July 2010. The Negrito forms a minority of the population. The majority of Filipinos (about 95%) are made up of various ethno linguistic Austronesia ethnic groups who descended from a population of Taiwanese aborigines, who settled in the Philippines about 6,000 years ago. Mestizos, those of part Austronesia descent mixed with Spanish, American, Chinese, and other ethnic groups form a minority of the population.
The most commonly spoken language is Filipino which is a de facto language based on the Tagalog dialect. Filipino and English are the official languages. There are about 180 indigenous Filipino dialects spoken in the islands. Spanish and Arabic are recognized as voluntary and optional languages in the Philippine constitution. Christianity is the main religion, with Roman Catholicism making up the majority of the population. Other religions include Islam, Buddhism, Hinduism, and those with no religion.[4] The people of the Philippines are known as Filipinos. Throughout the colonial era the term “Filipino” originally referred to the Spaniards, and mestizos. The definition was later applied to include all citizens, regardless of ethnic origin.
Legal Forces
Section 130 – International and Domestic Tourist Travel.
(a) The Department in coordination with relevant government agencies shall
formulate appropriate policies and develop joint programs to increase and
improve the accessibility of the Philippines to domestic and foreign tourists.
(b) Realizing the critical importance of the progressive development of the civil
DOT Manual Guides.indd_edited.indd 115 1/26/2010 1:34:05 PM
IRR - p116
aviation environment in the advancement of the country’s international and
domestic tourism sector:
(1) The Secretary shall be the ex officio Vice-Chairperson of the Civil Aviation
Board (or Civil Aeronautics Board pursuant to RA 776);
(2) The Secretary shall be the ex officio Vice-Chairperson of the governing
boards of all international airports;
(3) The Secretary shall be authorized to appoint a representative to the
board of directors of each international seaport of the Philippines; and
(4) The Secretary shall be a member of the Civil Aviation Authority of the
Philippines Board.
(c) The Department and other relevant government agencies shall develop an
integrated, one-stop shop system for the speedy issuance of franchise and
accreditation for tourism transport operators.
Section 131 – Tourism Infrastructure Program.
(a) The Department, in accordance with the National Tourism Development Plan
and local government initiatives, shall coordinate with the Department of
Public Works and Highways (DPWH) and the Department of Transportation
and Communications (DOTC) and their attached agencies in the establishment
of a tourism infrastructure program in the respective work programs of said
agencies, identifying therein vital access roads, airports, seaports and other
infrastructure requirement in identified tourism areas.
(b) The DPWH, DOTC and other relevant infrastructure agencies, including the
Department of Budget and Management (DBM), shall accord priority status
the funding of projects in the Tourism Infrastructure Program.
Section 132 – Visas.
(a) The Department, the Department of Foreign Affairs (DFA) and the Department
of Justice (DOJ) shall develop a system of granting visas that encourages the
arrival and longer stay of tourists in the Philippines.
(b) Regular review of visa and entry policies shall be undertaken by the foregoing
agencies to ensure the amendments of any laws, rules and regulations on this
regard.
Government and Political Forces
Notice of Government Imposed Taxes, Fees and Charges
The value on the ticket may include taxes, fees and charges which are imposed on air transportation by government authorities. These taxes, fees and charges which may represent a significant portion of the cost of air travel, are either included in the fare, or shown separately in the ‘TAX/FEE/CHARGE’ box (es) of this ticket. The passenger may also be required to pay taxes, fees or charges not yet collected.
Act 4033 was passed to require a franchise from the Philippine government in order to operate an air service and to regulate foreign aircraft operations.
Philippine Legislative passed Commonwealth Act No. 168, better known as the Civil Aviation Law of the Philippines which created the Bureau of Aeronautics. After the liberation of the Philippines in March 1945, the Bureau was reorganized and placed under the Department of National Defense. Among its functions was to promulgate Civil Aviation Regulations.
Executive Order No. 94 which reorganized the government transferred Bureau of Aeronautics to the Newly created Department of Commerce and Industry and renamed Civil Aeronautics Administration (CAA).
Republic Act 224 created the National Airports Corporation which was charged with the management and operations of all national airports.
Republic Act No. 776, otherwise known as the Civil Aeronautics Act of the Philippines reorganized the Civil Aeronautics Board and the Civil Aeronautics Administration. It defined the powers and duties of both agencies including the funds, personnel and the regulations of Civil Aviation.
Executive Order No. 209 placed the Civil Aeronautics Administration under the administrative supervision and control of the Department of Public Works, Transportation and Communications.
Republic Act No. 776, otherwise known as the Civil Aeronautics Act of the Philippines reorganized the Civil Aeronautics Board and the Civil Aeronautics Administration. It defined the powers and duties of both agencies including the funds, personnel and the regulations of Civil Aviation.
Executive Order No. 209 placed the Civil Aeronautics Administration under the administrative supervision and control of the Department of Public Works, Transportation and Communications.
Executive Order No. 546, the CAA was renamed the Bureau of Air Transportation (BAT) and placed under the Ministry of Transportation and Communications.
Executive Order No. 125-A renamed the Bureau of Air Transportation the Air Transportation Office headed by the Assistant Secretary of Air Transportation.
Senator Edgardo J. Angara filed senate bill number 1932, otherwise known as CIVIL AVIATION AUTHORITY ACT OF 2007, authorizing the appropriation of funds therefore, and for other purposes. The bill abolishes the Air Transportation Office (ATO) and in its stead creates the Civil Aviation Authority (CAA), which is mandated to set comprehensive, clear and impartial rules of the aviation industry. Under the new law, the CAA shall be an independent regulatory body with quasi-judicial and quasi-legislative powers with corporate attributes and on March 4, 2008, President Gloria Macapagal-Arroyo sign into law.
Technological Forces
As tourism is so unpredictable and volatile in today’s world any changes, be they social, economic, environmental, political, cultural or religious can have a counter effect on the trends of the industry at that point. When it comes to travel consumers are incredibly influenced. Since the development of tourism began in 1700 (wikipedia article) it has changed radically in that it is available to the masses and with a wide choice. This report will study the technological advances and how this affects tourism through volume, type or impact on a place at a certain period.
Technological changes within tourism surround several different factors from medical advances to the innovative space tourism. Similar to tourism, technology is an ever changing and sometimes unstable business. Better communication, transport and safety have encouraged new consumers to the industry. Improvements in water supply, medicine and knowledge have meant areas are opened up which were not possible before technological advances. In today’s society in which a consumer wants easier, quicker and cheaper service only technology has helped tourism fulfil the customers demand.
Porter’s Framework
Porter’s Framework Analysis
Aside from travel agencies, Airlines companies is also considered a competition for WOWPhilippines travel agency.
Substitute can be considered as those travel agencies that are foreign but located here in the Philippines and only offers limited flights, usually they only offer flights to their country.
External Factor Evaluation
Key External Factors
Weight
Rating
Weighted Score
OPPORTUNITIES
1. The Phil. is still one of the best tourist sites in Asia
0.15
3
0.45
2. The rapid growth of the internet
0.11
4
0.44
3. Huge number of tourist all over the world
0.15
3
0.45
4. Education
0.09
4
0.36
THREATS
1. Existing competitors
0.11
4
0.44
2. Competitor offers
0.07
2
0.14
3. A Decline on the industry
0.06
1
0.06
4. Terrorist
0.12
2
0.24
5. Labor Cost
0.14
1
0.14
TOTAL
1.00
2.72
External Factor Evaluation (EFE) Analysis
With all the bad things that dented the Philippine’s reputation in terms of “being a safe country to visit” here in Asia,there are still a large number of visitors that visit the country. WOW Philippines should capitalize on this opportunity and utilizing with the use of the internet to make it more convenient for its customer to avail services that they offer.
WOW Philippines should approach these two opportunities aggressively, because the tourism industry will never run out of market. But together with this opportunities is the unwavering threats of stiff competition and the economy’s slow decline due to the country’s bad reputation over the past several years. But regardless of these threats, the country will still be visited. By launching new promos will is a sure way of attracting the bulk of visitor to avail a service for WOW Philippines.
Competitor’s Profile Matrix (CPM)
Based on research Blue Horizon is sitting on the top of the mountain when it comes to travel agency competition, having a 3.18 score proves that there’s a reason they have been winning award for the past few years. It also shows the WOW Philippines travel agency has good competitive positioning with a score of 3.00. Correcting their weaknesses and capitalizing on their opportunities will possibly catapult them to the top in no time.
S.W.O.T. Matrix
Recommended Strategies
Product Development would be the most recommended strategy for WOW Philippines right now. Generally travel agencies offer almost the same things for its customers, and launching a unique product or promotion will sure make this company standout from the rest. By offering new locations to visit will be a good start of this strategy, because Boracay, Palawan, Cebu and Bohol is also offered by the other travel agencies as well which makes the competition price based and promotion based. WOW Philippines offers one of the most competitive packages out there, but this strategy alone won’t be able to capture that much customers.
Possible Market development is also a good strategy to put in the loop. It is known that one of the reasons why the Philippines is visited is because of the education. So creating a package or a promotion that will involve tying - up known universities and college would be a good starting point for a new market for travel agencies to tap into.
And lastly, putting up additional branches is advantageous for WOW Philippines because they really only have on office, and it’s in Ortigas, Pasig City. Even if the place is accessible, the traffic and location is a pain for anybody to visit. And did I mention? it is the ONLY place they have. if in any chance that the customer is from Malabon, there’s no chance that he will travel all that way. Strategic branching will eliminate this possible problems giving them a lot of ground covered.
Strategy breakdown
SO Strategies
· Develop an offer that will involved student travelers who seek education here in the Philippines.
The Philippines is not only being populated by foreigners for its beautiful sites. but also, because of the quality of education the country provides. and taking advantage of this opportunity is profitable for the tourism industry. Tying - up travel packages with visits to known universities and colleges here in the country would be very enticing for those travelers who has yet acquired knowledge of what institute they’re considering.
· Include known universities and colleges in their affiliations.
With this strategy, WOW Philippines will be able to accomplish two things in just one go. First, it will make the strategy must easier to accomplish, and the second, it would be able to help the university advertise itself not only locally but also internationally. Plus, this strategy will also present a way for the students of the school to learn more and possibly experience the industry itself by providing them programs that will train students in the actual industry workplace. especially courses that are related to the industry.
· Have a direct business relationship with foreign hotels and resorts.
Now this strategy might be a long shot if they’ll try and affiliate themselves with world class hotels, so it would be a good idea if the will start with 1 to 2 stars hotels and resorts. if this strategy if put into effect it will most convenient for the travelers who would like to jump from one country to another.
WO Strategies
· Develop a promotion scheme that will provide its customers insurance for their luggage.
One thing that’s missing from the offers of most travel agencies is insurance for the luggage of their customers. We know that this strategy is a bit of a stretch for servicing travelers and its more of a liability that it is an asset, but it is doable. Giving your customers the feeling of security in a foreign country is a big image booster in the tourism industry, especially now a days that the Philippines has been dented with previous events involving tourist. A little bit of security will hopefully change the minds of those people you planned to visit the country but was cut short because of all the negative buzz.
· Expand and set up branches.
One of the most obvious weakness WOW Philippines has is that they ONLY have ONE office that you can visit. They’ve been in the industry for almost six year and they still yet to expand their reach. Instead of just placing on office here in the country, it would be beneficial for them if the branch out in different parts of the Philippines.
· Hire additional staff and employees.
This strategy is pretty much self explanatory.
· Offer more flight for different countries
Offering more destinations for WOW Philippines means more chances of acquiring customers that, product variation would definitely be advantageous for this company, considering the they have a ton of competition. But there is a chance that the countries that they have flight for wont be all the same.So having a long list of flight will me them fill all of those spot that the other travel agencies missed.
ST Strategies
· Develop unique packages and promo offers
Generally, All of the travel agencies offers the same thing. “flights for two complete with hotel accommodations” or something like that. So developing new lines of promotion might just make the WOW Philippines travel agency stand - out from a huge number of crowd. This strategy might also open a new type of market in the industry.
WT Strategies
· Branch out on strategic locations
Right now, the only place where you can find is in Ortigas. And even if that place is assessable, it’s a real pain going there. Although their Instant response capabilities cover most of the inconvenience this dilemma presents, a potential “walk-in-customer” will still be missed because of the lack of branches the company has. So by placing their branches strategically and wisely like in Makati and Manila together with their unique and convenient client support model, these two definitely give them a great advantage over their competitors.
S.P.A.C.E. Matrix
Basis: IFE and EFE
Conclusion: X-Axis = (IS + CA) = 3.75 -2.00 = +1.75
Y-Axis = (FS + ES) = 5.00 -2.25 = +2.75
S.P.A.C.E. Matrix analysis
WOW Philippines travel agency directional vector is located in the aggressive quadrant (upper-right quadrant) of the SPACE Matrix this means that WOW Philippines travel agency is financially a strong company that has achieved major competitive advantages in a growing and stable industry.
Based on quadrant I, Market Development, Product Development, and Horizontal integration is the suited strategy that can be used by WOW Philippines travel agency.
B.C.G. Matrix
I.E. Matrix
IFE Total weighted score = 3.23
Internal- External Analysis
Based on the EFE and IFE matrices in the previous chapters, with the resultant scores at 2.72 and 3.23 respectively, the combined effect of the external and internal analysis falls in cell II for IFE TWS of 3.23 and cell IV for EFE TWS of 2.72.
This IE Matrix of WOWPhilippines Travel Agency shows that our company should grow and build. The company should pursue Intensive (market development and Product Development) or integrative (forward integration) strategies can be the best and most appropriate things to do. They must increased market share for present services in present markets through greater marketing efforts, introduce present services into new geographic area, and increased sales by improving present products or services or developing new ones.
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WOW Philippines Travel Agency (Strama Paper)
WOW Philippines Travel Agency
STRAMA Papers
Table of Contents Page
I. Acknowledgement 3
II. Executive Summary 3
III. Internal Assessment 4
Company Background 4
· Mission and Vision 4
· Corporate Board of Directors 5
· Business Functions 6
· Product Lines and Packages 6
§ Boracay 6
§ Palawan 7
§ Bohol 7
§ Cebu 8
§ Internal Factor Evaluation (IFE Matrix) 9
III. External Assessment 10
· External Forces
§ Economic Forces 10
§ Cultural Forces 10
§ Demographical Forces 11
§ Legal Forces 12
§ Government / Political Forces 14
§ Technological 15
· Porter’s Framework 17
· External Factor Evaluation (EFE Matrix) 19
· Competitors Profile Matrix (CPM) 20
IV. Strategy Formulation
§ S.W.O.T. Matrix 21
§ S.P.A.C.E. Matrix 25
§ B.C.G Matrix 27
§ I.E. Matrix 28
§ G.S.M. Matrix 30
§ Q.S.P.M. Matrix 32
V. Conclusion 34
VI. Recommendation 35
VII. Appendices 36
I. Acknowledgement
First of all, I would like to say praise be to God , for giving us the strength and health to do this work until it’s done not forgetting our family who provided everything that we need, such as money, books and other resources to complete our work.
And also for their moral support that has motivated us to pursue this.
Then I would like to thank our professor, Sir Sofronio Dulay I for guiding us throughout this project. We had some difficulties in doing this task, but she taught us patiently until we knew what to do.
Last but not least, my group mates who gave everything they got in order for us to complete this work. They were helpful that when we combined and discussed together, they were willing to stay up late every time we have something to finish in a rush. It’s because of them,I was able to lead this group with lesser burden.
II. Executive Summary
Traveling, for some have its different purposes. It’s been know that people travels for two reasons only, for business or pleasure purposes. but no matter the purpose is, travelers need a fast and reliable way to get to their destinations stress and hustle free. And traveling with WOW Philippines travels and tours provides that. Now you can go almost anywhere in the Philippines with ease thanks to WOWPhilippinestravelagency.com, traveling around the country is literally just one click away.
Founded by Rick St. John and his Filipina wife Mary Jane Bangga in 2005 under the name of WOW Philippines travel company, a private company not affiliated with the Philippine Government. Right after a year of operation the company incorporated with (SEC) and expanded its business to include all the Philippine islands. Now, the company have offices around the Philippines and the USA.
The group would like to look into how that company maintain it strong reputation after almost 6 years of operation. Different tool were used to devise for the group to understand what was done these past years for it to be steady and huge. The researchers would also like to learn for one of the most popular travel agency here in the Philippines in terms how to approach different kinds of management dilemmas.
The paper will contain various tools on which helped the group into attaining facts and data crucial for the accomplishment of this research. Also, The paper will contain recommendation which the groups feels beneficial for the company in terms of reaching their goals in improving the quality of service they provide to their loyal customers.
III. Internal Assessment
Company Background
On July 05, 2005 WOW Philippines Travel Agency Inc. opened its doors to the general public and started to facilitate travel throughout the Philippines for tourist, local and foreign. Since opening our doors our name has become synonymous with being trustworthy and providing reliable service at a great price.
Since opening our doors over 5 years ago we have helped hundreds of tourist coming to the Philippines, from over 125 countries plan their vacations and by arranging there hotel accommodations, inter-island flights, and land and sea transfers, and putting together affordable and adventuress Philippines packages.
WOW Philippines Travel Agency, Inc. has become one of the world’s most popular travel and tour portals providing a wide range of travel related services to local and foreign tourist alike. We are very proud of our reputation for excellence; a reputation based on our commitment to always exceed our clients expectations.
WOW Philippines Travel Agency, Inc. is privately owned and operated by a husband and wife team, Mary Jane P. Bangga of Aklan Philippines, and Ricky Lee St. John of North Carolina, USA.
Our Philippines travel agency is not in any way affiliated with the Philippines Government or the Department of Tourism, we are a legal and licensed Philippines Travel Agency. Verify Us - Philippines Securities and Exchange Commission
Mission and Vision
WOW Philippines Travel Agency Inc. was founded as a Manila Philippines Travel Agency, in 2005. Since our inception, WOW Philippines Travel Agency Inc. has earned two very important placements:
1. A reputation for excellence in customer service and reliability
2. Dedication and loyalty to our valued clients.
First and foremost, WOW Philippines Travel Agency Inc’s, mission is to build even stronger client relations with increased Hotel & Resort offerings that are packed with features and savings. The goal of WOW Philippines Travel Agency is to provide all guests with multiple resort choices, professional service and price integrity. WOW Philippines Travel Agency Inc. will accomplish these tasks by developing web based travel sites that offer hundreds of Boracay Resorts with accurate and detailed Boracay Hotel Accommodation information.
White WOW Philippines Travel Agency Inc. constantly endeavors to respond to the ever changing travel trends, our commitment to personal service remains unchanged WOW Philippines Travel Agency Inc. works with clients individually and pro-actively, approaching each travel engagement thoughtfully and with attention to our clients specific travel needs. We do not limit our client’s online search to just a few popular hotels resorts, imposing static, assembly-line type solutions.
Most importantly, WOW Philippines Travel Agency Inc. believes that dynamic, ongoing client relationships creates a more open exchange of ideas. This leads not only to more responsive, but also to creative, proactive thinking that is keenly focused on our particular client’s travel goals and needs. This form of personal partnership constitutes the – 1 – travel advantage we offer our clients, and is the cornerstone of WOW Philippines Travel Agency Inc.
WOW Philippines Travel Agency Inc.
Company Board and Directors; Officers
· Mary Jane Bangga St. John (Filipino) - President / CEO
· Rick St. John (American) - Vice President
· Marli Bermudo (Filipino) - Senior Accountant
· Relly Magundayao (Filipino) - General Manager
Travel Agents
· Mary Jane Bangga
· Relly Magundayao
· Maria Andrea Fulgencio
· Flordeliza Gubar
· Cheezle Marie Yutuc
· Alexanne Marie Cardoza
Corporate Objectives
· To promote Philippines tourism in a positive and ethical manor.
· To offer the widest selection of hotels and resorts at the best possible price.
· To staff qualified, and professionally trained travel agents that know the destinations.
· To maintain sustainable growth and seek proactive ways to increase profit for the company.
Corporate Function
· Hotel & Resort Reservations
· Group Bookings
· Group Incentives - (Free Airline Ticket to parties of 15 & more)
· Meet and Greet Assistance - (additional cost may apply)
· Inter-Island Domestic Flights (E-Tickets Provided)
· Airport Transfers - (Roundtrip)
· Car Rental - (includes driver)
· Visa Assistance - (extensions for foreign clients)
· Sightseeing Tours
Product Lines
Wow Philippines travel agency of offers instant confirmation of Flights, accommodations and Packages that will surely satisfy is tourist customers.
BORACAY
Discovery Shores Boracay Beach Resort
3 Days and 2 Nights Package
Twin Occupancy
Junior Suite Php.14,750.00 per night x 2 nights = Php.29,500.00
One way airfare Cebu-Boracay via Cebu Pacific Php.3,000.00 per person x 2 persons = Php.6,000.00
Inclusions:
• 3 Days and 2 Nights Accommodation
• Daily Breakfast
• Roundtrip airport transfers
• 2 Bottles of Mineral water per day
PALAWAN
The Legend Palawan Resort
3 Days and 2 Nights Package
Twin Occupancy
Php.10,999.00 per person x 2 persons = Php.21,998.00
Inclusions:
• 3 Days and 2 Nights Accommodation
• Half Day Honda Bay Island Tour
• Palawan Underground River Adventure Tour
• Meals ( 2 breakfast, 2 lunch, 2 diner )
• Roundtrip airport transfers with assistant
• Welcome Drinks
BOHOL
Amorita Bohol Resort
3 Days and 2 Nights Package
Twin Occupancy
Php.10,000.00 per person x 2 persons = Php.20,000.00
Roundtrip airfare Boracay-Manila-Tagbilaran-Manila via Cebu Pacific Php.12,000.00 per person x 2
Persons = Php.24,000.00
Inclusions:
• 3 Days and 2 Nights Accommodation
• Complimentary Breakfast
• Welcome Drinks
• Complimentary airport transfers
Countryside Bohol Tours:
• Chocolate Hills
• Baclayon Church
• Baclayon Museum
• Loboc River Cruise w/ Lunch
• Tarsier Encounter
• Blood Compact Monument
CEBU
Plantation Bay Cebu Hotel
3 Days and 2 Nights Package
Twin Occupancy
Lagoon View Room Php.10,800.00 per night x 2 nights = Php.21,600.00
One way airfare Puerto Princessa-Cebu via Cebu Pacific Php.6,000.00 per person x 2 persons = Php.12,000.00
Breakfast Php.1,200.00 per person x 2 persons x 2 days = Php.4,800.00
Inclusions:
• 3 Days and 2 Nights Accommodation
• Daily Breakfast
• Roundtrip airport transfers
• 2 Bottles of Mineral water per day
Airlines Companies:
Cebu Pacific Philippine Airlines Air Philippines
Zest Air SEAIR
Internal Factor Evaluation
Key Internal Factors
Weight
Rating
Weighted Score
STRENGTHS
1. Competitive offers
0.15
4
0.60
2. Has a wide range of hotels and resorts affiliation
0.11
2
0.22
3. Strong financial standing of the company
0.07
2
0.14
4. Has a direct business relationships with affiliation
0.09
3
0.27
5. Instant communication response capabilities
0.12
4
0.48
6. Provides 24/7 customer support
0.10
4
0.40
7. Been operational for 6 years
0.02
1
0.02
WEAKNESSES
1. No insurance schemes for customers
0.09
4
0.36
2. Has ever few international flight offers
0.03
2
0.06
3. Has ONLY one branch
0.12
4
0.48
4. Under staffed
0.05
1
0.05
5. Now known compared to competitors
0.05
3
0.15
TOTAL
1.00
3.23
Internal Factor Evaluation (IFE) Analysis
WOW Philippines Travel Agency has a score of 3.23 with is a very strong score. The company has very effective strength set, these strengths obviously mostly focuses on the consumer which makes them very likable. Taking advantage on the strength they have and coming up with new product lines and promos will be a very effective way of making company bigger and better.
By having only on branch will affect their business but that “hump” is covered by the company’s ability to instantly respond to concerns. But an option for expansion will definitely help WOW Philippines become better and bigger.
IV. External Assessment
External Forces
Economical Forces
In the interview we ask why the beautiful country of the Philippines has fallen behind many of its neighbors in terms of visitor arrivals, what plans are in place for the country to regain its rightful place as one of the top 5 destinations within Asia, how sports can help boost tourism, as well as education programs such as English as a Second Language (ESL) and Medical Tourism, which markets they are targeting the most and much, much more.
With over 7,000 islands, some of the most stunning beaches in the world, a populace that, in the whole, speaks excellent English, an ideal climate, and some of the best hotels in the region, the Philippines has all the right ingredients to be one of the world’s top tourism destinations.
Between January to November 2010 the Philippines recorded 3.126 million visitor arrivals, the highest numbers in 30 years and a 15.6% increase over 2009. Korea bounced back as the number one source market with 49% growth during the period to record 659,397 visitor arrivals. Combined, China, Japan and Taiwan made up 36.9% of all visitor arrivals during that period in 2010. Taiwan alone was up 38% after 2 years of consecutive declines. Tourism receipts were estimated at US$ 2.2 billion, up 11% over the same period in the previous year. The average spend is US$ 672.63 with an impressive average length of stay of 8 days.
The Philippines is aiming to double its visitor arrivals by 2016, and is promoting itself heavily in markets such as China, India, Russia and the Middle East. The India target will be assisted with PAL set to launch flights to India in March 2011.
To achieve its goals, the Department of Tourism, this year, has a budget of around 1.3 billion Pesos, but this could easily more than double if it gets its share of revenue from Pagcor.
Cultural Forces
The hospitality of the Filipino people is one of the reasons why tourism in the Philippines is steadily growing.
Foreigners and tourists who have experienced the Philippine culture and being with Filipinos find them very hospitable. This is a common trait that Filipinos are known for to most foreigners who have traveled around the country.
The attitude of Filipino people towards foreigners and other people is said to be exceptional. Even the humblest home along the road can serve as a shelter for a stranger who has lost his way. For Filipinos, serving other people the best of what they have gives them an honor and a promise of true friendship. A typical Filipino house is not completely called a home without any facility ready for guests. It is filled with new and nice-looking items reserved only for them while ordinary ones are for everyday use.
Arriving at your host’s house during mealtime may be awkward but if it’s in a Filipino house, you will be asked to sit down and share what they have on the table. Because eating alone without asking others according to Filipino customs is considered rude. These manners picture how Filipinos accept and properly respect the presence of their visitors. A form of hospitality that comes truly from the heart, just like how the country made its image as the land of true smiling people considering the struggling economy, political confusion and rising poverty in the country.
You may be surprised to see how such situations are handled in Philippines culture. It is like taking everything from them but not their love of joking. Joking and laughing at everything perhaps give them relief and makes them see things more positively.
Traveling in this country means more of building rapport with its people and understanding the Philippine culture, customs and traditions. Filipinos love entertaining foreign visitors; as to help, or for whatever reasons, interacting with them is unavoidable. Hence, aside from the country’s stunning natural assets, meeting the Filipinos gives a promise of a true friendship and memories to keep.
Demographic Forces
The Philippines are records of human population in the country, including its population density, ethnicity, education level, health, economic status, religious affiliations, and other aspects of the population. According to the 2010 Census, the population of the Philippines was 99,900,177. As of July 2010. The Negrito forms a minority of the population. The majority of Filipinos (about 95%) are made up of various ethno linguistic Austronesia ethnic groups who descended from a population of Taiwanese aborigines, who settled in the Philippines about 6,000 years ago. Mestizos, those of part Austronesia descent mixed with Spanish, American, Chinese, and other ethnic groups form a minority of the population.
The most commonly spoken language is Filipino which is a de facto language based on the Tagalog dialect. Filipino and English are the official languages. There are about 180 indigenous Filipino dialects spoken in the islands. Spanish and Arabic are recognized as voluntary and optional languages in the Philippine constitution. Christianity is the main religion, with Roman Catholicism making up the majority of the population. Other religions include Islam, Buddhism, Hinduism, and those with no religion.[4] The people of the Philippines are known as Filipinos. Throughout the colonial era the term “Filipino” originally referred to the Spaniards, and mestizos. The definition was later applied to include all citizens, regardless of ethnic origin.
Legal Forces
Section 130 – International and Domestic Tourist Travel.
(a) The Department in coordination with relevant government agencies shall
formulate appropriate policies and develop joint programs to increase and
improve the accessibility of the Philippines to domestic and foreign tourists.
(b) Realizing the critical importance of the progressive development of the civil
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IRR - p116
aviation environment in the advancement of the country’s international and
domestic tourism sector:
(1) The Secretary shall be the ex officio Vice-Chairperson of the Civil Aviation
Board (or Civil Aeronautics Board pursuant to RA 776);
(2) The Secretary shall be the ex officio Vice-Chairperson of the governing
boards of all international airports;
(3) The Secretary shall be authorized to appoint a representative to the
board of directors of each international seaport of the Philippines; and
(4) The Secretary shall be a member of the Civil Aviation Authority of the
Philippines Board.
(c) The Department and other relevant government agencies shall develop an
integrated, one-stop shop system for the speedy issuance of franchise and
accreditation for tourism transport operators.
Section 131 – Tourism Infrastructure Program.
(a) The Department, in accordance with the National Tourism Development Plan
and local government initiatives, shall coordinate with the Department of
Public Works and Highways (DPWH) and the Department of Transportation
and Communications (DOTC) and their attached agencies in the establishment
of a tourism infrastructure program in the respective work programs of said
agencies, identifying therein vital access roads, airports, seaports and other
infrastructure requirement in identified tourism areas.
(b) The DPWH, DOTC and other relevant infrastructure agencies, including the
Department of Budget and Management (DBM), shall accord priority status
the funding of projects in the Tourism Infrastructure Program.
Section 132 – Visas.
(a) The Department, the Department of Foreign Affairs (DFA) and the Department
of Justice (DOJ) shall develop a system of granting visas that encourages the
arrival and longer stay of tourists in the Philippines.
(b) Regular review of visa and entry policies shall be undertaken by the foregoing
agencies to ensure the amendments of any laws, rules and regulations on this
regard.
Government and Political Forces
Notice of Government Imposed Taxes, Fees and Charges
The value on the ticket may include taxes, fees and charges which are imposed on air transportation by government authorities. These taxes, fees and charges which may represent a significant portion of the cost of air travel, are either included in the fare, or shown separately in the ‘TAX/FEE/CHARGE’ box (es) of this ticket. The passenger may also be required to pay taxes, fees or charges not yet collected.
Act 4033 was passed to require a franchise from the Philippine government in order to operate an air service and to regulate foreign aircraft operations.
Philippine Legislative passed Commonwealth Act No. 168, better known as the Civil Aviation Law of the Philippines which created the Bureau of Aeronautics. After the liberation of the Philippines in March 1945, the Bureau was reorganized and placed under the Department of National Defense. Among its functions was to promulgate Civil Aviation Regulations.
Executive Order No. 94 which reorganized the government transferred Bureau of Aeronautics to the Newly created Department of Commerce and Industry and renamed Civil Aeronautics Administration (CAA).
Republic Act 224 created the National Airports Corporation which was charged with the management and operations of all national airports.
Republic Act No. 776, otherwise known as the Civil Aeronautics Act of the Philippines reorganized the Civil Aeronautics Board and the Civil Aeronautics Administration. It defined the powers and duties of both agencies including the funds, personnel and the regulations of Civil Aviation.
Executive Order No. 209 placed the Civil Aeronautics Administration under the administrative supervision and control of the Department of Public Works, Transportation and Communications.
Republic Act No. 776, otherwise known as the Civil Aeronautics Act of the Philippines reorganized the Civil Aeronautics Board and the Civil Aeronautics Administration. It defined the powers and duties of both agencies including the funds, personnel and the regulations of Civil Aviation.
Executive Order No. 209 placed the Civil Aeronautics Administration under the administrative supervision and control of the Department of Public Works, Transportation and Communications.
Executive Order No. 546, the CAA was renamed the Bureau of Air Transportation (BAT) and placed under the Ministry of Transportation and Communications.
Executive Order No. 125-A renamed the Bureau of Air Transportation the Air Transportation Office headed by the Assistant Secretary of Air Transportation.
Senator Edgardo J. Angara filed senate bill number 1932, otherwise known as CIVIL AVIATION AUTHORITY ACT OF 2007, authorizing the appropriation of funds therefore, and for other purposes. The bill abolishes the Air Transportation Office (ATO) and in its stead creates the Civil Aviation Authority (CAA), which is mandated to set comprehensive, clear and impartial rules of the aviation industry. Under the new law, the CAA shall be an independent regulatory body with quasi-judicial and quasi-legislative powers with corporate attributes and on March 4, 2008, President Gloria Macapagal-Arroyo sign into law.
Technological Forces
As tourism is so unpredictable and volatile in today’s world any changes, be they social, economic, environmental, political, cultural or religious can have a counter effect on the trends of the industry at that point. When it comes to travel consumers are incredibly influenced. Since the development of tourism began in 1700 (wikipedia article) it has changed radically in that it is available to the masses and with a wide choice. This report will study the technological advances and how this affects tourism through volume, type or impact on a place at a certain period.
Technological changes within tourism surround several different factors from medical advances to the innovative space tourism. Similar to tourism, technology is an ever changing and sometimes unstable business. Better communication, transport and safety have encouraged new consumers to the industry. Improvements in water supply, medicine and knowledge have meant areas are opened up which were not possible before technological advances. In today’s society in which a consumer wants easier, quicker and cheaper service only technology has helped tourism fulfil the customers demand.
Porter’s Framework
Porter’s Framework Analysis
Aside from travel agencies, Airlines companies is also considered a competition for WOWPhilippines travel agency.
Substitute can be considered as those travel agencies that are foreign but located here in the Philippines and only offers limited flights, usually they only offer flights to their country.
External Factor Evaluation
Key External Factors
Weight
Rating
Weighted Score
OPPORTUNITIES
1. The Phil. is still one of the best tourist sites in Asia
0.15
3
0.45
2. The rapid growth of the internet
0.11
4
0.44
3. Huge number of tourist all over the world
0.15
3
0.45
4. Education
0.09
4
0.36
THREATS
1. Existing competitors
0.11
4
0.44
2. Competitor offers
0.07
2
0.14
3. A Decline on the industry
0.06
1
0.06
4. Terrorist
0.12
2
0.24
5. Labor Cost
0.14
1
0.14
TOTAL
1.00
2.72
External Factor Evaluation (EFE) Analysis
With all the bad things that dented the Philippine’s reputation in terms of “being a safe country to visit” here in Asia,there are still a large number of visitors that visit the country. WOW Philippines should capitalize on this opportunity and utilizing with the use of the internet to make it more convenient for its customer to avail services that they offer.
WOW Philippines should approach these two opportunities aggressively, because the tourism industry will never run out of market. But together with this opportunities is the unwavering threats of stiff competition and the economy’s slow decline due to the country’s bad reputation over the past several years. But regardless of these threats, the country will still be visited. By launching new promos will is a sure way of attracting the bulk of visitor to avail a service for WOW Philippines.
Competitor’s Profile Matrix (CPM)
Based on research Blue Horizon is sitting on the top of the mountain when it comes to travel agency competition, having a 3.18 score proves that there’s a reason they have been winning award for the past few years. It also shows the WOW Philippines travel agency has good competitive positioning with a score of 3.00. Correcting their weaknesses and capitalizing on their opportunities will possibly catapult them to the top in no time.
S.W.O.T. Matrix
Recommended Strategies
Product Development would be the most recommended strategy for WOW Philippines right now. Generally travel agencies offer almost the same things for its customers, and launching a unique product or promotion will sure make this company standout from the rest. By offering new locations to visit will be a good start of this strategy, because Boracay, Palawan, Cebu and Bohol is also offered by the other travel agencies as well which makes the competition price based and promotion based. WOW Philippines offers one of the most competitive packages out there, but this strategy alone won’t be able to capture that much customers.
Possible Market development is also a good strategy to put in the loop. It is known that one of the reasons why the Philippines is visited is because of the education. So creating a package or a promotion that will involve tying - up known universities and college would be a good starting point for a new market for travel agencies to tap into.
And lastly, putting up additional branches is advantageous for WOW Philippines because they really only have on office, and it’s in Ortigas, Pasig City. Even if the place is accessible, the traffic and location is a pain for anybody to visit. And did I mention? it is the ONLY place they have. if in any chance that the customer is from Malabon, there’s no chance that he will travel all that way. Strategic branching will eliminate this possible problems giving them a lot of ground covered.
Strategy breakdown
SO Strategies
· Develop an offer that will involved student travelers who seek education here in the Philippines.
The Philippines is not only being populated by foreigners for its beautiful sites. but also, because of the quality of education the country provides. and taking advantage of this opportunity is profitable for the tourism industry. Tying - up travel packages with visits to known universities and colleges here in the country would be very enticing for those travelers who has yet acquired knowledge of what institute they’re considering.
· Include known universities and colleges in their affiliations.
With this strategy, WOW Philippines will be able to accomplish two things in just one go. First, it will make the strategy must easier to accomplish, and the second, it would be able to help the university advertise itself not only locally but also internationally. Plus, this strategy will also present a way for the students of the school to learn more and possibly experience the industry itself by providing them programs that will train students in the actual industry workplace. especially courses that are related to the industry.
· Have a direct business relationship with foreign hotels and resorts.
Now this strategy might be a long shot if they’ll try and affiliate themselves with world class hotels, so it would be a good idea if the will start with 1 to 2 stars hotels and resorts. if this strategy if put into effect it will most convenient for the travelers who would like to jump from one country to another.
WO Strategies
· Develop a promotion scheme that will provide its customers insurance for their luggage.
One thing that’s missing from the offers of most travel agencies is insurance for the luggage of their customers. We know that this strategy is a bit of a stretch for servicing travelers and its more of a liability that it is an asset, but it is doable. Giving your customers the feeling of security in a foreign country is a big image booster in the tourism industry, especially now a days that the Philippines has been dented with previous events involving tourist. A little bit of security will hopefully change the minds of those people you planned to visit the country but was cut short because of all the negative buzz.
· Expand and set up branches.
One of the most obvious weakness WOW Philippines has is that they ONLY have ONE office that you can visit. They’ve been in the industry for almost six year and they still yet to expand their reach. Instead of just placing on office here in the country, it would be beneficial for them if the branch out in different parts of the Philippines.
· Hire additional staff and employees.
This strategy is pretty much self explanatory.
· Offer more flight for different countries
Offering more destinations for WOW Philippines means more chances of acquiring customers that, product variation would definitely be advantageous for this company, considering the they have a ton of competition. But there is a chance that the countries that they have flight for wont be all the same.So having a long list of flight will me them fill all of those spot that the other travel agencies missed.
ST Strategies
· Develop unique packages and promo offers
Generally, All of the travel agencies offers the same thing. “flights for two complete with hotel accommodations” or something like that. So developing new lines of promotion might just make the WOW Philippines travel agency stand - out from a huge number of crowd. This strategy might also open a new type of market in the industry.
WT Strategies
· Branch out on strategic locations
Right now, the only place where you can find is in Ortigas. And even if that place is assessable, it’s a real pain going there. Although their Instant response capabilities cover most of the inconvenience this dilemma presents, a potential “walk-in-customer” will still be missed because of the lack of branches the company has. So by placing their branches strategically and wisely like in Makati and Manila together with their unique and convenient client support model, these two definitely give them a great advantage over their competitors.
S.P.A.C.E. Matrix
Basis: IFE and EFE
Conclusion: X-Axis = (IS + CA) = 3.75 -2.00 = +1.75
Y-Axis = (FS + ES) = 5.00 -2.25 = +2.75
S.P.A.C.E. Matrix analysis
WOW Philippines travel agency directional vector is located in the aggressive quadrant (upper-right quadrant) of the SPACE Matrix this means that WOW Philippines travel agency is financially a strong company that has achieved major competitive advantages in a growing and stable industry.
Based on quadrant I, Market Development, Product Development, and Horizontal integration is the suited strategy that can be used by WOW Philippines travel agency.
B.C.G. Matrix
I.E. Matrix
IFE Total weighted score = 3.23
Internal- External Analysis
Based on the EFE and IFE matrices in the previous chapters, with the resultant scores at 2.72 and 3.23 respectively, the combined effect of the external and internal analysis falls in cell II for IFE TWS of 3.23 and cell IV for EFE TWS of 2.72.
This IE Matrix of WOWPhilippines Travel Agency shows that our company should grow and build. The company should pursue Intensive (market development and Product Development) or integrative (forward integration) strategies can be the best and most appropriate things to do. They must increased market share for present services in present markets through greater marketing efforts, introduce present services into new geographic area, and increased sales by improving present products or services or developing new ones.
Grand Strategy Matrix
The WOWPhilippines Travel Agency is located in the Quadrant 1 due to the following reasons:
With the standard of living of Filipino is improving gradually, travel industry is stably increase, that is why given the rapid market growth of the industry.
WOWPhilippines is in an excellent strategic position, concentration on current (market development) is an appropriate strategy in terms of the specific circumstances that face the company.
The strategies both identified in SPACE and Grand Strategy Matrices are defined as follows:
1. Market Development, which is introducing present product and services into new geographical areas;
2. Market Penetration, which is seeking higher market share through greater marketing efforts;
3. Product Development, which is seeking increased sales by improving present products or developing new ones;
4. Forward Integration, which is gaining ownership over distributors and retailers.
Quantitative Strategic Planning Matrix (QSPM)
Quantitative Strategic Planning Matrix
In our Quantitative Strategic Planning Matrix we have three strategy alternatives, which are horizontal integration, market development and product development. These three strategies are the alternatives that we will use to be able to penetrate the market. In our Quantitative Strategic Planning Matrix, Product Development has the highest score which means that we will use the product development strategy for WOWPhilippines to be one of the leading travel agencies in the Philippines. With these strategies we will be able to have more customers and gain more profit.
V. Conclusion
WOW Philippines Travel Agency, Inc. is here to help you plan your next fun-filled vacation to the Philippines. As vacation specialists, we help individuals, couples and families find that perfect vacation and enabling them to have many wonderful experiences. WOW Philippines Travel Agency specializes in providing discounted hotel accommodations to over 100 top tourist destinations in the Philippines.
Since July of 2005 WOW Philippines Travel Agency, Inc. has helped hundreds of travelers to the Philippines find their dream vacation destination, and we are confident we can help you find yours also.
WOW Philippines Travel Agency, Inc. has listed hundreds of hotels for you to choose from, each hotel listed on our website has been verified by us and is well-equipped with modern amenities, and you will find that the staff is warm and friendly.
Whether you are traveling to the Philippines for the first time, or you are a seasoned traveler you will be sure to benefit from our full service travel agency, conveniently located in Pasig City, Ortigas Center of Metro-Manila Philippines.
It is our goal to arrange for you a quality and hassle free vacation package, filled with fun and adventure while keeping the cost affordable. With WOW Philippines Travel Agency, Inc. you have not only our promise, but our written guarantee to offer you the lowest hotel rates available to us. So take a tour of our travel website, search our top Philippines tour destinations like Boracay, Palawan, Bohol, Cebu, find the hotel that best suits your family vacation and then book securely using our online booking system.
Start your Philippines travel adventure off to a great start; choose WOW Philippines Travel Agency, Inc for all of travel needs.
VI. Recommendations:
Primary Strategy (Product Development)
- WOWPhilippines Travel Agency should provide additional products to gain more profit.
- WOWPhilippines Travel Agency should provide more services to satisfy the customers.
- WOWPhilippines Travel Agency should improve the products that they offer to gain more profit and to satisfy the customers.
Secondary Strategy (Market Development)
- WOWPhilippines Travel Agency must have more ticket office to entertain more customers and provide service easily.
- WOWPhilippines Travel Agency must offer more promotions so that more customers will patronize their company.
Tertiary Strategy (Concentric Diversificatio)
- WOWPhilippines Travel Agency should offer more promotions to gain more profit.
- WOWPhilippines Travel Agency should at least put up one branch in a very optimal place.
FAR EASTERN UNIVERSITY
INSTITUTE OF ACCOUNTS, BUSINESS AND FINANCE
BUSINESS ADMINISTRATION DEPARTMENT
STRATEGIC MANAGEMENT PAPER
WOWPhilippines Travel Agency
