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Introduction of Strategy Report Based on A Tourism Company Assignment
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The tourism industry is one of the largest industrial sectors in the current scenario. In the global market, it is one of the competitive industries. There are several companies in this sector and all are doing well in the current situation. In the global market, it is lower concentrated. It is one of the sectors that has much potential and in the UK market, the tourism industry is the most competitive in the current market. As many visitors came to the UK to visit and as it is the location of the tour, from every corner of the globe people, come to the UK to visit the places (Camilleri, 2018). The UK is a place where the number of visitors is huge every year and that’s why the growth of the tourism industry in the UK is optimum. The tourism industry is one of the most competitive global industries and in the global market UK is the major city in the Tourism Industry. The tourism industry consists of hospitality, accommodation, transportation, travel facilitation, information, entertainment, etc. In this study, the VisitBritain company is discussed.
VisitBritain
VisitBritain is one of the largest companies in the Tourism Industry Sector in the United Kingdom. The company was established in the year 2003 and the headquarters of the organisation is in London, United Kingdom. VisitBritain is a name that is “used by the British Tourist Authority, the board of tourists” of “Great Britain is incorporated under the development of tourism Act 1939”. The current CEO of VisitBritain is Sally Balcombe. It is “a national tourism agency” that deals with “marketing Britain worldwide and developing Britain’s visitor economy”. VisitBritain is working with the UK trade and the investment, it also works with the “airlines, travel operators, global brands, and the official tourism bodies for London, England, Scotland, and Wales”.
Mission and Vision of VisitBritain
The mission of VisitBritain is to “grow the volume and value of inbound tourism across the nations and regions of Britain and to develop world-class English tourism products to support their growth aspirations”. That means the company wants to improve the volume of the company as well as its values across the nations and regions of British as well as its wants to “develop a world-class product of tourism to support the growth of the organisation”.
The vision of VisitBritain is to grow the value of tourism, with the aim to drive the tourism value across Britain. The company also wants to support productivity optimization along with they also want to be the expert in terms of growing tourism. Though the company is looking for so many aims to improve the tourism industry.
PEST Analysis of VisitBritain
The “PEST analysis” is a tool to analyze the external environment of a country it includes the aspects of “Political factors, Economic factors, Social factors, and Technological factors”. “PEST analysis” is one of the best analysis tools which gives a better view of understanding an external environment of a country (Vasileva, 2018, October). It shows the positive and negative sides of an environment for a business organisation.
Political Factors
VisitBritain is located in the United Kingdom, and the United Kingdom is run under the influence of the “parliamentary system”. The “United Kingdom is fair and stable and it is full of opportunities for business operations”. As the UK is a fair country though there will be an advantage for VisitBritain as the public of this country has a large influence on the inner working. The government of the UK is too active in its policies and the political factor is stable in the UK, so it also is a positive side for VisitBritain. Though there is also some negative aspect of political factor in the UK like there is some hidden corruption.
Economic Factors
It is one of the important factors in PEST analysis, it shows the economic situation of the country where VisitBritain operates its business (Alava and Mu, 2018).
There are so many advantages for VisitBritain company as they operate in the United Kingdom, the ranking of United Kingdom as per GDP in the world is 5th, means it is the 5th highest GDP in the world. As there is a high population it also is an advantage for VisitBritain as they operate their business in the United Kingdom, which allows companies to earn more profits. The economy of the United Kingdom is diversified as it allows private and large public sector companies to grow, and it will be beneficial for VisitBritain. The free market of the United Kingdom also allows VisitBritain to generate more profit. In terms of FDI (Foreign Direct Investment), It is also another advantage for VisitBritain to accelerate its business operation smoothly, as the rate of FDI is increasing in the UK.
In terms of Negative aspects of Political factors for VisitBritain, the recovery is slow from 2008 after the economic recession. There are lesser negative factors in the UK market.
Social Factors
It is one of the major factors in the PEST analysis. In the case of VisitBritain, this factor is a high standard as the UK’s society is high standard. High social standards make an advantage for VisitBritain. As the living standard is high in the UK so it is an extra advantage for VisitBritain to earn more profit by giving tourism services and for that reason, the number of customers will also be increased of VisitBritain. As the visiting sides are huge in the UK so that the company has more opportunity for getting customers and every year so many visitors come to the UK to visit this society and all the visitors come from all the corners of the globe. Though this can be an advantage for VisitBritain to generate more customers.
Technological Factors
It is the factor that is most important in every organisation, it gives an extra advantage to enhance performance and to be developed for VisitBritain. As the United Kingdom is a more economically developed country, there is no problem with VisitBritain for technology. The United Kingdom has good accessibility to Technology so that is an advantage for the VisitBritain. There is an advantage for the quality innovation skills for VisitBritain as they have to operate their business online, it needs good technology and for that its need some quality innovative skills for that UK is one of the best countries in the world. The UK is more expertise in terms of Science and Information Technology, it may support the VisitBritain for its technological purpose. There is large competition in the UK market so it also is a competitive factor for VisitBritain as well as it also enhances the growth of VisitBritain. Compared to the United States there is slow growth in technology in the UK which is one negative aspect of the Technology factor for VisitBritain.
NOISE Analysis of VisitBritain
Noise Analysis is a strategic planning tool that is used for internal factors of an organisation, it is an alternative to SWOT analysis (Vlados, 2019). NOISE analysis helps decision-makers to analyse the present state of a business and then create the strategy to improve their business operations. NOISE analysis includes Needs, Opportunities, Improvements, Strengths, and Exceptions.
Needs
Needs related to what needs in the organisation to improve the business operations and the efficiency of the business. It contains the points that will require by the company to improve its business. In VisitBritain, there are some needs, VisitBritain wants to be one of the best companies in terms of Tourism company and they also need goodwill which gives an extra advantage to the company. The brand name will make the business more successful. Not only in the UK Market, as well as they also want to expand their business in different countries. The primary need of VisitBritain is to make its business renowned across the nation and the region. Another need Of VisitBritain is to make the name of the tourism industry in the UK.
Opportunities
Opportunities are the aspects that are advantageous for the company as per its external environment. This is an important factor for NOISE analysis and it will help the decision-makers in identifying the opportunities for the company (Liu, Chen and Zhou, 2022). In the case of VisitBritain, there are lots of opportunities for their business. As the business is situated in the UK for that reason there are many opportunities there for the business as it’s the 5th largest country in the world as per the GDP of the country as well as it is a more economically improved country though there are so many opportunities for the company to operate their business smoothly. In terms of opportunities, there is a big opportunity in the Improved Technology in the country it is more important for a tourism company. As well as the visiting sides and the development of the country is an extra advantage for the company it helps the company in terms of getting more customers. The society and improved infrastructure of the UK give a big opportunity to the company for getting the customers from all countries. Nowadays the growth of the tourism industry is constantly growing as peoples are now more excited to explore the places. Though there are several opportunities for the VisitBritain.
Improvements
Improvement is the aspect that needs every company to achieve its needs, it is the implementation of the work that has to be done in order to fulfil the needs of the company. In the case of VisitBritain, there are some needs of the company in order to achieve those needs the company has to do some improvements. In case of making a good brand image, the company gives better service to the customer, and the company also gives more focus on customer satisfaction with their services. VisitBritain has to pay attention to the training and development of the employees and now the company is also focusing on the exploring points where the customers get more satisfaction by viewing these places. The company also developing world-class services for the customers, which gives extra growth to the company.
Strengths
Strengths are the major factor of NOISE analysis that gives a better view of the strengths of the organisation which allows the decision-makers to improve the business. Strengths are the aspects that are strong in the organisation. In the case of VisitBritain, there are so many strengths, as the company was operating for so many years there is a huge experience in this industry it is a big strength for the company (Vlados, 2019). As the company was operating for so many years, the company is having a big brand image in the UK market in the tourism industry. The political factor is another strength of the VisitBritain. Though there are so many strengths of VisitBritain in the tourism industry.
Exceptions
It is one of the important aspects of NOISE analysis for a company. It presents the aspects which are occurring in the above points. In this case, there are several needs, opportunities, improvements, and strengths discussed. In terms of needs there are a few needs like the company wants to make the goodwill and also the company wants to develop their business and make their brand name in the nation and region. They also want to make the name of the tourism industry. As per the opportunities, there are so many opportunities for VisitBritain. There are several opportunities for the environment of the UK that helps VisitBritain to operate its business. As well as the developed economy is also an extra advantage for the VisitBritain. The technology factor also influences the business operations of VisitBritain which helps the business with its improvements. VisitBritain also operates some activities for its improvements. There are so many strengths as well for VisitBritain as it operates for so many years and the brand name of the company.
Though as per the NOISE analysis of VisitBritain it has so many advantages of VisitBritain and the internal factor is also good for VisitBritain. There is a large scope for the VisitBritain in the coming years. The operations and the innovations of VisitBritain are well operating. As per the NOISE analysis, the internal factors of VisitBritain are well improving, which helps the decision-makers of the company to make the strategies for the organisation.
Ansoff Matrix
Ansoff Matrix is a tool for analysing the plans and the strategies for the growth of a company. It is also called a product or market expansion (Sukma, Lubis and Utami, 2019). The Ansoff Matrix focuses on the four strategies that can help a company for their growth and it also identifies the risk in those strategies.
Ansoff Matrix
(Source: Sukma, Lubis and Utami, 2019)
The four strategies of Ansoff Matrix are:
- Market Penetration: This strategy of Ansoff Matrix is focused on the existing products or services as well as on the existing market. It also contains a low amount of risk (Cleberg, 2019).
- Product Development: This strategy focuses on the new products in the existing market. It shows the new product or services in the market as well as it also contains some risks.
- Market Development: This strategy focuses on the new market with the existing products or services of the company.
- Diversification: This strategy focuses on the new market with the new product or services (Sukma, Lubis and Utami, 2019).
Ansoff Matrix of VisitBritain:
The company is now focusing on Market Penetration with the effective applications of marketing strategy. VisitBritain’s ecosystem of services plays a great role to pursue the market penetration strategy along with the high efficiency.
As per the choice of Ansoff Matrix of VisitBritain, the Diversification strategy will an extra advantage for VisitBritain. If they introduce new services along with the existing services in a new market that can be a competitive advantage for the company. Though it also helps the company to expand its business and that will give extra growth to the company.
Recommendations For the Three-Time Periods
VisitBritain company’s planning for the three-time periods, in the first-year company, may have a plan to introduce new services and in the three years, the company may have a plan to operate the business in a new market. Finally, in the five years, the company may have a plan to operate the business in the new markets with the new product with good efficiency and focus on more revenue generation, in the five years the company may reach a good position and build its brand.
Conclusion
In this study, there is VisitBritain company was discussed, this is one of the best tourism companies in the United Kingdom. In this study there are few analyses has been done for setting new strategies for the company like PEST analysis, NOISE analysis, and the Ansoff Matrix analysis. From all of the analysis the company is having a good position in the UK market, as well as the UK market, and also influences the company for growth. There are several opportunities for the company to build its name and the company also can be a leader in the Tourism Industry. Though these strategies will be helpful for the decision-makers of the company and can show a positive way for the company to generate more profit.
References
Alava, R.P. and Mu, J.M., 2018. PEST Analysis Based on A Case Study for. Neutrosophic Sets and Systems, 84.
Camilleri, M.A., 2018. The tourism industry: An overview. Travel marketing, tourism economics and the airline product, pp.3-27.
Cleberg, C., 2019. Strategic Success: The Ansoff Matrix vs. The Balanced Scorecard.
Liu, B., Chen, M. and Zhou, W., 2022. Internal and External Factors Analysis of Kenya Airways’ Strategic Management: A Mini-Review. Frontiers in Business, Economics and Management, 3(1), pp.13-17.
Sukma, D., Lubis, P.H. and Utami, S., 2019. Analysis of Marketing Strategy of Minyeuk Pret Using STP, Ansoff Matrix, and Marketing Mix.
Vasileva, E., 2018, October. Application of the Pest Analysis for Strategic Planning of Regional Development. In 49th Int. Sci. Conf (No. October, pp. 223-229).
Vlados, C., 2019. On a correlative and evolutionary SWOT analysis. Journal of Strategy and Management.
