The SWOT analysis of Chengdu International Travel
This essay will focus on applying SWOT anlysis approach to analyze the Chengdu international travel service agent business environment. SWOT, which is a method widely used in marketing audits, is a grid used to plot internal strength and weakness in one half and external opportunities and threats in other half (Palmer & Hartley, 2009). A SWOT analysis lists the strength and weakness of the organization and through opportunities and threat to summarize the main environmental issues facing an organization (Palmer & Hartley, 2009). Then based on the analysis of Chengdu international travel service agent business environment, the strategic plan will be presented.
The employees in Chengdu international travel service agent are diligent and competent. Such as the three ticket staff members who are never call in sick. Besides, these three employees are fine with occasional work in evening and arrange time flexible. And the secretary Miss liu is willing to help Will on coordinator job. Moreover, employees are the most valuable assets in a company, so the best way to ensure company success is employee work diligently (Ita, 2011). Observe any type of enterprise, it can find that diligence is indispensable. So anyone who wants to success and prosper in business,
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Because Will use the Sofitel that is the business centre of a five star hotel as the office, it can provide him many opportunities to build new business contacts and please consumers. Besides, the agent is always clean and has good quality filtered coffee. It caused that Will’s agent has a good work environment. Furthermore, a famous entrepreneur Aaron Meredith, who has been involved in network marketing since 2003, said that as a place where employees get important task and have a successful meeting, work environment is very important (Meredith A, 2007). And Will’s agent has a nice work environment condition, so it can help employee have a good feeling to complete key tasks. A good work environment condition is other strength of agent.
The promotion method of Will’s company is restricted and poor. Promotion allows companies to contact with customer, using strategies to attract their attention and help companies introduce old product in a new market. In Will’s travel agent, business customers mainly come from Will’s old contract the South-western University of Finance and Economic (SWUFE), where Will taught Philosophy in for two years.
Identifying the target audience and conveying the right thing at the right time is the mantra of brand market (McMains S, 2011). So whatever the enterprise is, a good promotion method for business is important. Furthermore, a company without business promotion would be stagnant and lack substantial growth, because their brands have low visibility in the market (Ehow, 2011). However, the agent’s promotion method relies on loyal customer and pass Will’s name to his friends or social circle. So lack of a good promotion is extremely biggest problem in Will’s agent company.
External environment can divides micro environment analysis and macro environment. In the micro environment, the analysis would use the Porter’s 5 forces tool. The Porter’s 5 forces is the model which comprises the threat of new entrants and substitute products, the bargaining power of customers and suppliers, and competition among current competitors. In the macro environment, it will be analyzed by the PEST, which includes Political, Economic, Social and Technological.
After China join the world Trade Organization (WTO) in 2006, the economic globalization become a great opportunities for business development. Besides, China do not only take an active part of internal tourism, but also make a better use of domestic and foreign tourism resources and market (Industry info, 2011). At the same time, with the increasing purchasing power, rapid economic liberalization and favorable government policies, tourism has regard as a new growth industry in the Chinese economy over this few years (Hinton, 2010). Many Chinese customers go abroad to travel or work, at the same time a lot of foreign people come to China and travel. In 2009, China has the largest domestic market all over the world, and the total revenue of more than 1.9 billion domestic travelers generating is over 1000 billion CNY (Hinton, 2010). Therefore, economic environment offers the agent a good opportunity to increase customer and develop new market.