Strategic Options in Tourism Industry

Introduction

The strategic options are referred to as creative alternative actions taken by the companies in response to the external market situation. In order to frame strategic options, organisation analyses its internal environment by keeping in mind the vision and mission of the organisation. This is done so that framed options can help them effectively operate their business by coping with the current forces and factors in the external business environment. In this assignment, two recent strategic options taken by the Topdeck Travel in operating their business in the tourism industry are discussed and the effect of them on their stakeholders and business are analysed by using strategic framework and models. If you need business dissertation help, understanding these strategic options and their impacts is crucial.

Recent Strategic Options taken by Topdeck Travel

Topdeck Travel has recently taken up the strategic option to handover its reign of brand awareness for business to its customers. This is to be done by them under the current brand campaign named "Topdeck Took Me" where their customers are going to provide them real travelling from vacations taken and arranged by the Topdeck Tavel. The photos are going to be used by Topdeck for showcasing across bus mega rides, facebook, geo-targeted mobiles, cross-track panels at the railway station and the company website. Moreover, the campaign also includes a facebook competition named "Where will Topdeck take you?" with #Topdeckers where the customers are asked to post a video of their Topdeck Travel for providing them with the chance to win a free vacation (campaignbrief.com, 2017).

The other recent strategic option taken by Topdeck Travel is using London-based travel organisation Diffusion as its agency of record (AOR) to manage the introduction of Topdeck in the US market (prweek.com, 2016; diffusionpr.com, 2019). The Agency of Record (AOR) is referred to the person or agency that is responsible for arranging all nature of services that a particular organisation might require to operate in the market (Brandon, 2017). The organisation is entrusted to develop brand awareness for the company in North America by using their already established strategic media relations as well as social media influencer campaign (diffusionpr.com, 2019). In order to understand the way these two recent strategic options are going to affect Topdeck's business and various stakeholders, the Ansoff Matrix, Porter's Generic Competitive Strategy and Kotler's strategic model and framework are to be used.

Ansoff Matrix

The Ansoff matrix is referred to the framework which is used for helping the senior managers, executives and marketers develop effective strategies for future growth. In this framework, there are four strategies which are market penetration, market development, product development and diversification being used for growing the organization in the new or existing markets (Galpin, 2019).

Market Penetration:

The key motive of market penetration is to secure the company's dominance, increase market share and drive out the competition to be in an advantageous position in the industry (Bang et al. 2016). The current strategic option used by Topdeck where they have provided authority to its customers to direct its brand awareness in return of getting opportunity of free vacation is going to positively act for its market penetration to create dominance and increase market share in the industry. This is because providing opportunity to the customers to get free services makes them feel benefited and save money which orients them to remain attracted to avail services from the company (Park and Jang, 2018). Thus, this indicates that Topdeck Travel with the strategic option would be able to attract increased customers that are going to assist them to increase their sales in the industry to positively create market dominance by having the most number of consumers. As argued by So et al. (2016), when the companies are unable to provide greater value to the customers and assure them value for money, weak customer relationships are built mainly for the first time buyers who are influenced not to buy the products again from the company. This is because they are disappointed by the services resulting company to be unable to increase market share which is one of the key aims of penetrating market. In case of Topdeck Travel, it is seen that they are offering real pictures from various trips arranged by them shared by its existing customers to create brand awareness and ensure authenticity for attracting new customers.

The showcase of real pictures and feedback of services from existing customers helps the new consumers get assured that they are investing their money in a valued way (Wehrli et al. 2017). Thus, this strategic option by Topdeck would help them attract new customers and increase their market share out of proving authenticity of their services to new consumers that their investment would be valued. In addition, Topdeck's customers have scope to get free travel if they share their videos and photographs with them from vacation taken by the organisation (campaignbrief.com, 2017). Thus, it can influence new customers to avail their services from them so that they can share their pictures from trips with the company to get the opportunity for free travel. Therefore, this strategic option is going to increase the market share of the company to effectively fulfil the aim of successful market penetration. In relation to the second strategic option developed by Topdeck Travel, it is also going to positively affect the company create successful market penetration in new area. This is because Diffusion is an award-winning PR organisation operating in the US market (diffusionpr.com, 2019). They have wide and effective knowledge about the way to frame the services and relations of Topdeck in North America for ensuring their proper position in the market compared to its competitors.

Market Development:

The key aim of executing market development is to expand in the industry by gaining new customers with the help of the same product (Gurcaylilar-Yenidogan and Aksoy, 2018). In the case of Topdeck Travel, their strategic option of showcasing clicked pictures by its customer for brand awareness is going to create attractiveness for new customers to avail services from them. This is because the pictures would show real faces and situations to be faced while shopping like a local in the markets of Morocco while exploring the gladiatorial arena, getting most in Santorin's white-washed lanes and more (campaignbrief.com, 2017). It would inspire the new customers to vividly visualise the way wide range of adventurous and destinations to be explored by them while going on a trip with Topdeck without any confusion. This, in turn, is also going to positively affect the management of Topdeck for understanding if in real their organised trips are properly managed by their employees and truly enjoyed by the consumers. It is evident as by analysing the real pictures they would be clarified to what extent company's promises as well as mission of the company are fulfilled by their employees and has been able to provide enjoyment and satisfaction to their customers (Ismagilova et al. 2015). Thus, this strategic option is also going to affect on the management of Topdeck Travel to create market development by making them understand performance of their organised trips and the changes to be made to ensure satisfaction of consumers. The greater satisfaction of the customers creates market development as it helps in creating positive word-of-mouth that drives in more new consumers in the existing market with the help of existing services (Wang et al. 2017).

In relation to the second strategic option adopted by Topdeck, it is also going to positively affect their market development in the new market. As mentioned by Kotabe and Kothari (2016), offering agency of record on the hands of an experienced agency who are operating for a long time in the new market helps the new company to gain new customers with the same product. This is because the existing agency can direct the company regarding the way their existing services are to frame and offering to the new customers in the new area so that effective expansion or development of market can be reached. As argued by Plummer et al. (2016), not accessing help from successfully operating company in the new market leads the management fail to understand the way they are to train their employees to expand in the new area to execute market development. This is because the new company has lack of information regarding inlet tricks to be adopted in the area to operate due to lack of experience and knowledge of business operation in the area. However, Topdeck Travel's strategic option to include Diffusion as their AOR is going to help the management identify the way specifically their employees are to be trained to aware regarding their brand in the US market for ensuring market development.

Product Development:

The product development has the key aim for the company to introduce new and innovative products in its existing market of operation. In this strategy, the company mainly develops new competencies or develop modified services to appeal to existing market (Alkasim et al. 2018). In the case of Topdeck Travel, it is seen that their current strategic option of availing real pictures from Topdeckers would allow them successfully to include the new product in the existing market. This is because with the help the pictures they can share how their services are updated and changed from time to time as well as indicate the new modifications done while offering services.

Market Diversification:

The market diversification has the key aim of introducing new products and new customers (Redpath et al. 2017). As mentioned by Naidoo and Ramseook-Munhurrun (2016), the PR companies already operating in the new market to be entered by the organisation have wide amount of knowledge regarding the specific needs and demands of consumers. This is because they are already interacting with the customers from various industries for longer time to have detailed information about their preferences to build the new product. The strategic option of Topdeck to include Diffusion which is successfully operating PR business in the US markets as its AOR is effective for them to create market diversification. This is because Diffusion is operating in the US market for many years and they have detailed knowledge regarding the way diversified new products to be introduced by the company in the new market to get better returns and create successful market diversification.

Porter's Generic Competitive Strategy

The Porter's generic competitive strategy model informs that cost leadership, differentiations and focus are the three general approaches that are applied in all industries and by all organisations to compete in the market (Bertozzi et al. 2017). The focus strategy leads the company to directly concentrate on specific niche markets by understanding the market dynamics and unique needs of the customers to be fulfilled to gain competitive advantage (Tavalaei and Santalo, 2019). In case of Topdeck Travel, it is seen that their strategic options are directing them to successfully use focus strategy to gain competitive position in the market. This is evident as by asking their consumers who are 18-39 years to share real pictures of their travel to promote brand awareness Topdeck can showcase vivid information about the range of adventure they offer only for their young consumers to enjoy their vacation or trip in different nations. It assists them to show the way they are different from other tourism companies who offers trips for all ages compared to them who targets and offers services only to the young. Thus, this strategic option is helping Topdeck to create differentiation focus in the niche market to target specific consumers which are of young generation and has zeal to travel as well as experience adventure.

The key to develop a generic focus strategy includes not only segmenting market but also ensuring the costs of the services are low (Kim et al. 2015). The fact is well understood by Topdeck and through the strategic options they have ensured that least expenses are made in creating brand awareness so that it does not take a toll on them to increase the cost of the services. This is evident as Topdeck has asked for real photographs of places visited by Topdeck Travel trips from their customers without any charges instead of using professional photographers who would have charged more to provide pictures of the places. Thus, it would have eventually raised the total cost of brand operation making the management of Topdeck Travel to increase the cost of their services to ensure proper returns for the company. As argued by Oyewobi et al. (2016), keeping the cost of the services to be provided to consumers lower is needed for the companies who are targeting the young generation. This is because the people of the young generation or the millennial are still trying to financially establish in their life and increased cost of travelling would lead them to avoid accessing services from the company as they cannot afford them. Thus, the economic strategic option of using pictures from Topdeckers to create brand awareness not only reduces the price of the advertisement but also leads the company to showcase the reality and authenticity of their services.

Kotler's Strategies

The Kotler's strategic model informs that to expand in the total market the company require to arrange new users and create more usage of their services or products. In addition, they are to expand their market share by enhancing the effectiveness of their business operation (Bremser et al. 2018). In the case of Topdeck Travel, it is seen that they are using their innovative brand awareness strategy where they are using real travel pictures of their customers to promote the brand across nations. This is leading to create more usage of their services as the pictures act as word-of-mouth and ensure the authenticity of their services among the consumers who without any confusion and fear of being cheated avail more services from Topdeck. It is evident as the same strategy has been adopted by the marketing team of the UK of Topdeck Travel to campaign their services across the globe to attract more consumers (prweek.com, 2016). Thus, it is seen that this strategic option taken up by Topdeck is helping them to effectively attract more consumers, in turn, fulfilling the market expansion strategy as suggested by Kotler.

The Kotler's strategy also informs that to protect the market share the company require to defend their current position or enter new markets for defence in future or execute strategic withdrawal (Kiráľová, 2019). In the case of Topdeck, it is seen that they have made Diffusion which is PR agency their AOR to enter the US market to ensure their market share in the global condition remains increased and stabilised. This is because Diffusion would be able to inform the company regarding the way US consumers are to be approached to ensure expansion of market in the country. In addition, the use of Diffusion act as support for the employees in Topdeck to understand the way they are to advertise their brand in the new market (US) to ensure proper amount of market share remain for the company in the global market.

Conclusion

The above discussion informs that Topdeck Travel has adopted two recent strategies which are using real pictures from Topdeckers to create brand awareness and including Diffusion as AOR to manage their expansion in the US market. The Ansoff matrix informs that the strategies are effective to successfully implement market development, market penetration, product development and market diversification as they help in creating positive word-of-mouth of their services as well as value for the consumers. Porter's Generic Competitive Strategy model informs that the strategies are helping Topdeck Travel successfully implement focus strategy. The Kotler's model informs that Topdeck with the help of real picture has been able to ensure the authenticity of their services which is helping them to attract new customers out of value proven services, in turn, assisting them to expand their business.

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