MOST Analysis
Mission
Jumbo Safari’s mission is to offer quality and affordable tourism services that transcend cultural boundaries. The company is investing in employee development to serve tourists from different cultural backgrounds.
Objectives
Jumbo Safaris should set a number of goals in a bid to achieve its mission. One of the company’s goals should be to establish numerous tourism facilities across the globe to help it serve diverse customers. Another goal should be to establish a workforce that comprises staff members from different cultural backgrounds.
Strategies
Jumbo Safaris should invest in employee training in a bid to establish a workforce that is endowed with the necessary skills to serve diverse customers. Besides, the company should hire employees from different cultural backgrounds to deal with cultural diversity.
Tactics
Jumbo Safaris should establish an employee-training program that covers diverse cultures. The company should ensure that its staff members have the necessary skills to serve its target customers. In addition, the company should launch a recruitment campaign that sources employees from different cultural backgrounds.
SWOT Analysis
Strengths
Jumbo Safaris embraces eco-tourism. Therefore, the company can attract many tourists since the tourism industry is shifting to eco-tourism. Another strength that Jumbo Safaris enjoys is its experienced workforce. The company has highly trained workers who can reach and convince tourists. Malaysia neighbors some of the most populated states. Hence, Jumbo Safaris is open to a broad market from these countries. The company can focus on countries like Singapore for market diversification.
Weaknesses
Jumbo Safaris has not invested in technology. Consequently, the company is unable to reach many customers. In addition, the company depends on intermediaries, which affects its profit margins. Another weakness is the lack of market diversification. The company focuses mainly on foreign tourists. It has not invested in the local market, which offers an excellent opportunity for growth. Lack of adequate capital is another challenge that affects Jumbo Safaris. It is hard for the company to expand its market due to financial constraints.
Opportunities
Jumbo Safaris has invested in eco-tourism. However, the company can strengthen its eco-tourism as a strategy to enhance its performance. In addition, the company can invest in the differentiation of products and services. Jumbo Safaris can position itself uniquely by offering superior products and services. Market diversification is another opportunity that Jumbo Safaris can exploit. The company has not exploited a number of potential markets. For instance, it has not invested in the local market.
Threats
One of the threats that Jumbo Safaris encounters is competition from rival companies and destinations. The company competes with other firms that offer similar products and services. Besides, the company faces stiff competition from substitute products that come from other destinations. These destinations include Egypt, Spain, and Morocco.
Five forces analysis
The main problem that Jumbo Safaris encounters is competition from rival companies. This problem is deepened by several other challenges. These challenges include influence from suppliers and customers, the threat of substitute products, and the risk of entry of potential companies (Grundy 2006). Many tourism businesses operate in Malaysia and the number continues to increase. The increase in the number of tourism enterprises has led to immense pressure on Jumbo Safaris.
Additionally, threats from potential entrants have worsened the problem. In Malaysia, the hurdles of entry, in terms of operational permits and funds, are low (Reihanian et al. 2012). For this reason, the number of tourism companies is expected to rise in the near future. Jumbo Safaris encounters a myriad of problems. First, the company competes with other businesses in Malaysia. Second, it competes with other states, which tourists may opt to visit. Some of the states include Spain, Cyprus, Morocco, Egypt, and Syria (Reihanian et al. 2012).
Jumbo Safaris depends on suppliers for food and other products that facilitate accommodation services. Consequently, the company sets its prices based on the suppliers’ rates. Whenever the suppliers increase their prices, Jumbo Safaris is compelled to raise its rates. Hence, it is hard for the company to regulate its prices. Jumbo Safaris targets foreign tourists. In most cases, the tourists are in need of services like health spas, diving, and golf courses, which the company does not offer. Consequently, Jumbo Safaris ends up losing many customers to other firms.
STEEPLE Analysis
Social-cultural factors
Malaysia is a multicultural state that entails a blend of varied ethnic groups (Page 2007). Hence, many tourists visit the country because they do not experience language barriers. Jumbo Safaris has an opportunity to target the numerous tourists who visit the country.
Technological factors
Poon (2005, p. 71) alleges, ‘Malaysia has a superb national and international communication infrastructure that connects the different cities’. Therefore, tourism companies can utilize the infrastructure to reach potential tourists. The country has nine Internet service providers. Hence, Jumbo Safaris can invest in the Internet and use it to communicate with customers.
Ecological factors
Malaysia has plenty of fauna and flora. Besides, the Malaysian government has imposed laws to conserve the environment. Poon (2005, p. 77) posits, Malaysia is known as the home of the ‘world’s fifth largest mangrove forest located in Sundarban’. Consequently, Jumbo Safaris can capitalize on tourists who visit the country to see the mangrove forest.
Ethical factors
Malaysia has put in place a code of ethics that seeks to protect the country’s natural resources and cultural heritage. The state requires tourism companies to share their proceeds with the inhabitants of the tourism destination (Frey & George 2010). For this reason, Jumbo Safaris should participate in corporate social responsibility as a way of giving back to the community and boosting its turnover.
Political factors
Malaysia is popular for its stringent political rules. However, tourists who visit the country for less than one month are not required to obtain visas (Oppermann 2003). Therefore, many people visit the country since they are saved from the rigorous process of getting visas. Jumbo Safaris can take advantage of the country’s political environment to acquire more customers.
Legal factors
According to Oppermann (2003, p. 122), Malaysia has instituted policies that require tourists and tourism companies to ‘improve the well-being of the local people’. In addition, the country has laws that protect the native people from forced dislodgment from their ancestral lands. In spite of the legal requirements, tourists find it easy to steer the legal climate in Malaysia.
Economic factors
Malaysia has a stable economy. It is among the different countries with the lowest unemployment rates. Besides, the Malaysian government spends a lot of money to subsidize some products like petrol, food, and natural gas. Therefore, tourism services are affordable to the majority of Malaysians.
Problem Analysis
Jumbo Safaris has the advantage of operating in a country that has political, legal, and economic policies that favor tourism. Nevertheless, the company is yet to benefit from the policies. In spite of Malaysia having well-established technological infrastructures, Jumbo Safaris has not invested in technology. The company has not established a communication system to reach all potential customers. Instead, it depends on intermediaries. Consequently, Jumbo Safaris does not reach many tourists. Additionally, the company pays brokers, thus straining its profit margin.
Reference List
Frey, N & George, R 2010, ‘Responsible tourism management: the missing link between business owners’ attitudes and behavior in the Cape Town tourism industry’, Tourism Management, vol. 31, no. 5, pp. 621-628.
Grundy, T 2006, ‘Rethinking and reinventing Michael Porter’s five forces model’, Strategic Change, vol. 15, no. 5, pp.213-229.
Oppermann, M 2003, Tourism in Malaysia: an analysis of spatial structures and intranational tourist flows with special consideration of development theory, Elsevier, Oxford.
Page, S 2007, Tourism Management: Managing for Change, Elsevier Ltd, Oxford.
Poon, A 2005, Tourism, Technology and Competitive Strategies, CAB International, Wallingford.
Reihanian, A, Mahmood, N, Kahrom, E & Hin, T 2012, ‘Sustainable tourism development strategy by SWOT analysis: Boujagh National Park, Iran’, Tourism Management Perspectives, vol. 4, no. 1, pp. 223-228.