CORPORATE STRATEGY

Corporate Strategy of Swire Travel Ltd

Corporate Strategy of Swire Travel Ltd

Business Level Strategy of Swire Travel Ltd

Swire travel is a fully owned subsidiary of the Swire group. It is one of the largest travel management organizations in Hong Kong that mainly focuses on business and corporate travel. The company stands out among the local travel service providers in the business and corporate travel area. The company has a unique strategy for business and corporate customers that differentiates it from other travel service providers.

Differentiated Business Travel

The Swire travel ltd has incorporated differentiation strategy amongst the main generic strategies proposed by Michael porter. The differentiation strategy involves the incorporation of uniqueness in the services or products that are offered by the company in order to make it unique and differentiated from the homogenous products and services of the market. There are several companies involved in the travel and tourism services because of the location of the Hong Kong that requires a large number of travelers and tourists to be managed by those companies. For this reason, companies face severe challenges and competition in the market (Aguilera, 2008). The business of Swire travels focus on three types of target markets. These three groups are listed as follows.

Leisure travel

Inbound travel

Business or corporate travel

For corporate customers, the Swire travels have incorporated a unique and customized travel plan. The company identifies the service specifications of the business client prior to the providing of services to them. They also match them with the travel policies of the company in order to better serve them. Swire travel limited provides preferred hotels and airlines to the valued customers and keeps in view their billing requirements (Mccleary, 1993). In this way, the company provides value added services the business and corporate customers against a premium price but not so expensive. It can be said that the main business strategy for dealing with corporate and business clients involves the differentiation strategy among the other generic strategies including cost leadership and focused strategy. However, the company incorporates cost leadership and focus strategies as well in a way that it serves its customers in the best possible manner focusing on all the aspects of travel needs and requirements. The company has an objective of reducing the costs while increasing the satisfaction of business travelers with the customized and improved solutions that are attainable through upgraded software that have reduced the costs of operations. Thus, providing premium services at reasonable price (Swire Travel, 2008).

The process starts with the identification of the specific needs and requirements of each business customer (Swarbrooke & Horner, 2012). The company then formally implements its strategy that involves the use of highly advanced information architecture. The information architecture is the strategy of labeling and organizing the information and data of the organization including the databases, intranet system, websites and other sources.

The customized travel projects does not only involve the imposing of the services and unique delivery of services but it also involves the preferences and ideas of the ...