| The tourism industry has become a strategic sector which plays an increasingly important role in the development of overall national economy. Along with the development of national tourism industry, we are facing with a more mature market as well as huge market potentials. On the other hand, we are challenged with more and more fierce competition.After Shanghai Airlines International Travel (Group) Co. Ltd. (Abbreviated as SAIT hereinafter) accomplished the merger and acquisition, the new Group should come up with its development strategy in line with the requirement and position of its shareholder-- China Eastern Airlines Co., Ltd. This article cited both successful experiences and lessons from the domestic and foreign travel agencies, with an effort to explore detailed analysis and discussion on the appropriate organizational framework, development strategy and business model for group companies in the tourism sector. Apart from that, this article summarized the applied conditions, objects as well as strategic requirements which are tailored to different models. With the consideration of offering extended services beside airline’s core business---air transportation services, SAIT is positioned by China Eastern as a key subsidiary to extend value chain and create value for its customers. This article focused on refining the development strategies and tactics for a tourism group company as a subsidiary of an airline, these strategies and tactics should be in concord with the future characteristics of tourism companies, as well as workable so as to stand the test of the market.The first three chapters reviewed some literatures on the topic of strategic theories. This part covered the definition, classification and basic business operation of travel agency, giving viewpoints on the development status and characteristics of the domestic and international travel agency, the development progress of Chinese tourism industry, as well as the important roles of travel agencies in the social and economic development.The fourth chapter focused on the analysis of competitive environment that SAIT is faced with, utilizing qualitative and quantitative methods and several tools such as PEST, Porter five competitive forces and SWOT to analyze internal and external environment. Furthermore, this part discussed the critical factors which affect SAIT’s strategic choices after considering the current situation and assessing the competitive environment. At last but not least, this part drew the conclusion on reposition and reorganization for SAIT with comprehensive analysis of company’s capabilities and resources, competitive advantages and challenge of new environment.The fifth chapter began with the analysis of the development model and progress of Chinese travel agencies. In the next part, this article demonstrated the different advantages, risks and applied conditions with regards to the simplification, vertical integration, and diversification strategy. Besides, this chapter introduced the emerging development models in the real estate operation, resource operation and E-commerce operation. This chapter also discussed the managerial control model for the tourism group company as a subsidiary of an airline. On the basis of above discussions, this chapter put forward the strategic analysis and choice for SAIT from the viewpoints of the guiding standpoints, positioning, objectives and road map.The sixth chapter pinpointed SAIT’s strategy from multiple aspects, ranging from the idea of being renamed as "China Eastern Airlines International Travel (Group) Co. Ltd", to repositioning brand, building integrated platform, facilitating main business transformation, improving service chain, reshaping corporate culture, innovating incentive mechanism and business development mode. In the end, this article further elaborated how to develop customer-oriented business travel service and MICE service to cater to market trend. |
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