Study On The Development Strategies Of LY Company From The Perspective Of Focus Strategy

In recent years,China’s tourism industry has enjoyed fast development.However,with the expansion of scale of the tourism market,the profit rate is declining,which forces travel agencies are gradually turning to seeking larger scale in order to make small profits and quick turnover.This thesis takes the state-owned tourism enterprise LY as a case study.Through the strategic management theory,PEST analysis model,Michael Porter’s Five Forces Model,SWOT analysis,etc.,the author conducted analysis of the internal and external environment of LY Company;its competitiveness;advantages,disadvantages,opportunities,threats,etc.Then the author concluded that there are four problems existing in the LY Company: lack of self-owned products,undiversified channels of sales,low brand awareness,and inadequate risk management measures.Analyzing the current situation of China’s tourism industry,this author puts forward specific suggestions in above four aspects: First,LY Company should implement the focus strategy,developing its own customized products,strengthening targeted tourism products and obtaining a higher premium in pricing.Second,the company should expand its offline channels,transforming the traditional store into experience-style stores,enhancing the interaction between customers and attraction through texts,pictures,videos,etc.,paying more attention to decorating physical stores in a timely manner and enlarging more channels for product promotion.Third,the company should build word-of-mouth marketing of its brand,provide customers with quality products or services,and stimulate users to make comments.Fourth,LY Company should strengthen risk management and control and make more efforts on contract management,conducting full credit evaluation of the partners,and clearly stipulate the liability for breach of contract.For the contract with a large transaction amount,the mortgage clause should be set to prevent risks.Also,the company should shorten the settlement period and put partners with poor credit in the “blacklist”.For the branch offices where the accounting and cashier positions are set up according to the incompatible positions,the middle management personnel should be set up to report work to the company on a regular basis,and the cadres should be often exchanged to reduce the risk of corruption.The main conclusion of this thesis is that LY Company is a start-up with small scale and limited number of employees.So it is suitable to adopt the product line focus strategy,vigorously providing customized travel services,producing targeted tourism products so that LY Company can obtain higher prices in pricing and ensure the profitability of the company and the preservation and appreciation of state-owned assets.The purpose of this thesis is to provide reference for state-owned tourism enterprises to select development strategy and the author hopes the thesis can help to promote the preservation and appreciation of state-owned assets to some extent.