phân tích và đánh giá cơ hội và thách thức đối với công ty du dịch vietralvel trong lĩnh vực kinh doanh du lịch e

_Phân tích và đánh giá cơ hội và thách thức đối với Công ty du dịch
Vietralvel trong lĩnh vực kinh doanh du lịch

Analyze and assess opportunities and challenges for the
Vietralvel travel company in the business travel sector, especially
for domestic tour.

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TABLE OF CONTENT
TABLE OF CONTENT................................................................................................1
INTRODUCTION........................................................................................................3
RESEARCH OF CONTENT........................................................................................4
1. Introduction to products, services of Vietravel..........................................................4
2. Introduction to the business sector of Vietravel.........................................................5
3. Analyzed PEST model of Vietravel for domestic tours.............................................5
3.1 Analysis of the political situation............................................................................6
3.2 Analysis of the economic situation..........................................................................6
3.3 Analysis of the situation technology........................................................................7
3.4 Analysis of the social situation................................................................................8
4. Analysis of model five competitive pressure on domestic tourism tour....................9
4.1 The potential opponents..........................................................................................9
4.2 The customer.........................................................................................................11
4.3 Supplier.................................................................................................................11
4.4 Competitors in branch...........................................................................................13
4.5 Substitutes.............................................................................................................13
5. Assessment of SWOT matrix..................................................................................14
5.1 Opportunities.........................................................................................................14
5.2 Challenges.............................................................................................................15
5.3 The strengths.........................................................................................................15

5.4 The weakness........................................................................................................16
6. The rating, review the implementation of the business strategy of Vietravel..........17
6.1 The results achieved in the implementation of business strategies........................17
6.2 Shortcomings in the implementation of business strategies..................................19
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7. Some solutions contribute to improving the business strategy of the Company......20
7.1 Use of the marketing mix strategy.........................................................................20
7.2 Strengthening competitiveness strategy................................................................25
7.3 Develop market strategy in sync...........................................................................26
CONCLUSION...........................................................................................................27
LIST OF REFERENCES............................................................................................28
INTRODUCTION

Along with the development of the world economy, Vietnam's economy has
also been taking steps to grow, significant development in recent years especially after
the economic transition from centralized economy to bureaucratic economy composite
goods, operating under the market mechanism is the management of the State socialist
orientation. Developing economies plus the successful application of scientific and
technological progress in the world, has helped increase labor productivity, income,
living standards of people increasingly improved level advanced increasingly
intellectual. When people's lives are stable, they will aim to satisfy the higher demand
(needs minor) hierarchical needs A.Maslow, and travel demand is inevitable.
According to the development trend of world tourism and regional tourism in
Vietnam in recent years has moved to a new stage, the stage of growth and gradual
integration with tourism in the region and around the world. In 2008 also marked a
shift in powerful and successful development of the tourism industry. The growth of
tourism is ranked as one of 10 outstanding events of the country. Contributing to the
success of the tourism industry in Vietnam, have contributed a lot of travel companies

on the country in general and in Hai Phong and Hanoi in particular. To operate
effectively, requires tourism companies must have the appropriate business strategy
and use the proper. These are important factors that lead to success in business
processes.
Therefore, my group decided on the theme: " Analyze and assess opportunities
and challenges for the Vietralvel travel company in the business travel sector,
especially for domestic tour ".
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4


RESEARCH OF CONTENT
1. Introduction to products, services of Vietravel
Products and services of Vietravel

Outbound

- Pure Tourism
- Cultural Tourism

Domestic

Products selected
package

- Travel events
- Tourist resorts
- Medical tourism

- Ecotourism

Inbound

- Travel discover
- Sport tourism,...
- Tours on request
- Conference Tourism
- Plane ticket
- Hotels
- Tour guide
- Visa
- Help airports
Other products

Green leaf

Asian Express

VOSC
VIMAC
The box office

- Currency exchange
- Caravan tour
- Carriage tour
- Consultancy study
- Labor export
- Plane ticket
- Train tickets

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2. Introduction to the business sector of Vietravel
In human history, tourism has been recognized as a hobby, a positive break
action of man. Today, tourism has become an indispensable demand in cultural life
and society in the country. In economic terms, tourism has become one of the
important economic sector of industrialized countries. Tourism Network was set up in
most countries around the world. The economic benefits from tourism brings is
undeniable, through the consumption of visitors for tourism products. Needs of
tourists besides consumer goods there are other common consumer needs special: the
need for improved knowledge, learning, sightseeing, healing, rest, relax,etc,... In
general, tourism operators work to change the balance of revenue and expenditure of
the country. International travelers bring foreign currency into the country has tourist
destination, increase foreign exchange earner of the country. In contrast, the majority
of foreign currencies will rise against nation with many people traveling abroad.
Within the scope of a national tourism activities disturb the circulation of
currency and goods, to regulate economic capital from the region to the economic
development of less developed, stimulate economic growth in remote, remote,etc,...
another benefit that bring tourism is contributing to solving the employment problem.
Because the service sector related to tourism needs a large amount of labor. Tourism
has generated incomes for workers, solve social problems. Traveling Vietnam in
recent years has also contributed greatly to the growth and economic development of
the country.
3. Analyzed PEST model of Vietravel for domestic tours
The Politics
The Economic
- Environmental Law
- Interest rates; inflationary
- Employment Law

- The supply of currency
- Commercial Law
- Business Cycle
- National Policy
- World Economic Situation
The Social
Technological
- The growth and restructuring of the - Science and Technology
population.
- Research and new discoveries
- Education and culture

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3.1 Analysis of the political situation
Current economic policy of our country in the direction of increasing the
contribution of the services sector, industry and agriculture decreased density mechanisms and procedures for the type of tourism business will better ventilation.
State policy is the development of infrastructure, creating favorable conditions for
development of tourism industry.
Political regime in our country today is considered relatively stable and steady
is the world recognized safety ladiem and friendly. Guidelines and policies of the
Party and State have increasingly more open. The views expressed consistently
expand cooperation and exchange friendly countries in the world conform to the trend
of globalization and internationalization of the world economy.
In recent years Vietnam to participate in building international relationships:
Join the ASEAN organization, participating Asia-Pacific Economic Cooperation
(APEC), especially Vietnam was average cultural relations with the US often.
The legal system of our country more fully consolidate and close more of the
many laws and ordinances, specifically,etc,... To strengthen the management of the

State to create a legal framework firmly corridor ensuring that enterprises have
autonomy in their business activities more.
In the tourism sector there are now many laws created to cater for the
operation of industries such as tourism ordinances, decrees on business travel and
tourism guide, Decree on function, tasks and powers, organize tourism and inspection
of legal documents related to travel activities and the tourism survey. Project
construction tourism law was approved by the National Assembly and put on the
agenda the elaboration of laws and ordinances of the the National Assembly in the
period.
3.2 Analysis of the economic situation
In some elements of the macroeconomic environment, the economic factor is
the most important and decisive to the development of business strategy of the
Company. Because economic decisions to the solvency of the tourists. When
economic development, meaning that people's income is higher, life is improved and
when finally fulfill all the necessities, people will tend to move to meet today's
demanding high rather, it is a secondary need. When seize the economic situation
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development, the Company will proceed to build the tourism program to match with
the solvency of the tourists.
Income: income of Vietnam also constantly increasing. People's lives are
constantly being improved and enhanced. So the human needs are also constantly
increased. They not only need physical needs but also come with fun activities, other
entertainment. Movements in exchange rates: money VND devaluation means that
foreign tourists will cost less if paid in USD in Vietnam market. However, travel
agents are listed price in dollars, so the exchange rate increases do not affect the
profitability of the travel company. The money VND devaluation is an opportunity for
Vietnam's tourism industry attracting foreign visitors by the cost will be less if paid in
USD in Vietnam market.

3.3 Analysis of the situation technology
Advertising Marketing helps travel companies to change and update the latest
pictures of products and services quickly. This allows customers to easily access and
search information. Trends backpacker, backpackers: through the Internet, visitors can
come straight service providers roots, find hotels, resorts have deals with promotions
for customers. This trend makes development of the visitor by tour travel companies
reduce many, but this is more reason for the hotel, restaurant, resort necessary to
increase internet marketing promotion. The development of science - technology
appears many new types of services, rather than spend a big budget for travel, people
can go to the recreation center, cinemas,etc,...
In the past few decades, the pace of development of science and technology in
the world has made significant progress and could say was developed strongly with
the advanced applications in the areas of economic life economic, political,
military,etc,... When engineering - technology development leading to increased
productivity, reduced working time, any technical manipulation is done quickly vadem
high economic efficiency. When economically efficient means of economic
development, people's income increases, and the ability to spend it all strata of
increase, all basic needs are met and they tend to requirement is satisfied the needs of
secondary (high demand) including travel demand.
Scientific and technological development will not only promote economic
development, but it also impacts on the upgrading and refurbishment of infrastructure
8


engineering companies, travel businesses. As has been invested properly, the ability of
the company's customer service will be better, the fastest meet all the needs of tourists.
Because travel demand in high demand, tourists are required to serve in the best way.
Therefore, the company needs to retool in a uniform from work, material and
technical base of the Company until the means of transport. Since that would attract
tourists to come and consume the products of the company, create credibility and

reputation of the company on domestic and international markets. When engineering the technology has been applied to promote production and business processes taking
place at a rapid pace, sustainable and besides it ensure environmental hygiene.
3.4 Analysis of the social situation
The core cultural values:
+ The need for spiritual life of each person is therefore also increasing.
Festivals like the Hung Temple festival, festivals rain, Do Son Buffalo Festival
bare,etc,... Every year attracts many tourists from abroad as well as to attend.
+ Personality of Vietnam: Vietnam People hospitality, supervising postopenness, meaning more severe situation,etc,... All have created beauty, unique culture
of Vietnam.
Vietnam with 4000 years of history have shaped a culture imbued with national
identity. A mixed culture of many ethnic groups in the community of the people of
Vietnam, with many cultural and historical monuments such as: Hue old capital, My
Son Sanctuary, Hoi An ancient town, Hoa Binh gong culture, folk festivals,etc,...,
community Vietnam has 54 different ethnic groups, each nation characterize a culture.
Each ethnic keep themselves separate identities with different customs. That creates
the diversity of our country's culture. All create significant advantages in the
development of tourism in Vietnam. It is also great resources to promote tourism
development to generate income strata of the population, the state budget and create
more jobs for people.
Hanoi is the political and cultural center of the country. From centuries ago
Hanoi was the capital of many feudal dynasties. Therefore, formed many cultures
make Hanoi a thousand years of civilization lands with many historical, cultural
enormous.
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Nowadays, when it comes to Hanoi is people say to a concentrated area famous
celebrity of the nation, people will mention the elegant lifestyle of the people of Ha
Thanh, many folk festivals,etc,... People of Hanoi had elegant manners, hospitable,
friendly, polite communication. These characteristics are suitable for tourism

development in Hanoi. For tourists, while traveling, in addition to the sightseeing
purposes, they resort also has another purpose which is proper to learn, explore
culture, history, people in countries where they travel to. Therefore, Vietnam has all
the favorable conditions for tourism development, Vietnam has a long history with a
rich culture. So, could attract more tourists to visit, tourists bring major source of
income for the local and national.
4. Analysis of model five competitive pressure on domestic tourism tour
The potential
opponents

Providers

The competitors in the
sector

Providers

Alternative products
4.1 The potential opponents
- The new companies enter the market price can stimulate price competition
canhieu more, or are more interested in making product differentiation to gain market
share by all means.
- The prestige of the brand: a strong brand name is often associated with good
service quality, longtime operating experience brings a good impression in the minds
of the target audience.
- Scale of the initial investment involved sizeable tourism industry, due to the
formation of connective chain (transport - accommodation – catering,etc,...). On the
10

other hand, businesses may have to use low pricing strategy should require large
amounts of new capital can survive long in the market.
Vietnam's economy is a market economy. Already a market economy, it
definitely will be competition. Since the economy of Vietnam's market economy is the
management of the State, so the competition process is always regulated by state
enterprises to avoid monopolistic competition. Hanoi market today, business travel
activity has been taking place very lively, aggressive and strong in the presence of
hundreds or thousands of travel companies including state-owned, joint ventures and
private. These companies are active in the fields of travel and different arrays, both
international travel and domestic travel. Against this backdrop, Vietravel will have to
choose for themselves what is the opponent that the company needs to compete. So
that companies have the plans, strategies, competitive strategies that can achieve
higher efficiency than competitors. To determine who the competitors of the Company
in the market.
The situation has a similar status (products, services,etc,...). After posing these
questions, the Company will determine what their competitors in the market. Hanoi
market now has some travel companies of State activity in the segment of
international travel and domestic that Vietravel considered its competitors: Unions
Tourism Company, Travel Railways, Tourism Transportation Resources, Star Tours,
tour Vina, Ben Thanh Tourist-branch in Hanoi,etc,... The nature of the industry, the
company's products are often the same. So we can not compete with each other on
products, which we can only compete on price and the quality of the product.
Which company to market an appropriate price while maintaining quality of
tourist programs, ensure profitability, the company will win and dominate that market.
Besides competing on price, the companies still depend heavily on the prestige and
their reputation in the market again, it attracts new visitors. Vietravel full - conditions
to be able to compete with companies in the area of Hanoi: The sale price of Vietravel
nor higher than other companies in the province. In addition, the company is reputable
and very high reputation in the region as well as activities on a national scale. So it
was great to facilitate Vietravel can operate effectively on the Hanoi market.

4.2 The customer
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The tourism sector suffered a lot of pressure from factors such as competition,
product substitution, natural environment, weather, quality of service,etc,... Besides,
the product that the buyer purchase is not much different from standard products for
mass market. Therefore, buyers have a lot of choice when traveling => big power
purchasers. Sensitivity: Price to pay for a service that is the cost of using customer
service, high customer costs, customers will tend to find a replacement product => to
reduce , and vice versa. The level of customer focus: inadequate, mainly depends on
the customer's needs (type group or individual travel).
Viettravel attach much importance to the expansion and development of the
market of domestic tourists. Because the needs of people traveling Vietnam increases
over time ago due to higher economic conditions, the fund longer idle time. About the
company, Viettravel has focused more on domestic tourists, promote communication
activities to promote tourism products. Creating unique programs, attractive suite of
math ability, customer preferences. Currently, visitors Vietravel distributed into two
main categories: Market visitors wishing to travel with high service quality and
customer market does not pay much attention to the quality of service that simply
being involved in the trip.
For each type of market, the company will offer tourist programs with
reasonable price to each audience satisfied with the quality and form of tourism that
they have chosen, so the next time they picked Vietravel go tourism not choose
another company. But the majority of tourists come to the company often have high
liquidity, typically customer offices, the wealthy families in of Hanoi and surrounding
provinces. With a student audience, almost very little.
4.3 Supplier
The level of concentration of the supply system is increasing: a beautiful tourist
destination will lead to other forms of development services (motels, hotels,

restaurants, transport modes) development.
Power suppliers significantly reduced: due to the high concentration level, now
have more opportunities to choose more.
+ Airline: Vietnam Airlines, Pacific Airlines, Mekong Airlines, Jetstar,etc,...
+ Hotel, restaurant: Romance, Mondial, Camelia (Hue), Da Nang Riverside,
Royal, Orient (Danang), Phuoc An, Bach, Lotus (Hoi An),etc,...
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Price competition is very fierce, tourism demand is a worrying problem,
suppliers tend to cooperate with buyers lower prices than price.
For a business travel, providers have a special role in their business processes.
Suppliers ensure inputs for business, it determines the quality of the output of these
enterprises. Therefore, it contributes to the competitiveness among enterprises. A
travel businesses in general and in particular Vietravel has many different vendors.
The mission of the enterprise is to link all the services that the provider of a complete
product and sell to tourists with gross prices. Suppliers who provide services:
transportation, accommodation, meals, entrance fees at destination, as well as in the
area of operation of the company. Among the vendors on alone on transportation,
Vietravel have organized themselves fleet.
As a travel company operating in the field of guest posts, so the company has
created for himself a relationship with hotels and restaurants in the area of Hanoi: In
addition to the joint venture affiliated hotels company: Hanoi Horison Hotel, SAS
hotel joint venture, Hanoi joint venture hotel,etc,... The company has relationships
with more hotels: Hotels Guoman, Bao Son hotel,etc,...
In tourist destinations, Vietravel also put relations with some suppliers of
accommodation services, catering.
In Halong: Halong Hotel 2.3; Bach Dang, Dao garden, Suoi Mo, Cong Doan,
Hoang Lan,etc,... Hong Ngoc restaurant.
In Hai Phong: Hotels Sunflower, The Prince, Far East, Van Anh,

Indonesia,etc,...
In Tra Co: Hotels Phuong Linh and Hoang Long, Sea Green, Tra Long,etc,...
Also, Vietravel also has a relationship with a lot of other hotels in a number of
provinces and cities rich in tourism resources: Hue, Da Nang, Hoi An,etc,...
Currently, in order to relieve pressure and reliance on suppliers, Vietravel has
expanded relationships with many different suppliers in order to reduce to avoid an
excessive constraint on suppliers level. Create smart environments tranhhoan edge
between suppliers together and simultane- ously is to create suitable choice for
suppliers. Therefore, the business strategy is Vietravel must somehow to be able to
expand the relationship with suppliers as much better. It will promote business
activities of the Company an effective way.
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4.4 Competitors in branch
Our country today there are many types of travel companies with varied
quality. The largest travel company in the country: newstar tours, Saigontourist, Hanoi
Redtours,etc,... is the great rival of Vietravel in domestic market.
- The tourism industry is structured dispersed sector:
+ Besides some tourism businesses large enterprises still have many small or
medium businesses do not have the dominant position, enterprises often focus on
developing key markets in the locality her.
- Low barriers: the current tourism industry is attractive to high entry line =>
excess capacity => cut prices to attract consumers (future some businesses to leave the
sector and the risk of new business fell => reduced industry capacity close of market
demand => prices become stable).
In this era, when the economy is more developed brokerage activities even
more important role much. And in the tourism business, the brokerage service is
equally important. Because the tourism market is vast and not any guests who may
know all about its people. To satisfy the curiosity to learn about the travel market,

visitors will be looking to brokerage services to seek the information necessary to
serve the next trip around. It is from there that brokerage activities were really active
in the market, it is a bridge between travelers and tourism companies in the
implementation of tourism programs for guests.
4.5 Substitutes
The alternative service: limited the profitability of the tourism industry.
For example:
- Self-service alternative to using the services of a travel company that
- Travel inland alternative to traveling abroad.
- The introduction of many recreation centers and places for both children and
adults at the big city meet huge demand of the people.
- Take explore.
+ The tendency of changing customer wants products
+ Prices of alternative products is often cheaper.
In future alternative products Vietravel will tend to increase. With many
organizations form new tourism programs by the other tour operators as the program
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conducted ecotourism, tourism and resort,etc,... would create a huge pressure on
existing tourism products the time of the Company. This requires the Company to
actively research and development of its new products. Actively upgrading and
completing additional natural products circulating in the market of the Company. Only
so can reduce the pressure of the replacement products for those products Vietravel.
5. Assessment of SWOT matrix
After reviewing the current status of business operations and business
environment of Vietravel. We will assess the strengths, weaknesses, opportunities and
threats to build and perfect the business strategy for the company as well as making
recommendations to the company. To build a business strategy to be feasible, the
evaluation is very important. It is a condition for the Company to build trading

strategies accordingly.
5.1 Opportunities
- Stemming from economic factors:
+ Economic growth rate subject to high => infrastructure will develop, life
improved.
+ Income gradually improved => demand increased spiritual satisfaction.
+ Exchange rate fluctuations
- Stemming from technological factors => renovation and improvement of
tourism services.
- Stemming from Cultural Factors - Society:
+ Demography: population size increases, the age structure change leads to
demand change => increase in the number of tourists.
+ The core cultural values are preserved: the opportunity to develop tourist
visiting temples and festivals.
5.2 Challenges
The tourism business now faced with increasingly fierce competition in the
context of Vietnam still difficult restrictions, such as system infrastructure is
underdeveloped (lags far behind other countries in the ASEAN), road systems,
aviation, ports,etc,... are backward, poor quality, despite the interest of the Party and
State investment in infrastructure construction, therefore, traffic charges are high.
Telecommunications systems are not widely developed, limited quality service while
15


prices are much higher than other countries in the region. Electricity can not guarantee
the demand and the price is too expensive. Hotel system, motels, catering facilities
needs rest, meals, entertainment, recreation lacking, limited quality. Tourism product
quality is not high, the less diverse and abundant. The legislation on the management
of incomplete travel and also many shortcomings for business travel activities.
5.3 The strengths

Is the best place in terms of business environment have a positive impact to
business operations of the Company. May provide some opportunity follows:
+ The need to travel is increasingly becoming necessities and important for all
citizens in the country and the world. For the people of Vietnam, with the growth rate
of the economy (7.04% in 2014), earnings in all segments of the population also
increased. And while their solvency increased the demand to travel will be met..
+ Tourism has been the concern of the Party and State and was identified as a
key economic sector of Vietnam in the coming years.
+ Tourism has been the concern of the Party and State and was identified as a
key economic sector of Vietnam in the coming years.
+ The role and position as the country's capital city, is the company economic,
political, cultural and major national development strategy and the strategy of socialeconomic development of the Hanoi city, the leaders have advocated the construction
to Hanoi will be a great company of the country's tourism and promote tourism
development in Hanoi.
+ The traditional villages, the beauty of cultural life, the spirit, the festival,
ethnic cuisine is also being restored and exploited for tourists.
+ Thanks to the close collaboration between Tourism - Aviation - valve of
Foreign Affairs, the country's image, people and tourism in Vietnam consecutive
appearance in months on most key tourist market such as Germany, Belgium, France,
Korea, China, Japan, America,etc,... through participation in fairs, seminars, forums
and organizing promotion events.
+ Relationships international cooperation in tourism is increasingly expanding
in the region and beyond hard, both bilaterally and multilaterally, in the national, local
and enterprise.
16


The tourism industry of Vietnam has participated actively and fully cooperate
more content, proactively fulfill the obligations and rights exploited members of
international organizations and the region. Travel Vietnam has actively participated

ASEAN Tourism Forum, the World Tourism Organization (WTO), Tourism
Association of Asia - Pacific (PATA), APEC and ASEM cooperation, tourism
cooperation Mekong subregion expand,etc,... Recently, the Government of 6 countries
in the Mekong sub-region have signed on easing the administrative procedures for
travelers. Tourists just been granted a travel permit that can travel in the 6 countries.
This will save time and avoid the cumbersome procedures for guests while traveling.
So the next time traveling the country six Mekong sub-region will be very easy and
convenient.
+ Vietnam has a stable political environment.
5.4 The weakness
For each strategy often unavoidable shortcomings in implementation time.
Therefore, the remedy and perfected it to develop business and fulfill the set targets is
essential and important. After evaluation and see what exists, gaps in the process of
developing and implementing business strategies. These factors are threatening
obstruction of the external business environment have negative impact on the business
activities of Vietravel. May give some threats are as follows:
+ On the market today, a growing number of companies engaged in the
business travel sector, leading to fierce competition between companies. Therefore,
the business of the Company is increasingly more difficult.
+ The business environment is not stable business activity leading to even more
precarious tourism.
+ During this period, tourist business greatly affected by the volatility of the
situation in the world and especially affected by the disease spread from the various
countries bring. Currently, the world has many countries suffer from this disease:
South Korea, Hong Kong, China, Canada,etc,... and the number of fatalities has
increased daily. This is a concern for countries with developed tourism industry,
because it limits the number of passengers traveling.
6. The rating, review the implementation of the business strategy of Vietravel.
17

Vietravel operate in market economy with major objectives and through it to
constantly improve business efficiency, maximize profitability and optimal
satisfaction of all the needs of tourists. To achieve these goals, the same with all the
other companies operating in the market economy. Viettravel to build their own
business strategies appropriate to achieve those goals. And in the process of
developing the strategy will inevitably commit mistakes and omissions. Because, not a
business strategy always was perfect and without mistakes. However, when
implementing the strategy in the course of business, the Company has certain success.
Besides these successes can not not mention the failure to develop a strategy that
companies need to overcome in order to improve their business performance in the
future.
6.1 The results achieved in the implementation of business strategies
For each strategy is a good fit or the results that it brings will be great. It is the
foundation for increasing revenue, profitability, reputation and prestige for the
company in particular and the company in general. And special it will be good
conditions to attract or attract tourists, increase the number of visitors to the company.
This is demonstrated through the implementation of the strategy:
6.1.1 For marketing mix strategy
Any company operating in the market economy are focused on strategic
marketing mix. Because of this strategy has many important policies and the
successful implementation of this policy, the efficiency that it brings to the company
will not be small. Vietravel in the process of implementing the marketing strategy for
using good mix of policies: price, product, promotion and distribution.
Price policy: Because learn, grasp the needs of consumers in the market is
always interested in buying the product or service is the cheapest and best quality
requirements. And optimized to meet the needs of consumers but still desired profit.
Together with the company with great financial strength, combined with proper
analysis market, the Company has decided to offer the tours sold on the market at
prices matching the traveler accepted while prices also afford to compete with other

competitors in the market. Because appropriate price, so the number of visitors to the
company over the years is very large and the revenue earned from this activity is high.
18


For tour programs for retail customers, the company has established for each
audience with the appropriate rate to achieve the goal of maximizing the number of
passengers. The Company has the preferential prices for regular delegations east
quantities, discount, discount prices for children, creating long-term relationships with
suppliers in order to enjoy preferential rates, they spent cooperative prices for
companies like the hotel in Halong Bay, Hoi An.
Product Policy: The company has been promoting good tourism programs as
single programs: City Tour, Open tour. For City tour, done during the day, while the
Open tour, depending on customer needs that time may be extended, various short.
Promotion policy: In the various forms of advertising on various media, at a
reasonable cost and design of promotional ink and rich diversity. The company has
introduced to visitors at home and abroad known products and its services so that
tourists can go sightseeing and tourism in Vietnam through its service. Moreover,
since the promotional activities of this company has created the image of Vietnam in
general and the company in particular on the international stage, while it also creates
the prestige and reputation of the company on domestic and foreign markets.
Distribution policy: The Company has performed its role as a bridge to bring
tourists to consumers of tourism products in all over the country and abroad, is the
connection of individual products to serve the best needs of the tourists. Although the
system of affiliates, agents are limited and uneven distribution. Anyhow, the Company
also get wanted significant advantages in the use of distribution channels.
6.1.2 For market strategy
Besides going into the market to fully exploit domestic tourists with array of
domestic travel business with credibility and its reputation. The company also
exploiting the market segments in Europe, Asia: United States, France, Germany,

Japan, China, Korea.
6.1.3 For competitive strategy
This is a very important strategy for the company in the seizure and prestige, its
reputation in the market. Due to acknowledge the importance of this strategy, the
efforts tyda lot better in implementing competitive strategies from competitors in the
marketplace. By using high-cost strategy and business operations with prestige and his
19


fame, Public tydadat significant achievements in traffic, revenues and profits in recent
years.
6.2 Shortcomings in the implementation of business strategies
Paired with the success or upon which the Company achieved during the
implementation of the strategy is the difficulty surviving necessitate corrective,
resolved quickly and promptly.
6.2.1 Mixed Marketing Strategy
In product policy, because the characteristics of tourism products are easy to
imitate and copy, plus work to build a new product brought into service, the need to
spend a high cost. And when put into practice product, this product is easily imitated,
copied. So in the process of business activities, the Company did not build yourself a
travel program different than the competitors. Here, the company only policy choice
of product differentiation is low. The evaluation of product differentiation is the
quality of the tourism program which the Company offered to guests.
As for the distribution policy, the Company does not build yourself a network
of branches, offices, travel agents in many provinces and cities across the country to
be able to help the company more convenient the implementation of the tour.
6.2.2 Market Strategy
In the segment of international travel, the company has focused too much on
the Chinese consumer market, the market is considered to have the largest number of
visitors, but low liquidity and promiscuity. So when conducting cater to this audience

very bats company into disrepute condition for service providers. The company
focuses on customer China market is because the current number of visitors traveling
to Vietnam more, due to geographical location close to Vietnam and the cost of a trip
in Vietnam not high and consistent with their ability to pay.
In addition, because the company is very strong in international travel should
businesses although domestic travel was concerned but not yet adequate and proper
with its importance. Number of employees in the domestic nest less, technical
facilities for domestic institutions are limited and it is worth noting that domestic
institutions not currently have a team of their own guides.
6.2.3 Competitive Strategy
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In this strategy, the company only uses high-cost strategy and too biased to use
the prestige and their reputation in the business. So if tourists do not know about the
reputation of Vietravel it is a great loss for the attraction and increased revenue for the
company.
7. Some solutions contribute to improving the business strategy of the Company
7.1 Use of the marketing mix strategy
Enhanced new vadoi marketing activities in competitive conditions as well as
the current long term. This requires the Company to build the program establish
detailed marketing strategy, in particular, in accordance with the stages of
development.
7.1.1 Price policy
In conditions of fierce competition among travel agents in Hanoi today. Then
the Company shall use the price policy how is extremely important.
If the company can offer a price match, the visitors accept than the prices of
competitors, the Company will prevail in the war over prices. To improve its
competitiveness in comparison with competitor company some concern the following
issues:

+ Need to determine accurately. Fixed costs, variable costs to determine the
cost of travel for the program.
+ Establish, maintain and develop good relationships with providers of travel
services. To ensure that the products and services that providers supply the company
to build the tourism program of quality assurance and the cheapest price. Meanwhile
the Company will have favorable conditions to reduce prices of its tourism products
than competitors.
+ Research thorough prices of competitors on the market. This is a very
important requirement for improving the competitiveness of Vietravel compared to the
competitors, it allows the Company may offer rates that ensure both the existence and
development of the company and ensures the company compete with rivals.
+ Be aware of the method of determining the selling price of a tourist program.
This is important to ensure that companies offer suitable prices and ensure
profitability, both have the ability to compete with competitors.
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+ Identify different prices in different moments of time travel. A very important
trait in business tourism is seasonal. Company need to identify high price in the main
season and low prices at the end of service and outside service.
+ Company should adopt incentives, discounts in the case of large delegations,
consumer services, long trip time,etc,...
Prices should be calculated based on cost analysis and breakeven analysis,
customer solvency, prices of competitors.
+ If you maintain a low pricing policy sometimes unfavorable to the Company.
Because according to the consumer price cadong quality means. Therefore, reducing
the cost by raising the quality of customer service.
+ Since Company perennial reputable Company should have flexible policies
for each different audience.
+ Need emphasis attract the domestic audience as currently domestic tourists

has high solvency.
+ Policies should be giauu deals and special concerns with patrons, often buy
the travel program of the Company. Need to increase commission rates for individuals
and units introduce visitors to the Company. Pricing policy making should be
commensurate with the quality, and at the time crowded should not raise prices too
high but just shifted a little, do not seem to catch dead guests, it will create a bad
impression of the visitors about the Public companies, easily lead to the discrediting
of the Company.
7.1.2 Product Policy
Tourism product is an important element in the marketing of travel companies.
Because tourism product is the outcome of the study and creation of tour operators in
order to meet the travel needs of visitors.
Tourism products of Company mainly package tour program are construction
companies and other organizations serving tourists. To enhance the competitiveness of
Company compared with competitors in the area of Hanoi. Company need to consider
a number of issues:
+ Thoroughly study the psychological characteristics, tourists consumer on
each target market to develop tourism programs accordingly, ensuring the service of
tourists in the best way.
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+ There should be a combination of two types of programs the company now
that is all-inclusive tours and tour programs buffet. When combining two types of
programs will make up the richness and more attractive travel programs which
company provides customer service. Also when combining the two types of programs
will be created for the tour length, longer periods which may increase the Company's
revenue.
+ The company always actively, improve quality management and tourism
programs. During each tour program which company provides the market with

different needs than the competitors to make the appeal.
+ For international tourists go out (Outbound) to build the tourism program
themed shopping, visiting,etc,...
+ Delve into the life cycle of each product of company so that measures
extending the life cycle of the product and have the appropriate marketing impact to
enhance the competitiveness of the Company.
Previously, the company only build the tourism program aimed at serving the
target audience is those with high incomes and those with solvency. Never are these
programs catering to all audiences who have lower average incomes, the audience is
students, students. So now the company has been built and put into practice prepares a
special travel programs can serve all different audience from those who have lower
average income levels to those student demographic is consistent with the level of
quality at a cost that everyone put in to get a tourist trip, while the Company has
guaranteed sufficient revenues and profits to cover expenses money implementing
tourism programs. This can be regarded as a great progress of the company in
attracting more audience and consumers to buy their products. Thereby creating
credibility and reputation of the company on domestic and international markets. For
the large number of visitors delegation, the Company should have taken the form of
souvenirs for visitors. Although small gift (just the shirt and the hat with the name of
the company and Corporate Travel), but a lot of sense, on the one hand giving guests a
sense of caring attitude, company attentive to tourists, on the other hand it is also a
means to help company in promoting the brand, reputation and image of the company
in the market of Vietnam and abroad. Conduct research and development of new
products towards creating different products, combining a variety of purposes in a
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tourist trip as treatment in combination with tourism with cultural understanding or
stays thematic, ecotourism. But to create new products Company officials have
through research results to study the market properly and updated information directly

or indirectly regularly and promptly. Staff also have to make tourist destinations to
learn the culture, festivals unified customer service procedures, put relations with
suppliers,etc,...
7.1.3 Distribution Policy
Vietravel want to sell their tourism products effectively one must build a
system of rational distribution.
The main distribution channels creating reasonable will create enormous
competitive advantage in the battle with rivals of the Company. Customers may
purchase company's products through the following distribution channels:
- Direct Distribution
This is the channel that the customer purchase company's products directly. For
this channel, the need to consider a number of issues:
+ To build a modern information system with the Internet connection, creating
the Company's website,etc,... These methods can help companies deal with customer
convenience and more effective.
+ The company should have a staff of marketing capable of good
communication, good command of foreign languages, understand the advantages of
company's products and have the capacity to give, to convince buyers.
+ Company should implement the regime encouraged by higher commission
rate for its marketing staff to sell more products.
- Indirect distribution channel.
Indirect distribution channels ie company to sell its products through a
representative office, intermediary agent,etc,... For effective sales through this
distribution channel company should perform some of the following:
+ The company must put the office representatives, sales agents on some of our
country's major cities such as Ho Chi Minh City, Da Nang, Ha Long ,etc,...
+ Implementation of the regime encouraged the commission to the agents and
offices to sell more products.
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+ Need to have good relationships with the hotels, restaurants to introduce their
guests to the Company. For this, the company need to ensure their benefits for ice
making the company to feed our guests, hotels, restaurants.
+ The company also sent local and international visitors as well as to send
principal source for the the company. Therefore, the company needs to have a good
relationship, to ensure credibility with this company.
+ Company can sell their programs via the Internet. Here's how you can create
favorable conditions for both customers and the company in the process of buying and
selling.
7.1.4 Promotion policy
The company has been very successful in introducing the tourism product and
the name and reputation of the company through various promotional means.
Realizing the importance of this policy, the company will have to try harder in
promoting the power of propaganda, promote product and reputation of the company
in general and Viettravel in particular to be able to attract and serve more these
different audiences. To do so the company must:
+ Increase the cost of advertising and promotion.
+ Every year on holidays company should have a letter of congratulations sent
to his regular customers to create long-term relationships between customers and the
company.
+ Regularly organize conferences, group conferencing customers to understand
the thoughts, their aspirations. From there, offering products and services accordingly.
+ Organization leaflets, introducing expedited Co., Company to organs,
enterprises are considered potential clients and potential that the Company should be
directed to attract.
For promotional activities effectively, the company should develop advertising
content appropriate for each market segment for the market as foreigners go to learn
culture, Overseas Vietnamese to advertising content should emphasize traditional
festivals, major holidays or tourist agenda duty convenient travel, unique amenities.

Continue using effective tools in internet advertising and effective, fast and no more
expensive than advertising on television and using e-mail, Web pages to reduce costs
by telephone.
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