2GO Chapter 3
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Transcript of 2GO Chapter 3
Part III- SWOT Analysis
Products and services
Strengths Weaknesses
First to offer Luxury cruise locally
Onboard entertainment
Affordable package deals
Accessibility of their products
Limited packages
Seldom offers super sale packages
Opportunities Threats
Innovation of new products and
services offered
Ability to develop new destinations
Increase target market
Other alternative for transportation
Season or weather
Development of low-cost airlines
Table 3.1 SWOT Analysis for Products and Services
Strengths
As 2GO Travel is the first to offer domestic luxury cruise and sea travel experience in the
Philippines, they arrange a variety of products that would become their source of income for the
company. A luxury cruise typically consists of several onboard entertainments and activities,
plus package deals that are not just affordable, but also worth the pay. These products can be
accessed through the internet, in their company website as well as through their thousands of
ticketing offices found all over the country.
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Weaknesses
2GO Travel’s weaknesses mentioned on the table are correlated. It is due the limited
packages they offer since their products’ prices vary depending on the season, duration, type of
accommodation, and other factors affecting the prices and how seldom they offer these
packages.
Opportunities
Since a luxury cruise is quite costly, 2GO Travel has the opportunity to innovate new
products and services to be offered that will surely increase their revenue. Considering that the
Philippines is an island country and is filled with diverse flora and fauna and undiscovered
wonders, they could use these advantages to develop new destinations through the creation of
new packages that would involve those destination. With the use of their advertisements
through magazines, social media, and radio, they could increase their target market, thus more
revenue.
Threats
There are two critical threats that will affect the number of passengers availing their
products and services. Those are their competitors which could be other modes of
transportation like air travel and the weather and season.
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Facilities and Amenities
Strengths Weaknesses
Convenient brand new facilities and
amenities
Availability of entertainment onboard
High maintenance cost for the facilities
Expensive add-on amenities
Opportunities Threats
Possible new facilities and amenities
offered
Ability to increase price due to
exclusiveness
Accidental damage caused by guests
Depreciation of equipment and
facilities
Table 3.2 SWOT Analysis for Facilities and Amenities
Strengths
2GO Travel is one of the largest and premiere land and sea travel provider in the
Philippines. It is expected that their facilities, amenities, and equipment are brand new and
convenient to the passengers. And with this, there are a lot of sources of entertainment
available onboard for their passengers.
Weaknesses
Their facilities may be one of their strengths, but it could also be a weakness for them.
Their facilities and amenities onboard need to be checked and maintained regularly to ensure its
functionality. In order for them to sustain their facilities, they need to spend high maintenance
cost for it. And another weakness is the expensive add-ons the passengers may avail onboard.
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Opportunities
Like with their products, they could turn their facilities and amenities into an
opportunity. They could try and add more to their current amenities to provide a better service
to their passengers. And since 2go Travel is the first provider of cruise line-like travel, they have
the competitive edge against their competitors. With this exclusiveness, they can possible
generate more revenue by raising their rates fairly higher.
Threats
We provided two threats to 2GO Travel’s facilities and amenities: first is the accidental
damage that their passengers may cause while onboard the vessel. And the second is
depreciation of the facilities and equipment. These will result to more expenses to them
because they will be spending money to be able to repair these damages caused by their
passengers. Same with the depreciation of their facilities and equipment because they will also
spend money to change or replace their depreciated facilities and equipment when needed.
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Setting: Physical Attributes
Strengths Weaknesses
Regular maintenance
Permanence
High cost of ship maintenance
Value depreciation of the ship
Limited resources
Opportunities Threats
Acquisition of larger cruise ship
Attracting more passengers
Rising cost of fuel
Security
Table 3.3 SWOT Analysis for Setting
Strengths
For the physical attributes, we focused more on their vessels. Their regular maintenance
for their vessels is one of their strengths since it is a tedious work and process. And the regular
maintenance then leads to another strength which is permanence. Since the vessels are well
maintained, the vessels are likely to have a longer durability.
Weaknesses
Their weakness also comes from the aforementioned strength. In order to maintain
their vessels, the outflow of their cash for the ship maintenance is costly. Another is that due to
the constant flow of time, the structure of the ship decreases. Although their ships undergo
regular maintenance, still, its strong foundation depreciates as it is used over and over again as
they follow their weekly travel schedule. It becomes a weakness for them since the raw
materials they use to build new large ships only come from limited resources.
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Opportunities
The acquisition of larger cruise ship is another opportunity for 2GO Travel to increase
their revenue. Larger cruise ship means more space to accommodate passengers. Since it is
more spacious, passengers may have the tendency to be more allured in availing their products
for more comfortable travel.
Threats
The economy might affect the cost of fuel which is the source of energy of a ship to
operate. Increase in cost may cause cutting of ship operations. Also, the security of the ship
might be threatened because it has equipment/materials that are expensive and can be sold
easily such as the air conditioner, steel, boats, etc.
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Managerial Skills
Strengths Weaknesses
Corporate social responsibility
Anti-human trafficking
Well-trained managers and staffs
Inefficiency of some crews
Conformation of staffs to the house
rules
Cleanliness/Maintenance of the ship
Opportunities Threats
Recruitment of new employees
New staffs for ship navigation
Trainings for supervisors/managers
Piracy
Emergency/ Typhoons
Employees᾿ loyalty
Table 3.4 SWOT Analysis for Managerial Skills
Strengths
2GO Travel makes sure that their guests’ welfare is protected. They conduct
precautionary measures especially for minors such as monitoring their departure and arrival
with required papers from parents and DSWD. They also have experienced managers and
qualified staffs for navigating and operating the ship.
Weaknesses
There are some of the crews that are not efficient to the operation of the ship because
they are not all monitored. Also, the maintenance of the cleanliness of the ship is their
weakness because of the number of passengers sharing a common bathroom; it gets dirty after
few hours.
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Opportunities
Because of their expansion, 2GO travel requires additional employees. With this, they
get to hire new staffs, with new ideas that could help them improve their operation. As a part of
this, they also get to have new sea farers for the ferry operations. They also undergo through
trainings and seminars for betterment and widening of strategies.
Threats
Sea travel is considered as one of the safest mode of transportation but accidents are
inevitable especially if it is by people. Piracy/ hostage/ robbery might occur during the trip,
knowingly that there are a lot of tourists on board. Also, fortuitous event such as typhoon might
also bring harm to the ship and to the guests during the trip. Next is the loyalty of employees;
there is always a possibility that their employees might leak the company’s secrets and
strategies.
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Employees
Strengths Weaknesses
Experience
Serviceability
Efficiency
Cultural diversity
Lean season
Opportunities Threats
Team building
Travel privileges
Training for employee promotion
Evolving regulations
Sea travel risks
Leakage of company operations
Table 3.5 SWOT Analysis for Employees
Strengths
Experience is always present in the lists of strengths of any employee and in the travel
industry, it is very much regarded. 2GO travel employees seem to possess such as they interact
with various passengers aboard their ship. Having experience gives them the advantage to solve
any type of situation without disappointing their passengers. This also emphasizes their
serviceability, or in other words, their ability to provide quality service towards any kind of
customer. The fact that some of their employees are bachelor degree holders in the hospitality
and tourism industry just proves that they put into practice all of the things they have learned.
Above all, with experience and serviceability intact, they have become employees with
efficiency that which the company values the most as part of their service strategies and with
that, they are fairly compensated.
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Weaknesses
One thing that is not new in the service industry is cultural diversity. Whenever new
employees begin work, they are not always of the same origin or nationality and religion. Some
grew up in their own provinces, some are used to the environment of Manila, or even some are
migrants from different countries. The probability of differences in opinions or beliefs or even
social practices is bound to happen and, thus, becomes a weakness. However, with the right
amount of control, they could manage to stay as a team to keep the company’s reputation.
Another weakness source is during their lean season because when they have less number of
passengers, then they will incur less profit for the company, hence, less income for all
employees. It all depends on the season of each destination but it’s manageable since 2GO
Travel features several destinations throughout the island country.
Opportunities
Conducting a series of team building activities for all employees could help resolve their
trust issues in one another as well as to keep them intact and well organized while in the field of
work. As for their travel privileges, every employee of 2GO Travel is always granted their
benefits in line with work and not solely for them, but also for their own families. In addition to
that, there is always an opportunity for employees who wish to aim a higher position and with
the right attitude and skills, they undergo training to asses which of them are suitable for
promotion.
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Threats
The employees are always affected by any company and departmental regulations set
for them to follow. With the ever changing course of time, there are rules that are bound to
change every now and then that each of them should conform with. Some of these rules may be
against their will that they would rather quit than to endure following it. However, that is not
the only reason, as there are many factors that can affect an employee’s decision, such as the
risks in sea travel operations. One is sure to act selfishly when one values his or her life and not
risk it for the satisfaction of passengers. Nevertheless, customer service is always accompanied
by risks and that is one of the many reasons why it is difficult to become an employee in the
service industry. Lastly, a threat to any 2GO Travel employee is the occurrence of leakage of the
company’s operations. The probability of this happening is when a former employee leaks
information regarding the confidential operations of the company out in public. It does not only
remove an employee from his or her position in the company, but also disrupts his or her
credibility and reputation in the face of the companies or organizations that would hire him or
her to follow.
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Infrastructure
Strengths Weaknesses
Innovative design of ports
Cleanliness and orderliness of ports
Security
Lack of management strategy in ports
Opportunities Threats
Additional facilities
Eco friendly infrastructure
Natural Calamities
Fortuitous events
Price increase of raw material
Table 3.6 SWOT Analysis for Infrastructure
Strengths
2GO Travel is popularly known for its innovative design of ports and ships with its color
combination of green and magenta which connotes feminism. With the feminist approach of
2GO, it has successfully launched a more enhanced water transport and attracted more tourist
to travel by sea. 2GO travel provides cleanliness and orderliness in their ports to ensure the
comfort of their passengers. Sufficient chairs are provided and they offer variety of activities
such as massage, pedicure, etc., to keep them entertained while waiting for boarding. 2GO
travel ensures the safety of the passengers with a strong security starting at their ports. The
passengers go through security checks such as X-ray machine upon entering the ports.
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Weaknesses
During peak seasons and holidays, there is a long line of passengers which makes them
most likely to be irritated. With the increase number of people travelling by sea, the lack of
management strategy of ports must be developed.
Opportunities
2GO travel has been successfully known by travelers and has gained big amount of
tourist to travel by sea. With its growing revenue, they have the opportunity to expand and add
more facilities for the guests to fully enjoy their travel. 2GO travel has the opportunity to
reduce environmental impacts of its ships by using eco-friendly infrastructures. They should
exercise energy saving activities such as new lighting systems, waste management and gas
cleaning systems.
Threats
2GO travel and their ports can be affected by inclement weather conditions, natural
calamities and fortuitous events. If these instances would happen, passengers will most likely
cancel their trips causing struggle to the company. Expanding their infrastructure may acquire
higher expense for the company with the threat of price increase in raw materials.
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Availability of Technology
Strengths Weaknesses
Easy access via 2GO travel website
Scan and shoot
Easy to contact
No Wi-Fi ashore
Weak mobile phone signal
Opportunities Threats
Software updates
Technology innovation
Operation Improvement
Hacking of 2GO travel website
Price increase of technology
Fast evolution of technology
Table 3.7 SWOT Analysis for Availability of Technology
Strengths
Providing easy access to customers, 2GO travel has a website providing the contact
information, online booking and payment. They also have accounts in Instagram, Twitter and
Facebook. One of the security procedures of 2GO travel is the scan and shoot. Photos of
passengers are being taken before they enter the pre-departure area. 2GO travel can be easily
contacted through their website providing their email and contact numbers and they respond
quickly to their customer’s inquiries.
Weaknesses
2GO travel provides no internet ashore making this a weakness to the company especially
because internet has now become a necessity to people. Weak mobile phone signal is another
weakness for 2GO travel. Passengers have a hard time contacting their loved ones aboard.
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Opportunities
They can develop and update their websites as well as their social networking sites to
communicate with their future customers. They may also add special features and promote
using their website. Opportunity for technology innovation such as movie theater, gaming
stations, Ipads as menu in restaurants, and many more. This may entice the customers and
make their trip more enjoyable. 2GO travel may improve their operations in terms of their
engine systems. They can change their engines into advanced ones for better and more safety
operations.
Threats
One of the threats for technology is the possible hacking of 2GO’s website. The company
will be greatly affected when this happens because their website is where the passengers can
book their trip and also promote their packages. It one of the best means to communicate with
their customers. The increase of price in technology will affect the company’s revenue. If the
demand of the technology is increased, the price will follow. With the fast evolution of
technology, the demand for newest technology is high. Passengers are more interested with
new technology therefore it is good to have the latest to satisfy more the passengers.
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Prices/Rates
Strengths Weaknesses
Low Cost
High profitability and revenue
No fixed rate
Seasonality
Opportunities Threats
Improvement on promos Price increase of commodities
Tax changes
Table 3.8 SWOT Analysis for Prices/Rates
Strengths
2GO travel is well-known for its low cost & money wise promos making customers opt
for their services since it is affordable and not heavy on the budget creating their company
renowned and famous. Since 2GO travel offers affordable services many travelers choose their
transport services creating high profitability & revenue on their company
Weaknesses
2GO travel offers a wide array of promos where tourists can choose from however they
don’t have a fixed rate, almost every single month they change their package rates, so
customers should regularly check their offered promos before they book. Because of different
seasons in various provinces 2GO arrange packages that would depend on the season of a
certain province.
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Opportunities
Although 2GO is well-known for its affordable promos there’s always room for
improvement, they can add more services for the convenience of their customers.
Threats
One threat for 2GO travel is the oil price hike. The never ending oil price hike is a big
threat for their company since they make use of fuel in operating the engines of their ships. If oil
price hike would continue they would have to adjust their fees and may cause a big loss of
customers that cannot afford highly priced fees for sea travel. Another threat for 2GO is the
growing competition that is very apparent in their industry. There are growing companies that
also offers low-cost and affordable prices for sea travel and sometimes it’s cheaper than what
they offer which other 2GO patrons may consider.
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Management of the Company
Strengths Weaknesses
Empowered employees
Excellent Organizational Structure
Miscommunication of employees
Diversity of employees
Opportunities Threats
Empowerment of managers
Leadership Training
Law suits
Table 3.9 SWOT Analysis for Management of the Company
Strengths
Employee empowerment is very evident in 2GO’s Company, they treat their employees
well and they make them feel that within their company everyone is a family.
2GO is a well-organized company, distribution of work is always organized and they also have a
very good reporting-relation within their organization, everybody knows where to report and it
makes their company organized, avoiding miscommunication and misunderstanding within their
organization.
Weaknesses
In every management, not all employees will always conform to the regulations due to
diversity. In line with the first weakness given, miscommunication within the employees may
arise due to the same reason. It is inevitable but can be prevented.
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Opportunities
2GO Travel assures empowerment to their employees however managers are not given
that much attention. So they have the opportunity to empower their managers. To be an
effective leader, one must undergo training in order to develop their skills and abilities to be
able to contribute to the company.
Threats
Law suits are considered as threat because it would affect the image of the
management and it would reflect in the company as a whole.
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