IB_Grp7
Transcript of IB_Grp7
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International BusinessKESARI TOURS : EXPANSION TO AUSTRALIA
GROUP NO: 7
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About the Company
Established in 1984, Kesari is a premium travel company, headquartered in Mumb
The company ventured into the domain of world tours in 1992.
By 2003, Kesari established itself in the world tours segment and then went ahead
Caters to theneeds of the
individual travellerCost-saver tours
Caters to thecorporate travel
needs ofcompanies
Forex fulfills all thecurrency needs ofthe Indian traveller
going abroad
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Indian Tourism Industry
According to the United Nations World Tourism Organization (UNWTO) Tourism Highlights 2013, tourisms tworldwide GDP is estimated at 9 per cent.
Tourism exports in 2012 amounted to USD 1.3 trillion accounting for 6 per cent of the worlds exports.
India ranks 11th in the Asia pacific region and 65th globally out of 140 economies ranked on travel and Competitiveness Index.
The travel and tourism sector directly contributed INR 2222 billion to Indias GDP in 2013 reflecting a growcent. This is forecasted to grow at a CAGR of 12 per cent to INR 6818 billion by 2023.
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Kesaris international Expansion
Between 1985 and 1989, Kashmir was Kesaris main tourist destinationaccounting for 60-70% of the revenue
In 1992 they moved into countries like Thailand and Singapore followed boffering destinations of South East Asia, Europe, the Americas, AustraliaScandinavia and Alaska.
By 2011,they had 11 branches in India and abroad, with 24 subsidiariespecializing in verticals ranging from branding and promotion to in-housforeign exchange services.
In January 2012, they organized their first trip to Antarctica, covering aseven continents.
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Expansion Strategy
Kesari, started its international operation with countries like Singapore, Thailand, Malaysia.
After the regular success of their outbound program they ventured into different countries where leverage the foreign exchange rates.
Franchised in 5 countries:
Our Focus is on Kesarisexpansion in AUSTRALIA.
Increasing incomes, exchange rate movements and aviation capacity growth are contributing tpropensity among Australians to travel
Australians travelling for holiday purposes are the most responsive to exchange rates.
Australian Youth travellers are more influenced by exchange rates
Highdemandfrom loyaldomesticcustomers
Ease of VISAprocessing.(
VISA onarrival)
Cheaperthan other
westerndestinations.
Easy tie-upwith airlines
andrespective
hotels
Comfortablepackagedesign by
Kesari
Numda
advrequ
plan
USAIrelandNew
ZealandOmanAustralia
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Kesaris expansion in Australia
Growing tourismtrade in botheconomies.
Cooperation is alsoassisted by the JointWorking Group on
Tourism
The TourismForecasting
Committee estimatedin 2002 that Indianvisitation will reach340,000 annually by
2007, with TIEVexpected to be US$ 1
billion
Kesari Entered theAustralian market:
significant rise in theinbound tourism from
Australia
India's travel servicesexports to Australia
have been risingconsistently,
increasing by 12 percent in 200809. They
represent India'slargest services export
to Australia.
The GOI opened anIndian Tourism officein Australia (Sydney)
in 2007, while theAustralian
Government openeda Tourism Australiaoffice in Mumbai in
2008, and theAustralian State of
Queensland has alsoopened a tourism
office in India.
IndaA
ent
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TOWS MATRIX
Internal Factors
Externalfa
ctors
Strengths (S) Weakness (W)
Opportunities (O)
SO Strategic options
Expansion into newer
exotic locations.
WO Strategic options
Diversification through
vertical integration,
considering economicdownturn as an
uncertainty
Threats (T)
ST Strategic options
Innovation in product
development to
differentiate its
product from
competitor
WT Strategic options
Improving the Online
booking facility to
cope up with future
demands
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Problems faced by Kesari
CompetitionKesari is facing tough competition from very big players like Cox and Kings, Thomas Cook, Kuoni etc. as they have entered In
becoming established players in the Indian Markets (international giants with deep pockets )
Market is becoming highly concentrated : There are about 6000 big and small players in the tourism market consisting of touand tourist transporters
Internal Strife In 2013 Kesari Tours faced a management crisis in its leadership. Veena Patil who was Managing Director of the company a
leave her position from the company due to so cal led misuse of the company assets.
Fluctuating Exchange RateDemand for international tourism was highly exchange rate elastic.
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Foreign Exchange Rates
During the 2008-09 sub-prime crises when tourism across the world suffered heavily. During this period, aall the other countries showed negative growth in outbound tourism.
They focus more on inbound tourism in Australia so that the royalty earned adds more value to the revedollar is far more stronger and stable than Indian rupee.)
2008 2009 2010 2011
Australia 37.01 38.22 41.96 47.95
NewZealand 31.00 30.65 32.93 36.77
Oman 113.74 125.21 118.61 120.67
Ireland 64.14 67.36 60.58 64.65
U.S.A 43.78 48.37 45.66 46.46
30.0040.0050.0060.0070.0080.0090.00
100.00110.00
120.00130.00
Exchange Rate
2008 2009
Australia 143340 149074
NewZealand 29688 30876
Oman 31703 32971
Ireland 18484 19223
U.S.A 795327 827140
10000110000210000310000410000510000610000710000810000
910000
Tourists Inflow
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Recommendations
The company should pursue Transnational Strategy by obtaining the benefits of value network that better suits the local nations, e.g.. It should cater to the ageiU.K.
To maintain its position as innovator in Tourism, we would like to suggest the follo
Event based TourismTennis Grand Slams, Auto-Expos, Super bowls etc.
Curated Tours
Wonders of the world tour.
Concentrate on forward vertical integration by acquiring hotels in the most ope