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International Business 3310

August 1, 2016

Provided By:
Daniel Ayenew
Aaron Brewer
Elizabeth Deleon
Jill Mills

Table of Contents
Section 1 Introduction/Mission Statement
Section 2 Background Analysis
2.1 - Internal Analysis
2.2 - External Analysis
2.3 Market, Cost, Competitive and Technological Drivers
2.4 Assessment of our Product
Section 3 Tourism Segment
3.1 European Market
3.2 North American Market
3.3 Asian Market
3.4 African Market
Section 4 Strategy Diamond
Section 5 Marketing Mix
Section 6 Organizational Structure and Design Considerations
Section 7 Product and Pricing Strategy
7.1 Service Selection for Target Market
7.2 Pricing Strategy
Section 8 Summary
Section 9 - References

Section 1 Introduction/Mission Statement

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At face value, See the World is an e-commerce travel and tourism booking
engine. However, going beyond the traditional aspects of such a product,
See the World seeks to engage consumers through social media integration
and a mobile gaming component. By merging consumers virtual demands
and real-to-life experience gratification, See the World will revolutionize the
approach to travel and recreation. Through our actuality-based geocaching
and geotagging platform, our goal is to promote and facilitate the tourism
and travel industries, both domestically and abroad, in the markets in which
we operate
Section 2 - Background Analysis
Internal Analysis
Strengths of our company include business owners with a passion for travel
who also have a strong competitive drive. That describes the market we are
going after and the business we are creating. Our organizational resources
include experienced international travelers.
External Analysis
Statistics from the World Tourism Organization (UNWTO), the United Nations
agency responsible for the promotion of responsible, sustainable and
universally accessible tourism, show that tourism is one of the fastest
growing economic sectors in the world. In 2014, international tourist arrivals
grew by 4.3% to 1.133 billion and international tourism generated US$ 1.5
trillion in export earnings. (World)
Market, Cost, Competitive and Technological Drivers

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Market Drivers: As stated in our external analysis, the market for tourism
continues to grow and expand. The statistic that it is one of the fastest
growing economic sectors in the world is a market driver.
Cost Drivers: Promoting, arranging and selling tourism packages through
electronic means, mainly our smart phone application, and working in
tandem with existing industry vendors will provide low startup costs and
ongoing limited overhead costs. The innovation and quality of our unique
geotag-embedded tour packages and travel challenges will increase the
perceived value of our business. Our ancillary revenue stream of analytics
available via our business intelligence data will be a cost driver of growing
importance as the popularity of our app increases.
Competitive Drivers: There are plenty of other companies offering travel
or tours. This will drive See the World to be unique in our companys
offerings. We will provide an experience that other possible competitors
do not offer. Our social media integration and, in particular, our
technologically addictive smart phone application, will entice and incent
buyers to use our services. Additionally, we will use celebrity
endorsement campaigns to bring attention to our offerings and to further
promote and market our product/services.
Technological Drivers: The popularity and ease of use of smart phones and
apps is our main technological driver. It was the Instagram app that
initially inspired this business concept. There are a multitude of Instagram
users who regularly post beautiful and intriguing travel photos from
around the world, many from countries that travelers may not have
previously thought of travelling to but add to their travel bucket list once
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they view the many beautiful photos of it. The wildly popular app
Pokmon Go was also an inspiration to us. People thrive on competition
and a challenge and will gladly travel to obtain it. The idea to incorporate
the two, travel and competition, or to inspire and incent, is the driving
force in creating See the World.
Assessment of our Product
Supplier Power: Our suppliers would be mainly hotels, airlines, and other
modes of travel, such as trains. We plan to operate in countries with
ample choices of suppliers. Building strong supplier relationships will also
be strategic to our business.
Buyer Power: Since tourism is one of the fastest growing sectors in the
world, travel buyers are plentiful. Also, since our travel experience will be
unique, buyers will not have as much leverage in driving costs down or
dictating terms.
Competitive Rivalry: There are plenty of travel agencies in the world, but
See the World will not merely be a travel agency. We will provide a unique
total package experience unlike any other current competitor.
Threat of Substitution: We will be providing our services through a unique
software product which will deliver both convenience and adventure to
the buyer. Buyers would be able to get many of the same tangible
products (travel), if they were to use alternate suppliers, but they would
not be able to receive the same full experience as our product and service
will provide.
Threat of New Entry: We will only operate in countries (markets) that
welcome tourism and appreciate it as part of their economic base. This

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will lower our entry time into a market and to begin operating. Protecting
our unique technology will reduce threat of new entry from competitors.
Section 3 National Differences
European Market
There are a total of 48 countries in Europe. It is often divided up into two
distinct areas, Western Europe and Eastern Europe. However, 27 European
countries are in the European Union and they are from both Western Europe,
such as France, and Eastern Europe, such as Poland, which means the
political barriers arent as relevant as they were even twenty years ago. Not
all of the countries are considered politically stable at this time. We plan to
market only the politically stable countries of Europe. The continent of
Europe is filled with mainly first world countries that are economically sound.
Tourism is an important part of most of the European economies, which
means tourists are welcome to travel throughout the majority of Europe. You
only need a passport to travel throughout Europe. The majority of their laws
are similar to the laws of the United States and other western cultures, which
makes Europe more travel friendly for western tourists. There are many
distinct cultures, histories, and landscapes to explore in Europe. The
distinction in cultures also includes a variety of languages, foods, and arts.
This will be one of the stronger drivers of our business. Our initial mode of
entry will mainly be through joint venture with lodging accommodations,
transportation providers, and tourism bureaus located in the countries to
which we will provide tour packages.

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North American Market

The North American market consists of the Canada, Mexico and the United
States. Canada and the United States are both first world countries with
stable political economies. Both countries will provide an abundance of
locations and a relatively safe travel environment. Since the United States
will be See the Worlds domestic market, we will use geotags for all fifty
states to simultaneously increase our customer base, brand awareness, and
economic viability. The most recent Mexico travel warning posted by the
United States Department of State published on April 15, 2016, reports many
U.S. citizens being victimized by organized crime. With that said, travel
within Mexico will be limited to high tourism cities like Cancun, Cozumel,
Mexico City, Cabo San Lucas, and Playa del Carmen. Our mode of entry will
be similar in each market, through joint venture partnerships with reliable
pleasure destinations, sites of historical significance, and various adventure
Asia Pacific Region Market
The Asia Pacific Region incorporates a wide geographic area from Australia
and New Zealand though the Pacific nations, Asia proper, as well as India and
other select parts of the Middle East. According to The World Bank, East Asia
and Pacific accounted for almost two-fifths of global growth in 2015, more
than twice the combined contribution of all other developing regions. (East)
In parallel with other global market segments, specific destinations with
ongoing political/sociological turmoil will not be targeted for business activity.

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As such, our initial mode of entry will utilize the Southeastern portion of the
overall region. Our ability to partner with cruise lines will be pivotal to our
success in this particular domain. In addition to the intrinsic magnetism to
this particular mode of travel due to the water-based terrain, our collecting
features of the app will coincide well with the multiple destination booking
strategy of cruise lines, meaning our applications will add value to the
practice of porting at different locations each day of the trip, allowing for a
variety of achievements to be fulfilled along the way, thereby creating
demand with a positive feedback loop as players/travelers become more
engaged with See the Worlds platform.

African Market
Africa is the second largest continent as well as second most populous. It
consists of 54 countries, divided into 5 regions, with countries identified as
being Eastern, Western, Central, Northern, and Southern Africa. The
continent has extremely beautiful landscape in both hemispheres. Most
regions are stable, and tourism has seen the fastest growth within these
areas. The Sub-Saharan Africa region has generated over $36 billion in
tourism revenue alone. Starwood, a major hotel chain, is are increasing
itstheir African hotel investment by adding more than 3000 rooms to their
portfolio. Depending on the region, current prices for a 7-day tourist package
are north of $5,000 per person. This presents an extremely attractive
opportunity for our company to capitalize on high- yield supply chains. A few

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popular countries for tourism include Tanzania, Kenya, Namibia, Zimbabwe,

Ethiopia, Zanzibar, Botswana and, until recently, Egypt. The aforementioned
countries are just the tip of the iceberg, with most of the continent
experiencing tourism. Understandably so as for the majority of these
countries, tourism vitalizes the local economy. Africa has a unique appeal for
many travelers. From the Dakar Rally, an automotive race through the
Saharan Desert that attracts motorsport enthusiasts, to Mount Kilimanjaro, a
dormant volcano that attracts climbers and site seers to Tanzania, the
breadth of experiences that Africa offers through tourism are abundant.
Stability of governments, safety and security, as well as bureaucracy and
other administrative problems do exist in certain regions. Some of these
variables have hampered and interfered with growth in travel and tourism
related activities on the continent. For instance, The Dakar Rally has been
rerouted and even cancelled due to war. Nevertheless, there are plenty of
offerings that do not contain these types of threats to the industry. Typically,
when tourism is confined to one country at a time, the risks are reduced as
opposed to multi-country efforts such as The Dakar Rally. As such, See the
Worlds mode of entry will emphasis particular care in choosing booking
destination in this regard.
Section 4 Strategy Diamond
Arenas: Our company will focus on global destinations, with special
emphasis on the bundling of special services. The economic conditions
will determine the various services/packages available to the customer.
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Our company will provide a combination of services consisting of

adventure tourism, recreation, and attractions. The packaging of these
services in a unique and custom manner, especially for millennials, will be
the edge we strive to achieve.
Vehicles: The company will form partnerships with local providers in major
destinations, and aims to pre-fill their services through contracts for lower
prices. This process includes securing contracts for our major services
such as local transportation services, hotels, tour agencies, resorts, and
venues. There will be a technology platform that will gather all pertinent
information price, location, and interest that the agents will use to
customize a package or let customers choose a la carte.
Differentiators: The most important part of the travel destination business
is the enjoyment and experience of the package; this is where our
company will excel. All package that are put together will be experienced
by our agents. They will meet the guides, experience the activities, and
see the sights. In the beginning phase of the company, we will select only
a few special locations and create packages around them. There will be
several variables that could be changed within the package i.e. romantic
or adventurists settings, but the core will remain the same.
Staging: After the beginning destination packages are perfected and our
agents experienced with what they are truly selling. For cost and liability
purposes, we will start with regions that are most stable for tourism. The
second phase will be exposing our agents to more locations and
expanding as networks and relationships are firmly established. Third, we
will embark in enriching the website and mobile app with firsthand
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information from our agents, advertising aids, and interface with other
providers to share information as well as refer clients.
Economic Logic: As stated in the vehicles of our approach, the point of
entry into the business will be by providing special experiences at
reasonable and affordable prices. The premium packages will be priced
per the uniqueness, as they are custom made for each participant. For our
company, it is a way to establish relationships with local service vendors
to financially benefit both sides by increasing our visibility in the space.
Our introduction prices will carry a small margin as the loss leader. We will
increase revenue through the variable upsells of the premium products.
Section 5 Marketing Mix
Product: At our core, See the World is an online travel agency.
Additionally, through our smart phone application we will establish an
advertising platform to be utilized by industry related vendors to promote
their products/services. Finally, through the mining of metadata we will
compile industry leading business intelligence statistics in order to market
to potential clientele.
Price: From the perspective of the end consumer of the app our services
are free.

Industry standard commission fees (baseline of 10%) will apply

to any relevant bookings via third party vendors, including but not limited
to; lodging accommodations, airline/rail bookings, car rental/services, food
and beverage reservations, and recreational appointments. Additionally,
a wide variety of sponsored travel and tourism advertising packages will
be sold. Naturally the value received by degree of exposure within the

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platform will be commensurate with price. Offerings ranging from pro

bono National Parks & Wildlife location identifiers and collectable geotags
to be embedded within the app to high cost customizable travel
challenges directed at driving repeat business through long-term
engagements via the app will be available. Finally, our business
intelligence data will act as an ancillary revenue stream. As popularity of
the app increases so too will the demand for our analytics. Modest initial
returns in this arena are expected; however, every user click expands our
sample size allowing for the purification of consumer modality within the
context of the industry.
Promotion: The primary vehicle to promote our product will be social
media integration. The geocaching facet of the application will entice
users to upload their achievements onto their personal social media
accounts. Embedded within these achievement posts are geotagged
informational links. These informational links will drive new users to the
See the World App and consequently our product/services. Additionally
co-marketing campaigns will be utilized with our supply chain
stakeholders. Finally, a traditional sales force will be implemented to
market each revenue stream individually.
Place: Logistically we are an E-Commerce based entity. More specifically
we are geared to the mobile market segment, classifying ourselves as
qualified for gaming, social media, travel, and retail considerations.
Stakeholder relations can be maintained remotely, allowing for cost
control measures to be utilized when establishing any necessary PP&E

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assets. Additional consideration will be made to any jurisdictions that

would offer opportunities to leverage tax relief on income and local

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Section 6 - Organizational Structure and Design Considerations

See The World uses a flat horizontal organizational structure to foster
creativity and allow employees to respond quickly to consumer demand.
Since, See the World is primarily an online travel agency we want our
employees in each market to be able to quickly organize travel packages to
destinations, concerts and even political events that are trending. Without
the tall structure with many levels of management our employees have the
authority to organize travel packages while following simple guidelines. This
will allow each market to capitalize on the demand and interest in their
respective market. The design structure of See the World is very simple the
president will get direct reports form all of the directors. The president of See
the World is an active and experienced travel that likes to have a part in the
steering the company and helping to create new ideas. The directors will
work directly with all of their staff members. The marketing department will
have one additional layer of management to ensure we provide each market
with the attention required to run efficiently. The head of each market will
then have the number of staff member required for each division.

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Section 7 Product and Pricing Strategy

Service Selection for Target Market
As mentioned in Section 2 our target markets are North America, Europe,
Asia and Africa. We chose very broad markets in the beginning of our
company to help facilitate worldwide travel. Across these markets See the
World will engage in differentiated marketing providing unique benefits to
each segment. As our company grows we will zoom in on specific markets to
deliver even more attention. We will focus on consumer markets and have
specific advertisement for all demographics. Travel and tourism are popular
across all demographics offering a large customer base.

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Pricing Strategy
As mentioned earlier in the marketing mix, See the World will charge a 10%
commission fee to lodging accommodations, airline/rail bookings, car
rental/services, food and beverage reservations, and recreational
appointments. See the World will be one of the few traveling companies that
offer quantity discount to encourage more customers to travel. This will
provide consumer with more incentive to purchase flight and will help bring
in additional revenue. Final prices will be odd number pricing with the idea
that consumers will believe they are getting a bargain deal. Another feature
of the See the World App is once consumers search for a destination they will
be able to see a comparison of the same trip from a competitor at a higher
price. Moreover, we will offer travel insurance option for an additional cost
which will allow customers a little flexibility in case of an emergency.
Section 8 Summary
The scope of the travel industry is changing rapidly, and increasingly
consumers are making travel arrangements through their mobile devices.
Whether they discover desirable destinations through a friend that just
shared a picture on social media or are e-mailed special offers, travel to and
knowledge of worldwide destinations have become easily accessible. Making
travel packages that tap into that potential by increasing its market
penetration through a more actively engaged consumer base will be a great
way to infiltrate the travel market and gain a respectable share. As the
evidence indicates, there are many untapped areas for us to justify this
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business endeavor. The broad nature of the tourism industry allows for an
array of options on packaging. See the Worlds business model is reliant
upon the ability to develop relationships with our future partners. Our
purpose is to capitalize and serve this populous with an attractive and
fulfilling experience.

About the Africa Tourism Data Prortal (n.d.). Tourism Data for Africa.
Retrieved July 25, 2016 from http://tourismdataforafrica.org/
Africa Tourism Monitor (n.d.). African Development Bank. Retrieved July 23,
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Africa Tourism Report 2013: More Tourists Visit Africa Each Year, Boosting
Economic Growth and Making the Continent Competitive with Other
Regions. (n.d.). The World Bank Retrieved July 28, 2016 from
East Asia Pacific Economic Update, April 2016: Growing Challenges. (n.d.).
Retrieved July 31, 2016, from

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Tours to Asia, Africa, South America (n.d.). Enchanting Travels. Retrieved July
27, 2016 from http://www.enchantingtravels.com/tours-trips/?
United States of Americas Department of State (2016, April 15) Mexico Travel
Warning. Retrieved July 26, 2016, from
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Asian tourism. London: Routledge.
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