The Research Of Shanghai Clelo International Travel Service Co.,Ltd For Strategy

As the sunrise industry which features low-carbon and environment friendly with the support of Chinese government, tourism gained the dramatic increase in market size along with the development and prosperity of Chinese economy in past ten years. The strategic role of tourism has been fortified and it has increasing effect on promoting urban economy, creating more jobs and influencing culture and environment positively. However, the competition in tourism market has been intensified in China and travel agencies have experienced crisis and challenges. Domestic travel agencies not only compete with major international travel group but also withstand the pressure from internal reform. As the medium to small size travel agencies which account for great percent of total tourism market, they are facing many issues and challenges, such as scale of enterprise, channel deployment, brand value,talent pool etc. These issues put small to medium size travel agencies into competitive disadvantages and greatly restrict the improvement of the overall competitiveness of domestic travel agencies.Under such competitive environment, how to survive and seek development is the key question for most travel agencies. Bit by bit improvement is one solution; but from long term perspective to resolve the survival and development problem for travel agencies systematically, it is necessary to analyze the issue from holistic and strategic perspective to propose the solution.This article analyzes Shanghai Clelo International Travel Services Co,, Ltd, a typical small to medium size tourism enterprise which was established by the author and provides total solution to address the current issues of Clelo which include marked decline in performance, vague business positioning in market, inadequate staffing and funding, lack of strategic planning etc. It follows the order from macro to micro, external to internal by employing PESTEL analysis, Porter’s five forces model coupled with SWOT strategic matrix, SPACE strategic evaluation matrix and QSPM quantitative strategic planning matrix to conclude that Clelo must utilize market development, new product development and market penetration as overall strategy and propose respective strategy implementation plan.The intention of this article is to, by studying Shanghai Clelo Internal Travel Services Co., Ltd, analyze the management and operations issue of Clelo, streamline company development planning, make effective middle to long term strategy and guide company to establish its own competitive advantage in the modern tourism market which is full of opportunities and challenges so that company can develop sustainably in long term.