2GO Chapter 3

Part III- SWOT Analysis

Products and services Strengths  First to offer Luxury cruise locally 

Onboard entertainment



Affordable package deals

Weaknesses  Limited packages 

 Accessibility of their products Opportunities  Innovation of new products and

Threats  Other

services offered 

Ability

to

destinations 

Seldom offers super sale packages

alternative

for

transportation develop

new



Season or weather



Development of low-cost airlines

Increase target market 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  Convenient brand new facilities

Weaknesses  High maintenance cost for the

and amenities 

Availability

onboard Opportunities  Possible

facilities of

new

entertainment

facilities

and



Threats  Accidental

amenities offered 

Ability to increase price due to exclusiveness

Expensive add-on amenities

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 30

another weakness is the expensive add-ons the passengers may avail onboard. 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  Regular maintenance 



Permanence

Opportunities  Acquisition of larger cruise ship 

Weaknesses  High cost of ship maintenance Value depreciation of the ship

 Limited resources Threats  Rising cost of fuel

Attracting more passengers  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 32

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. 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  Corporate social responsibility

Weaknesses  Inefficiency of some crews



Anti-human trafficking





Well-trained managers and staffs

rules 

New staffs for ship navigation



Trainings

Cleanliness/Maintenance

of

ship Threats  Piracy

Opportunities  Recruitment of new employees 

Conformation of staffs to the house

for



Emergency/ Typhoons



Employees᾿ loyalty

supervisors/managers 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

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the

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. 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  Experience 

Serviceability

 Efficiency Opportunities  Team building

Weaknesses  Cultural diversity 

Lean season

Threats  Evolving regulations



Travel privileges





Training for employee promotion  Leakage of company operations Table 3.5 SWOT Analysis for Employees

Sea travel risks

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 36

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.

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 37

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.

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  Innovative design of ports 

Cleanliness

and

orderliness

Weaknesses  Lack of management strategy in ports

of

ports  Security Opportunities  Additional facilities 

Eco friendly infrastructure

Threats  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  Easy access via 2GO travel website 

Weaknesses  No Wi-Fi ashore 

Weak mobile phone signal

Scan and shoot

 Easy to contact Opportunities  Software updates

Threats  Hacking of 2GO travel website



Technology innovation





Operation Improvement  Fast evolution of technology Table 3.7 SWOT Analysis for Availability of Technology

Price increase 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. 42

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  Low Cost  High profitability and revenue Opportunities  Improvement on promos

Weaknesses  No fixed rate  Seasonality Threats  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.

Opportunities

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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  Empowered employees  Excellent Organizational

Weaknesses  Miscommunication

of

employees  Diversity of employees Threats  Law suits

Structure Opportunities  Empowerment of managers  Leadership Training 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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