Hanoitourist Corp. Strategy Analysis

HANOITOURIST CORP.
– STRATEGY ANALYSIS 10 Tháng Mười Một 2022
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HANOITOURIST CORP. – STRATEGY ANALYSIS 10 Tháng Mười Một 2022
TABLE OF CONTENTS
A. STRATEGIC ANALYSIS ............................................................................................... 7
I. External Analysis ............................................................................................................ 7
1.1. STEEP- Macro Environment...................................................................................... 7
1.1.1. S - Socio-demographic influences........................................................................... 7
1.1.2. T - Technological influences .................................................................................. 8
1.1.3. E - Economic influences ........................................................................................ 9
1.1.4. E - Environmental influences ............................................................................... 10
1.1.5. P - Political, governmental, legal and regulatory influences .................................... 11
1.2. Five Forces- Micro Environment .............................................................................. 11
1.2.1. The Threat of New Entrants:................................................................................ 11
1.2.2. The Threat of Substitute Products: ...................................................................... 12
1.2.3. The Bargaining Power of Buyers: ........................................................................ 13
1.2.4. The Bargaining Power of Suppliers: ..................................................................... 13
1.2.5. The Intensity of Rivalry Among Competitors in Tourism and Hospitality Industry: ..... 14
1.3. SWOT Analysis ....................................................................................................... 14
1.3.1. Strengths:.......................................................................................................... 14
1.3.2. Weaknesses: ...................................................................................................... 15
1.3.3. Opportunities: ................................................................................................... 16
1.3.4. Threats: ............................................................................................................ 17
II. Internal Analysis ......................................................................................................... 17
2.1. Business Model ....................................................................................................... 17
2.1.1. Overview about Hanoitourist Corporation ............................................................ 17
2.1.2. Vision, Mission, Values, Goals and Current Objectives........................................... 21
2.2. The Operational Context .......................................................................................... 29
2.2.1. Resources & Competencies ................................................................................. 29
2.2.2. Core Competencies ............................................................................................ 32
2.2.3. Competitive Advantages ...................................................................................... 32
2.2.4. Value Chain ...................................................................................................... 34
2.3. The Human Resources Context ................................................................................ 38
2.4. The Financial Context ............................................................................................. 41
2.5. The Products And Markets Context ........................................................................... 42
B. STRATEGIC SELECTION AND ASSESSMENT ......................................................... 46
I. Strategic Selection ..................................................................................................... 46
1.1. Current strategy .................................................................................................. 46
1.1.1. Theory .............................................................................................................. 46
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1.2.1. Analysis ............................................................................................................ 46

1.3. Conclusion.............................................................................................................. 49
II. Strategic Assessment .............................................................................................. 49
2.1. Bowman's Strategy Clock ......................................................................................... 49
2.2. Assessment.............................................................................................................. 50
C. STRATEGIC SUGGESTIONS ..................................................................................... 52
D. REFERENCES ............................................................................................................. 54
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TABLE OF APPENDIXS
Appendix 1: Hanoitourist Corporation’s

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main areas of business

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subordinate units

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joint stock / joint venture companies
Appendix 4: Hanoitourist Corporation –

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History
Appendix 5: Hanoitourist Corporation –

Summary of the brand portfolio & Selected 25
competitors
Appendix 6: Hanoitourist Corporation:

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Bases for competition
Appendix 7: Hanoitourist Corporation

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consolidated balance sheet (VND)
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LIST OF FIGURES AND TABLES
Figure 1.1: Population of Vietnam (2020

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and historical)
Figure 1.2: Vietnam Population Forecast 05
Figure 1.3: Porter’s Five Forces Model 09
Figure 1.4: Organizational structure of

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Hanoitourist Corporation
Figure 1.5: Porter’s Value Chain Analysis 32
Figure 1.6: ‘The virtuous circle’ linking

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human resources with business success
Figure 1.7: The Boston Consulting Group

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(BCG) Matrix
Figure 2.1: Bowman’s Strategy Clock 48
Table 1.1: Resources of Hanoitourist 28
Table 1.2: The VRIO framework for testing

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competitive resources of Hanoitourist
Table 2.1: Key features of generic

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competitive strategies
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A. STRATEGIC ANALYSIS
I. External Analysis
1.1. STEEP- Macro Environment

Hospitality is also one of the hardest-hit industries by COVID-19, after dig deep in
papers, here are some of the highlight ongoing changes as in worldwide and within Vietnam
scale, related to the STEEP model:
1.1.1. S - Socio-demographic influences

The growth Vietnam has seen in the recent past is expected to continue, however, at
an increasingly slower rate. By 2035, the population will be growing half as quickly as it is
today. It is projected that the Vietnam population will break 100 million by the end of 2022.
Figure 1.1: Population of Vietnam (2020 and historical)

(Source: Wordometer)
Figure 1.2: Vietnam Population Forecast

(Source: Wordometer)
About human resources: Now that things are almost back to normal, the
tourism and hospitality industry not only has to deal with changing consumer preferences and
expectations but also deal with vacant job positions. Despite being an exhilarating career path
with many avenues which demand a diverse skill-set, the hospitality industry is currently
finding it hard to fill open positions. This is partly due to the changing nature of jobs and
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employee expectations. It is widely stated that as travel died down during the pandemic, so did
jobs in the tourism and hospitality industry.
- According to a survey, 94% of hotels and travel agencies are
understaffed and 47% are severely understaffed. 96% of them are
trying to hire but aren't able to fill the open positions.
- Hotels will struggle with staffing shortages until 2025 when the
industry is expected to make a true adjusted recovery. .
- By the start of 2023, employment in hotels is expected to reach 93%
of pre-pandemic levels.
- According to the Vietnam National Administration of Tourism, the
industry requires 40,000 new hires and 25,000 retraining positions
each year at the current growth pace. However, the schools only
enroll 20,000 students each year, and only 43% of the total
workforce in the tourism industry is professionally trained, with
nearly half of those workers being unskilled in foreign languages.
About demographic: Different population segments play different roles in the travel
and tourism industry.
- 66% of millennials book their trips using a smartphone while 74%
use their mobile for travel-related research.
- 74% of millennial travelers have stayed in a rental property while
on a business trip compared to 38% of Generation X travelers and
20% of baby boomers. 44% of millennials stated they preferred
staying in Airbnb-style rentals while traveling for work.
- Gen X travelers are the most likely to splurge on a high-end
restaurant (18%, compared to 16% overall).
- Boomers plan to spend the most of any generation: at least $4,000
on travel in the next 12 months.
1.1.2. T - Technological influences

After two years of isolation, the desire to travel is as present as ever. What has
changed is not whether or if we desire to travel, but rather how. Today's travelers choose self-
service to wait to be served, and they demand technology-enabled simplicity at every turn. In
a Stayntouch/NYU Tisch Center of Hospitality Report, 81.7% of hoteliers polled had used at
least one new technology during the pandemic and/or planned to do so in 2022. It is crucial to
integrate technology into daily operations to reduce human error, increase service
effectiveness, and enhance the customer experience. Therefore, the industry has welcoming
some new trends as:
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- Companies are optimizing their business travel policies to support

sustainability goals as less travel also means less emissions. As some
kind of trips are now being transferred into hybrid, virtual.
- With the trend toward efficiency, sustainability and customization, IoT
(Internet of Things) empowers hoteliers to keep up. When installed in a
hotel room or short-term rental, IoT technology allows guests to
personalize their needs. IoT allows hoteliers and travel agencies to not
only tailor the experience to guests' needs but also anticipate them.
1.1.3. E - Economic influences

As things start going back to normal, plus changes in consumer expectations,
preferences and the rapid advancement of technology, some areas are seeing a bigger growth
rate:
- More people are traveling for bleisure, which is a combination of
“business” and “leisure” trip. By the end of 2022, this market segment
is projected to reach roughly half a trillion dollars in valuation.
- The global health and wellness market has reached an evaluation of 1.5
trillion dollars with a rate of 5-10% per year.
By Aug. 8, 2022, Vietnam’s economic recovery accelerated over the last six
months on the back of resilient manufacturing and a robust rebound in services. GDP growth
is forecast to surge from an estimated 2.6 percent in 2021 to 7.5 percent in 2022, while inflation
is projected to average 3.8 percent over the year, a World Bank economic update for Vietnam
released today says.
Vietnam’s economy expanded 5.2 percent[1] in Q4-2021, 5.1 percent in Q1-2022, and
7.7 percent in Q2-2022, as consumers satisfied pent-up demand and foreign tourist arrivals
picked up, according to the report “Taking Stock: Educate to Grow,” the World Bank’s bi-
annual economic outlook for Vietnam.
Vietnam has experienced a boom in both domestic and foreign tourism during the past
10 years, and is currently the third-fastest-growing tourist destination in the world.
- There were 20.5 million domestic tourists in 2008 and 80 million in
2018, whereas there were 4.2 million foreign visitors in 2008 and 15.5
million in 2018.
- Over the past few years, there has been a significant growth going from
an average of 9% each year between 2008 and 2015 to an average of
25% between 2016 and 2018.
Because economies are changing in diverse ways around the globe, Vietnam's local and
foreign visitors now have new preferences.
- According to Google Destination Insights, the number of people
searching for trips to Vietnam has significantly increased, thanks to the
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open-door policy. Google data shows that, compared to the beginning of

March 2022, there were roughly seven times as many foreign searches
for tourist lodging facilities in Vietnam in August 2022 and more than
three times as many international aviation searches. The most searched
destinations by the international community are all famous tourist
centers in Vietnam, including: Ho Chi Minh City, Hanoi, Da Nang, Phu
Quoc, Hoi An, Nha Trang, Da Nang DaLat, Phan Thiet, Hue, and Vung
Tau.
- On the other hand, from March to August 2022, there was a threefold
increase in the number of people searching for international travel. After
the pandemic, Vietnamese travelers prioritize visiting nearby Southeast
Asian destinations.
1.1.4. E - Environmental influences

Defined to become a key economic sector, Vietnam’s tourism industry depends
heavily on the natural environment. Therefore, for the sustainable development of tourism, it
is inevitable to follow the direction of green tourism. Keeping that in mind, Vietnam has took
serious actions as:
- At COP 26, the Prime Minister announced Vietnam’s commitment to
net zero emissions by 2050. Right after the event, Vietnam established
a National Steering Committee on Implementation of COP 26
Commitments headed by the Prime Minister. The Prime Minister has
requested all relevant ministries to study and develop programs to fulfill
Vietnam’s commitments. Vietnam issued a climate change strategy in
2011 that will be valid through 2030, with “a vision” to 2050, and it has
reviewed implementation for the 2011-2020 period. Vietnam is revising
the strategy to achieve the net zero commitment, with the new version
expected to be released by the end of 2022. The country is also updating
its Nationally Determined Contributions in line with its net zero
emission commitment.
- On October 1, 2021, Vietnam issued its National Strategy on Green
Growth in the 2021-2030 Period, with a Vision to 2050. The strategy
sets specific goals on GHG reductions and tasks various Ministries to
develop specific plans and strategies. The strategy also targets a 35%
green procurement proportion of the total public procurement.
- On February 7, 2022, Vietnam approved the National Biodiversity
Strategy for the 2021-2030 period. Vietnam will increase the size of its
protected and restored natural eco-systems under the new strategy,
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aiming to conserve and use biodiversity as a sustainable response to the

effects of climate change.
1.1.5. P - Political, governmental, legal and regulatory influences

Vietnam is a unitary single-party state, and its2 political and security
environment is largely stable. Protests and civil unrest are rare so that Vietnam is such an ideal
destination for all visitors.
1.2. Five Forces- Micro Environment

To understand further about the level of competition in the tourism and hospitality
industry, the theory from the Five Forces Model of Porter is used to analyze the features and
characteristics of the market. The model is shown as below:
Figure 1.3: Porter’s Five Forces Model
1.2.1. The Threat of New Entrants:

In tourism and hospitality, each year, multiple businesses appear and disappear shortly
after. However, there are still some new companies able to maintain their stand in the industry
and become a fearful force to long time existing businesses like Hanoitourist. Some of the
companies can be mentioned: SunWorld, PYS Tour, FLC… These companies not only operate
at the sector of tourism only but also in the area of entertainment, hospitality, transportation,
three of the areas that Hanoitourist all set their foot in.
In addition to the new physical companies that jump in the competition directly with
Hanoitourist, there are the appearance of e-commerce businesses that have been such a threat
to most tourism and hospitality in general and Hanoitourist Corporation in specific. With the
development of technology, many booking websites and applications have been founded both
nationally and internationally, offering a variety of tourism and hospitality services and product
selections to customers. Nowadays, people don’t even have to directly make communications
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with agencies and agents to receive a suitable recommendation of service or product, they can
easily customize the product to their wants and needs in no time with only their phone. And
while Hanoitourist have already developed their booking section on their official website, the
convenience and accessibility of booking websites and applications such as Booking.com,
Agoda, Traveloka, AirBnB… still attract the attention of the general public more start to pull
them out of loyalty for the company.
1.2.2. The Threat of Substitute Products:

With the fast-paced development of tourism and hospitality in industry and the constant
changes in people’s preference, wants and needs, various new forms of travel have appeared
and been executed by operators such as: eco-tourism, adventure tourism, wellness tourism…
creating such heavy pressure on the existed products that have been on the market for years,
especially with the products of Hanoitourist Corporation. Some of the most prominent
substitute products that Hanoitourist Corporation should take an eye on are:
- Self-served Travel Packages: The appearance of this tourism model originated from the
people who prefer to explore and visit one destination or attraction by themselves. With
this kind of traveling, there will be no pre-assigned local tour guide or any individual
that can assist customers throughout their experience after purchasing the package.
Instead, the customers will only receive lodging and transportation services, alongside
some entrance access to certain attractions as the bare minimum when booking a
package to a place. This model may seem like a simpler version of traditional tour
packages and is often overlooked by businessmen in this industry. However, among the
target customers who fall into the Gen Z group of people aging from 20-35 years who
like to explore and enjoy adventures, this model has become more and more popular to
the extent of being a prominent trend. By taking the market of young people by storm,
the Self-served Travel Model is now threatening the position of traditional tour services
offered by Hanoitourist, forcing the company into the situation of having to come up
with compact tour packages or customized tour packages in order to keep up with the
competition.
- Staycation Service: In the age of post-pandemic, staycation has soon become a major
travel trend among individuals who are unable to travel too far due to various reasons
and circumstances but still wish to have a vacation for themselves. Many hotels,
homestays and other lodging facilities have offered this kind of service to potential
customers with packages of entertainment, food and beverage, transportation services
combined with existing lodging services that these facilities usually offer. This kind of
service package would definitely be such a threat to some of Hanoitourist Corporation’s
traditional hospitality businesses and force them to find more creative and innovative
ways to attract potential customers as well as to maintain the loyalty of old customers.
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New services and products are ought to be created also because of the newly appearing
type of service.
- Major Central Entertainment Complexes: Not only the travel business and hospitality
business of Hanoitourist Corporation is heavily affected by the appearance of substitute
products but the entertainment business of the company is also in the same situation.
New major central entertainment complexes, invested by major companies and
corporations, have been appearing with different themes, styles and concepts, attracting
a great number of young people as well as the general public. Furthermore, with the
downgrade of Ho Tay Water Park (under the ownership and management of
Hanoitourist Corporation), the company is now ought to plan new strategies in order to
withstand the competition and maintain in the entertainment industry.
Due to the recently arose variety of needs and preferences, the customers may be more
willing to turn into the substitute products rather than choosing the traditional options offered
by Hanoitourist Corporation. The substitute products may work as the vehicles that drive
Hanoitourist to contribute much more effort on enhancing and developing their products as
well as making additions to diversify the product range the company has been offering
throughout the years. Only when Hanoitourist Corporation takes further actions on thoroughly
developing their business and have suitable strategy to keep up with the rapid changes of
customers requirements that the company be able to withstand and overcome this type of threat.
1.2.3. The Bargaining Power of Buyers:

With the situation of the Vietnam tourism industry having just started to recover from
the effects of COVID-19 pandemic, the bargaining power of buyers has not yet fully gained
back. Post-pandemic, while the pandemic is partially prevented, most tourism and hospitality
businesses still prioritize the domestic customers as they are still the most available segment
within the tourism sector. However, the needs of this group of customers is still fluctuating
with high frequency as the economy of Vietnam still receives such a heavy downturn as the
consequence of the isolated period caused by the development of COVID-19. The downturn
has not only led to the decrease of individuals' wage and bonus but also led to the discretion in
travel spending and forced businesses to lower their price. Altogether, those elements illustrate
the increasing power of customers. However, with the number of tourists and travel frequency
of people still slow to regain, the bargaining power of buyers in the Vietnam tourism industry
would probably need more time to fully recover to the original state pre-pandemic.
1.2.4. The Bargaining Power of Suppliers:

There are numerous reputable distributors such as Viet Nghi, Hotel Equipment Trading
& Service, Q industry, and Bao Gia Bao Foodservice Products,… It has the ability and
superior quality equipment, amenities and materials to be the supplier for tourism and
hospitality businesses across Vietnam and in Hanoi specifically. Hanoitourist Corporation is
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considered a major business in the industry, therefore, it would be an undoubted fact that there
would be a substantial number of other potential suppliers that can be the substitute for those
who fail to meet the qualifications at any time. As a matter of fact, the level of bargaining
power of suppliers in this case is low.
1.2.5. The Intensity of Rivalry Among Competitors in Tourism and Hospitality Industry:
The competition among tourism businesses, especially among travel operators in the
tourism and hospitality industry is quite intense, as there are multiple companies, large or small
scale, altogether operating simultaneously. Hanoitourist Corporation, by being among top 10
major companies in this industry, is still able to have quite a firm stand in the competition,
alongside other companies like Saigontourist, Vietravel… With other smaller companies and
businesses, the competition might seem difficult as people usually prefer working with bigger
firms because of their reputation and prestige. However, with the case of Hanoitourist
Corporation, the competition with existing rivals is not as hard as each party in this competition
has already had their own segment, target market and different group of customers to serve and
focus on.
1.3. SWOT Analysis

The SWOT analysis is a great means for people to understand further on the
competency of an industry in a local, which in this case, is Vietnam Tourism Industry. By
conducting the SWOT Analysis, we will have a greater amount of information that would
contribute to the process of evaluating not only the operation of the industry in general but also
the operation and strategy planning process of Hanoitourist Corporation in specific. The SWOT
matrix is presented below with all four factors, going accordingly: Strengths, Weaknesses,
Opportunities and Threats.
1.3.1. Strengths:
Favorable Geographic Position: It has long been a fact that Vietnam has the
advantage of great natural resources - the main consequence from being in such a favorable
geographic position. Long coastline distributed from the North to the South, various
magnificent beaches, islands, archipelagos and beautiful landscapes; these resources, alongside
the comfortable tropical climate, have made Vietnam a prominent destination for incentive
travel and wellness tourism and becoming a promising country that is able to attract a great
amount of foreign tourists from all around the world.
Long History - Rich and Diverse Culture: With over 4000 years of founding and
developing, Vietnam has been obtaining such a diverse and rich culture with various
meaningful traditions, culinary elite as well as an abundant religious life (like most of the
Eastern nations). The major factor that contributes to the enrichment of Vietnamese culture is
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the existence of 54 ethnic communities, each with distinct culture and cuisine features,
altogether creating a beautiful mixture of culture integration.
Stable Political Background: Decades after the years going through multiple
invasions and wars, Vietnam has been firmly maintaining the condition of peace throughout
the country, creating a favorable environment for the general development as well as the
development of tourism in specific. Moreover, by having such a stable political and security
background, it is easier for Vietnam to create an image of high openness in front of other
neighboring countries. With the participation in free trade agreements with developing and
developed countries, Vietnam has also opened multiple opportunities to thrive and grow fast
for the country’s economy as well as to increase the country’s influence on the world economy.
All of the progress regarding the economy of Vietnam would result in the advantage that
Vietnam tourism can receive for its own growth.
Fast-growing Economy: By being a developing country with a dynamic, fast-growing

economy, it is easier for Vietnam to invest more not only in infrastructure, large-scale resort
projects but also in high-class hotel systems and other major tourism businesses. Looking
further into the general national infrastructure system, by having an increasing amount of
investment, the transport infrastructure, telecommunications infrastructure and synchronous
service infrastructure will have the environment to develop and upgrade, which then
undoubtedly become a force that can well support the operation of the tourism and hospitality
industry. The fast-growing economy may also lead to the increase of individuals’ income,
therefore indirectly helping increase travel needs of Vietnamese people in the future.
Large Population - Young Labour Force: Vietnam has a large population of 98.17
million people by 2021, with 57% of that is made up by the labor force of the country. With a
huge and young labor force, Vietnam has the advantage of human resources not only in the
general economy but also in the tourism sector. The tourism industry is quite benefited from
this trait as the involvement of humans in this industry is deeper than any of the industries
operating around the country. The youth and hospitality of the Vietnam labor force would be
such a benefit for this industry and would help Vietnam to create a strong point in the eye of
foreign tourists.
1.3.2. Weaknesses:
Limited Diversity of Tourism Products: It is an undeniable fact that the tourism
industry in Vietnam has not yet got enough creativity to exploit the available resources of the
country. Lack of a night-time economic plan that may supply evening activities such as
gastronomy, entertainment, and culture. Due to the poor state of services, visitor expenditure
is much lower in comparison to other Southeast Asian nations. Furthermore, due to a low rate
of visitor return in recent years, international tourist loyalty has been extremely low.
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Infrastructure Fails To Meet The Demand: Despite investments in infrastructure, the

system still does not match the need for tourism development. Overcrowding and overload at
airports and metropolitan centers, as well as a lack of motorways connecting regions, have
hampered the "booming tendency" of the Vietnamese tourist industry in recent years. The
problem of traffic congestion caused by a huge number of passengers, as well as a lack of
connecting infrastructure, causes problems that might reduce Vietnamese tourism's
competitiveness.
Environmental Pollution: Environmental contamination is a concern in the tourist

sector and a glaring weakness in the Vietnamese tourism industry. Pollution causes food safety
issues and raises the expense of ensuring food safety inspections in order to attract tourists.
Shortage of Professional and High-class Human Resource: Despite a large labor

force, there is a scarcity of professional and high-class human resources. In general, business
management skills are yet to meet the competitive need and integration trend. Furthermore,
communication skills are one of the most major deficiencies among Vietnamese tourist
personnel. There is still a shortage of bilingual guides, and the present human resource barely
fulfills roughly 70% of the labor need.
1.3.3. Opportunities:
The Possibility of Attracting International Resources: The economy's high openness
strategy can assist to attract more and more foreign resources to Vietnam. Tourism, which is
linked to economic exchange activities and investment linkages, has the potential to attract
additional foreign financial sources to improve the tourism business system and lodging
infrastructure.
Increasing Interest from Global Tourists: Benefit greatly from the Asia-Pacific
region's rapid expansion. Southeast Asia is gaining popularity among international travelers,
which might have a favorable and considerable influence on the Vietnamese tourism industry.
Increased interest in Southeast Asian nations can provide excellent opportunities to capitalize
on the existing tourist resources in Vietnam.
Favorable Situation to Take Advantage of Stable Political Background: The

growing security insecurity in many significant territories and tourism markets throughout the
world is also a fantastic chance for Vietnam to capitalize on its society's stability to boost
foreign visitors arriving in the near future.
The Development of Information Technology (IT): The advancement of information

technology on the Internet platform, in the context of the Fourth Industrial Revolution, has
created tremendous opportunities for developing countries (such as Vietnam) to aggressively
and effectively promote images and tourism services, thereby promoting tourism development.
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1.3.4. Threats:
Raising Competitive Level In The Asia-Pacific Region: The degree of competition
from other Asia-Pacific countries is increasing. Vietnam's tourist sector is still in its early stages
of growth, with limited managerial capabilities, forcing the business to enhance its
competitiveness in order to catch up with the development of leading nations in the Asia-Pacific
region.
Complicated Natural Disasters, Deforestation & Destroyed Landscape: Devastated

landscapes, deforestation, natural catastrophes, and diseases have compounded matters in
Vietnam throughout the years. Many restaurants, hotels, and resorts avoid investing in waste
treatment systems as one of the sources of pollution in the marine and tourist environments.
Furthermore, the rising urbanization of the provinces poses significant hurdles to the
establishment of a Vietnamese tourist sector with an Eastern character. Finally, climate change
has created several concerns for tourist growth in some lowland locations, such as Vietnam's
Mekong Delta.
Income Inequality: Tourism growth has the potential to exacerbate regional economic
disparities. If the government does not implement inclusive economic development policies,
tourist expansion may be a factor contributing to social instability as a result of the conflict
between affluent and poor people.
The Instability of The Global Economy: The global economy's insecurity. There were
various financial and economic crises with ten-year cycles. In the setting of high levels of
globalization, Vietnam's tourism is vulnerable to worldwide economic crises. Furthermore, the
reliance on a single area is a danger to Vietnam's tourism, as the great majority of international
tourists to Vietnam come from Northeast Asia, accounting for 60% of all visitors in 2018.
The Risks of Community Health: The dangers to community health. Some infectious
disease outbreaks have expanded dramatically in recent decades, and as tourism and travel
activities increase rapidly, the worldwide spread of the diseases is projected to accelerate.
II. Internal Analysis
2.1. Business Model
2.1.1. Overview about Hanoitourist Corporation

In July 2004, the Hanoi People's Committee decided to establish the Hanoitourist
Corporation on the foundation of reorganizing the Hanoi Tourist Company, Hoang Long
Company, Co Loa Tourism and Commercial Company, and Hai Duong Tourism and
Commercial Company. The corporation’s operation and management are following the parent
and subsidiary company model. Hanoitourist Corporation is the parent company. It performs
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the tasks of production and business directly as well as implements the rights and obligations
of owners towards investment in subsidiaries, joint stock companies, and joint venture
companies.
Figure 1.4: Organizational structure of Hanoitourist Corporation
Appendix 1: Hanoitourist Corporation’s main areas of business

Main Areas Description
of Business
Travel Hanoitourist Corporation owns 3 prestige travel companies, including

Hanoitourist Travel Company, Hanoi Tourist Service Joint Stock Company
(Hanoi Toserco) and a Tourism Services Center under Hanoi Entertainment
Services Corporation (Haseco). Particularly, Hanoitourist Travel Company has
been awarded the “Top 10 International Travel Brand” by Vietnam National
Administration of Tourism; the Grade A1 – Top 5 companies with the largest
number of outbound Vietnamese tourists by Vietnam Airlines; Top 10 Travel
Company in Vietnam since 2003; The most Innovative Travel Product in 2017;
The Caravan tour across Vietnam – Laos; The Travel Company with the best
outbound service in 2017 by Vietnam Tourism Association and many other
esteemed awards.
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Hospitality Hanoitourist Corporation is a shareholder of five famous 5-star hotels in Hanoi

Capital: Sofitel Legend Metropole Hanoi, InterContinental Hanoi Westlake,
Pullman Hanoi, Hilton Hanoi Opera and Hotel De L’Opera. In addition,
Hanoitourist also has the following 3-4-star hotels: Hanoi Hotel, Thang Long
Opera, Thang Long Espana, Hoa Binh Hotel,… and a number of hotels in Dien
Bien Phu, Quang Binh, Mui Ne…
Office for rent Hanoitourist Corporation has a number of Office Buildings at golden locations
in Hanoi such as: 18 Ly Thuong Kiet (Hoan Kiem District); 273 Kim Ma (Ba
Dinh District), 157 Xuan Thuy (Cau Giay District). Hanoitourist also has an
Office Building at No.10 Hai Phong Street, Da Nang City.
Entertainment Hanoitourist Corporation has Ho Tay Theme Park (Tay Ho District), Big C
and Thang Long Supermarket, the Commercial and Tourism Service Center (No. 1
Commerce Ba Trieu).
Appendix 2: Hanoitourist Corporation’s subordinate units
Subordinate Units Link / Information
Hanoitourist Travel Company http://thanglonghanoihotels.com/
Trading and Manpower Supplying Company http://thanglonghanoihotels.com/
Hoa Binh Hotel http://hoabinhhotel.com/index.php/vn/gioith

ieu
Commercial and Tourism Service Center Số 1 Bà Triệu, Hoàn Kiếm, Hà Nội, Việt
Nam
Hoang Long Commercial and Service Số 15 phố Yên Phụ, Phường Yên Phụ, Quận
Center Tây Hồ, Hà Nội
Hanoitourist Corporation - Ho Chi Minh Số 72 đường Tôn Thất Tùng, Phường Bến
City Branch Thành, Quận 1, TP Hồ Chí Minh
The Midland Tourism Execution Office in 10, Hải Phòng, Phường Hải Châu 1, Quận
Da Nang Hải Châu, Thành Phố Đà Nẵng, Thạch
Thang, Hải Châu, Đà Nẵng
Appendix 3: Hanoitourist Corporation’s joint stock / joint venture companies
19
Joint Stock / Joint Venture Companies Link / Information
Tuoi Tre Investment and Services Limited Số 2 Trần Thánh Tông, phường Phạm Đình
Company Hổ, Quận Hai Bà Trưng, Hà Nội
Dan Chu Tourist and Trading Joint Stock http://hoteldelopera.com/

Company
Hanoi youth Tourist and Trading Joint Stock 2A Phố Trần Thánh Tông, Phường Phạm
Company Đình Hổ, Quận Hai Bà Trưng, Thành Phố
Hà Nội
Thang Long GTC Joint Stock Company http://www.thanglonggtc.com.vn/quy-

mo.aspx
Hanoi Tourist Service Joint Stock Company http://hanoitoserco.com.vn/
Metropole Thong Nhat Hotel Joint Venture https://www.sofitel-legend-metropole-

Company hanoi.com/vi/
Hanoi Entertainment Services Joint Stock http://www.congvienhotay.vn/

Company
Hanoi - Ha Long Tourist Joint Stock Đường Hạ Long - Phường Bãi Cháy - Thành
Company phố Hạ Long - Quảng Ninh
Dien Bien Phu - Hanoi Hotel Limited 849 7 Tháng 5, Phường Mường Thanh,
Company Thành phố Điện Biên Phủ, Điện Biên
Hanoi - Quang Binh Joint Stock Company 47 Nguyễn Hữu Cảnh, Phường Hải Đình,
Thành phố Đồng Hới, Tỉnh Quảng Bình
Hanoitourist Taxi Joint Stock Company Số 105 Láng Hạ, Phường Láng Hạ, Quận
Đống Đa, Thành phố Hà Nội
Bao Viet Tourism and Hotel Joint Stock Đường 706B Đồi Cát Bay, Khu phố 5,
Company Phường Mũi Né, Thành phố Phan Thiết,
Bình Thuận
Hanoi Commercial Service Joint Stock Số 2 Chương Dương Độ, Phường Chương
Company Dương, Quận Hoàn Kiếm, Thành phố Hà
Nội
20
Village Limited Company Dự án làng Đoàn Kết, Phường Nhật Tân,
Quận Tây Hồ, Hà Nội
Appendix 4: Hanoitourist Corporation – History
Year Activity
1963 Hanoitourist Corporation is Hanoitourist Corporation’s forerunner and was

established on 25/3/1963.
2004 Hanoitourist Corporation was established pursuant to the Prime Minister's

Decision dated 01/6/2004 and Decision dated 12/7/2004 by the Hanoi People’s
Committee. Its operation and management follow the parent - subsidiary model,
in which the Hanoitourist Corporation was formed as its parent company and
other tourist companies in Hanoi as its members.
Now Up to the present, Hanoitourist Corporation has become a distinguished business

with over 21 members and subordinate units, joint stock companies, joint
ventures with foreigners and domestic entities with thousands of personnel.
Hanoitourist Corporation has the leading position in the field of tourism and
hospitality. It is a member of many prestigious domestic and international
tourism associations such as: PATA, VITA, ASTA, JATA, USTO and in
hundreds of domestic and foreign partners’ networks.
Hanoitourist Corporation has received many esteemed awards such as the Top
10 Travel, Tourism Company award in 2017 organized by Vietnam Report and
Vietnamnet; Hanoitourist’s booth at Vietnam International Travel Mart has been
chosen as the most impressive and best-selling booth over the six past years.
Hanoitourist Corporations has become a strong, multi-industry, multi-ownership
company and is highly competitive with a high level of international economic
integration. Hanoitourist's prestige, quality, efficiency and brand are getting
more recognition both domestically and globally.
2.1.2. Vision, Mission, Values, Goals and Current Objectives

Vision
“Developing Hanoitourist comprehensively and sustainably, becoming one of the
leading corporations in the capital and the whole country, playing a leading role in the
field of tourism business according to the development strategy of the Capital's tourism
21
industry. Hanoitourist is a strong and prestigious brand in the country and in the
region.”
To evaluate the mission of Hanoitourist, we can use the list of factors that a powerful
vision should look like from Kantabutra and Avery (2010):
Conciseness: The vision of Hanoitourist is quite easy to understand and communicate,
however, the mission is too long for people to have an impression and remember.
Clarity: We can easily point out the main idea of the vision is to become one of leading
corporations in the capital and the whole country.
Future orientation: The mission of Hanoitourist does not contain any one-time,
specific goal or productivity targets but long-term targets for the organization (developing
comprehensively and sustainably, becoming one of the leading corporations, playing a leading
role in the tourism business field).
Stability: As mentioned above, these goals from Hanoitourist’s vision are long term,
therefore, they require a long period of time for the corporation to achieve them.
Challenge: All of these goals are not easy to achieve, they require a lot of effort from
the employees and board of directors, however, the outcome will deserve everything they have
been working for. Therefore, the vision will be a great motivation for the employees to work
their best.
Abstractness: The vision of Hanoitourist does not have specific data or time, so it will
allow the corporation to have a long-term strategy and also allow each employee to show their
own capability to achieve goals.
Desirability or ability to inspire: These goals can be considered as these top goals of a
tourím corporation. A leading corporation in the tourism industry can bring many benefit to the
employees, which are the direct inspiration for the employees to dedicate their best to their
corporation.
Mission:
“Promoting the leading and pioneering role in providing the society with high-quality
tourism products; building brand reputation by the trust and satisfaction of customers,
constantly improving business efficiency and competitiveness of Hanoitourist.”
To evaluate the mission of Hanoitourist, we can use the list of factors that a effective
mission statement should contain from Stone (1996):
Clearly articulated: The mission of Hanoitourst goes straight to the point and uses easy-
to-understand expression. We can see clearly that Hanoitourist have 3 missions to achieve,
which are promoting the leading and pioneering role; building brand reputation and improving
business efficiency and competitiveness.
Relevant: The mission of Hanoitourist tied to the long- lasting history and the “leading
bird” title of the corporation. Since they already have a stable base, they need to develop from
that base to make their business more successful, therefore, the mission is mostly about
“promoting” and “improving”, which is suitable with their history and culture.
22
Current: The mission of the corporation is still applicable to the current time, when the
tourism business is re-starting to develop in the post pandemic.
Positive in tone: The mission constantly uses words that show the development and
growth, including: promoting, building, improving, which can be the motivation for the
employees to dedicate.
Individual: Hanoitourist’s mission is not really individual and has something different
from others. The mission of the corporation is still theoretical and not based on their strengths
and weaknesses yet.
Enduring: The mission of the corporation is very flexible since it can be used in
different periods of times. The corporation will always need to improve their competitiveness
and efficiency as well as consolidate their pioneering role since there will be new competitors
appearing from time to time in the tourism industry.
Values:
Take the leading role, focus, dominate, and link the activities of the subsidiaries
according to the development strategy of the Capital Tourism industry in each period and the
annual business plan of the parent company-Hanoi Tourism Corporation and its subsidiaries
assigned by the City People's Committee.
Organizing production and business activities in a variety of industries in which the
main business is international and domestic travel; business hotels; transporting tourists;
business travel services; investment; and joint ventures with economic organizations at home
and abroad to develop tourism infrastructure and tourism services. In addition, Hanoi Tourism
Corporation also performs the functions of production, business and investment in the fields
of: trade, finance, ... serving the task of tourism development and the socio-economic
development association of the capital.
Current Objectives:
Finance
- The objective is a healthy financial condition with assured solvency, no debt imbalance
or loss, and the maintenance and growth of the State's capital.
- Examine consumption standards for raw materials, fuel, materials, commodities, and
services directly utilized in production and business operations as a foundation for
establishing fair consumption norms to lower production costs.
- Manpower allocation is reasonable to effectively use human resources, save labor costs,
and encourage highly skilled and professional employees.
- Appropriate use of both electricity and water; examine, and if necessary, replace,
machinery that has a high power consumption with machinery that has a lower power
consumption.
- To divest money from other enterprises when the corporation's contributed capital is
inefficient, has a low rate of capital contribution, or where participation in the business
growth direction is challenging.
23
Products
Continue to invest heavily in the core business lines, which have competitive
advantages and a market such as: international and domestic travel; business hotels, restaurants,
and catering:
a. Development of tourism products
- In each period, a product development strategy is produced based on national tourist
planning and Hanoi tourism planning, as well as market research in tourism, hotels,
entertainment, and other services.
- Differentiate and specialize in the tourism products that the corporation's travel business
units offer, avoiding many duplications and competitions with one another.
- Invest in the development of a diverse range of tourist products in the country's capital
and other areas. Concentrate on researching, assessing, and investing in traditional
Hanoi tourist products.
- Research and development of road tourism in Indochina, China, in addition to air travel.
- Create product chains based on themes such as time, places, culture, sports, and so on.
b. Improve the quality of services and products
- Standardization of professional skills and technical rules in the tourist sector is being
widely implemented, with the goal of progressively building a set of standards and
business styles for the organization.
- Researching and implementing new technologies in tourism, hotels, and travel to
tourism activities efficiently uses information technology to business. Building a
business strategy for tourism and internet services step by step
Marketing
a. Marketing:
- Develop marketing strategies, organize marketing research by product and service
topics, do market segmentation,...
- Focus on markets like Southeast Asian countries (Thailand, Malaysia), Korea, Japan,
and China, as well as markets with high affordability, like Europe, the United States,
and Australia. Potential markets include the tourism markets of India, Eastern Europe,
South America, the Middle East.
- Domestic market: to enhance the exploitation of the domestic market segment with high
affordability, holiday tourism, and so on.
b. Promote, advertise:
- Develop and implement a public relations (PR) strategy; promote and develop
relationships related to business development and tourism. Building a strong brand and
image for Hanoitourist in the domestic and international tourism market
- Strengthen advertising activities for brands and products on all media, focusing on
communication via the internet.
- Research and develop advertising services and tourism advertising.
24
- Coordination with dependent units and member companies to organize joint advertising
activities and corporate events.
- Research and organize to participate in domestic and foreign travel fairs and
exhibitions.
c. Brand development:
- Building and implementing brand strategy in the period of 2021 to 2025.
- Synchronized with other component strategies to enhance Hanoitourist brand value.
- Appropriate measures to protect the brand and raise brand awareness throughout the
entire corporation
- Properly invest in the brand development of the corporation.
Human resources
- Effectively apply Vietnamese tourism skill standards, train and assess the profession to
meet the Vietnam Tourism Professional Certification Council (VCTB) certification
standards.
- Develop policies on selection, sending, and recruiting personnel for training at home
and abroad for a limited time.
- Focus on training and retraining at units or thematic organizations according to the
corporation's program.
- Survey, associate, form a joint venture, or establish a new tourism practice training
school in order to create quality human resources suitable to the corporation's business
and meet the needs of infrastructure development, technology, and business expansion.
- Cooperate with reputable tourism vocational training institutions in contributing ideas
to training programs; specify the quantity and quality of labor to be recruited; arrange
internships and internships for students, thereby recruiting new qualified workers to
meet enterprise needs.
Technology
- Upgrading a number of hotels that have not yet met the standards and converting the
functions of some qualified buildings into hotels.
- New construction of accommodation facilities at some of the corporation's existing
locations
- Finding land locations capable of building hotels, accommodation facilities, and
tourism services in Hanoi, the expanded Hanoi area, and other provinces. Research
effective plans for investment.
- Participating in the capital contribution or acquisition of existing tourism projects or
facilities, reorganizing business, and enhancing the value of these units.
Management - operating
- Reviewing, revising, augmenting, and polishing the organizational and operational
charter, the system of internal rules, regulations, and regulations, and the completion of
staff work regulations
25
- Training and developing human resources: formulating policies, selecting personnel to

train for a limited time at home and abroad, focus on training and retraining at units or
organizations according to the corporation's program; Constantly exploring and
innovating staff training methods and boldly applying new training forms in staff
training Coordinate with reputable training organizations to open training courses to
create quality human resources, meet the needs of developing technical facilities, and
expand the business of the corporation.
- Completing the development strategy for the period of 2021-2025 with a vision for
2030, with a focus on in-depth investment, improvement of facilities, and quality of
human resources; arrange and perfect the organizational model, management, and
administration apparatus in the direction of streamlining and specialization;
- Apply corporate governance principles according to international corporate governance
practices; strengthen internal control;
- Promoting the research and application of science and technology and implement
solutions to increase labor productivity and reduce costs in production and business
activities;
- Strengthen the responsibility, authority, inspection, and supervision of the corporation
for the representatives of the corporation's capital in other enterprises.
Among six categories of current objectives, the key issues are lying in the product and
human resources.
Products:
- To "thaw" a consumer base that has been "frozen" for a significant amount of time due
to the COVID-19 pandemic, Hanoitourist have to develop new approaches to the
manufacturing of their products.
- Aside from marketing and improving their products, travel companies need to rethink
how they do business and how they interact with their customers.
- People's needs for tourism are very diverse and always in development; to meet that
need, travel businesses need to have a plan to develop their products, bring to market
the best new products to attract customers, and increase their competitive advantage.
Human resources:
As a result of the COVID-19 outbreak, numerous foreign travel companies had to
request for their licenses to be canceled. A substantial number of tourist enterprises were forced
to shut, forcing the majority of direct and indirect workers to change careers. Furthermore, the
inability of tourism students who graduated from university in the last two years to find jobs
has made the recruiting task of training institutes difficult. This has created a difficult-to-fill
manpower shortfall in tourism, leaving companies still struggling to survive the epidemic in a
position of "sitting on the fire" and compelled to find a means to rescue themselves. To
minimize the disruption of labor resources, some businesses actively plan training plans,
equipping employees with new knowledge and skills to meet the requirements of tourism in
26
the new normal, in addition to finding ways to streamline the apparatus, transform business
models, and restructure job positions to retain key personnel.
CURRENT OBJECTIVES ASSESSMENT:
- Capable of being simply transmitted down the line to the employees and other internal
and external stakeholder groups.
- Internally consistent, in accordance with the overarching organizational mission,
operational objectives, and strategy for accomplishing established goals.
- Quantitative capabilities are not yet clear enough to be measured, and it is difficult to
assess whether objectives have been achieved.
- Expressed in exact language that is clear and unambiguous in regard to both the defined
aim and the time frame.
- A few objectives are unlikely to be met within the estimated period.
-
Appendix 5: Hanoitourist Corporation – Summary of the brand portfolio & Selected
competitors
Brand Segment Description & Positioning
Vietravel tourism; aviation - transport; Since 1995, Vietravel has

trade - services worked hard to become
Vietnam's top tourist brand.
Vietravel has received
several local and
international travel
organization and news
agency accolades for its 18-
year dedication to providing
high-quality services that
meet every client's needs and
continual innovation to assist
customers. USTOA, ASTA,
PATA, ATTA, JATA, and
IAGTO are among
Vietravel's global travel
organizations.
Saigontourist Hotels and Resorts; Travel; The precursor of

Gastronomy; Saigontourist Group, City
27
Entertainments; Training Tourism Company, was

program formed according to
Decision No. 04 / QD-UB of
the HCMC People's
Committee and began
operations on August 1,
1975. This is the first
tourism company of the city
with 236 employees
managing hotels, operating
travel services, and
providing ships.
Saigontourist Group is
currently the leading tourism
group in Vietnam, managing
more than 100 hotel units,
resorts, restaurants, tour
operators, amusement parks,
tourism training schools,
exhibition and conference
venues, golf courses and
cable television channels...
Appendix 6: Hanoitourist Corporation: Bases for competition
Category of Hanoitourist Main bases for Hanoitourist Corporation’s competitive

Corporation offering
Corporation guests Brand name

Recognition and Reputation
Location
Customer satisfaction
Quality of service
The ability to earn and redeem loyalty program points
Management and franchise Value and quality of management services

agreements Brand name recognition and reputation
Ability and willingness to invest capital
28
Economic advantages
OVERVIEW ASSESSMENT:
- Fields of operation, travel and hotel are core strengths of Hanoitourist. Besides,
Hanoitourist always actively participates in many social and humanitarian activities
such as: supporting the Fund for the Poor, supporting flood compatriots, responding to
the gratitude movement, voluntary blood donation, ...., with the aim of being
responsible for business goals in the community.
- After 55 years of establishment and development, Hanoitourist has become one of the
"leading birds" of Vietnam's tourism industry, affirming its increasingly solid position
in the fields of hotels, travel and entertainment, business entertainment, office rental
and commercial.
- The products and services of Hanoitourist are always appreciated for their quality,
reasonable prices, and professional service style. Proof of this are the awards and titles
that Hanoitourist has achieved in recent years: the travel agency with the highest sales
of air tickets since 1999; top 10 prestigious travel and tourism companies in Vietnam
in 2017; continuously in the past 6 years, won the award for the enterprise with the most
effective booth size and sales at the Vietnam International Tourism Fair (VITM Hanoi);
Top 10 of Vietnam's tourism industry for many years in a row, voted by the National
Administration of Tourism.
2.2. The Operational Context
2.2.1. Resources & Competencies

Resources
No Resources
Hanoitourist Resources
category
Over 30 affiliated units, member companies, joint stock

Physical
1 companies, joint- venture companies associated with
resources
domestic and foreign.
Gaining profits from real estate (office leasing) and

entertainment & commerce fields also.
Financial
2 Holding shares of 5 most famous 5-star hotels in Hanoi:
resources
Sofitel Legend Metropole Hanoi, InterContinental Hanoi
Westlake, Pullman Hanoi, Hilton Hanoi Opera and Hotel
29
De L’Opera.
Almost 6,000 experience employees

3 Human resources Extensive staff training and advancement opportunities
Clear and transparent salary system
High brand awareness after more than 50 years of

developing.
Customer loyalty is achieved through their conscientious
Intangible
4 way of working and many prestigious awards: being in
resources
the top 10 best international travel service businesses, top
10 best domestic travel service businesses in Vietnam for
many years….
Table 1.1: Resources of Hanoitourist
We can use the VRIO Framework of Jay Barney to test the competitive resources.
No Value? Rare? Costly to Capable of being Competitive Comparative

imitate? exploited by the implication economic
organization? performance to be
expected from the
resource
1 Yes - - Yes Competitive Normal

parity
2 Yes - Yes Yes Temporary Above normal

competitive
advantage
3 Yes No No Yes Competitive Normal

parity
4 Yes Yes - Yes Sustainable Above normal

competitive
advantage
Table 1.2: The VRIO framework for testing competitive resources of Hanoitourist
30
All four resources bring value to the corporation, which allow Hanoitourist to choose
the suitable strategy to exploit opportunities.
Physical resources: The number of physical resources of the corporation is not really
outstanding enough compared to their competitors to create a significant competitive
advantage. Companies that are considered as their rivals, Vietravel and Saigontourist for
specific, are holding a considerable number of member companies also, therefore, this can only
create a fair competition between Hanoitourist and their competitors.
Financial Resources: Hanoitourist Corporation and their competitors are both
shareholders of 5-star hotels in Vietnam and have some investments in entertainment services.
However, Hanoitourist also gain profits from the real estate field, which help them to gain more
profits and can be exploited into the competitive advantage by the corporation if they could use
the suitable strategy.
Human resources: The competitors, just like Hanoitourist, have large and talented
staff with stable organizational structure. Therefore, human resources can only create a fair
competition for Hanoitourist when being compared with other companies.
Intangible resources: This can be considered the most feasible resource for
Hanoitourist to turn to a sustainable competitive advantage. They are a Government- based
corporation with a long-lasting history that no company can imitate. If the corporation uses a
suitable strategy to take advantage of the available intangible resources, they can make them
into competitive advantages that are unique and sustainable.
Competencies
Ensured Quality: With 50 years of founding and operating, Hanoitourist Corporation
has been organizing many tours with different prices for tourists with different needs both
international and national ones. The experience in doing tour operations would ensure the
services from Hanoitourist would all have high quality from material to tour guide, bringing to
customers the best experience in the destination and throughout the trip.
Variety of Services and Products: Addition to the tour booking service, Hanoitourist
also provides other tourism services to customers. including car rent, airplane ticket booking,
boat booking.
Experienced Service Providers: Tour guides of Hanoitourist are all very experienced,
knowledgeable, and well trained, whích can deliver high quality service to the customer. The
company ensures that training sessions are held periodically to practice skills for their
employees.
Flexible and Beneficial Service/Goods: With a dense and long-lasting business
network, Hanoitourist Corporation can offer their customers different options with
accommodation, entertainment destinations, .... with flexible and beneficial prices for
customers.
31
2.2.2. Core Competencies

The first core competency of Hanoitourist Corporation is their long-standing history.
This is fundamental, but also a very important and value competence for the company. With
16 years of operation, it has built itself a strong position in the industry. The company always
focuses on and prioritizes customer experience first, with a team of experienced staff,
Hanoitourist has become a similar brand in the eyes of tourists.
The second core competency can be mentioned is that Hanoitourist Corporation is seen
as “the leader of the flock”, a strong tourism brand of Hanoi and Vietnam. The predecessor of
the company was the Hanoi Tourism Company (1963), which was mainly responsible for
welcoming and serving international guests of the Party and the Government. After more than
50 years of development along with the country, up to now, “the leader” of the capital’s tourism
has been constantly growing and creating a prestigious brand both nationally and
internationally.
2.2.3. Competitive Advantages

Competitive Advantages
The first competitive advantage that can be found in Hanoitourist Corporation is that
the business has the leading position in the field of tourism and hospitality. The business has
had over 50 years of founding and developing as a national corporation with a stable reputation
in the markets of: international tourism, hotels, restaurants, transportation, labor export… With
such a long business history, Hanoitourist Corporation has the advantage of credit amongst the
public audience, therefore has a bigger chance of being chosen by personal individual
customers as well as other groups and organizational customers when it comes to tourism and
hospitality service. The prestige of being a long-standing foundation in the tourism and
hospitality industry also ensures a firm stand for Hanoitourist in the competition with
newcomers.
The second competitive advantage regarding the founding and operation of

Hanoitourist Corporation is that the business is assigned by the Vietnamese Government as a
pilot state enterprise operating based on the model of parent company - subsidiary. In particular,
according to the government decision no. 99/2004/QĐ-TTG, issued on June 1st, 2004,
Hanoitourist Corporation, a state enterprise founded based on the integration of the previous
businesses which are Toserco Company, Hoang Long Company, Co Loa Tourism &
Commercial Company and Hai Duong Tourism & Commercia Company, is assigned by Prime
Minister to start operating as a pilot enterprise of the parent company - subsidiary model. This
shows that Hanoitourist Corporation is not only a normal enterprise but they are state business
individuals that have been assigned directly by the government themselves for such unique
business model practice. This would help Hanoitourist in gaining trust from the general
audience as well as the prestige among competitors in the industry.
32
Furthermore, Hanoitourist is also a member of numerous prestigious domestic and

international tourism associations including PATA, VITA, ASTA, JATA, USTOA… as well
as hundreds of domestic and foreign partners’ networks. The corporation has also received
multiple religious awards such as the Top 10 Travel, Tourism Company award in 2017
organized by Vietnam Report and Vietnamnet and the booth of Hanoitourist at Vietnam
International Travel Mart has been chosen as the most impressive and best-selling booth over
the six past years. This emphasizes the high awareness that the corporation has gained
throughout the years and the credit that Hanoitourist has built in the industry.
In addition to the credit and achievement that create the competitive advantage in terms
of reputation and popularity, Hanoitourist Corporation also has the advantage in the financial
resource and the market penetration as they has not only been doing the business in the field of
tourism and hospitality but also in fields like real estate (office leasing) and entertainment &
commerce. This would help ensure and diversify the income sources for the corporation
regardless of the high season or low season and assist Hanoitourist in surviving through periods
of market freeze (such as in the midst of COVID-19 pandemic). Nevertheless, by having shares
in 5 of the most famous 5-star hotels in Hanoi and over 30 affiliated units, member companies,
joint stock companies, joint- venture companies associated with domestic and foreign
businesses, Hanoitourist Corporation has the advantage of holding a bigger piece in the cake
of the tourism and hospitality industry. With this advantage, Hanoitourist Corporation would
easily withstand competition with new market penetrations from smaller foundations,
regardless of their unique selling points or differentiation compared to the business as they not
only hold a big portion in the industry in general but they also hold a diversity of niche markets
and segments in tourism and hospitality and can easily reach multiple different types of
customers, partners, suppliers… for their business’ development. The wide range will also help
Hanoitourist Corporation in meeting customers’ expectations, needs easier as they can offer
diverse services and products for each type of customer accordingly. The bigger scale of the
business in the industry will also ensure the higher chance in winning major business deals for
Hanoitourist Corporation when they have to compete with other competitors in and out the
industry.
Last but not least, with the human resource of almost 6000 individuals with mostly
experienced employees, Hanoitourist Corporation has built a stable labor source that can take
up a huge amount of work and efficiently execute large scale tasks for customers and partners
that Hanoitourist Corporation works with.
Competitive Advantage Assessment
As we can see, the competitive advantages presented above by the Hanoitourist

Company are mostly not as much of a difference compared to other tourism and hospitality
33
enterprises existing within the national industry. However, the crucial advantages that help
Hanoitourist Company and its subsidiaries to remain superior towards other competitors are
the fact of them being a pilot state enterprise in the tourism and hospitality industry, supported
by the government as well as being a member of numerous prestigious national and
international tourism associations. These two advantages not only help Hanoitourist to gain
trust and to build a prestigious image in the eye of both national and international tourists but
also help the corporation to have further support in terms of physical resources as well as
financial resources and reputation from the government and authorities themselves. The
support from the government will also ensure Hanoitourist a firm stand within the national
tourism and hospitality industry.
2.2.4. Value Chain

Due to the specificity in the operation model of the tourism and hospitality industry, the
value chain model of businesses in this industry will be quite different compared to other
industries, and even different among the types of businesses within the industry themselves.
With the case of Hanoitourist, the Value Chain model of Porter will be used to analyze both
primary and support activities of this business.
Figure 1.5: Porter’s Value Chain Analysis

Primary Activities
Inbound Logistics: To operate and offer various tour packages in multiple destinations
across the country as well as several foreign destinations, Hanoitourist not only utilizes the
subordinate units under their ownership to carry out the tour services but also makes
34
collaboration with different partners in providing transportations, lodging services, travel

attraction access, F&B service, oversea travel services, .... The partners include Vietnam
Airlines, Jeju Air, Sofitel Metropole Hanoi, .... All of the product offers from the partners will
be compiled by Hanoitourist themselves into suitable travel schedules and packages that will
then be offered to the company’s customers.
Operation: Like most of other tour operators, Hanoitourist's main form of business is
to be one of the major tour operators in the area of Hanoi and Vietnam. The mother company
- Hanoitourist Corporation, in general, is currently having the ownership of 3 travel companies,
with Hanoitourist Travel Company being the biggest one among them. The three travel
companies, under the ownership of Hanoitourist Corporation, provide not only domestic tour
packages in many forms and types (Destination Package, Holiday Package, Travel Combo,
...…) but also international tour packages in East Asia, Europe countries as well as Australia,
the USA, ...…
Other services that Hanoitourist Corporation also offer to customers from their
subordinate units include yacht rental, entertainment services, visa service, lodging and airline
service, MICE travel service, ...…
Logistics/Outbound: Hanoitourist Corporation’s products are not only widely

distributed across their multiple platforms, both offline and online (service centers, travel
agency offices, company’s official website, ...…); but also offered and distributed by
Hanoitourist Corporation’s partners’ physical offices, online booking websites & applications
as well as through intermediary individuals who work as collaborators/unofficial employees
for the company.
Hanoitourist Corporation’s Service Centers & Offices: Hanoitourist’s Commercial &

Tourism Service Center, Hoang Long Commercial & Service Center, Hanoitourist Corporation
- Ho Chi Minh Branch, The Midland Tourism Execution Office in Da Nang.
Marketing & Sales: Hanoitourist Corporation promotes their company as a

“distinguished business” that “has the leading position in the field of tourism and hospitality”.
The image is constantly emphasized through the received awards, certifications and
qualifications that the company presented on newspapers, online news as well as on various
posts on their official websites.
Currently, besides the official website of Hanoitourist Corporation, the general public
are also reached through their social media accounts on multiple platforms such as Facebook,
Instagram, Youtube, Twitter and Pinterest. However, the active frequency of the brand on each
platform is vary and the company is mostly on the three main platforms which are Facebook,
Instagram and Youtube.
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The company also takes part in being a sponsor in various major social and tourism
events as a way to promote the brand to the general public.
Service: Besides the main products and services offered and provided by Hanoitourist
Corporation, there are additional services that the customers can receive when making a
purchase. Here are some of the additional services:
+ Local tour guide: When purchasing a tour package, customers will be provided
with at least 1 local tour guide that will go with them throughout their trip at the
destination.
+ Travel insurance: Each customer will be provided with individual travel
insurance when purchasing any tour product.
+ Entrance fees: With attractions that require entrance fees to visit and explore,
the expenses will be included in the tour package and pre-paid when customers
go on a tour operated by Hanoitourist.
Support Activities
Procurement: By holding shares in 5 most famous 5-star hotels in Hanoi (Sofitel

Legend Metropole Hanoi, InterContinental Hanoi Westlake, Pullman Hanoi, Hilton Hanoi
Opera and Hotel De L’Opera), Hanoitourist Corporation can obtain a number of available
rooms for their lodging service offered in the tour packages with a discounted price compared
to individuals making single purchase.
This also happens in the case of airline transportation, by being a partner with both
national and international major airlines like Vietnam Airlines or Jeju Air, Hanoitourist
Corporation can obtain multiple flights with preferential prices. The company will also be
prioritized to book flights for their customers in some fixed travel destination according to the
partnership term with each airline.
With the case of travel attractions, by having three tour operation businesses under their
ownership, Hanoitourist Corporation will be able to obtain free entrance access for tour guides
(in some attractions) and a discount on entrance fees for customers.
Human Resource Management: To this date, Hanoitourist Corporation has almost

6000 employees, distributed throughout 6 departments with the majority of them having
university/college degree or even higher levels of education. This shows that Hanoitourist’s
employees have a great base of education as well as professional skill and knowledge.
Alongside the employees in charge of products and services selling, Hanoitourist Corporation
is now incorporating technology on the booking process through their official website.
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Hanoitourist Corporation also has the responsibility to manage over 30 affiliated units,
member companies, joint stock companies, joint- venture companies associated with domestic
and foreign, including 3 to 5-star hotels, established tourist centers, leasing offices, ...
Products & Services Development: After the development of the COVID-19

pandemic, the company is now trying to diversify their tour products by adding more long-
staying tour packages as well as enhancing their international tour packages, looking to operate
tours in more foreign countries. Hanoitourist Corporation has also been developing their MICE
tourism packages at many of the major MICE destinations across Vietnam. They have also
been developing the safety homestay and safety caravan service according to the situation of
the pandemic and post pandemic.
Technology & System Development: Hanoitourist Corporation is now focusing on

developing the booking system in their official website, as well as incorporating technology
into the process of customer information database management.
The confirmation process and communication between the company and their
customers are now happening mostly through email as a way for the company to shorten the
time of informing their customers as well as a faster way to stay in touch with the customers
throughout the process of purchasing products and services.
Infrastructure: The structure of Hanoitourist Corporation is fixed throughout the year

with the highest level being the board of members & board of directors, who then have the
control over 6 departments in charge of different aspects inside the business include: Personnel,
Finance and Planning, Investment and Development, Building Management and Business,
Administrative and Service Quality Control. By having departments for these 6 matters, the
company will be more active in dealing with problems facing each aspect. The decision making
process will be more direct as each department will receive the complaint or problem according
to their matters, finding suitable solutions then sending them out to the board of directors and
board of members for permission. The communication can happen from the higher levels to
the lower ones or in contrast.
Value Chain Assessment
Through the analysis of Hanoitourist Corporation, it is recognized that all of the primary
activities of Hanoitourist’s value chain are used to increase and maintain the “Margin of Value’
(as demonstrated in the graph of Porter’s Value Chain) (Porter, 1985) while the support
activities work behind as a backbone that backup for such margin as well as the success of the
corporation.
First of all, with primary activities, as Hanoitourist Corporation operates as a multi-

faceted business in the industry of tourism and hospitality, appearing in multiple fields and
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markets, it is understandable when all of the primary activities have been working
simultaneously to the extent of being cohesive as if they are a whole. Each primary activity can
give out such a stable and effective outcome while supporting other activities with their needs
and wants in the operation process. With this kind of linkage, incorporated with the advantage
of operating for around 50 years, Hanoitourist has been able to maintain its image of being the
leader in this industry. These features also help Hanoitourist to create differentiation
advantages of their business towards their competitors which are: linkages among activities,
interrelationships between activities (support-coexisting relationship) and better service given
by greater scale business. However, Hanoitourist can still consider obtaining its cost advantage
by reducing the cost in some of its outsourced transportation services in the Inbound Logistics.
As Hanoitourist Corporation has already owned the Hanoitourist Taxi as well as some of the
boat/yacht and car rental services, they can consider developing these services into larger scale
and take advantage of these resources to operate transportation services exclusively for their
tour packages and other travel services. Other than that, Hanoitourist still owns a variety of
cost advantages towards other tourism and hospitality businesses as they have been working in
multiple fields and obtain their financial resources through multiple channels at once.
With support activities, while the primary activities work upfront simultaneously to
ensure the external efficiency, which can be measured by “customer satisfaction and market
share” (Wright and Race 2004), they work at the back as a foundation to support the
corporation’s in matters of operating, customers satisfying as well as products and services
developing. The infrastructure as well as management process involved in the act of
purchasing/retrieving, technology and human resource have given Hanoitourist a firm
foundation to withstand the competition within the industry. For the products and services
development process, this is a need not only for Hanoitourist but for any business operating in
the world as this not only ensures the quality of existing products/services but also would help
the organization to diversify, scale increasing the products and services range with new and
upgraded products/services.
Hanoitourist Corporation is the sole example of how prestige and long years of
operating can bring about advantages to a business in terms of operating, developing and cost
relating matters. They are also an example of how an effective and suitable long-term strategy
can keep a business in their process of non-stop growth in such a competitive industry like the
tourism and hospitality industry.
2.3. The Human Resources Context

Human Culture
Up to now, Hanoitourist Corporation has almost 6,000 employees with 6 departments,

including: Personnel Department, Finance and Planning Department, Investment and
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Development Department, Building Management and Business department, Administrative

Department and Service Quality Control Department.
Function of each department:
Personnel department: Advising the director on teamwork organization, personnel,

salary, emulation, employees training, administration and management of the company, ....
Finance and Planning department: Advising the director on finance, accounting,

statistics, long-term and short-term business plans. Monitoring the management, use and
preservation of the company’s business capital.
Investment and Development department: Formulating and organizing the

implementation of development strategies, long-term, medium-term plans and annual plans of
the company.
Building Management and Business department: Carrying out research and

development of the company’s product and developing the development strategy for the
business activities.
Administrative Department: In charge of managing and storing incoming and

outcoming correspondence of the company, receiving letters, handling documents as well as
performing a number of other tasks related to administrative work.
Service Quality Control Department: Advising and assisting the Director in managing,
organizing, implementing and monitoring activities related to tourism expertise of affiliated
units and member companies.
Quantity Percentage
Total employees 5562 100
Higher education 71 1.27
University 4210 75.7
College 1071 19.26
Unskilled labor 210 3.77
Table 2.3: Hanoitourist’s labor structure by qualification in 2019

(Source: Labor report of Personnel Department)
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The organization has a high quality staff with the majority numbers of employees with
university and college degrees. This proves that the board of leadership of Hanoitourist attach
great importance to the base of the employee and the training of staff in order to improve their
professional skills as well as improving the quality of the service.
Service quality can be viewed as an important strategy for gaining a competitive

advantage in firms leading to business success. Service quality is determined by the quality and
attitude of owners, managers and employees – the human resources – as a service industry
quality depends on a range of human skills adopted during the service encounter. Nigel Evans
(2015) described the link between the human resources and the business success in service
organization via a “virtuous circle”.
Figure 1.6: ‘The virtuous circle’ linking human resources with business success
Based on the “virtuous circle”, we can see that one of the most critical successful factors
of Hanoitourist is human resources. Hanoitourist Corporation has a tight and clear
organizational structure, where departments are closely related and interact with each other.
The company always focuses on the quality and organizes professional training sessions, as a
result, they have a team of highly qualified, experienced and loyal staff, who are more likely
to deliver services of high quality. Since the quality of services offered is high they are likely
to be valued by customers leading to customer satisfaction and loyalty, leading to the creation
of a competitive advantage. As a result, the success of the business allows for additional
resources to be deployed in rewarding existing people and recruiting additional people.
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Organization culture
The culture is important because it can and does affect all aspects of an organization’s
activities. It can have an influence on employees motivation, productivity and efficiency, the
quality of work, ....
Based on Miles and Snow’s typology about organizational culture types (1987),
Hanoitourist Corporation can be seen as the prospectors type, which are organizations that
enjoy the challenge of developing and introducing new products to the marketplace. The
tourism industry in Vietnam is a dynamic and always-find-the-chance-to-grow industry, to
integrate and stand out in the market, the company always finds the opportunity to promote
digital transformation, apply technology in management, administration, product sales, tourism
promotion, thereby improving the business performance and efficiency. Within more than 50
years of development, Hanoitourist Corporation has had over 30 affiliated units, member
companies, joint stock companies, joint- venture companies associated with domestic and
foreign, including 3 to 5-star hotels, established tourist centers, leasing offices, .... and opened
branches in many other cities, such as Ho Chi Minh City, Mong Cai. Despite certain
achievements, the company is always looking for opportunities to further develop in many
fields of the tourism industry, creating competitive advantages so as not to stay ahead of the
competitors and attract more and more tourists with different travel purposes.
2.4. The Financial Context

Appendix 7: Hanoitourist Corporation consolidated balance sheet (VND)
2019 2020 2021
Total current assets 1.418.783.434.303 1.393.879.149.365 1.331.905.120.724
Total fixed assets 1.800.766.514.558 2.156.777.567.637 1.788.674.793.222
Total assets 3.219.549.948.861 3.550.656.717.002 3.120.579.913.946
Total current 363.399.106.960 542.700.133.794 263.876.897.808

liabilities
Total stockholders’ 2.856.150.841.901 3.007.956.583.208 2.856.703.016.138

equity
Total liabilities and 3.219.549.948.861 3.550.656.717.002 3.120.579.913.946

equity
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According to the 2021 Financial Statement released by Hanoitourist Corporation, the

company goes into business with the Charter’s Capital of VND 2,850 billion, the Owner’s
Equity (by 31/12/2021) is VND 2,857 billion and the Basic Construction Capital (by
31/12/2021) is VND 72.9 million. By the date of 31/12/2021, the company has received VND
128,217 billion in Revenue From Pure Sales Of Goods and Services. The Net Profit From
Business Activities of the company falls into the range of VND 122.05 billion while the
company’s After-Tax Profit is VND 117.278 billion. In terms of debt, the total amount of debt
of the company (by 31/12/2021) is VND 263,876 billion, with the Short-Term Debt taking up
VND 107.923 billion and Long-Term Debt is VND 155.953 billion.
While we may witness the situation of decrease in the revenue as well as the profit of
Hanoitourist Corporation, this is considered an understandable and inevitable situation as the
business in specific and the whole tourism and hospitality industry in general has gone through
a long period of being postponed, freezed and unable to operate by the development of COVID-
19. Throughout the 2 years of 2020 and 2021, the negative effect of the pandemic on the general
economy has made literally every single business to lose quite an amount of money. However,
the fact that Hanoitourist Corporation was still able to maintain their operation after all those
months has proved that the company has a stable financial foundation for the long run and
further development in the future.
Throughout the years of 2019-2021, Hanoitourist Corporation has been maintaining the
share of 51% on 3 different subordinate companies including Dan Chu Tourist and Trading
Joint Stock Company, Hanoi Youth Tourist and Trading Joint Stock Company and Hanoi -
Quang Binh Tourist Joint Stock Company. The Charter’s Capital of the companies are,
respectively, VND 260 billion, VND 5 billion and VND 239 billion. The Total Investments of
each company are, in turn, VND 132 billion, VND 2.5 billion and VND 122 billion.
When considering solutions to improve the financial state of the company, Hanoitourist
has aimed for a healthy, positive financial situation where the ability to pay is ensured, public
debt is well balanced, prevented from the loss and the capital assigned by the state is secured
and developed. The company has planned to divest from certain Joint Stock companies that
have the low efficient outcomes or low percentage of shares that Hanoitourist Corporation
holds.
2.5. The Products And Markets Context

Products
Some main products of Hanoitourist Corporation can be mentioned as below:
The first product of Hanoitourist Corporation is traveling service. The company owns
3 reputable and leading agencies in Vietnam, including Hanoitourist Travel Agency,
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HanoiToserco and Haseco Travel. In which, the Hanoitourist Travel Agency with many
consecutive years won the title “ Top ten international travel” of the National Administration
of Tourism, top 10 leading travel companies in VietNam since 2003, Unique Travel Product
Award 2017 by Vietnam Tourism Association and many other prestigious awards. In addition
to selling tours, travel companies also associate with other businesses and provide services such
as selling air, cruiser tickets, and hotel reservations for tourists.
The second product of Hanoitourist Corporation is hotels. The company holds the share
of 5 most famous 5-star hotels in Hanoi, including: Sofitel Legend Metropole Hanoi,
InterContinental Hanoi Westlake, Pullman Hanoi, Hilton Hanoi Opera and Hotel De L’Opera.
Moreover, they also own some 3 to 4-star hotels, such as Hanoi Hotel, Thang Long Opera,
Thang Long Espana, Hoa Binh Hotel and others in Dien Bien Phu, Quang Binh, Mui Ne, ....
The corporation also has world-class office buildings for lease in prime locations in
Hanoi: 18 Ly Thuong Kiet (Hoan Kiem District), 273 Kim Ma (Ba Dinh District), 157 Xuan
Thuy (Cau Giay District), no.10 Hai Phong Street (Da Nang City).
Figure 1.7: The Boston Consulting Group (BCG) Matrix
Based on the BCG Matrix, we can divide business products as below:
- Cash Cows: A product with a high market share in a low growth market is
normally both profitable and a generator of cash. Products under this category
usually follow stability strategies. Profits from this product can be used to
support other products that are in their development phase. For the Hanoitourist
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Organization, cash cows products might include holiday tours, day tours or
business tours, leasing office buildings.
- Star: Star products have a high market share of a rapidly growing market. They
are likely to absorb large amounts of cash, even if they are highly profitable.
Star products of Hanoitourist Corporation might be 5 star hotels shareholders,
international tours,...
- Question Marks: These products already have a foothold in a growing market,

but if market share cannot be improved, they will become dogs. Resources need
to be devoted to winning market share, which requires bravery for a product that
may not yet have large saleslong tours. The question mark products of
Hanoitourist Corporation might include entertainment projects, long tours,...
- Dogs: A product that has a low market share in a low growth market is termed
a dog in that it is typically not very profitable. So far, the dog products of
Hanoitourist could be mentioned include Hanoitourist Taxi,...
Market
Classified by nationality
- Foreign tourists:
Foreign tourists are classified based on their country of origin. For example, American,
Japanese, Chinese, French, etc. Due to the similarity in consumption characteristics, habits and
preferences of customers in the same country, the classification of visitors based on nationality
is convenient. great in customer service.
- Domestic tourists
Due to the characteristics of our country during the French colonial period, it was
divided into 3 periods (North, Central, and South) with different colonial policies along with
the development of the population. ethnicity, the characteristics of the inhabitants of each
region are relatively similar and have relative differences compared to other regions. On that
basis, HanoiTourist has classified domestic tourists into 3 categories based on North - Central
- South.
Classified by ability to pay
- The tourist market has the need to travel with the ability to pay for high quality service:
The customer market here is mainly the market of retail customers coming to the
company, and this market includes: "Backpackers" and high-ranking employees who come to
the company by themselves, without intermediaries. For guests with such a level of payment,
what these guests need from these companies is the quality of the program so that they feel
satisfied. Capturing that demand, the domestic tourism department of HaNoiTourist travel
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company will offer high-quality programs at reasonable prices to bring the best satisfaction to
this group of tourists.
- Guest market with affordability with decent program quality:
This guest market is people with status in society, they have a lot of money and go with
the purpose of learning to discover the wonders of the whole world. country.
- The tourist market with the average paying level:
The market where tourists often do not care much about the quality of the program as
well as the quality of the service, but simply participate in the trip. Visitors in this market are
many and they spend very little money while traveling, usually these guests are students,
students and business staff with average income. And this audience often goes in groups to
reduce costs during the journey.
Therefore, we can come to the conclusion about the target customer market of
Hanoitourist is:
- Retail customers come to the company.
- Tourists are foreigners. This object is usually backpackers, or foreigners working in the
territory of Vietnam
- Tourists are officials and employees of agencies, organizations, enterprises, schools...
- Tourists are student
In which the company still focuses mainly on the number of guests who are civil
servants because they have stable incomes and bring the most profits to the company.
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B. STRATEGIC SELECTION AND ASSESSMENT
I. Strategic Selection
1.1. Current strategy
1.1.1. Theory
Differentiation Cost leadership Focus
Aim Ability to charge a premium To be lowest cost supplier Either to charge a premium
price price or to be lowest cost
supplier in particular
segments of the market
How Superior product/service High volume sales As for differentiation or cost

Advertising and promotion Economies of scale leadership, applied to
Branding New technology particular segments
Distribution channels High productivity
Different locations Low cost inputs
Customer care Low distribution costs
Technology Low location costs
License/regulation
Strategy entails Changed perception Price equal to or below rivals Segments and consumer
Higher price than rivals Acceptable quality needs
Quality Advertising to sell high Choose differentiation or cost
Innovation volume leadership strategy for a
segment or niche
When to use Price insensitive Price sensitive market For firms not large enough to
Established position in the Market entry target whole market
market Firms possessing specialist
skills
Table 2.1: Key features of generic competitive strategies
1.2.1. Analysis
Strategy objectives
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Hanoitourist Travel is a state-owned enterprise with a leading position in the fields of:
International travel business, hotels, restaurants, transportation, labor export…
Hanoitourist has a network of 30 member companies, joint ventures - associates,
operating in 5 main fields: travel, hotel, office for rent, entertainment and commercial area.
Owning and operating many 3-5 star hotels, Hanoitourist has promoted the strengths of leading
hotel brands of the Capital such as: Sofitel Metropole, Hotel de l'Opera Hanoi, Hilton Hanoi...
The Party Committee and leadership of the Corporation have focused on directing the
units to upgrade facilities, train and improve the level of human resources; building diversified
and quality products in order to exploit the value and strengths of the capital's tourism as well
as promoting the construction of typical tourism products under the Hanoitourist brand,
contributing to making Hanoi an attractive destination for domestic and foreign tourists.
Hanoitourist is implementing many big projects, notably the 5-star Pullman Quang
Binh hotel, the multi-purpose entertainment complex (with the first racecourse in Vietnam) in
Soc Son district... hopes to create a new impetus for Hanoitourist in the period of 2020-2025.
About Party contributing, the management board will focus on improving the
leadership capacity and combat strength of Party grassroots organizations; build a strong
contingent of cadres and party members on par with task requirements. In terms of business,
the focus is on innovating the style of leadership and management. At the same time, promoting
the construction of typical tourism products under the Hanoitourist brand, contributing to
making Hanoi an attractive destination for domestic and foreign tourists.
Brand differentiation
- Understanding the customer:
Along with the economic progress in recent years, the purpose of travel firms has been
to expand and develop the domestic tourist industry. HaNoiTourist quickly recognized the
information and concentrated on this prospective market source in a variety of methods,
including propaganda and advertising operations for its tourist products. Create one-of-a-kind
and appealing travel plans based on visitors' financial capabilities and interests. Currently, the
number of domestic tourists visiting the firm is quickly increasing due to the prestige that the
company provides to its clients. The tourist market is the most essential aspect influencing the
HaNoiTourist travel agency's business plan creation process.
Currently, the company's domestic tourism department has separated clients into two
major categories: tourists with high affordability and tourists with low affordability. If the
market is pretty excellent and the tourist market has an average payment level, they typically
do not pay much attention to the quality of service but just participate in the trip. For each type
of market, the domestic department in particular and the company in general will offer
programs at a suitable price so that each guest may feel content with the quality of the program,
the form of tourism that the company delivers. Most consumers who visit the firm have a high
ability to pay; they are mainly workplace visitors or elite families from Hanoi and adjacent
regions. For those who are clients with lower paying capacity, the firm will have a very
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acceptable pricing to be able to take full benefit of the amount of customers coming to the
company.
- Constantly innovating and developing:
Travel business is also a key activity of the Corporation with 2 reputable travel
companies, including Hanoitourist Travel Company and Hanoi Entertainment Services
Joint Stock Company.
In the current 4.0 era, technology application has also been specially invested by the
Corporation to help hotels increase utilities, control activities as well as save management
costs, helping to increase interaction. between customers and businesses.
Hanoitourist will also promote the training and development of human resources to
meet the requirements, especially the application of information technology for operation,
management and business.
Brand strategy
Preparing for the plan to recover Hanoi's tourism after the impact of the fourth
Covid-19 epidemic, with the motto "safe adaptation, flexibility, effective control of the
Covid-19 epidemic", many points of interest Upon arrival, Hanoi's travel agency quickly
built many new tourism products.
Hanoitourist will actively build a development strategy focusing on the key fields
of tourism business, diversifying product types, especially promoting strengths and
experiences in tourism business. Focus on building Hanoitourist brand through the
company's products and services. Positioning in many forms: Advertising on the mass
media: Electronic newspapers: Paper newspapers; Setting up a website; Participate in
specialized fairs in Europe, America, Australia, China, Thailand..., welcome delegations
of reporters, press, company owners to survey (fam trip), annual festivals, regular fairs
years in Vietnam and abroad… quickly develop a master plan for the capital's tourism
development. On the other hand, Hanoitourist is also increasing the number of themed
tourist products available, such as Tet tours, spring tours, summer tours, April 30 tours, and
regional festivals.
Hanoitourist has a diverse range of products: domestic and international tours,
accommodation services, car rental,... to build an ecosystem of tourism products that can
complement each other under the same name. Tourist product groups with their own
identities enable a brand (Hanoitourist) to profit from consumer groups in places where
Hanoitourist has not yet been able to penetrate.
Hanoi Tourism Corporation is always evaluated as one of the leading enterprises
in the field of tourism and hotel business, a member of many domestic and
international tourism associations and organizations: PATA, VITA, ASTA, JATA,
USTOA with a network of hundreds of domestic and foreign partners.
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Not only investing and exploiting the hotel system, Hanoitourist now also
expands the investment scale into various types of entertainment and entertainment
services.
In addition, Hanoitourist also focuses on international travel business with key
markets such as: Western Europe, Japan, Korea, China, North America, ASEAN, Eastern
Europe with 5 trading companies International and domestic travel and along with the
familiar Open tour.
The Corporation has built and organized special tours such as: Red River tour
associated with the legend of King Ly Cong Uan leaving the capital to return home. Thang
Long; New investment and put into business Sailing Hanoi Opera with nearly 30 modern
rooms, high quality services to serve domestic and international tourists on Ha Long Bay;
at the same time, build and complete new tours when Hanoi is expanded with tourism
products combined with conferences and seminars; tourism combined with cultural
festivals; careers Village Travel.
The Corporation focus on innovating, developing and gradually applying a modern
governance framework according to world's best practices; at the same time, strive to
transform Hanoitourist into a joint stock company model under the multi-ownership model,
attract social resources to participate in investment, constantly improve competitiveness,
and actively promote the role of the owner.
1.3. Conclusion
Based on the investigation in the preceding sections, the Hilton team assessed that
the Hanoi Tourist Corporation's current business strategy is a differentiation — focus
strategy.
II. Strategic Assessment
2.1. Bowman's Strategy Clock
Since the corporation's current strategy is hybrid, the team decided to use Bowman's Strategy
Clock to evaluate the corporation's strategy to make the most appropriate recommendations.
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Figure 2.1: Bowman’s Strategy Clock
Bowman’s Strategy Clock is a tool that helps to understand how products are positioned in the
market. Its aim is to create a visual representation of product positioning that can be applied to
all types of products. So, it proposes to analyze every product based on 2 dimensions: Perceived
added value and Price. Then, Bowman’s Strategic Clock assigns each of these 2 dimensions 3
different values: Little, Medium, and High. These divisions give 8 possible strategic
positionings as result:
- Low price – Low perceived value.
- Low price – Medium perceived value.
- Low price – High perceived value.
- Medium price – High perceived value.
- High price – High perceived value.
- High price – Medium perceived value.
- High price – Low perceived value.
- Medium price – Low perceived value.
2.2. Assessment
As you can imagine, Hanoitourist’s products are considered to be one of the best in the
market. Its products have: Low price – High perceived value; Medium price – High perceived
value; High price – High perceived value. This extremely good position came with a lot of
effort over the years.
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Not so long ago, Hanoitourist products were considered to be: expensive, medium
quality, not unique, and different in design. With lots of disadvantages compared to its
competitors.
People choose Hanoitourist products because:
- Having a strong brand name, operating in multiple industries with multiple owners,
being highly competitive, and having international economic integration are all
advantages.
- Position, prestige, quality, efficiency, and brand are increasingly affirmed in domestic
and international markets.
Over the years, Hanoitourist:
- Constantly innovate and promote the product instead of holding old package tours.
- Raise the appearance in the customers’ mind and increase coverage in the market =>
Increase competitive advantages.
- Keeps diversifying their range of products and creating more tours for diverse types of
customers.
- Customize strategies according to the customer’s affordability and their demographic
and psychographic patterns.
With all these improvements, Hanoitourist’s reputation and perceived value skyrocket.
As a result, at the time of writing, it is one of the most powerful brand names in Vietnam.
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C. STRATEGIC SUGGESTIONS
The Corporation needs to focus more on promoting holiday tours, especially
international tours. Currently, when customers visit the website of Hanoitourist, the first-to-
appear and most recommended tours and vouchers are from long tours, which are not easily
considered by customers. As said in the SWOT analysis, the tourism and hospitality industry
of Vietnam is now facing not only the opportunity of having increasing attention from foreign
tourists from multiple areas but also the threat of going through increasing competition within
the section of Asia, especially South East Asia countries, with Thailand and Cambodia being
two of the strongest competitors. As a matter of that fact, the Corporation should focus on both
long tours that are highly profitable and affordable holiday tours, which can easily be chosen
by customers, to maintain the business.
Before coming up with two suggestions regarding product development, we once get
to look back at the industry’s SWOT analysis. As we have noticed, Vietnam tourism and
hospitality not only has the weakness of having limited diversity of tourism products but this
industry also has to face the threat of increasing international competition from neighboring
countries. However, if Vietnam tourism and hospitality businesses, especially Hanoitourist
Corporation, can take advantage of the opportunity risen from the development of the
Intelligent Technology (IT) as well as the opportunity gained from international resources, the
possibilities to differentiate as well as diversify their products and services range are wide
ahead and successful may sure to come.
Developing more up-to-trend products. In order to stand out in the market and attract
customers, Hanoitourist need to understand their customer market and the destination to create
tours that bring out the current characteristics of the destination and match the customers taste.
Trends in the tourism industry change from time to time, therefore, it is important for the
corporation to keep up with and to develop services or products that are unique and attractive
enough to outdo their competitors and leave the imprint about the brand to tourists.
Diversifying tour products. According to statistics of a number of major travel agencies
in Vietnam by the Vietnam Ministry of Culture, Sports and Tourism, MICE tourism accounts
for 60-70% of the total number of visitors of Vietnamese travel companies and currently the
tours combined with the events are hot growth in the summer tourist season. According to
information from Vietnam National Administration of Tourism, the strategy of tourism
development to 2030 identifies the tourism of MICE as one of important product types to be
interested in development. Since the corporation already has the resources that are suitable with
the MICE tours, it will be a waste for Hanoitourist to not invest in promoting them. The trend
of staycation (a portmanteau of “stay” and “vacation”) is gradually becoming familiar to many
people since everyone has to suffer from the pandemic. The corporation is the shareholder and
owner of many hotels in Hanoi and other places, they need to grab that opportunity and
promote the compact service to the customers with a competitive and affordable price.
52
Effectively use Vietnamese tourist skill requirements, train, and evaluate the profession
to achieve the Vietnam Tourism Professional Certification Council's (VCTB) certification
criteria. The corporation should develop policies on selection, sending, and recruiting
personnel for training at home and abroad for a limited time. Train and retrain units and
organizations in accordance with the corporation's program could be organized annually.
Surveying, affiliating, forming a joint venture, or opening a new tourist training school to build
high-quality human resources that align with the corporation's business plan and satisfy
development needs. Cooperating with prominent tourist vocational training institutes to
contribute ideas to training programs, raise expectations for the number and quality of labor to
be hired, and arrange internships for students, therefore recruiting a new workforce capable of
satisfying the corporation's requirements.
Corporations should consider diversifying the types of voluntary benefits that current
employees expect the company to provide more for employees, such as flexible working hours,
housing support, and transportation facilities for workers who must work at units and
companies far from the center, as well as those who must frequently travel to districts and
abroad on business.
53
D. REFERENCES
1. EHL Insights. Hospitality Industry statistics you need to know in 2022. Retrieved
November 1, 2022, from
https://hospitalityinsights.ehl.edu/hospitality-industry-statistics-you-need-to-know-in-
2022
2. Vietnam Tourism Annual Report 2019. (2022, August 1). Official Website of Vietnam
National Administration of Tourism. https://www.vietnamtourism.gov.vn/post/42848
3. Travel information October 2022. (n.d.). Official Website of Vietnam National
Administration of Tourism. Retrieved November 3, 2022, from
https://www.vietnamtourism.gov.vn/post/45173
4. Lượng tìm kiếm quốc tế về du lịch Việt Nam trong tháng 8 tiếp tục tăng mạnh.
(September 5, 2022). Official Website of Vietnam National Administration of Tourism.
Retrieved November 3, 2022, from https://www.vietnamtourism.gov.vn/post/43633
5. Nigel Evans (2015). Strategic Management for Tourím, Hospitality and Event.
Routledge. New York.
6. Dao Thi Thuy Linh (2019). Tạo động lực lao động tại Tổng công ty du lịch Hà Nội.
Master thesis, Faculty of Human Resource Management, Trade Union University.
7. Hanoitourist Corporation (2021). Financial Report 2021. Hanoi, March 24, 2022.
8. Porter, M. E. Competitive Advantage: Creating and Sustaining Superior Performance,
1985, New York: Free Press
9. TUNG, L. T. (2020). TOURISM DEVELOPMENT IN VIETNAM: NEW STRATEGY
FOR A SUSTAINABLE PATHWAY. GeoJournal of Tourism and Geosites, 31(3), 1174–
1179. https://doi.org/10.30892/gtg.31332-555
10. Vietnam Demographics 2020 (Population, Age, Sex, Trends) - Worldometer. (2020).
Retrieved November 10, 2022, from Worldometers.info website:
https://www.worldometers.info/demographics/vietnam-demographics/
11. Wright N. & Race P. The Management of service Operations, second edition 2004,
Thomson
12. World Bank. 2022. Taking Stock, August 2022 : Educate to Grow. Taking Stock;.
Washington, DC. from https://openknowledge.worldbank.org/handle/10986/37834.
13. Chloe Carver and Cara Kun (2022). HOTELIER TECHNOLOGY SENTIMENT
REPORT. NYU Jonathan M. Tisch Center of Hospitality and Stayntouch. New York
City. https://www.stayntouch.com/wp-
content/uploads/2022%20Hotelier%20Technology%20Sentiment%20Report%20(7).p
df
14. Janeen Christoff (15/12/2021). Americans Continue to Be Optimistic for Travel in 2022.
Retrieved November 09, 2022 from
54
https://www.travelpulse.com/news/features/americans-continue-to-be-optimistic-for-
travel-in-2022.html.
15. Grant Martin (22/03/2016). Hipmunk Study Reveals That Millennials Are Traveling
More And Staying In More Vacation Rentals. Retrieved November 09, 2022 from
https://www.forbes.com/sites/grantmartin/2016/03/22/hipmunk-study-reveals-that-
millennials-are-traveling-more-and-staying-in-more-vacation-
rentals/?sh=635b3a447fa3.
16. Hotel Industry Statistics 2020- 2021. (n.d). Retrieved November 09, 2022 from
https://www.condorferries.co.uk/hotel-industry-statistics.
17. AHLA (2022). THE YEAR OF THE “NEW” TRAVELER. The US.
https://www.ahla.com/sites/default/files/AHLA%20SOTI%20Report%202022%201.2
4.22.pdf.
55
MEMBER ASSESSMENT
No. Name Student ID Status Score
1 Hoang Viet Anh 11190156 Complete 9.5
2 Tran Thi Phuong Anh 11190558 Highly complete 10
3 Hoang Thi Bao Chau 11190765 Complete 9.5
4 Ha Thi Trang Linh 11192808 Highly complete 10
5 Nguyen Thi Hong Ngoc 11193822 Complete 9.5
6 Chu Anh Tra - Leader 11195143 Highly complete 10
Commenting: In general, all team members have a sense of proactive and active work in the group
work process and in the presentation. All members complete the work fully and on time. In
particular, there are a few members who have made outstanding contributions by receiving
additional work, asking questions for other groups.
Member in charge
A. Strategic analysis
STEEP- Macro Environment Chu Anh Tra
I.External analysis 5 Forces- Micro Environment Ha Thi Trang Linh
SWOT Analysis Ha Thi Trang Linh
Chu Anh Tra
Business model Hoang Viet Anh
Tran Thi Phuong Anh

II. Internal analysis
Tran Thi Phuong Anh
The operational context
Ha Thi Trang Linh
The human resources context Tran Thi Phuong Anh
56
The financial context Ha Thi Tranh Linh
The products and markets context Tran Thi Phuong Anh
Hoang Thi Bao Chau

B. Strategic Selection and Assessment
Nguyen Thi Hong Ngoc
C. Suggestions All group’s members
D. Sum Up Tran Thi Phuong Anh
E. PDF Ha Thi Trang Linh
F. Powerpoint Ha Thi Trang Linh
Chu Anh Tra
G. Presentation Hoang Thi Bao Chau
Hoang Viet Anh
57
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Hanoitourist Corp. Strategy Analysis

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HANOITOURIST CORP.

– STRATEGY ANALYSIS 10 Tháng Mười Một 2022

1.2.1. Analysis ............................................................................................................ 46

Appendix 1: Hanoitourist Corporation’s

Appendix 2: Hanoitourist Corporation’s

Appendix 3: Hanoitourist Corporation’s

Appendix 4: Hanoitourist Corporation –

Appendix 5: Hanoitourist Corporation –

Appendix 6: Hanoitourist Corporation:

Appendix 7: Hanoitourist Corporation

LIST OF FIGURES AND TABLES

Figure 1.1: Population of Vietnam (2020

Figure 1.2: Vietnam Population Forecast 05

Figure 1.3: Porter’s Five Forces Model 09

Figure 1.4: Organizational structure of

Figure 1.5: Porter’s Value Chain Analysis 32

Figure 1.6: ‘The virtuous circle’ linking

Figure 1.7: The Boston Consulting Group

Figure 2.1: Bowman’s Strategy Clock 48

Table 1.1: Resources of Hanoitourist 28

Table 1.2: The VRIO framework for testing

Table 2.1: Key features of generic

1.1. STEEP- Macro Environment

1.1.1. S - Socio-demographic influences

Figure 1.1: Population of Vietnam (2020 and historical)

Figure 1.2: Vietnam Population Forecast

1.1.2. T - Technological influences

- Companies are optimizing their business travel policies to support

1.1.3. E - Economic influences

open-door policy. Google data shows that, compared to the beginning of

1.1.4. E - Environmental influences

aiming to conserve and use biodiversity as a sustainable response to the

1.1.5. P - Political, governmental, legal and regulatory influences

1.2. Five Forces- Micro Environment

Figure 1.3: Porter’s Five Forces Model

1.2.1. The Threat of New Entrants:

1.2.2. The Threat of Substitute Products:

1.2.3. The Bargaining Power of Buyers:

1.2.4. The Bargaining Power of Suppliers:

1.3. SWOT Analysis

Fast-growing Economy: By being a developing country with a dynamic, fast-growing

Infrastructure Fails To Meet The Demand: Despite investments in infrastructure, the

Environmental Pollution: Environmental contamination is a concern in the tourist

Shortage of Professional and High-class Human Resource: Despite a large labor

Favorable Situation to Take Advantage of Stable Political Background: The

The Development of Information Technology (IT): The advancement of information

Complicated Natural Disasters, Deforestation & Destroyed Landscape: Devastated

II. Internal Analysis

2.1. Business Model

2.1.1. Overview about Hanoitourist Corporation

Figure 1.4: Organizational structure of Hanoitourist Corporation

Appendix 1: Hanoitourist Corporation’s main areas of business

Travel Hanoitourist Corporation owns 3 prestige travel companies, including

Hospitality Hanoitourist Corporation is a shareholder of five famous 5-star hotels in Hanoi

Appendix 2: Hanoitourist Corporation’s subordinate units

Subordinate Units Link / Information

Hanoitourist Travel Company http://thanglonghanoihotels.com/

Trading and Manpower Supplying Company http://thanglonghanoihotels.com/

Hoa Binh Hotel http://hoabinhhotel.com/index.php/vn/gioith

Appendix 3: Hanoitourist Corporation’s joint stock / joint venture companies

Joint Stock / Joint Venture Companies Link / Information

Dan Chu Tourist and Trading Joint Stock http://hoteldelopera.com/

Thang Long GTC Joint Stock Company http://www.thanglonggtc.com.vn/quy-