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Teaching Note Details:
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ZUJI: Finding a Winning Strategy  
Product Ref: 16/577TN Company: ZUJI Limited

Product Type: Teaching Note Industry: Transportation

Related Product(s): Case
Authors: Kevin Zhou   Josephine Lau
It was October 2015, Charlie Wong, CEO of Zuji Hong Kong told the media at the launch of Zujiˇ¦s new brand campaign ˇ§Search, Discover and Shareˇ¨ that he would like to see Zuji ˇ§become the Google for travelˇ¨ in Hong Kong. Indeed, a deemed pioneer and leading online travel agent (ˇ§OTAˇ¨) in Hong Kong, the aspiration did not seem far-fetched. Yet, the ambition was not without challenge.

Since Zuji went online in 2002, the brand had been twice sold and its geographic coverage shrunk from six to three markets: Hong Kong, Singapore and Australia.? Online travel booking had been slow picking up in Hong Kong.? After more than 10 years, online sales remained at under 10% of the total market in Hong Kong, compared to the regional average of 25% in Asia Pacific.? As momentum built up, Wong predicted the online travel agent (ˇ§OTAˇ¨) market to quadruple, from 10% in 2014 to 40% in 2016.? Meantime, competition from multiple fronts was flooding the market.? Global leader Expedia had launched in 2013, and was investing heavily in marketing to capture share.? Traditional offline agents were busy expanding their online presence, building a hybrid model as competitive advantage.? At the consumer end, mobile phones have become an indispensable travel companion and its implication went beyond the migration from one platform to another.? Around the world, the industry was seeing the rise of the millennia travellers with new needs and expectations while on the road, and they were changing the rules of the game. Zuji is facing the biggest opportunity of its time to ride this wave of change and reinforced its market leadership.
Functional Area : Marketing
Strategy & General Management

Learning Objective: 1.To understand how to use the Five-Force Model to analyse industry attractiveness.
2.To explore the opportunities and challenges associated with the online travel industry.
3.To learn how to apply the VRIO framework to analyse a firmˇ¦s internal strengths and weaknesses and identify the sources of sustainable competitive advantage.
4.To learn how to use Ansoffˇ¦s Product/Market Grid to devise strategies for future growth.
Length: 11 pages Country: Hong Kong SAR

Pub. Year: 2016 Level of Difficulty: 2
This product type is available in the following language(s):      English
Related Information: N/A
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