Travel Wise is a small firm with 25 employees based outside Denver, Colorado. “We take travel to new heights,” is the firm’s slogan, referring to Denver’s mile-high elevation above sea level. For more than a decade, Travel Wise has manufactured and sold travel accessories—wallets, passport holders, travel purses, money belts, and the like. Most of the goods are outsourced to overseas manufacturers, where labor and materials are less expensive than they would be in the United States. However, Travel Wise founder Cindy Kirsch works closely with her suppliers in India and China, visiting them frequently to ensure that workers are paid well and treated fairly, earning an income that affords them a comfortable living.Kirsch wants Travel Wise to expand, and she has discussed her plans with her design, production, marketing, and financial managers. Although each person has an area of expertise, the size of the company dictates that everyone must know the inner workings of the firm. And Kirsch welcomes ideas from all corners. First, Kirsch wants to increase the number of products offered, adding a line of travel clothing. Second, she wants to investigate the possibility of producing the firm’s own guidebooks to exotic destinations. Third, she wants to expand the firm’s Web site to include blogs, travel information services, and the like. Each of these initiatives requires a strategy that must take into consideration the global business environment. Adding a line of clothing would mean evaluating design and manufacturing alternatives, both in the United States and abroad. Creating a series of travel guides would mean hiring travel writers; establishing relationships with travel bureaus, agencies, and governments; and learning the publishing business. Expanding the Web site would mean determining in which regions of the world most of her customers live and where they want to travel and investigating what types of services consumers might want from the site. Kirsch and her management staff have several lively discussions before coming up with a plan for the growth of Travel Wise. Then she gathers the entire staff together to discuss the new goals and plans. She solicits ideas from them, and later incorporates those that appear to be viable. Ultimately, Travel Wise has a strategy for its next level of growth. Kirsch is excited but nervous, knowing that her employees are counting on the firm’s success. But she knows that they will work around the clock if necessary to make Travel Wise the brand that travelers turn to for more than just accessories—now it will be clothing, guidebooks, and online support. In the next few years, Travel Wise will be taking travel to even greater heights.
1. What type of entry mode would you recommend that Travel Wise use for its new line of clothing in U.S. markets? In foreign markets? Should the clothing be outsourced to suppliers overseas, or should Travel Wise consider building its own manufacturing facility here in the United States?
2. What features and services might Travel Wise offer on its expanded Web site that would appeal to travelers from Europe, Asia, and other parts of the world?
3. What types of relationships must Travel Wise forge in other countries to produce accurate, up-to-date, insightful travel guides?
