HO CHI MINH CITY UNIVERSITY OF FOREIGN LANGUAGES AND INFORMATION TECHNOLOGY STRATEGIC MANAGEMENT Case Study LUXSTAY Group members Phạm Thái Lâm 20DH481802 Phạm Duy Long 18DH480700 Nguyễn Hữu Đạt 20DH4.
HO CHI MINH CITY UNIVERSITY OF FOREIGN LANGUAGES AND INFORMATION TECHNOLOGY STRATEGIC MANAGEMENT Case Study: LUXSTAY Group members Phạm Thái Lâm- 20DH481802 Phạm Duy Long -18DH480700 Nguyễn Hữu Đạt -20DH481554 Võ Hiếu Phát -20DH481872 TABLE OF CONTENS Luxstay Chapter 1: INTRODUCTION 1.1 Introduce your organization 1.2 Vision & mission statement, show your company website, Fanpage… Chapter 2: ANALYSIS 2.1 INTERNAL ASSESSMENT 2.1.1 Management 2.1.2 Marketing 2.1.3 Finance and accounting 2.1.4 Products/operations 2.1.5 Research and development 2.1.6 Management Information system 2.2 EXTERNAL ASSESSMENT 2.2.1 10 external factors: economic, social, cultural, demographic, environmental, political, governmental, legal, technological, competitor (choose of these factors that have the greatest effect on your business) 2.2.2 Show your business competitive profile matrix – 5- forces model 2.3 STRATEGY GENERATION 2.4 STRATEGY IMPLEMENTATION 2.4.1 Market segmentation 2.4.2 Product positioning Chapter 3: RECOMMENDATION I Introduction LUXSTAY is currently the number online homestay booking platform in Vietnam With us, you have a trip full of experiences With Luxstay, booking accommodation, resort villas, hotels, private houses, apartments becomes fast and convenient and easy In particular, this is a start-up project completely founded by Vietnamese people in the second half of this yearat the end of 2016 and is highly appreciated for its potential for future development Not only stopping at homestay rental, Luxstay also provides services related to real estate activities, allowing homeowners to run business through their apartments, and at the same time bring quality apartments Best term for tenants Currently, Luxstay has "presented" in Ho Chi Minh City, Hanoi and major cities across the country The form of business is Homesharing, the form of accommodation is Homestay Luxstay commercial model About Luxstay is basically an intermediary platform (platform) to build a complete ecological system for the field of sharing and providing online accommodation services in Vietnam Luxstay provides users with services for houses through its apartments that can be rented to make money more easily, and for tenants, it will bring quality services for short rental apartments Best term, unique, novel, changing habitat History of birth and development of luxstay Vietnam's real estate industry is blasting Those are apartments, villas, houses that are bought for investment and for rent This resource is available and more abundant than the hotel and resort television system Vietnam does not yet have a large enough enterprise to guide the market The configurations for house rental and homestay rental are still small and discrete And the idea of a “home-sharing” connection platform was born, later named Luxstay - with the new building a new company, cutting edge style and a chance to become a headline 2.1 Target Other than with some other platforms, Luxstay focuses on developing towards domestic users and combines with local partners in countries with many tourists to Vietnam such as Korea, Japan, to develop user This is also create an other big between Luxstay and Airbnb - capital is a background platform is not have the center for the client at Vietnam 2.2 Vision Vision: make Luxstay the continent's visionary rental platform and the leading startup icon 2.3 Business model of luxstay Luxstay is an activity application on the background "homesharing" - sharing accommodation, connecting between hosts and guests, helping them to connect with each other when there is a need for accommodation II SWOT, 5P SWOT ANALYSIS Strengths Weakness Being the pioneer, official and 24/7 customer response system first enterprise in the field of is still delayed homesharing in Vietnam founded The brand is not yet popular in by Vietnamese people foreign countries Luxstay always has a team Do not provide Self-checking available to assess the reality of service the homestay, whether it is as Web and App only have declared by the host, including languages: Vietnamese and legal issues English 3.The system of homestays is large, spread across the country Web, app clean interface Users are attracted by the clean image on the web app Finding the right homestay is easy thanks to the website with a series of filters by price, room number, room type, property type (apartment, villa, studio, house) There are also filters for kitchen and home utilities, entertainment activities, and general utilities to serve diverse customer needs Market and cultural understanding locality, have a good relationship with the houses offers such as hotels, motels, Diverse payment with many forms: Online payment: international payment cards (Visa, Master, ); Transfer, payment via domestic ATM card; Microelectronics at home, place of residence Rich ecosystem for apartment sharing and online accommodation services: Sweet Iost: sub-lease vacant apartments and renovate it, making it easy to run a business of accommodation services and provide apartment management services for those who have homes but not have easy conditions to be the owner of the accommodation service Lux Store, a company specializing in providing essential items that are easy to use in homestays such as soap, disposable shower gel, smart keys Oppoturnities Threats Vietnam is characterized by a The competitors on the same young population next to it The tourism industry grows, the platform (the biggest is AirBnb, number of main visitors of which 84% are from Australia | Singapore, Korea; many potential customers easily access trending services | new to technology Vietnam has not yet had a large enterprise to lead the market The forms of house rental, homestay rental are still small and discrete Luxstay moves out have Booking, Agoda, ) Virtual guest, bad host Negative reviews are not based on social networks Luxstay may face difficulties in developing some domestic and foreign markets due to cultural conflicts, conservatism and war the opportunity to build a new industry, use it with the goal of pioneering and becoming number one is easy Great development potential when the sharing economy is developing strongly, cooperating with businesses of the same model (like an airplane ) Vietnam's real estate industry is booming These are apartments, villas, houses that are easy to buy, invest and rent out Mr Dung(shark Dzung) assessed that this resource is available and more abundant than the traditional model of hotels and resorts Luxstay is more likely than Airbnb, because Airbnb is not really recognized legally in many places Have the opportunity to receive investment from technology enterprises or the same foreign platform 5P Price -Luxstay is cheaper than airbnb -The maximum fee for renting a package house is 15% Luxstay also has other service packages depending on the agreement Product -There are types of accommodation: whole house and private room -Including types of houses: apartments, villas, studio apartments, serviced apartments, private apartments, bungalows 3 Place -Luxstay is now available nationwide and is going in its own direction to create a powerful "weapon" against foreign competitors -In the coming time, the company will coordinate with strategic partners to expand the product supply in many countries in the region such as Japan, Taiwan, Thailand and Korea From the success of Grab in the Southeast Asian market, I hope Luxstay can hold a market share in the online travel segment and especially "homesharing" or become a symbol of Vietnam in startups Technology Promotion - Due to the background from Vietnam, Luxstay often has programs related to Tet holidays, 30/4 – 1/5, People The development in the home-sharing market still has a lot of "land" to grow Because no big player really dominates this market (accounting for more than 20% of the total market share) With a young population, ready to experience and discover new things This makes markets like home-sharing a future trend in the travel industry With this market, Luxstay targets Vietnamese young people who love technology The majority of subjects usually live in large cities They are people who love to travel, often travel with friends, lovers… They need spacious spaces, good quality at an affordable price Besides, Luxstay also cooperates with local partners in countries with many tourists to Vietnam such as Korea, Japan, etc to develop users Luxstay focuses on developing models for Asian customers This model is more traditional than another quite similar model, the AirBnb Luxstay understands the psychology of young customers Customers are looking for experience but still need privacy This is different from products with platforms like AirBnb This platform focuses on dorm rooms that are more suitable for Western guests with a more liberal lifestyle to be able to live and exchange cultures III together Internal factors Planning: Luxstay targets Vietnamese young people who love technology The majority of subjects usually live in large cities They are people who love to travel, often travel with friends, lovers… They need spacious spaces, good quality at an affordable price Besides, Luxstay also cooperates with local partners in countries with many tourists to Vietnam such as Korea, Japan, etc to develop users Luxstay focuses on developing models for Asian customers This model is more traditional than another quite similar model, the AirBnb Luxstay understands the psychology of young customers Customers are looking for experience but still need privacy This is different from products with platforms like AirBnb This platform focuses on dorm rooms that are more suitable for Western guests with a more liberal lifestyle to be able to live and exchange cultures together Leading: Luxstay targets Vietnamese young people who love technology The majority of subjects usually live in large cities They are people who love to travel, often travel with friends, lovers… They need spacious spaces, good quality at an affordable price Besides, Luxstay also cooperates with local partners in countries with many tourists to Vietnam such as Korea, Japan, etc to develop users Luxstay focuses on developing models for Asian customers This model is more traditional than another quite similar model, the AirBnb Luxstay understands the psychology of young customers Customers are looking for experience but still need privacy This is different from products with platforms like AirBnb This platform focuses on dorm rooms that are more suitable for Western guests with a more liberal lifestyle to be able to live and exchange cultures together Controling: Solid infrastructure: is concerned with the organizational structure and management, planning, accounting, finance and quality control mechanisms of the organization (no inside information) Human Resource Management: includes activities related to recruiting and retaining the right employees to help design, build, and market the product (no inside information) Technology development: can be used during the research and development phase, during the process of new products being developed and designed, and in the process of automation CEO Luxstay was originally an information technology and web design startup, so the Luxstay platform has always been interested in upgrading and developing, with the same commitment to instill customer trust is not to sell information to third parties, use data only when there is a service failure and with user permission Purchase: Is how easy it is to obtain raw materials for products Luxstay's main and main source of raw materials are houses, homestays, and accommodation for rent Supply mainly comes from homeowners with homesharing needs, find out about Luxstay's platform, register, sign to develop your business model on Luxstay's platform The second supply is found or exploited by Luxstay itself (such as Luxstay acquiring local real estate models or cooperating with Vingroup to easily use all services) Organizing: Service quality is a prerequisite to retain customers who have trusted and used Luxstay Therefore, Luxstay has cooperated with parties to create a "comprehensive" ecosystem (government, users, homeowners, interior design services, ) Luxstay cooperates with interior design and decoration unit to be able to support and advise homeowners This gives products staying on Luxstay different styles, thereby creating a great accommodation experience In addition, Luxstay also cooperates with related services such as housekeeping to support operations, thereby helping homeowners save costs This will directly reduce the price of products staying on Luxstay Price is an important factor besides service quality so that Luxstay can develop in its own “home ground” In addition, the ecosystem is also deployed methodically on the information technology system that Luxstay is building Therefore, they can support many homeowners while still ensuring the quality and scalability of the platform thanks to this system 3.1.Management - Nguyen Van Dung - CEO Luxstay Luxstay's strategy is to build and develop a community of "hosts" More specifically, Luxstay focuses on new homeowners They are knowledgeable "investors" and have a desire to create added values for real estate They aim for long-term development in the future Create an ecosystem for optimal and sustainable development Service quality is a prerequisite to retain customers who have trusted and used Luxstay Luxstay cooperates with interior design and decoration units to be able to support and advise homeowners This gives products staying on Luxstay different styles, thereby creating a great accommodation experience In addition, Luxstay also cooperates with related services such as housekeeping to support operations, thereby helping homeowners save costs This will directly reduce the price of products staying on Luxstay Price is an important factor besides service quality for Luxstay to develop The first advantage is that Vietnam's real estate industry is booming Those are apartments, villas, houses that are bought for investment and for rent CEO Nguyen Van Dung assessed that this resource is available and more abundant than the traditional model of hotels and resorts The second advantage is that Vietnam currently does not have a large enough enterprise to lead the market The forms of house rental, homestay rental are still small and discrete Luxstay was born with the opportunity to build a new industry, true to the pioneering goal and becoming the number one as set out 3.2.Marketing Luxstay's marketing team executed the user engagement strategy through a basic marketing automation platform However, this platform has unresolved limitations, leading to many inconveniences such as: Doesn't provide powerful behavioral analytics, hinders user targeting and segmentation Disjointed operation, lack of close connection between marketing channels, not bringing high efficiency in communication Unable to set up a seamless interaction scenario with the user Since the current solution could not meet the above requirements, Luxstay wanted to find a platform with more consistent interoperability After carefully considering and researching the interactive platforms on the market, Luxstay's Marketing team decided to choose MoEngage Luxstay wants to make interaction automation, target audience segmentation and communication with users the most personalized More specifically, all user management and interaction solutions must be encapsulated in a single platform MoEngage's solution to help Luxstay: Increase user engagement by getting to know them better Increase conversions by segmenting your target audience and making the most of personalized messaging Increase users' daily, monthly usage by setting up effective targeted campaigns 3.4 Production / Operation Luxstay is a short-term housing connection platform with the largest accommodation network (apartment, villa, homestay) in the mid- and high-end segments in Vietnam, operating under the sharing economy model Luxstay highlights services: Is an application for room rental, car rental by the hour, airport transfer service and a new service that is booking sightseeing tickets for customers Luxstore specializes in providing products such as: - Smart door lock (Smart locks) - Set of consumables (Amenities) - Natural essential oils - Management services - Trading portal between customers and suppliers (Market place) The method of operation, both the lessor and the tenant need to register to create an account on the luxstay wedsite and payment will be through luxstay to guarantee the customer, and luxstay will determine the listing of the owner How it works online, also known as an online travel agency, with all payments made online -> comprehensive customer support -> providing services to customers and agents Author partner through luxstay.com How it works, both the lessor and the tenant need to register to create an account on the luxstay wedsite and payment will be through luxstay to secure the customer, and luxstay will determine the listing of the landlord and the service customer set up Luxstay improved model (kaizen) - Calling for a lot of investment capital in the country to build a Vietnamese brand - Signing strategic partnership with parties such as Korea, Japan, Taiwan or Indonesia - Safety and strength protection companies are required to make the combat strategy 3.5R&D Solid infrastructure: concerned with the organizational structure and management, planning, accounting, finance, and quality control mechanisms of the organization (no inside information) Human Resource Management: includes activities related to recruiting and retaining the right employees to help design, build, and market the product (no inside information) Technology development: can be used during the research and development phase, during the process of new products being developed and designed, and in the process of automation CEO Luxstay was originally an information technology and web design startup, so the Luxstay platform has always been interested in upgrading and development, with the same commitment to instilling customer trust not to sell information to third parties, use data only when there is a service failure and with user permission Purchase: How easy it is to obtain raw materials for products Luxstay's main and main source of raw materials is houses, homestays, and accommodation for rent Supply mainly comes from homeowners with home-sharing needs, find out about Luxstay's platform, register, and sign up to develop your business model on Luxstay's platform The second supply is found or exploited by Luxstay itself (such as Luxstay acquiring local real estate models or cooperating with Vingroup to easily use all services) Customer research and analysis of customer needs: is possible design and important The manager says that the company's and customer's environmental systems are Pretty good, the company attracts my customers to the company's reputation above field and quality and product provided by the company Combined with required technology Crossing the line will be the company that helps the cause of being customers 3.6MIS IV External factor Customer influence Luxstay Company operates in the field of tourism service technology, with the following fields: Business includes meeting rental demand for Vacation including: resort villas, hotels, private houses, apartments Therefore, the company's customers are also very rich, The target customers that the company is talking about are young customers who want to travel travel and experience new spaces and new forms of tourism Here it is Evaluation is a customer that will develop in the near future Demand Using the services of customers is very rich Luxstay believes that the customer is the most important factor and has the strongest impact on customer satisfaction Corporate governance What makes the relationship between the company and the customer difficult is the policy Competitors's are more elastic They always have sales promotions attract customers Rental provider influence After the customer factor, the supplier is an important factor because it determines the input of the business Therefore, the study of the influence of tenants in order to improve the management should also be of interest to the company Tenant customers are quite an important resource for the company because it determines the input, so it is also very interesting to study the supplier's influence to improve the company Influence of competitors Competition is an inevitable law Competition will be a lever to help businesses constantly develop In the market, one business can compete with many other businesses The business that better satisfies the needs of its customers will gain a competitive advantage over itself Travel service is a very potential development industry in Vietnam, so luxstay has many competitors in Vietnam and in the world such as booking, airbnb these are companies with strong financial potential , has a reputation in the market, so it often makes it difficult for luxstay to attract customers and make pricing policy Many competitors in the architectural market appear to reduce business opportunities, difficult to increase market share Impact of the covid-19 pandemic Luxstay grew strongly in 2019 And before the epidemic occurs, we expect 2020 to also be a year of continued expansion in line with the increasing momentum of Vietnam's tourism industry As soon as the Covid-19 epidemic broke out, Luxstay was greatly impacted It includes both operational activities and progress of capital expansion, production downsizing, all growth targets set to change The impact of the epidemic impacted the revenue in 2020 to reach 12 billion, but the net loss was 39 billion We are required to adjust our spending budget to suit the actual situation to ensure the longest "survival" time possible luxstay is affected to a certain extent by the relevant authorities and that influence causes many difficulties as well as creates opportunities Stakeholders include: government shareholders, board of directors, employees, customers, the press, etc V Business strategy impiementation Luxstay has focused its strategy to be able to develop community cohosts on their system This will create some competitive advantages for Luxstay to survive and develop with other platforms than the platform Luxstay CEO - Nguyen Van Dung, when buying 36 Vinfast cars as soon as the car is launched, can be considered a successful "profitable marketing" campaign that has become a hot topic of discussion of the online community in recent times Earned media” (viral communication): natural discussions, then customers, the online community become a free promotion channel of the brand “Earned media” can be seen as the result of “Paid media” and “Owned media”, because through these two communication channels, the audience of the marketing campaign is newly established known and when customers create their own discussions about it, “Earned media” is formed The strategy of luxstays has also had many users before when the company bought 200 newly released vinfast cars to surprise many people and media coverage made more people aware of the brand Luxstay's marketing team executed the user engagement strategy through a basic marketing automation platform However, this platform has unresolved limitations, leading to many inconveniences such as: Doesn't provide powerful behavioral analytics, hinders user targeting and segmentation Disjointed operation, lack of close connection between marketing channels, not bringing high efficiency in communication Unable to set up a seamless interaction scenario with the user MoEngage's solution to help Luxstay: Increase user engagement by getting to know them better Increase conversions by segmenting your target audience and making the most of personalized messaging Increase users' daily, monthly usage by setting up effective targeted campaigns VI Describe your business strategy evaluation Luxstay has chosen for itself a school-wide function with a distinct segment In addition, Luxstay also focuses on developing very good housing products This thing was made by other well-compared to different big boys like AirBnb, Agoda, Booking or Traveloka Luxstay pays great attention to selecting and censoring product quality Only beautiful places with convenient locations and standard equipment can join the system This helps reduce the level of frustration between the actual quality and the images when customers view on the website Although luxstay's marketing strategy has been used by many media companies, when luxstay uses it, it has brought a lot of benefits to the company It can be seen that, thanks to the personalization solutions from MoEngage, Luxstay has achieved impressive indicators such as: increasing the number of conversions by times, increasing the number of monthly active users by 1.8 times, increasing the billion interaction rate 60%, attracting new users via web push increased times, improved CTR through email marketing channel by 41% References https://doanhnghiep.quocgiakhoinghiep.vn/en/doanhnghiep/congty-tnhh-luxstay-viet-nam/ https://httl.com.vn/wiki/luxstay-la-gi/ https://cafebiz.vn/tung-goi-von-ky-luc-6-trieu-usd-tu-cac-sharkluxstay-bat-ngo-doi-ten-sau-mot-so-lum-xum-gan-day20220707100140169.chn https://sti.vista.gov.vn/tw/Lists/TaiLieuKHCN/Attachments/317307/ CVv168S5852021097.pdf https://esight.vn/chien-luoc-phat-trien-cua-luxstay/ https://homeaz.vn/5-phut-de-hieu-ro-mo-hinh-kinh-doanhhomestay-cua-luxstaycom-d5909.html https://www.brandsvietnam.com/21034-Luxstay-da-ca-nhan-hoanoi-dung-de-tang-60-tuong-tac-nhu-the-nao https://www.youtube.com/watch?v=niuYnCCjvFw https://www.studocu.com/vn/document/dai-hoc-kinh-te-quocdan/services-marketing/business-model-business-management017/25338018 Đánh giá thành viên Họ Tên Phạm Thái Lâm ( trưởng nhóm) Phần trăm tham gia 100% Phạm Duy Long 100% Nguyễn Hữu Đạt 100% Võ Hiếu Phát 100% ... through luxstay. com How it works, both the lessor and the tenant need to register to create an account on the luxstay wedsite and payment will be through luxstay to secure the customer, and luxstay. .. have trusted and used Luxstay Therefore, Luxstay has cooperated with parties to create a "comprehensive" ecosystem (government, users, homeowners, interior design services, ) Luxstay cooperates... who have trusted and used Luxstay Luxstay cooperates with interior design and decoration units to be able to support and advise homeowners This gives products staying on Luxstay different styles,