2. Executive Summary
We chose to do our research
project on National Geographic, the
world-renowned magazine publishing
company. While looking further in the
company, we noticed that National
Geographic is comprised of several
different subdivisions that all work
together towards the common goal of
educating people of the current state of
the Earth and the culture’s within it. The
main aspects of National Geographic that
we will discuss through our research are
the magazine, the Green and
environmental movement, the
educational programs, and their lodging
facilities around the world. We believe
that these are the main focuses of
National Geographic and that
strengthening these areas will lead to
great success for the company as a whole.
National Geographic is the most
recognizable science and photography
magazine in the world, and they do not
have any direct competitors due to the
amount of creativity that goes into each
specific issue. They have many well-
known photographers who are constantly
traveling and exploring new places to use
in the magazine for education. This is
what sets National Geographic apart from
the other science magazines. The
company also makes education a focus of
the company, and they love to give back
to the educational community. National
Geographic has magazine issues just for
children that are extremely educational
but also a fun way for children to learn.
National Geographic is also an industry
leader in environmentally friendly
supplies as well as green building
supplies. They are constantly revising
their business plans in order to be more
environmentally friendly and energy
3. efficient. This shows how much the
company truly cares about the
environment. And lastly, National
Geographic has built several lodging
systems around the world, where people
can stay and have different cultural
experiences. This is a great way for
travelers to learn about various cultures
in their native habitats while still
enjoying a relaxing vacation. Though all
of these channels, National Geographic
has become, and will continue to be, a
successful nonprofit organization, who
stands on a very strong legal, moral and
ethical foundation.
Method
The study researched about the
National Geographic Society, Which is
one the best none-profit, scientific,
environmental, and educational
institution in the world. The study is
presented how, what, and why the
National Geographic did well on their
strategic management development, and
what impacted their improvement. We
have four group members to report
magazine, Lodging, tourism, Social
media, education, television, and
environmental sections of the National
Geographic Society. In our research, the
most of the our articles are came from the
National geographic society official
website, some of the articles form the
National Geographic’s online magazines,
and the rest of our articles are found from
the academic websites. Also, our
researchers tried to contact the National
Geographic Society to get some
resources by email, but haven’t heard any
responses from them. This research is
important for our career improvement
and strategic management plan
development.
4. National Geographic
Magazine
The National Geographic society was
founded by a group of 33 scholars,
military men, cartographers, explorers,
and world-travelers on January 27th, 1888
came together at the cosmos club in
Washington D.C to found The National
Geographic Society. With a goal to bring
the wonders of Planet Earth, and the
cultures of the world to America, as well
as to promote awareness of such
educational value, The National
Geographic Society called themselves, “a
society for the increase and diffusion of
geographical knowledge,”(Lomography).
Without much success in
promoting geographical knowledge, the
society created The National Geographic
Magazine just 9 months after the
founding to The National Geographic
Society (Lomography).
The magazine was able to gain
tremendous momentum from their
humble beginnings through the
leadership of their first full-time editor,
Gilbert Hovey Grosvenor. Grosvenor
brought the magazine’s popularity from
1000 readers to 2 million just within the
first few years of his service. This is
thought to be due to the inclusion of
beautiful, artistic photography which was
included in the magazines (Lomography).
Today, National Geographic is
one of the largest non-profit scientific
and educational institutions in the world.
National Geographic remains a non-
profiit organization with interests in
geography, archaeology and natural
5. science, and environmental and historical
conservation. Year after year, National
Geographic’s subscription renewal rates
are among the highest in the industry.
Through their century of
excellence National al Geographic has
gained many supporters and loyal
customers of their magazine. In doing so,
The magazine has calculated that the
average National Geographic reader has
been a member of the National
Geographic society for 12 years.
Likewise, readers as a whole spend an
hour or more reading the magazine and it
has been revealed by the organizations
advertising department that more opinion
leaders read National Geographic than
any other magazine.
As a showcase for their success,
the organization benefited from the
following magazine sales:
3,573,348 copies sold in the U.S.
from Jan 1, 2014 to June 30 2014
(Lulofs 2014)
Coinciding with the original 1888
goal to “Increase the diffusion of
geographical knowledge,” National
Geographic’s current motto is “Inspiring
people to care about the planet since
1888.” The organization’s vision
statement can also be found on the
National Geographic website, stating
their purpose is to inspire, illuminate and
teach (National Geographic).
Corporate level strategies:
The corporate level strategy for
National Geographic’s magazine division
is to create a variety of different
magazines to appeal to as many markets
segments as possible. For example,
National Geographic provides a
children’s magazine titled National
Geographic KIDS. The goal of National
6. Geographic KIDS is to introduce children
to the cultures of the world and the
beauty of our natural environment, in a
fun way. It involves games, pictures, and
fun facts, which children can relate to.
In addition to National
Geographic KIDS, National Geographic
also recognized the magazine’s appeal to
the world traveler. As it was world
travelers who established the foundation
of the National Geographic Society in
1888, it is only fitting that there would be
a division of the magazine that would
cater to those who travel or dream to do
so. National Geographic Traveler does
just that. It searches all lengths of the
globe in order to pack a magazine with
traveling tips and vacation ideas.
NATIONAL GEOGRAPHIC
MAGAZINE
Mission Statement: “To Inspire People
to Care About Our Planet”
National Geographic magazine is the
global leader in inspiring people to
explore the globe. By providing
authoritative, unbiased content that
addresses today's complex issues,
National Geograohic allows the reader
to become emersed in cultures and
experiences unimaginable to many
people. Through the utilization of
world-class, award-winning
photography and reporting National
Geographic inspires readers to make
informed decisions and effect positive
change.
Phot o Credit : Google Images
7. NATIONAL GEOGRAPHIC KIDS
MAGAZINE
Mission Statement: “Dare to Explore”
With a mission to inspire young readers to become
young explorers, National Geographic Kids Provides
award-winning magazines, books, website, apps,
games, toys, television series and events and is the
only kids brand with a world-class scientific
organization at its core. National Geographic
magazine has two children’s titles: National
Geographic Kids (10 issues per year) and Little Kids
(6 issues per year). The award-winning website
kids.nationalgeographic.com inspires children to
learn about the planet through games, videos,
contests, photos, quizzes, and blogs about cultures,
animals and destinations.
NATIONAL GEOGRAPHIC
TRAVELER MAGAZINE
Mission Statement: Nobody Knows This
World Better
Backed by a powerful heritage of more
than a century of exploration, global
experts, and signature photography,
National Geographic Traveler attracts
the most readers – over 9 million –
driven to explore the world.
Reaching the youngest audience of any
travel title, National Geographic
Traveler inspires millions with the
means and mindset to explore. Our
content shares authentic experiences that
reveal a true sense of place—turning
adventure vacations, family trips, and
weekend getaways into transformative
journeys.
Phot o Credit : Google Images
Phot o Credit : Google Images
8. Business Level Strategies:
With hundreds of thousands of
magazines circulating the world it becomes
easy to wonder how National Geographic
consistently remains one of the top ten selling
magazines sold year after year. This,
ultimately, boils down to what the company
does to set its magazine apart from any other
magazine out there. In order to set itself apart
from other companies, National Geographic
uses the following business level strategies:
Costlevel
o National Geographic is, and has
remained, a non-profit
organization for nearly 123
years. Money that is fundraised
by the organization not only
goes to the upkeep of National
Geographic and it’s staff, it
goes toward great causes such
as feeding starved children in
Africa or saving the Amazon
rainforest. Today, the National
Geographic website offers
memberships to the National
Geographic society (which
includes a subscription to the
magazine) for just $12 a year.
While this price is certainly a
bargain just for the beautiful
magazine, subscribers also gain
more for their money knowing
that their donation is going to a
good cause.
Differentiation
o National Geographic first
differentiated themselves as a
magazine in the early 1900s
with their beautiful
photography. Since then,
National Geographic has
continued their century-long
photographic traditions and
became the first to publish
9. natural color pictures of the sea,
the sky, the North Pole and the
South Pole. National
Geographic also is a non-profit
magazine company and appeals
to the many people who work to
make a difference in the world.
Focus Strategy
o National Geographic magazine
is popular in every part of the
world. How does an American-
based magazine cater to readers
around the world? National
Graphic is currently being
printed in 25 different
languages. There are very few
who cannot have access to the
magazine simply because they
do not provide the language.
National Geographic also prints
editions such as National
Geographic Kids, which allows
the division of the magazine to
focus on a specific market to
children. Just the same,
National Geographic also has a
travelers’ magazine to cater to
another focus area of National
Geographic readers
(“Frequently Asked
Questions”).
National Geographic Magazine
SWOT Analysis:
Strengths:
Trusted and Established
o National Geographic is one of
the oldest magazines in the
world that is still being
published today. With its roots
in the 1800s, National
Geographic has gained
immeasurable amount of
customer loyalty and
satisfaction as a result of their
perseverance through time.
10. Innovative
o Many magazines today have
followed in the wake of
National Geographic in many
ways. In terms of taking their
print magazine to online
versions, they are a lead selling
magazine for kindle and iTunes.
They also use social media and
their website to make pictures,
articles, and commentary readily
available to their members as
well as a few that are available
to the public.
Weaknesses:
Print Magazines are a dying
industry
o According to The Wall Street
Journal, News Stand Sales of
Print Magazines have dropped
12% from 2013 to 2014
(Stynes). Due to the rise of
technology, printed journalism
is rarely appreciated anymore.
National Geographic has an
internal weakness in being a
magazine company.
Intimidating
o National Geographic was
originally a science magazine,
and in many ways it still is. For
the reader who may not think
they have much interest in
science or culture, might still
find the information in National
Geographic fascinating, will
most likely be too intimidated
by the National Geographic
Magazine to purchase it from a
news stand. The intimidating
cover stories and sometimes
shocking photos on the cover of
National Geographic magazines
11. may cause a huge loss of
business for the company as
potential readers pick up a
Cosmopolitan instead.
Opportunities:
SocialAwarenessis Trending
o Doing good in the world has
become quite trendy over the
years. With celebrities like
Angelina Jolie and Brad Pitt
leading the way, serving on
mission trips and cleaning up
the community is a bandwagon
that everyone is hoping on.
Luckily for National
Geographic, inspiring people to
care about the world has been
their goal for over a century.
The company should see this
trending phenomenon as an
opportunity to catch a market
niche.
Threats
War
o During the past century while
countries have waged dangerous
wars with one another, National
Geographic got the story.
Sending reporters out into the
field during the middle of a war
can be dangerous. Just a this
past September, American
journalist Steven Sotloff was
beheaded by the terrorist group
ISIS as punishment for
American military intervention.
Wars are a dangerous place for a
journalist, especially an
American one. By covering
stories in war torn countries,
National Geographic faces a
huge threat.
Environmental Dangers
12. o Just as easily as a journalist or
photographer can be killed in a
war zone, environmental
dangers can lead a
representative of the magazine
into harms way as well.
National Geographic
photographers tend to work to
get as close of a shot as possible
to the dangerous wildlife that
surrounds them. Many times a
photographer can become
injured by everything from a
snakebite to an animal attack.
Therefore, the environment can
pose a huge threat to National
Geographic.
National Geographic Mission
As valid today as it was at launch.
“Almost any of us, with a little time and
a little savings to spend, can travel to
places and do things that no previous
generation could. Every couple of years,
we can have an adventure of a lifetime.
And in the meantime, we can live our
lives adventurously. This magazine is
designed to help you do that.”
—
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It was founded to increase and diffuse
geographic knowledge, and its mission
is to inspire, illuminate and teach.
The award-winning photography
always let us hear about the sound of
our nature. Also, those high level
reporting motivate people and effect
their decision making.
The Society’s obligation to honesty,
correctness and superiority has placed
“National Geographic” as a yardstick
trademark and a front-runner in
publishing, photography, cartography,
television, research and education.
15. MARCH 24, 2015
Character Development
Photograph by Patrick Quinn, National
Geographic Your Shot
Amateur opera singers transform themselves
into their characters before a performance in
China. “They all have day jobs and are
extremely busy, but they have a passion for
Hainan Opera,” writes Patrick Quinn, who
submitted this picture to the recent Your Shot
assignment Transitions: As the World Turns.
“[This is] where they paint on masks and
become someone else” (National Geographic).
As human beings, we all have to paint on
different masks when we dealing with different
people. But, our lives are still beautiful and
lovely that we should have a passion with. We
all have difficult times in different situations
but
tomor
row
will
come
all the
time
when
you
are
alive.
Corporate Strategies
A new kind of storytelling, Awe-
inspiring photography and videos, daily
news updates from photographers in the
field, interactive maps and images with
360-degree views.
From the article, a social media
analytics company, which named
Shareablee that they categorized
National Geographic has the greatest
influences in the social culture for the
month of July, with 46.4 million
engagements on Facebook, Twitter and
Instagram. At that time, National
16. Geographic has an audience that’s 40
million-strong between Twitter,
Facebook, and Instagram (Hitz).
National Geographic attracts people
from different cultures, races, and
countries through its words, pictures,
and the free advertisements of social
media.
Functional Strategies
In April 2011 Folio Magazine named
Robert Michael Murray to its 2011
Folio 40 list along with Arianna
Huffington, Mashable’s Pete Cashmore,
Apple, The New York Times and
others. The list recognizes the “most
distinguished magazine and media
professionals from every corner of our
industry.” In recognizing Murray, Folio
wrote: “In 19 months Robert Michael
Murray has turned National Geographic
[NG] into a social media powerhouse, a
behemoth to be envied by publications
around the world. In that short time
Murray brought millions of fans to
NG’s Facebook page, without ads or
paid acquisition, while transforming the
brand every step of the way” (Social
Media Strategies Summit). National
Geographic always empowers and
motivates people use their own
organizational culture in a different
way. Robert Michael Murray as vice
President of Social Media of National
Geographic Society, he expanded about
30 million fans, followers, and
subscribers from around the globe at
that period.
National Geographic schoolings
address reconditioning the culture,
behaviors, and values of a inheritance
organization, changing a business
model from paper to digital, take
advantage of an enormous brand
consciousness and international
attendance, and encouraging cross-
17. functional and cross-divisional
association.
Business Level Strategies
Every year thousands of schools in
the United States join in the
National Geographic Bee using
supplies that offered by the National
Geographic Society. The
competition is considered to
motivate students to be interested
about the world. Schools with
students in grades four through
eight are eligible for this
entertaining and challenging
competition. It is a kind of
motivation for the students beyond
the classroom (National
Geographic).
“The Bee helped me realize the
career path I’d eventually like to
take, and it’s given me so much
insight on the world and life.”
-2014 State Bee
Champion
Photograph by Jimmy Chin, National
Geographic
The chiseled body of the climber clinging
barehanded to the rock creates an arresting
visual tension in this photograph from the
February 2014 National Geographic story
“Impossible Rock.” Knowing there is water
below should he lost his grip is comforting but
makes the moment no less vivid (National
Geographic).
Everything is possible even a rock can be
impossible some time. Trusting on the things
that you think are right because we never know
what is going on the next moment.
18. SWOT
Strengths
Strong brand image
There are so many loyal customers
Incidence of geographic sites with
world-wide significance
Inordinate stories and opportunities to
involve the community
Many compartments of geological
tradition sites, museums, parks,
monuments
Available in HD
Weaknesses
Lack of coordinating/ partnering across
organizations
Lack of geologic heritage
underpinnings in environmental laws
and regulations
Staff does not have appropriate
background or knowledge of site
Opportunities
Positive links to mining and extractives
and responsible practice
Increasing worldwide recognition about
geo-conservation
Learn from European and Asian Geo-
heritage programs and initiatives
Have new type of partners
Move their publication online more and
more
More travelling choices for people who
want a cheaper trip
Threats
Information established TV channels
need to restructure and re-strategize
themselves
Many shows are available on the
internet, don’t have ad breaks
Too much cost materials on the paper
19. Illustration by Pierre Mion, National
Geographic
The 1964 Good Friday earthquake, the worst in
North American history, caused a catastrophic
series of tsunamis in the North Pacific. In this
illustration, a tsunami's wall of water—topped
by flaming oil—destroys the docks of Seward,
Alaska (National Geographic.)
The earthquake resulted in several tsunamis,
which caused damage as far as California,
Hawaii, and even Japan. Over 125 people died.
Five categories represent the macro
environment:
Political/legal environment
National Geographic Traveler’s annual
photo contest will be open to New
Jersey residents next year. A law was
signed in January clarifying that
participation in the contest does not
violate state gambling laws (Davies).
Sociocultural environment
People take more attention on the
natural environment, they love to share
culture to each other. Instead of word of
mouth, social media is working more
influential in our daily lives.
Technological environment
Social media such as Twitter,
Facebook, You Tube, Yelp, Google,
etc. They can send the information to
you and let you know what fashion is
famous? People check their social
media accounts almost every day, and
the good advertisements are showing on
the website pages.
Ecological environment
20. More and more people want to choose a
“Go Green” company. From the
pictures and news from the social media,
the climate and food safety are the most
important issues now. So, choosing
something “Green” and “Need to be
Green” are the better choice for a media.
National Geographic encourage
environmentally friendly commuting,
inclusive employment policies, and
healthful food options, all of which are
communicated through our award-
winning intranet (National Geographic).
Porter’s five forces industry structure analysis
comprise:
Potential competitors
Discovery Channel
Animal Planet
History
Discovery Science
Competitiveness among industry incumbents
Try to care about people, our
environment
Minimize the environmental impact of
their suppliers and partners
Reduce operational waste
Buyer’s influence
People need more convenience way to
read magazines. They are prefer online
reading than the paper work
More teachers, parents, schools, and
students pay attention on the education
part.
Supplier’s influence
National Geographic is using paper
from Verso Paper mill. They have a
long time partnership.
National Geographic Society (NGS)
and its subsidiaries require that all
products manufactured and delivered
for NGS comply with all local and
national laws and regulations. The
purchaser and/or manufacturer must
21. ensure that all supplied paper and other
materials conform to the Lacey Act as
amended in May 2008. In addition, any
materials, paper or other forest product
must be sourced in compliance with
internationally accepted forestry
protocols (Supplier Relations).
Substitute products
There are several kind of magazines
that are presenting our environment and
they are trying to be social and have
good communication with customers.
National Geographic is a green team
now, and their staff are doing the same
things. So, the value and level of the
magazine and the
company itself are
improving.
The GREEN
Movement
National Geographic has made it part of their mission
to promote the protection of natural habitats and cultures
around the world. In doing this, they are educating future
generations on how important it is to protect the planet and all
of the creatures in it.
Starting at their core, the National Geographic
Society has made it their mission to be as
sustainable as possible in the workplace,
especially their headquarters in Washington
D.C. They accomplish this by only using
recyclable materials and eliminating
unnecessary paper use. They have made it a
company policy that all materials purchased for
Nat ional Geographic Headquart ers, D.C.
Phot o Credit : Google Images
22. the office must be either made from recyclable
materials or recyclable themselves. This policy
says a lot about how the company is truly
living what they teach to others, and that they
are dedicated to making the Earth a greener
planet. In addition to the restriction on
materials, they also have printers that need
authorization to print to eliminate duplicate
printing jobs to save paper. This technological
advancement shows their dedication to their
mission and how they are truly doing
everything they can to eliminate waste. The
company is determined to dramatically reduce
the carbon footprint they will leave on the
plant, and they have gone to great lengths to
accomplish this goal. Along with recycling, the
company also composts materials when they
can, such as food waste from the company.
This reduces the amount of waste the company
is adding to landfills (National Geographic
Sustainability).
National Geographic also promotes
green travel to all of their employees since
travel is so crucial to the functioning of the
company. They guidelines are that the
employee must use the most green and efficient
mode of travel, they must combine multiple
tasks per trip, stay in LEED certified locations
when possible, and share all of their modes of
transportation rather than having private limos
and company cars. All of these guidelines
prove that National Geographic truly believes
in their foundation of beliefs and want all of
their employees to abide by these standards.
Over the past few years, the company has
conserved and saved so much energy, as well
as greatly reduced waste. This shows how
dedicated National Geographic truly is to
preserving the Earth and the environment
(National Geographic Carbon Footprint).
Three Principles- Moral, Ethical,
Legal
When looking at National Geographic,
it is clear that the company tries their best at
being a legal, moral, and ethical example for
23. other educational organizations. Everything the
company does is for the benefit of the
environment, a cultural group, or for
educational
purposes. National
Geographic always
makes sure they are
legal in the way
they travel through
countries
photographing
people and
documenting different
cultures. They also
focus on being legal in the way their
organization functions at the business level.
When looking at the mission statement, it is
clear that the company was built upon strong
morals and great passion for travel and culture.
National Geographic was formed from the
desire to better protect the Earth, including all
of its inhabitants, as well as spread and share
the knowledge of culture around the world.
They created their magazine to allow people to
experience the world if they are prohibited by
the limitations of time and money. Also,
phot
ogra
pher
s and
other
empl
oyee
s of
Natio
nal
Geog
raphic often participate in philanthropic events
that promote sustainability or the bettering of
an area or culture. Pictured above are two
National Geographic photographers, who
climbed Mt. Kilimanjaro in Africa in order to
raise awareness of the villages that are in great
need of clean drinking water (National
Geographic Blog). This is a great example of
how the company has a strong moral compass
Jimmy Chin and Alexandra Coust eau (NG
explorers) climb Mt . Kilimanjaro t o raise awareness
of clean wat er.
Phot o Credit : Google Images
24. and makes decisions with the best interest of
others in mind. Also, National Geographic is
an extremely ethical company, and has proven
themselves time and time again while spending
time in countries around the world. They also
receive large donations frequently and use this
money in an ethical way to further the
philosophies and purpose of the company.
Since they are a nonprofit organization, they
completely rely on donations in order to do
what they need to do across the world. 100% of
donations go to their various projects, as well
as funding trips for photographers, in order for
them to share information about various
cultures around the world (National
Geographic Donations).
Strategies
Corporate Level
National Geographic uses strategies
at the corporate level to make sure
that everyone in the nonprofit is
working towards the same goal,
since the company has so many
different branches. Also, at the
corporate level, National
Geographic has put many guidelines
into place, restricting the amount of
resources people can use in the
offices in order to stand by their
“Green” philosophies. These
strategies help reiterate the
companies mission and vision
statement, which strengthen the
credibility of the company.
Business Level
Although National Geographic is a
nonprofit, they have to make
business plans about what to do
with the donations they receive, and
learn to prioritize the money for
different projects. They also control
costs on a business level by being
environmentally friendly and green
in all of their facilities and on
excursions. By cutting electricity,
25. water and paper usage, they are also
cutting down their expenses. And
when they have more money in the
budget, they can use a greater
amount for their missions and
photography excursions for the
magazine. National Geographic is
constantly looking for ways to make
their buildings more “green,” as
well as employee travel, since that
is such a large part of the job. And
being more “green” normally means
being more cost effective as well,
which in turn helps the business and
their moral standards (National
Geographic Sustainability).
Functional Level
On a functional level, it is up to the
employees to be aware of their own
specific part in the green movement
in the company.
SWOT of Environmental
Standards
Strengths
National Geographic is an industry
leader in company sustainability
and GREEN technology.
National Geographic employees are
all required to follow certain
guidelines in the office, which help
keep the company green, and LEED
certified.
Being GREEN saves the company
lots of money on electricity, water,
and supplies costs.
Weaknesses
Sometimes the company tries too
hard to save money on travel
expenses for their employees as
well as trying to take the greenest
method of transportation. By doing
this. They can be wasting time
instead and missing out on
26. opportunities the photographers
could have.
Since National Geographic is such a
large company, people are always
trying to find fault in what they do,
and try to bring them down.
Opportunities
National Geographic does not really
have any direct competition because
there is no other science magazine
that is as popular. Because of this,
they have the opportunity to grow
so much more and fill in a need for
a photography science magazine for
the world.
Threats
While traveling around the world,
National Geographic often runs into
issues in countries where war is
prevalent. They must figure out
ways to neutralize the situation and
gain the trust of the local people in
order to photograph certain
countries.
Competitors
National Geographic does not really
have any direct competitors due to their large
size and broad scale of departments within the
company. Not only is National Geographic a
world-renowned magazine company, but they
also have lodging options all around the world,
are a brominate face in the philanthropic
community, and an industry leader in the
GREEN movement. No other company comes
close to comparing to National Geographic and
all they do in the community. Because of this,
they have a huge advantage to becoming even
more successful than they already are, because
there is nothing holding them back from
growing in the industry.
National Geographic: Travel
National Geographic operates an entire
travel and tourism segment as part of their
27. overall business portfolio. They offer guided
trips all over the world of varying sizes and
itineraries. These include student trips, large
group excursions, and even private
personalized expeditions. Additionally they
operate a collection of lodges all around the
world that immerse guests in the culture and
natural environment of the location. The lodges
are fairly new, as of early 2015. This business
unit represents the branch of the company most
heavily involved in tourism, related the other
business functions.
When it comes to the legality, morality, and
ethics of business, National Geographic is well
regarded, due to its status as an educational
society. For example, the company’s lodges all
focus on sustainability. They support the local
culture and environment and focus on
providing guests with authentic experiences.
This provides value to consumers by creating a
reputation for ethical practices in sustainability.
Morality is also a big factor, because the
company refuses to open a lodge without
taking steps to ensure the local culture is not
disturbed by the development. This attracts a
socially conscious market of travelers, which
fits in with the overall vision of National
Geographic. This gives the National
Geographic lodges a competitive advantage
compared to other companies in the minds of
these sustainable-minded consumers.
Corporate Level Strategies
National Geographic is very large and
has many different operating segments,
which necessitates the need for a strong
corporate level strategy in order to
allocate resources effectively.
Traditional shareholders do not exist,
since the overall goal of the company is
not to have the largest profits like other
businesses.
Shareholders are members of the
society, and the company must make
28. decisions at the corporate level that will
please donors.
The travel side of the business fits into
this corporate strategy by raising money
in order to fund other business
functions.
A way that National Geographic can
improve upon its corporate level
strategy using the travel segment as an
example would be to continue to
develop innovative experiences in order
to gain a competitive advantage over
other group travel services.
Business Level Strategies
A focused business strategy is the
approach that the company has taken
with the travel segment of the business.
Depending on the excursion, prices are
high and the experience is made to be
authentic to the area.
This targets a specific kind of traveler,
who has a high income and is interested
in more genuine travel experiences.
By operating this way, National
Geographic has positioned itself in a
category away from direct competition
with most mass-market tour companies,
who offer a more generic product.
Since the travel industry is growing as a
whole, it is a good strategy for the
company to be investing in this area,
which they seem to be doing with the
opening of the lodges.
SWOT of Lodging Experiences
The first strength of this business
segment is the unique trip offerings and
lodges, which separate it from other
larger scale offerings.
Customization exists so that travelers
may design their own experiences in
order to receive an expedition that suits
their needs and wants.
Another strength is environmental and
cultural sustainability. The company is
well regarded in this segment and
29. operates in a way that supports local
environments without changing or
harming them.
A weakness is price, because many
market segments will not be able to
afford the price range that the company
operates in. This causes the market for
tours and lodges to shrink.
Additionally, travel services are not
what National Geographic has been
known for in the past, so it does not
have the automatic name recognition
for travel booking.
The lodging sector is a major
opportunity for the business since it is
still in the early growth stage.
Depending on the success of the current
lodges, National Geographic has almost
unlimited options around the globe for
future development.
Due to the nature of the company,
funding and shifting interests is always
a threat. If the company decides to
allocate more funds to another segment
rather than travel, business could suffer.
PESTE
Politically, the travel segment faces the
issues of world conflict regularly,
simply by offering tours around the
world. Strategies must be utilized to
plan for situations that may arise
globally in order to protect guests and
infrastructure in multiple locations
across the globe.
Economically this segment of the
business is again tied into the world
economy due to its wide spread
location. Prices will differ in the
countries that it operates in so costs will
be in constant fluctuation, which
strategies are needed to plan for.
Socially, the company is operating
under the major theme of sustainability
and targeting travelers who place an
emphasis on sustainable travel. Even
30. though the company operates this way
on principle, it is a good strategy due to
the overall trend of the industry in this
direction.
Technologically, innovative lodges are
being developed that use the natural
resources around them. For example,
the Nimmo Bay Wilderness Resort in
Canada harnesses enough power from
the waterfall located next to it to have
power for nine months of the year.
Environmentally the expeditions and
lodges strive to support the local area.
An example of this is the Sukao
Rainforest Lodge in Borneo, which uses
bees as a natural defense to keep
elephants out of community gardens
(National Geographic Lodging).
Porter’s Five Forces
The threat of new entrants to this
industry is quite low based on how
specialized the business is. National
Geographic tours and lodges can
operate at a lower profit margin than
other companies due to the support of
the society, which gives an advantage.
A substitute product would most likely
be a luxury vacation, which would be of
a comparable price but not quality. It is
truly a substitute in that the experience
of adventure and authenticity is traded
for comfort and the built environment.
The bargaining power of consumers is
not a large factor for the company, due
to the price point, which targets a niche
market of consumers.
The bargaining power of suppliers is
great, especially in the communities
where the lodges operate. Due to the
fact that the company is committed to
integrating itself into the local
community, that population has power
in deciding what the terms of operation
will be.
31. Competitive rivalry would seem to be
strong from the outside, but is in fact
quite low due to the market, name
recognition of National Geographic,
and the operation of the business with
the backing of the overall society
(National Geographic Lodging).
Conclusion
Overall, National Geographic is a highly
successful company, evident through its
position as a leader in multiple industries. They
provide an unparalleled standard of service and
quality in areas such as the magazine,
photography, education, and expedition travel.
Excellent strategic planning and strategy
implementation are what allows the company
to flourish. Through our analysis, we have
highlighted many examples of these strategies
that stand out as examples. Even so, the
company has areas that it can improve on in the
future in order to retain a competitive
advantage and remain highly respected and
well known. In the end, we believe that
National Geographic will continue to
experience success in the future if it continues
to operate on its guiding principles, and is open
to making changes based on strategic
development.
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