Lack of focus on technological advancement

V has been in the travel business for 34 plus years. This portrays knowledge, experience and past success. The business has grown continuously until 6 years ago where V has faced a decline in the market share due to the involvement of internet in the travel industry. In the past V has differentiated mainly upon friendly direct personal service through its branches where it has developed positive long term relationships with the customers. But the introduction of internet and online bookings has resulted in speed, convenience and flexibility which have outweighed the advantages of direct personal service. V has carried out an IT investment 5 years ago as a re-active strategy when they realized they were losing their sales due to the competitors adopting IT in their business. Although the change was inevitable and revolutionary, V has managed to survive and as at 30th June 2012 60% of Vs Revenue seem to be through the web site. This is a strong indication that V should focus more on investing on the website and Information Technology requirements by updating and maintaining the system frequently in order to match with the market trend, the environment and most importantly the customer. V could use Information Technology in various aspects in order to improve the performance, efficiency and effectiveness as well as to be competitive and flexible. Recommendations An Information Management Strategy (IM) should be developed by identifying the nature of the employees, customers, support product agents etc. It is also vital to develop a policy for managing information and authentication for different parties in order to facilitate control. V should develop an Information Strategy (IS) by identifying the customer needs, trend in the market, anticipated future developments in order to differentiate and innovate so that V will have a competitive advantage. This could be done by analyzing the present situation carefully and by forecasting what the future developments could be. As an IT system has already been set up 5 years ago it will be important to review and evaluate the current system in order to develop an Information Technology Strategy so that the necessary updates, upgrades and backup systems could be installed. V should also use IT in order to integrate with other travel companies through synergy so as to offer a better service and a product range to the customer. This would enhance the value chain of V. For example if an existing customer requests a destination that V does not cover, the web site could direct the customer to an integrated travel company of V. This will increase the customer satisfaction leading to increased customer retention. The sales being made online would enable V to carry out surveys and analysis as to which package is most inquired about, how the customer feedback and the opinion on the staff support online and etc. which would enable V to manage its business and make the necessary changes in order to enhance its performance. Considering the above factors it is vital for V to concentrate on investment in technological advancement as it is a key issue essential for V to be competitive and profitable.