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Inkaterra Case Study: Amandeep Singh Erika Quenaya Angela Acosta Patricia Esteban Renata Hernandez

The central issue of the Inkaterra case study is how the small but successful eco-tourism company can grow its business internationally while preserving its commitment to environmental protection and empowering local communities. Some options discussed include expanding to new locations, pursuing international joint ventures, or focusing on mid-tier markets. Any strategy must consider potential barriers like lack of infrastructure in Peru's tourism sector and ensuring local involvement remains a priority.

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AmanDeep Singh
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101 views9 pages

Inkaterra Case Study: Amandeep Singh Erika Quenaya Angela Acosta Patricia Esteban Renata Hernandez

The central issue of the Inkaterra case study is how the small but successful eco-tourism company can grow its business internationally while preserving its commitment to environmental protection and empowering local communities. Some options discussed include expanding to new locations, pursuing international joint ventures, or focusing on mid-tier markets. Any strategy must consider potential barriers like lack of infrastructure in Peru's tourism sector and ensuring local involvement remains a priority.

Uploaded by

AmanDeep Singh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Team 11- Members:

Peru Amandeep Singh


Erika Quenaya
Angela Acosta
Patricia Esteban

Inkaterra Renata Hernandez

Case Study
What is the central issue of the Inkaterra study?
With more than 36 years in the market and having built luxury hotels in Cusco and the Peruvian
Amazon, it is still a relatively small hotel company, since it only has 5 operating tourist complexes.

The problem that Joe now faces is finding the way Inkaterra will grow, in which several options are
presented to analyze:

- Expand with more locations in the same luxury ecotourism segment.


- Expand internationally. He had proposals to open an eco-resort in Chile, Ecuador and Brazil.
- Merge with international companies

Previously, an internationalization process had already been planned, but this failed since Inkaterra
was going to be the minor partner and this could affect the control of the customer experience and
its capacity for further investigation, which is why the possibility of a company was ruled joint
venture.
What is the competitive
advantage of Inkaterra?

Inkaterra allows to develop Peruvian resources providing the


conservation through the eco-tourism, respecting
environmental, cultural and social values. This can be
defined as “Responsible travel to natural areas that
conserves the environment and improves the well being of
local people”
With this same aim of collaborating with community it is
that guided tours are given by local interpreters, offering an
authentic experience of knowledge transmission.
Describe each strategic unit in Inkaterra and its main
challenge

Efforts to preserve local Potential suppliers of


culture Eco-tourism services
Inkaterra works to preserve culture Peru was not an eco-touristic
through empower local communities destination despite his ecological
an example of maked production of wealth in the global market.This is
CD’s Peruvian music like “Cafè in part due to the scarcity of
Inkaterra” and “Serenata Inkaterra eco-lodges not only in the luxury
and Fiesta Inkaterra”. segment but also across the broad.
What are the different strategies Inkaterra can apply to growth?
01 03
Capitalize on Inkaterra reputation as Begin International expansion
a leader in the luxury eco-tourism
Maked option an Inkaterra to
Segment and to expand in this explore new geographies and
segment by building more eco-resorts natural habits. As Joe Koechlin
in other locations. Inkaterra has
said the possibility to open
constructed eco-lodges in the Amazon
jungle, in the rainforest in Inkaterra eco-resorts in Chile,
Machu-Picchu, and in Cuzco’s Ecuador and Brazil.
historical center.
04
02 Focus on the Mid-tier and
Joint-Venture with &Beyond academic markets rather than
The lack of land in Machu Picchu on the luxury market
Pueblo , made the joint operation of El MaPi and Hacienda Concepcion
Inkaterra the only viable possibility have allowed Inkaterra to enter in the
for &Beyond to access to Machu underserved mid-tier market with the
Picchu. brand : “By Inkaterra”
Potential barriers that exist for the development in the
tourism sector

Lack of Barriers to entry for A low involvement of


Infrastructure new business ventures local people
Transportation: Virtual monopoly on There exist a long process and Low specialized education and
air traffic by LAN, Limited rail corruption with licences service training to meet foreign
networks, Lack of direct international High interest rates and need for
flights to Cusco tourism demands
collateral with the access of credit Local people often relegated to
Roads: Paved roads constitute only 12%
High taxes rates (18%to make up menial professions, high value-add
of the total road network and deficit
for low direct tax to GDP ratio ) jobs retained by people from Lima
infrastructure
Hotels: Premium segment overpriced this mean an informal economy
compared with other destinations and
limited mid-range options
What is the best strategy to preserve the
environment?
“People lack information about the tourism and about how to preserve
the environment” said Luisella Garmendia, Manager of Inkaterra La
Casona Cusco Hotel.

According to Joe Koechlin “Without Knowing the species that lived in


them, it was not possible to preserve them”

The most effective way to diffuse the knowledge created is trough tours
guided by local interpreters. Most of these are locals and grown up in
the region, many of are trained by experts. The main role is to educate
the guests of the entirety of the ecosystem they encounter during this
stay. The interpreters can transmitted the knowledge and makes the
experience authentic at the same time.

Also, Inkaterra includes people who habits in the land starting as


employees and according to preserve they empower local communities
by giving them the capacity to act as professional in ecotourism
Government Position
FIRST FINALLY
The government is responsible to give environmental As they mentioned, in Peru, we
regulations in order to ensure the care of the have laws to ban deforestation
environment and this wouldn’t be affected by the of protected areas and illegal
tourism. But in this case, we can see the inefficiency of mining but when officials try
the government about ecotourism from the beginning. to do their work, miners act
improperly. In this case
government should find
SECOND alternatives economic activities
for local population in order to
Peru has the potential of being one of the
reduce the damage caused by
most visited countries but part of this
the other activities.
problem involves government and its weak
laws. As the article says laws and regulations
only have proven the inefficiency in deterring
locals from these activities.
How can Inkaterra grow internationally keeping in view the
protocols related to environments it follows in Perú?

FIRST SECOND
We believe that Inkaterra needs collaboration from the As well, we believe that Inkaterra needs to carry out
government, through the Ministry of Tourism, precisely diversification strategies, since tourists like to have good
PROMPERÚ; For example, it is necessary for these and different experiences; However, it is necessary to
entities to verify that Inkaterra complies with the preserve the concept of ecotourism, taking into account
requested requirements in order to obtain quality that to locate the target audience it is necessary to carry
certificates, and thus the government can offer training, out a SWOT analysis; as well as carrying out advertising
certifications, promote it at events, participate in campaigns and social networks.
international fairs, make international publications and
greater dissemination in the media.

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