BUSINESS STRATEGY FOR THE TREEPLE STARTUP EXPANSION IN KAZAKHSTAN

Abstract

This report presents an analysis of the Treeple company, a travel marketplace based in Kazakhstan, as the part of a practicum project conducted by the Master of Business Administration students of Nazarbayev University Graduate School of Business. Treeple is a travel marketplace platform established in early 2023 in Kazakhstan. It operates as a service connecting local tour operators with potential customers. It is a seed-stage startup that faces challenges such as low brand awareness, high customer acquisition cost, low retention rate and operational difficulties. The project focuses on the expansion strategy of Treeple in Kazakhstan. The aim of the project is to identify possible strategic directions for development and increase profitability. Firstly, we analyzed the tourism industry in Kazakhstan. It allowed us to identify the current state of local tourism. We conducted the survey among foreigners and citizens to identify the general attitude and trends in local tourism. Secondly, we analyzed the company’s internal processes and competitors. We also conducted interviews with Treeple partners to know the Treeple’s share in their revenue and to identify tour operators' needs. The CEO of the company had an idea to offer products like customized CRM for tour operators, white label websites, data analytics about travel trends, connection of tour operators with service providers, and quality verification. Based on the interviews, we identified

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the lack of interest for such kinds of products. We calculated the income statement and NPV of the company by using the data given by the CEO of the company. We calculated the average customer acquisition cost and average customer lifetime value. Finally, as a result, we developed recommendations and classified them into categories such as commission, marketing, value creation for customers, operations, and additional revenue streams. The new NPV calculation was developed based on our recommendations.