Please enable JavaScript.
Coggle requires JavaScript to display documents.
The external environment for tourism hospitality and event organizations -…
The external environment for tourism hospitality and event organizations
Industry and market
Industries produce goods and services – the supply side of the economic system.
Markets consume goods and services that have been produced by industries – the demand side
of the economic system.
Porter’s Five Forces Framework
Force 3: The bargaining power of buyers
THE NUMBER OF BUSINESSES SUPPLYING THE PRODUCT AND THEIR SIZE
THE NUMBER OF CUSTOMERS AND THE VOLUME OF THEIR PURCHASES
SWITCHING COSTS AND THE AVAILABILITY OF SUBSTITUTES
Force 4: The bargaining power of suppliers
THE UNIQUENESS AND SCARCITY OF THE RESOURCE THAT SUPPLIERS PROVIDE
HOW MANY OTHER INDUSTRIES HAVE A REQUIREMENT FOR THE RESOURCE?
SWITCHING COSTS BETWEEN SUPPLIERS
THE NUMBER AND SIZE OF THE RESOURCE SUPPLIERS
Force 5: The intensity of rivalry among competitors in the industry
THE DEGREE OF BRAND LOYALTY OF CUSTOMERS.
THE DEGREE OF DIFFERENTIATION
THE MATURITY OF THE MARKETS SERVED
GOVERNMENT REGULATION
THE NATURE OF COSTS IN INDUSTRY SECTORS
THE HEIGHT OF EXIT BARRIERS
THE RELATIVE SIZE OF COMPETITORS
Force 1: The threat of new entrants to the industry
THE CAPITAL COSTS OF ENTRY
BRAND LOYALTY AND CUSTOMER SWITCHING COSTS
ECONOMIES OF SCALE OR SCOPE AVAILABLE TO EXISTING COMPETITORS
ACCESS TO INPUT AND DISTRIBUTION CHANNELS
THE RESISTANCE OFFERED BY EXISTING BUSINESSES
GOVERNMENT REGULATION
Force 2: The threat of substitute products
THE WILLINGNESS OF BUYERS TO SWITCH TO THE SUBSTITUTE
THE EXTENT TO WHICH THE PRICE AND PERFORMANCE OF THE SUBSTITUTE CAN MATCH THE
INDUSTRY’S PRODUCT
Porter’s Diamond framework
Factors
Firm strategy, structure and rivalry
Related and supporting industries
Demand conditions
Factor conditions
The competitiveness of a tourist destination
Market structures, organization and strategies
Image-building within the context of global competition.
Aggressive and innovative marketing to foster growth and expansion of tourism’s value added
through special interest motivations.
Demand conditions
Expanding the destination’s share of quality tourism movement from primary, secondary and
opportunity markets offering them quality facilities and services.
Holistically oriented local, regional and national policy.
Government
Encouragement of systematic and continuous research into tourism market trends, demand
changes and innovations in leisure and tourism activities.
Improving academic and professional education and intensifying quality training in tourism to
meet industry requirements.
Resource-based framework
The organization
Resource markets
Product markets
Potential new markets
Markets for substitutes
Existing markets
Other industries
Its industry
Strategic group analysis
Definition
Strategic group analysis is an interesting way of analysing the competitive structure in an industry and assessing the positioning of key competitors.
Three steps involved in the analysis
Construct two-dimensional plots of the competitive dimensions.
Analyse the firm’s position relative to competitors.
Identify the important competitive dimensions in an industry, taking into account the information you
have available.