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The External Environment for Tourism, Hospitality, and Event Organizations…
The External Environment for Tourism, Hospitality, and Event Organizations
Industries and Markets
Distinction between industry (supply-side) and market (demand-side)
Vertical integration example: Tui plc
Industry Analysis
Definition and significance
Porter’s Five Forces Model
Threat of New Entrants
Economies of scale or scope
Access to input and distribution channels
Resistance from existing businesses
Government regulation
Brand loyalty and customer switching costs
Capital costs of entry
Threat of Substitute Products
Indirect substitutes
Switching costs
Brand loyalty
Price/performance comparison
Direct substitutes
Bargaining Power of Buyers
Number of customers and purchase volume
Number of suppliers and their size
Switching costs and availability of substitutes
Bargaining Power of Suppliers
Resource uniqueness/scarcity
Switching costs
Number/size of suppliers
Number of industries served
Intensity of Rivalry
Price competition
Non-price competition
Competitor size
Cost structure (fixed costs)
Monitoring competitors
Strategic Group Analysis
Definition
Importance of analyzing closest competitors
Techniques for graphical representation
Resource-Based Approach
Limitations of traditional frameworks
Importance of core competencies
Framework areas
Organization
Industry
Product markets
Resource markets
Other industries
Critical Success Factors (CSFs)
Definition and importance in strategy
Different CSFs across industries
Applications in hospitality, tourism, and events
Government Influence and Regulatory Factors
Role of government in competitive environments
Regulation in various THE sectors