Pestel and Porters Analysis of Tourism Industry - 1942 Words

Contents: Introduction Page 2 Macro Environment Page 2 Competitive Forces in the Tourism Industry Page 4 Conclusion Page 6 References Page 6 Introduction: This paper will be dynamically examining the tourism industry during the 2000s. It will begin by using the PESTEL framework to analyse the macro environment and determine which factors drive the competitive forces within the industry. Following this, Porter’s Five Forces model will be used to analyse the actual competitive forces at work within the industry and determine the relative importance of these forces. The macro environment Before one can look at specific factors relating to the firm itself, it is necessary to first examine the nature of the external or†¦show more content†¦It also allows more bookings to be made simultaneously, which will make it possible for airlines to process more bookings more quickly. From an environmental perspective, it is apparent that the world is starting to realise that increases in tourism are having a negative impact on the environment. This is due to increases in energy consumption, which in turn heightens the effects of global warming (Neto, 2002). There are many controls that governments are trying to put into place, such as flight rationing (Liverpool Business School, 2009). However, it can be argued that these have not really begun to have a significant effect on tourism, as they are still insufficient to dampen demand. It may become a problem in future years, as the number of controls is likely to increase. Perhaps the largest environmental factor would be natural disasters, like Hurricane Katrina (Cashell, 2005) and the tsunami that hit Asia in December 2004 (Birkland, 2006). These will impact negatively on people’s confidence in visiting places that have been hit severely by such disasters. As can be seen, the macro environment has had a significant impact on the tourism industry during the 2000s. The key factors affecting tourism negatively would be the political, social andShow MoreRelatedPestel and Porters Analysis of Tourism Industry1936 Words   |  8 PagesPage 2 Competitive Forces in the Tourism Industry Page 4 Conclusion Page 6 References Page 6 Introduction: This paper will be dynamically examining the tourism industry during the 2000s. It will begin by using the PESTEL framework to analyse the macro environment and determine which factors drive the competitive forces within the industry. Following this, Porter’s Five Forces model will be used to analyse the actual competitive forces at work within the industry and determine the relative importanceRead MorePestle768 Words   |  4 PagesContents 1) INTRODUCTION 2) ENVIRONMENTAL ANALYSIS OF THE TOURISM INDUSTRY 2.1) PESTEL ANALYSIS: 2.1.1) POLITICAL: 2.1.2) ECONOMICAL: 2.1.3) SOCIAL: 2.1.4) TECHNOLOGICAL: 2.1.5) ENVIRONMENTAL: 2.1.6) LEGAL: 2.2) PORTER’S FIVE FORCES ANALYSIS 2.2.1) POTENTIAL ENTRANTS: 2.2.2) SUBSTITUTES: 2.2.3) SUPPLIERS: 2.2.4) BUYERS: 2.2.5) COMPETITIVE RIVALRY: 3) MAINTAINING LEADERSHIP 4) FUTURE IMPLICATIONS FOR TUI: 5.4) ANSOFF MATRIX 6) CONCLUSION 7) REFERENCE 8) APPENDICES Read MoreFactors That Impact on and Influence the Organisation Essay1702 Words   |  7 Pagesbut are out of its direct control. The micro-environment is often determined by the industry the organisation operates within. Competition becomes a critical influencing factor. Johnson et al (2002) states that managers should understand the competitive forces that exist between organisations in the same industry because this will determine its attractiveness. De Swaan Arons, et al (1999) refer to Porter’s Five Forces framework as a tool to assess profit potential within an organisation. TheseRead MoreAirFrance-KLM Report Essay example1345 Words   |  6 Pagesz CASE STUDY: Air France – KLM: Changing the Rules of the Game [Type text] Introduction Air France-KLM Case (Som 2009) provides the background for airlines industry and factors impacting companies’ positions, details about the history of air-carrier alliances and their challenges. The main focus of the Case is on two companies: Air France and KLM and their decision to merge despite predictions of failure. The period covered by the case ends in 2006. As most aviation companies worldwideRead MoreThe European Tour Operators Case3189 Words   |  13 Pagesfirst part of the Portfolio Assignment will include an analysis of the external environment of two large travel companies, Thomas Cook and TUI. The three models that will be included and discussed in the first part of the assignment are PESTEL, Porter’s Five Forces and Industry Life Cycle. These three models should be done for both of the companies. For this assignment I should also briefly discuss the overall attractiveness of the industries and identify the opportunities and threats. BackgroundRead MoreThe Lego Group Analysis1615 Words   |  7 PagesStrategy Portfolio 1 The LEGO Group Analysis June 26, 2013 Word count: 1,517 Table of contents Title | Page | 1. Application of the PESTEL analysis | 3 | 2. Application of the Porter’s Five Forces Analysis | 4 | 3. Application of the TOWS Matrix | 6 | 4. Conclusions | 7 | 5. Figure | 8 | 6. References | 8 | In this assignment the LEGO Group are examined by using a PESTEL analysis (Turner, S., 2002,), Porter’s Five Forces framework and TOWS matrix, basedRead MoreCase Study1964 Words   |  8 PagesTHE EUROPEAN TOUR OPERATORS CASE Table of contents Contents 1 PESTEL Analysis 4 1.1 Political Factors 4 1.2 Economic factors 4 1.3 Social Factors 5 1.4 Technological factors 5 1.5 Environmental Factors 5 1.6 Legal Factors 6 2 Porter’s Five Forces 6 2.1 Force.1 Threats of New entrants 6 2.2 Force.2  Threat of substitute products or services 6 2.3 Force.3 Bargaining power of buyers (Customers) 7 2.4 Force.4 Bargaining power of suppliers 7 2.5 Force.5 IntensityRead MoreInvestment Entry Mode Strategy Of South Korea2479 Words   |  10 Pages This will create a competitive advantage over other hotels that are also located in Busan, South Korea. Porter’s Diamond With Porter’s Diamond we can better understand why some nations succeed and some fail in the international competition. The diamond consist of four dynamics; factor conditions; demand conditions; firm strategy, structure and rivalry; supportive and related industries. Factor conditions The availability and abundance of land, labor, capital, and rich cultural heritage in SouthRead MoreMarketing Audit : The World s Top Hotel Administrator And Business Sector Essay1334 Words   |  6 Pageshas been doing business for more than 45 years. Its fundamental worldwide challengers include InterContinental, Marriott and Starwood. This assignment concentrates on both the HotelInvest and HotelServices side of the Accor Group and and different analysis on the role of market auditing and and market planning. MARKET AUDITING AND MARKET PLANNING Accor would under take formal market auditing and market because it helps in the creation of more market plan and also align itself for the comppetion moreRead MoreThe Importance Of Entering An International Market Through A Complete Micro / Macro Analysis On The Company And The Country996 Words   |  4 Pagesto determine which product offerings would be successful and how these products can reach consumers in this new market. In this essay, an international examination will be conducted on Burberry expanding into Qatar through a complete micro/macro analysis on the company and the country, as well as insight into the key challenges Burberry will face in this expansion. The Firm Burberry, founded in 1856, is a quintessentially British company known for their innovation of outerwear and heritage pieces