The primary purpose of this task is to outline the PESTLE analysis, SWOT analysis and porter five forces analysis. Tourism industry has been chosen in the task. Tourism is an effective and dynamic industry that requires the ability to adapt frequently to customers changing desires, needs, wants and requirements. More detail of the task has been detailed below.
The tourism industry uses pestle analysis, porter five forces analysis and SWOT analysis are done by the company to gain competitive advantages in the global market. These models also help in attaining long term goals and objectives by analyzing and determining the strategies, policies and plans of the competitors. Tourism industry is considered as one of the world best and dynamic industries in the world (Bhatia, 2013).
The SWOT analysis for tourism industry has been stated below.
|
Strengths |
Weaknesses |
|
· Initiatives and proposals for green destination. · Good infrastructure is one of the significant strengths. · Furthermore, it has been able to maintain dynamic and unique culture in the country. |
· Lack of accessibility is one of the biggest weaknesses of Tourism industry. · Isolated · Poor and ineffective customer service. · Dissatisfaction among the tourism. · Less variety of food. |
|
Opportunities |
Threats |
|
· Branding and positioning is one of the wonderful opportunities for tourism industry. · Development and expansion of the markets. · Development of innovative tourism and related products. |
· High and immense competition in the global market. · Indirect competition from other substitutes. · Macro environment factors also affect the growth and success of the tourism industry. |
Besides the tourism industry, some other industries such as agriculture, automobile and education industry also use SWOT analysis to identify and analyze the opportunities and threats of the market and competitors. This analysis also outlines the strengths and weaknesses of the each and every industry to overcome the competitors (Tsitsiloni, Grigoroudis and Zopounidis, 2013).
Apart from the SWOT analysis, the tourism industry also uses pestle analysis to control and reduce the external risks and challenges of the market. It will also help to cope and strive with competitors in the international market. The pestle analysis for tourism industry has been discussed below.
Political factors: The political factors play a vital role in determining and analyzing the image of destinations in regions which they attract tourists. The warfare, violence, coups and terrorism also have a direct impact on the development and expansion of the tourism industry. Along with this, other political factors include political unrest, strikes and tourism rules, norms, and legislations explained and defined by the each and every state and region government. Political instability creates negative publicity and hampers the image of the tourism industry. The political factors also affect the fun, comfort zone, safety, security and leisure of tourists.
Economic factors: In terms of economic, tourism industry is the best and biggest industry across the world. The industry is paying good wages and salaries to its employees rather than other industries. Furthermore, rules, and legislations are kept in mind while recruiting and selecting the employees. The profit of the tourism industry is making good and enough to maintain its strong and unique position against its rivalries in the marketplace. The growth and success of such industry is driven by the higher disposable income and changing trends and lifestyles of the consumers. The fluctuations in currency rates between nations directly influence the international tourism suppliers marketing (Mariani et al, 2016).
Social factors: There are ample of unique and dynamic aspects of the tourism industry that have played a significant role in making good and effective organizational image among its regular customers. The quality that has been maintained by the team members of the tourism industry has made the tourism more prone to the industry. The heavy and unique culture that has been introduced by the tourism industry has always attracted and retained the consumers in the international market. It has been noted that the tourism industry should focus on the norms, culture, personality, values and beliefs of the clients to increase and enhance the revenue and outcomes of the industry. One feature of negative social impact on the tourism which cannot be avoided globally is that of child labor. The industry should focus on these aspects to beat the competitors in the global market. It has been noted that overall tourism industry creates a memorable and enjoyable experience for each and every person.
Technological factors: This is era of latest and innovative technology. It is stated that travel industry uses unique and innovative technologies while operating activities and functions. By using innovative and unique technology, the industry has been able to provide attractive services to its customers across the world. The excellent use of technology and resources has made the tourism industry more attractive and comfortable. The technological factors are the significant component in chalking out the strategies and policies of tourism industry (Gretzel et al, 2015).
Legal factors: The tourism industry will have to follow legal norms, rules and regulations. These elements are something that cannot be ignored. It has been noted tourism industry must focus on the legal factors that are governed by the government. It will help to stand out against the competitors in the global market (Chen, Chang and Wu, 2013).
Environmental factors: The environmental factors pertaining are the best use of fuel and wastage of oil in the tourism industry. The pollution also affects the growth and success of the tourism industry adversely. The preservation of the environment shall be done by the industry in order to abide the global issues related to the environment. The industry should make unique and effective policies to maintain a global position in the marketplace (Ali, 2015).
Besides this, porter five forces analysis is done by the tourism industry to stay in the competitive market. The porter five forces analysis are elaborated below.
Threats of substitute’s goods and services: It has been noted that threats of substitutes is high in the tourism industry because competitors try to provide similar services at lower prices. It affects the sustainability and results of the firm adversely.
Bargaining power of buyers: The tourists who are considered the primary consumers in the tourism industry are more competent of making utilize of technological advancements in the marketplace. It increases the bargaining power of consumers therefore the bargaining power is high in the hands of the consumers (Losonci and Demeter, 2013).
The rivalry among existing competitors: The rivalry among the existing competitors is low. It has been stated that internet eliminates the differences among the competitors.
Barriers to entry: The primary investment in the tourism industry generates quite a barrier and issues to the entry. Thus, it can affect the long term mission and vision of the firm. The foremost barrier is the differentiation that affects the services of the tourism industry (Singal, 2015).
The bargaining power of suppliers: It is the significant force of porter five forces analysis. The bargaining power in the hands of suppliers is high in the marketplace where there are less people available to provide services to the customers. In this way, the firm can also attract the brilliant staff and creates an effective image in the eyes of the consumers.
From the above mentioned limelight event, it has been concluded that pestle analysis, SWOT analysis and porter five forces analysis are done by the each and every industry to maximize the number of customers in the global market. As the same way, tourism industry also uses these models to overcome on the competitors.
References
Ali, M.A.B., 2015. Travel and tourism management. PHI Learning Pvt. Ltd.
Bhatia, A., 2013. SWOT analysis of Indian tourism industry. International Journal of Application or Innovation in Engineering & Management, 2(12), pp.44-49.
Chen, K.H., Chang, F.H. and Wu, C., 2013. Investigating the wellness tourism factors in hot spring hotel customer service. International Journal of Contemporary Hospitality Management, 25(7), pp.1092-1114.
Gretzel, U., Sigala, M., Xiang, Z. and Koo, C., 2015. Smart tourism: foundations and developments. Electronic Markets, 25(3), pp.179-188.
Losonci, D. and Demeter, K., 2013. Lean production and business performance: international empirical results. Competitiveness Review: An International Business Journal, 23(3), pp.218-233.
Mariani, M.M., Buhalis, D., Czakon, W. and Vitouladiti, O. eds., 2016. Tourism Management, Marketing, and Development: Performance, Strategies, and Sustainability. Springer.
Singal, M., 2015. How is the hospitality and tourism industry different? An empirical test of some structural characteristics. International Journal of Hospitality Management, 47, pp.116-119.
Tsitsiloni, M., Grigoroudis, E. and Zopounidis, C., 2013. Service quality evaluation in the tourism industry: A SWOT analysis approach. In Optimization theory, decision making, and operations research applications (pp. 249-266). Springer, New York, NY.
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