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Effects of tourism in Thailand
Tourist industry of Thailand
Competitive rivalry in the tourism industry
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Recommended: Effects of tourism in Thailand
Rivalry among competitors will be more intense depending on the outlook of the industry. Although, inbound tourism in Thailand has been growing steady since 1960 and the number of international tourists arrival in Thailand increased every year. Meanwhile, there is a huge number of inbound tour operator increasing every year (Department of Tourism, 2016). In addition, Thailand's tourism business operator, which account for more 70% is a SMEs entrepreneurs who must face the burden of the uphill competition that is circulating.
(EXIM Bank, 2016). According to Department of Tourism (2016), indicated that the number of registered business in the year 2016 is up to 12,391 companies. These numbers show that there are many competitors in the travel industry. There are many inbound tour
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Then, the main idea behind the focus strategy is the company narrowing its competitive scope. Therefore, our company have determined specific market niches in which it is going to compete and be better than other companies within that market niche as follows;
- Focusing on a particular group of buyers which Sarocha Travel focuses on tourist based Germany and France.
- Specializing in particular geographic destinations which Sarocha Travel focuses on particular geographic destinations (i.e. Karnchanaburi, Suphanburi, Ayutthaya, Bangkok)
- Catering for the benefits sought by a particular group of buyers which Sarocha Travel provides tour packages for Germany and France tourist offering safety, quality, comfort and reliability in our packages at an all-inclusive price. As the two generic strategies is fundamentally different approach to creating and sustaining a competitive advantage, combining the type of competitive advantage as result our company seeks and the scope of its strategic target. The benefits of applying strategy for a particular target segment (focus) as a result our company won’t be require to compete with the other
a. Basically, corporation strategy demonstrates a corporation’s overall direction in the light of its general mindset toward growth and the management of its businesses and product portfolios. There are three crucial categories, which are stability, growth, and retrenchment, that involve within corporation strategy. Additionally, business strategy often occurs at the business unit or product level, and it highlights the improvement of the competitive position of a company’s products and service in the particular market segment served by the business unit. Competitive and cooperative strategies are two main categories that match within business strategy. Furthermore, functional strategy is the method that through a functional area to
The strategy for competing in the market was a broad-differentiation strategy. It was broad because it produced a large variety of products such as clamps, inserts, knobs, and similar items. Also, it differentiates from the other metal companies because of its good quality, good delivery, and reasonable price.
Porter’s generic strategy typology and the Miles and Snow strategy typology are both examples of generic strategic models that a decision maker may find useful (Parnell, 2014). Both generic strategy frameworks explain generic business strategies by utilizing four different strategy types. A few of the strategies may share some common traits, however the frameworks are different in the approach they take to view and describe strategies (Parnell, 2014).
|To examine a wide range of business strategy topics involving strategy formulation, including market structure, competitive |
Both Porter and Miles and Snow’s strategy typologies are based on the concept of strategic equifinality, or the ability for firms to be successful via differing managerial strategies (Hambrick, 2003, p. 116). Porter 's strategy is more generic while Miles and Snow’s is more specific in nature. Porter’s generic strategy typology is based on economic factors centering on the source of a firm’s competitive advantage and the scope of a firm’s target market (González-Benito & Suárez-González, 2010). Porter’s typology emphasizes a firm’s cost, product differentiation or non-differentiation and market focus. When utilizing Porter’s strategy typology, a firm must first decide to target its products toward the mass market versus a market niche or focus. Secondly, a firm will determine if it wishes to minimize costs or differentiate its products with differentiation meaning that firms will most likely forego lower costs (Parnell, 2014, p. 184). This can lead a firm to develop a myriad of strategies between these options. Strategies which may have or not have focus, may or not be differentiated, may or not be low cost or any combination of strategies. In contrast to Porter, Miles and Snow’s typology is more specific in nature.
These strategies are very important because, it will create more awareness about the company and what it has to offer, ensure continuous and sustained growth over the years and make it a more potent competitor in its current industry.
According to Johnson et al (2013) and John (1997), strategy can be defined as a general scope or long-term direction of a firm. Johnson et al (2013) state that strategy has three levels which refer to corporate, business and operational levels. In Lynch’s view (2006), there are two elements in corporate strategy that are corporate-level and business-level. This essay will focus on both corporate and business-level strategy. To conclude Lynch (2006) and Johnson et al (2013)’s points, corporate-level strategy can be identified as a purpose or overall scope of an organization. Business-level strategy is related provide the best value for products or services to compete in the specific markets. For example, innovation or response to competitors are usually the tactics of business-level strategy (Johnson et al.,
According to Leiper “Transportation is the only link between the tourist-generating region and destination region”[2]So, transportation was a more interesting sector to discuss in the report but I tried to find a company which is related with all these main sub-sectors discussed above in the report. I have decided to look in the U.K market for such company because “Tourism is one of the largest industries in U.K, worth approximately 75.9 £ Billion to the U.K economy in 2002 and supporting around 2.1 million jobs.” [3] During my research on internet I found many companies offering services in the tourism of U.K but I have decided to choose “Simply Travel” because of its variety of services offering related with the accommodation, transportation and attractions.
Porter’s generic strategy identifies three types of generic strategies that can be pursued by almost any business which include the cost leadership, differentiation and focus and it help to achieve, defend and sustain the company competitive advantages. (Huizen, 2006)
The present day travel and tour operator industry in India is highly fragmented and comprises a number of unorganized and small operators. Keeping recent trends in mind, it would be a grave error to ignore the significance of the Online Travel Agencies (hereinafter abbreviated as OTAs) on the industry dynamics. The OTAs have been a game changer and even the traditional travel and tour operators as on date have developed online portals. Thus we will study the industry rivalry first by analysing the rivalry among the OTAs, then the rivalry among the traditional travel and tour operators and finally, we will analyse the rivalry across the two types of operators
There are four main business strategies that can be used they are Cost leadership strategy, Differentiation strategy, Focus strategy (low cost) and Focus strategy (differentiation). We can use Porter’s generic business strategies to understand the difference in these strategies.
Everyone wants a competitive advantage in this world. A competitive advantage is like a golden ticket to wealth and riches, to a world where your company rules. If one’s organisation is on the higher ground it is always perceived as an advantage over the competition. But that’s just fiction. We all know it’s not just sunshine and roses. It takes a lot to get to the top and be the best and sometimes the road can be challenging and full of holes and boulders that need to be overcome or pushed aside to achieve your goal. There are four approaches of generic strategies. They are one, “Cost Leadership (no frills)”, two, “Differentiation (creating uniquely desirable products and services)”, “Focus (offering a specialized service in a niche market)”. Focus was divided into two parts, “Cost Focus and Differentiation Focus”
Located in Southeast Asia, Thailand has become a well-known destination to many travelers since the early stage of mass tourism. The boost of tourism in Thailand started with Vietnam War where Thailand became a popular destination for the rest and recreation of US military. Since then the Tourism Authority of Thailand (TAT) was established as an official organization to promote the country’s tourism (McDowall & Wang, 2009). Despite a lot of world external factors negatively affected Thailand tourism such as Gulf War 1991, Asia Financial Crisis 1997, SARS 2003 and Tsunami 2004, the overall number of tourists was increasing due to the quick response of the government to the needs of tourism industry and the effect of targeted promotional campaigns (Zhang, Qu & Tavitiyaman, 2009). According to TAT (2014), the international tourist arrivals increased over 333 times from 0.08 million in 1960 to 26.7 million in 2013. And in the same period, tourism revenue rose from US$10 million to US$38 billion. Although Thailand hosted a significant number of tourists and gained a lot of revenue from tourism, Thailand also suffered from negative effects such as AIDS, negative image of sex tourism (Li & Zhang, 1997), degradation of the environment (Koont...
Business tourism is recognized as a most advantageous format of tourism development at destination worldwide. To compare with business tourism, conference and tourism meetings are growing faster (Beioley, 1991).
The tourist behaviour can also contribute to get conclusions that cannot be gained by the study of resources and market. Destination analysis helps in managing the resources of the destination and also helps in positioning the destination. Destination analysis helps to consider the carrying capacity of the destination. Middleton and Hawkins Chamberlain (1997) defines carrying capacity as “the level of human activity an area can accommodate without the area deteriorating the resident community being adversely affected or the quality of visitor’s experience