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Tourism Industry

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1. Does the industry offer attractive opportunities for growth?
Yes. Tourism is a sunrise industry. Many countries have substantial support it, because tourism can drive a lot of development of other industries such as restaurant and souvenirs business and hotel and so on. 2. What kinds of competitive forces are industry members facing, and how strong is each force?
Rivalry among Competing Sellers: moderate to normal * Buyer demand is growing rapidly * Buyer costs to switch brands are low * Fixed and storage costs are low. * Competitors are roughly equal size and competitive strength.
New Entrants: weak * Entry barriers are high * Significant experience- based cost advantage * High capital requirements Substitute: strong * Good substitutes are not readily available * Substitutes are attractively priced * Substitutes have comparable or better performance features * Buyers have low costs in switching to substitutes. Suppliers: weak * There is a surge in the availability of suppliers * Industry members’ switching costs to alternative suppliers are low. * Some of suppliers with large market shares. * Industry members accounts for a big part of suppliers’ sales * Buyers: moderate to normal * Buyer costs of switching to competing brands are low * Some of Buyers are well informed about the quality, prices, and costs of sellers * Some of Buyers are not very price-sensitive, some of not.( different tour arrangement for different class clients)

3. What factors are driving changes in the industry, and what impact will these changes have on competitive intensity and industry profitability? * Corporation with others and resource sharing. At the approach of the holiday season, Tourism industry members decide to outsource some tourist groups to other travel companies (competitors). There are some advantages for this decision, one is when the capacity of this company is full enough during holidays, and the company could not have a high service quality to clients as regular time, it will injure the reputation of the company so as to lose repeat-business. It is better to give this business to competitors for mutual benefit. in a highly competitive situation, in ensuring long-term viability of the business operation.

4. What market positions do industry rivals occupy—who is strongly positioned and who is not? * No, the market share of the market segmentation in Tourism industry is very regular and clear in Vancouver. Canada is a multi-cultural nation; therefore, people who want to travel will find their country's travel agency which is more convenience.

5. What strategic moves are rivals likely to make next? * From the price competition to brand competition( improve quality of tour arrangements) * Customization ( for high class clients) 6. What are the key factors for competitive success in the industry? * Characteristic tourist route * price * Service quality * scheduling * Hotel environment 7. Does the industry offer good prospects for attractive profits? * Yes. Many countries have substantial support tourism industry, especially in developing countries. Those countries rely on tourism to drive the local development of tertiary industry. Such as Thailand, Malaysia, Vietnam, and so on. * With the increasing growth of material wealth, Consumption direction obviously changed, people turn to pursuit the consumption of Spirit and culture. People would like to spend more time and money for leisure and entertainment. Head consumption changed obviously change

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