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Guam Analysis

In: Business and Management

Submitted By hellostrangerjr
Words 541
Pages 3
To grow and diversify visitor arrivals by creating the reasons to visit, attracting visitors from target markets, and providing a destination experience second to none.

To efficiently and effectively promote and develop Guam as a safe and satisfying destination for visitors and to derive maximum benefits for the people of Guam.

Main issues:
Over-reliance on Japanese markets

Lack of distinct identity, characteristics

Low visitor retention rate

Five porters:
Supplier: High, heavily dependent on few airlines & hotels, possibility of withdrawal and cancel of flights

Buyers: High, buyers can easily switch to competing suppliers, several other Asia-Pacific countries in which to enjoy a tropical vacation.

New Entrants: Low, high capital requirements, difficult to enter market and high cost to create a new tropical island/country/city

Substitutes: Switching cost are low, 193 other countries to visit for vacation

Intra-Industry Rivalry: High

Guam’s main source of income is from the tourism industry, which they built from scratch.

Position the target markets, countries with the BCG model

An amalgamation of American, Chamorro, Japanese and Filipino cultures in one.

Case Abstract: The general manager of the Guam Visitors' Bureau, a destination marketing organization, faces the challenge of running the island's tourism industry. There are strong interest groups, who have structured the competitive field in Guam, and the island's mature industry faces ever-increasing competition from rival destinations. The general manager must formulate a realistic strategy that acknowledges the internal and external constraints his organization faces and safeguards the competitive position of Guam.

Instructors will find this case useful in strategy, marketing strategy, tourism industry, hotel management or service industry courses. The...

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