unit 5 the external environment: competition risk management and strategic planning
TRANSCRIPT
Unit 5 The External
Environment: Competition
Risk Management and Strategic Planning
Reading
Book Ch
Tribe, J, (2010) Strategy for Tourism, Goodfellow Publishers, Oxford.
5
Capon, C. (2008) Understanding Strategic Management, Prentice Hall: Hemel Hempstead.
2
Tribe, J. (2005) The Economics of Recreation, Leisure and Tourism, Butterworth Heinemann, Oxford.
8
Johnson, G., Scholes, K., and Whittington, R. (2008) Exploring Corporate Strategy, Prentice Hall: Hemel Hempstead.
2
Learning Outcomes
After studying this chapter and related materials you should be able to understand:Porter’s five forces
and critically evaluate, explain and apply the above concepts
Discussion Point
On what basis do organisations compete with each other?
What is competitive advantage?What is competitive risk?
The competitive environment
In his book Competitive Strategy (1980), Porter proposes the following model (‘the five forces’) for investigating the competitive environment:1 the threat of entrants2 the power of suppliers3 the power of consumers4 the threat of substitutes5 competitive rivalry
Porter’s Five Forces
The degree of competitive rivalry
Competitive rivalry measures of the intensity of competition in an industry.
It is is determined by the competitive conditions in the four forces analysed above and in addition:Degree of market leadership (dominant firm)Industry growth ratePerishability of productsMarginal costs of salesHigh exit costsCross subsidisation
Competitive Rivalry: Santorini, Greece
Conduct a C-PEST O/T analysis for a named tourism organisation
Opportunities Threats
Unit 5 The External
Environment: Competition The End
Risk Management and Strategic Planning