Opportunity Analysis - Tourism - Essay Example

Opportunity Analysis Student Name: Instructor’s Name: Course Code and Name: University: Date of Submission: Opportunity Analysis Introduction Opportunity analysis is important in the determination of viability of any business venture. Several steps have to be followed to prove beyond any doubt that the business that is going to be invested in will yield returns or is viable. The opportunity analysis procedure is not an easy process and requires several steps to be followed to ensure everything is accomplished in time. This scenario involves opportunity analysis for a new tourist venture an Australia and chances of its survival pitted against the mainstream service providers to tourists in the country. Establishing the innovative idea lays the foundation for accomplishment of other processes like market analysis and SWOT analysis (Picard 2011). Knowing the existing competitors in the market is very important in order to forecast the chances of marketing penetration. Having to jostle for space with the existing competitors is a big challenge that a new business venture has to content with. This report presents the analysis of tourist venture analysis. New tourism venture The idea is about a tourism venture which offers camping opportunities to tourism and an off beach restaurant. This is a medium size hotel that will offer especially outdoor services like sporting and camping on top of food, travel and accommodation. The location of the hotel will be off the beach targeting those tourists who want to travel to the interior of the country. It will be some miles from the five star hotels which are mostly situated near the beach. This idea appears to be innovative since most of the hotels offer food and accommodations only and leave for travel and tour companies to offer travelling and sightseeing services (Minca 2006, p. 157). When the tourists are in the country side will not have to worry about having to seek for alternative means of transport to various tourists destinations since the hotel will double up as a tourist travel company as well as a food, drink and accommodation joint. The main objective is to consolidate services so as to offer efficient means to the tourists who visit the country. The tourist venture will target both domestic and external tourists. The opportunity the venture is targeting is efficiency in connectivity to those individual who do not what to be burdened by many visits to different companies seeking variety of services. These services will be provided at ago. The transport vehicles will be fit with sleeping bags and tents for those tourists who want to spend their nights outside. The services of a security firm will be sought to provide security for tourists who will want to camp outside. The hotel will collaborate with other hotels to accommodate the tourists on its behalf while directing the bill to the hotel. The tourists will have to pay their bill through one check to the new venture tourist hotel. Domestic tourists will include families who will want to have vacations outside their homes and go for sightseeing (Massey & Taylor 2004). The objective is to provide an all inclusive pack of services that tourists seek from different service providing companies. The work is done through streamlining all other functions. Description of the idea and its competition An assessment of the market for the idea The market of the idea will include international tourists coming to see the beauty of the country. The idea will target tourists who have had enough of the beach and want to visit the interior of the country to feel the highland climate. Many of tourists do not end their journey to the country at the beach; they proceed to the interior to witness the culture of the indigenous people and get to the archives of the country (Cohen 1995, p. 78). The market will focus on those tourists who want their services to be performed for them, and they should remain as guests throughout their visit. Tourists who will want to visit the interior of the country and change climate will have an opportunity of doing so through this tourist venture. The domestic tourist targets all the states of the federal government. A cording to ABS (2011), the peak of tourist in Australia is between January and May. Tourist Arrivals in Australia throughout the year Source: ABS Catalogue no. 3401.0. Source: http://randsco.com/bestjob.php/2009/05/05/p668 Understanding the trends of tourist arrival in Australia will help in getting to know the best place to set the market in order to tap as many visitors as possible. Market distribution also will enable one to tell where there is congestion and where there is enough room to allow other new entrants. Many international students are also coming to Australia to seek education (James 2006, p. 7). They can form a good market for tourist service during the vacation. An assessment of the entrepreneur and the team The entrepreneur has to be resourceful and an individual of a creative mind. A well trained team from reputable institutions of training will be involved. Every department will need a leader who will direct other members. Reception and accommodation will get involved in receiving and registration of tourists. The reception department will alert the finance and accounting department to start entering data for each troop of tourists in readiness of preparation of a final bill when the tourist checks out of the hotel at the end of his visit (Coleman & Crang 2002). Food and catering department will be in charge of providing food and drinks to tourists in and out of the hotel. Food will be prepared and packed for outside tours not very far from the hotel. In case the tour destination happens to be very far, the hotel will seek the services of another well established hotel and it will pay the bill on behalf of the tourists. This amount paid on their behalf will be reflected on the final bill to be drafted at the end of the stay of the tourists in the hotel. When the hotel seek another’s services for accommodation incase tourists are not coming back, the same accounting procedure will happen. The security team will be outsourced while chauffeurs and drivers will employed presently by the hotel management. Every department will have a functional office to which will be in charge of storing data related to its department. The hotel will get buses for travel by and by and engage a recognized company for repairs of damaged vehicle (Adrian 2003). A detailed report of every department will be anticipated in the operations manager after two weeks to review progress and project anticipated expenses by the various departments through the department of finance. Store keeping will be done by the inventory department and levels of stock reported to the procurement officer at the end of every day so that incase of shortages new stocks are secured. A team that is constituted well with every member ready to play his role will help in kick-starting the business venture. Everyone has to be familiar with his roles. A discussion of the steps needed to make the idea the basis for a viable business venture. The venture will commence with locating the site for the establishment of the hotel. The services of exterior designers will be engaged in the location of a beautiful site that will be a breath-taking attraction to tourist who is being targeted. Doing a feasibility test and completing the market plan to submit to investors will have to be followed. Enough funds have to be raised through various means such as banks loans and attracting investors. Meeting the relevant local authority requirement in terms of rules and regulations will be next in line, to ensure that no rule is violated so as not to run in trouble with local authority. An already existing building can be used and only be renovated. Proximity to favorite tourists’ destination will be given priority. Locating either an existing building to renovate or putting up a new building. Looking for the necessary personnel to run the tourist venture; this will include, chauffeurs, chefs, room cleaners, waiters and waitresses, tour guides, security teams, swimming pool attendants, department heads, mangers, accountants and personnel manager, store keepers and other required staff. An analysis of competitors Understanding the competitive environment is very important. The main competitors are the main stream service providers to tourists which include five star beach hotels and travel and tour companies. Majority of the tourist being targeted are young couples and old ones who are able to raise the required fee for a tourist adventure. The venture will avoid very small children and expectant mothers due to the commitment involved. The travel and tour companies will also pose competition since they provide tour guides and vehicles to take tourists around the country to various destinations (Nagle 1999, p. 11). Trusted and established tour and travel companies will cause a scare since they are known to tourists and other tourists are being refereed to them. Adequate advertising and effective preparation of brochures will make the tourist venture to be known and gain recognition among the tourists. Unique brand will make the services of the company to stand out among the rest being offered in the same field. The main stream service providers are main competitors since they control over eighty percent of the services provided to tourists (CBCS 1940, p. 3). Deeper understanding of how suppliers relate with established service providers will help in getting to know the easier way for procuring for suppliers. SWOT analysis Strengths The business unique and rely own a distinguishable brand name Ability to provide all the services in one package Efficiency and effectiveness of service provision Proximity to the interior of the country while the majority of main stream concentrate at the beach Weaknesses Slow growth of business due treading in unfamiliar ground Inadequate avenues to explore Long procedures of procurement and tendering Local government legislations Difficulty in initial market penetration Low bargaining power with suppliers Opportunities Tourists’ new interest in indigenous people Good infrastructure within the country network Availability of expansion in the tourist sector Incentives by the government to promote tourism Threats Unpredictability of the tourist industry Threats of security posed by international terrorist groups such as Al Qaida Stringent government policies that prevent expansion Competition from other established tourist service providers Threat of new entrants into the same market Restriction by the government on matters concerning security Conclusion The success of new business venture will depend on many factors in the market among them the reaction of the already existing players in the market. Analysis of the market is very important to determine the feasibility of the project. The tourist industry is very competitive and requires careful studying before one venture into it. Opportunities present a growth path of a business while threats prevent constraints to growth. Weaknesses are internal constraints that can slow down the growth the business. Strengths are potential, strong points, which if exploited well can lead to massive growth of the business. Both internal and external forces in the market have to be analyzed before venturing into a business. In the long run, a successful feasibility test determines the resilience of a business venture to endure competition in the market. Tourism service provision is a hospitality industry that needs to be guarded with the uttermost care. List of References ABS 2011, Tourists statistics, ABS, Sidney. Adrian, F 2003, Tourism: an introduction, SAGE, New York. Coleman, S & Crang, M 2002, Tourism: between place and performance, Berghahn Books, New Delhi. Cohen, R1995, The Cambridge survey of world migration, Cambridge University Press, Cambridge. Commonwealth Bureau of Census and Statistics (CBCS) 1940, Official Year Book of the Commonwealth of Australia No. 33 – 1940, Aust. Bureau of Statistics, Melbourne. James, S 2006, Travel and tourism, Career FAQs, Sydney, Australia.  Massey, SD & Taylor, E 2004, International migration: prospects and policies in a global market, Oxford University Press, Oxford. Minca, C 2006, Travels in paradox: remapping tourism, Rowman & Littlefield, London. Nagle, G 1999, Tourism, leisure and recreation, Nelson Thornes, Melbourne. Picard, D 2011, Tourism, Magic and Modernity: Cultivating the Human Garden, Berghahn Books: Sidney. Read More