Tourism Enterprise Context Analysis - Case Study Example

Tourism Enterprise Context Analysis Enterprise Profile APT is a company has been chosen for context analysis. Company’s main objective is to offer the supreme visitor experience. It is a company owned by family. It is a privately owned company. The company was started in 1920. Alfred William (Bill) McGeary was the founder of the company. APT pioneered Australia’s dynamic travel industry in the 1960s and 1970s by offering diverse range of things. The group is doing lots of innovative things for offering an all round tourism experience to the tourists coming to Australia. The APT Company recently focused towards through international growth. The main objective of the company is to be the truly global group in terms of tourism. It is a Melbourne based company. The company is having a long history of almost 85 years in the Australian tourism industry. APT company is a part of the APT Groups. The APT offers a great experience of tourism in Australia with their array of programs including ocean and river cruising, rail travel, coach travel, air safaris, 4WD adventures and short breaks. The APT Company provides unparalleled holiday experience to tourists. The company is having very popular profile in market. Tourists feel secure about the company. The company is having a very rich history making it one of the leaders in the Australian tourism industry. Tourist’s feels very well satisfied with the company. Every year’s company scores more than 98% in terms of customer satisfaction. Company shares its different experience with the help of testimonials, brochure, tour directors, and organising events and with photos and videos. Company offers Special Deals in case of companies best tourism destination. These especial deals are generally being given during any special season or time. It is a very highly sophisticated tourism industry (Mitchell and Caroline, 2010). This company has good will in the Australian tourism industry. The company is having huge employee strength of almost 450 persons around the world. The company is earning good revenue out of their business. Company is trying to increase its global footsteps (Christopher and Claire, 2012). The apt has a top of the mind image among tourists in Australia. Tourism industry is full of good services. The APT has taken their services into a different level. It is not very easy to earn more than 98% of customer satisfaction rating after each and every year. Company is setting its own bench mark of providing a total tourism experience. Company is committed to provide good quality of services towards its customers. Different generations of the McGeary family are carrying this business very well. The enterprise is having a very impressive profile as far as tourism is concern in Australia. The company is having different accreditations. It shows that it is a very prominent company in Australian tourism industry (Ivanovic, 2008). (Source: David, 2013). The above picture shows about APT’s 4WD adventures. (Source: Goeldner and Ritchie, 2009) The above picture is showing APT’s sophistication. (Source: Holloway, 2009) The above picture is showing the ocean cursing of APT. Opportunities Here in this section 5 different external opportunities are going to be discussed which would provide TBL outcomes for the company. Triple bottom-line is concern with financial, economical and social aspect of the business (Cooper, 2008). Technology It is a huge opportunity for APT. Modern day tourism business is full of modern technologies. Technology of tourism industry is changing day by day. Those changes are also affecting APT. It opens a huge opportunity in terms of technology for APT. Tourists around the Australia re very technically sound. It gives a huge opportunity for the incorporation of modern technologies. It would help APT to achieve more customer satisfaction. Tourists would be attracted more and more about the enterprise. It would create lots of opportunities for APT. Technology up gradation would open lots of opportunities in terms of competitive edge. It would save lots of energy, investment and would create lots of opportunities in terms of revenue. Company must go for technical up gradation to take the advantage of these opportunities. It can hire some experts to design a vey suitable technical model to exploit the huge opportunity. Company must check its technologies after regular interval of time to keep pace with the changing trends. It must be very innovative in terms of technology to get first mover advantage in the tourism industry. There is no scope of complacency in terms of technology for APT. It would help to achieve its TBL outcomes of the company (Buhalis and Darcy, 2010). Market Expansion Tourism industry is expanding day by day. It is spreading its network in every part of the world. It poses a huge opportunity for APT to go global. Global market is huge there are lots of scope for APT to expand its business where it is absent. The company has more over very well presence across the different continent in the world. Still there are certain famous tourist’s spots where company can go for its expansion. Market expansion would create a global image for the company. Tourists around the world would familiar with the brand name of APT. It would give a higher opportunities related to market share. Market expansion would provide a huge base of new tourists around the world. Company must conduct some market research for identifying different new tourist spots in different part of the world. It can analyse the presence of other players in that place. After that APT can take advantage of market expansion by opening its new installation in that identified location. Competition of the APT would be less as the market is very new and untapped. Company must generate good revenue by proper market expansion. It would help to achieve its TBL outcomes of the company. Green tourism It is a very new but hugely effective opportunity for the industry. Government of Australia are focusing heavily towards green tourism. This kind of tourism is very environment friendly in nature. To negate environmental pollution this tourism has lots of opportunities. APT has lots of opportunity to include this thing into its business. The inclusion of green tourism creates an image of the APT. Environment concern people are going for this kind of tourism, which is generating lots of opportunities for APT (Morrison, 2013). This opportunity is totally driven by tourists. Tourists across the world are following this trend. This would open lots of new business windows for APT. It would be a very major opportunity for APT to increase its business. It would help the APT to maintain the environmental balance. In Australia Tourists are looking for this kind of green tourism system. It opens a huge opportunity to meet that business. Company must identify this opportunity and must design a separate green tourism system to tap this opportunity which is growing day by day. Company must come up with different new style of tourism where everything will be environment friendly. It help would to achieve its TBL outcomes of the company. It would help to achieve its TBL outcomes of the company. Increase in Disposable income Disposable income of the tourist is increasing day by day. Tourists across the world are spending more money than ever. Tourists are willing to pay more and more money for experiencing an unforgettable tour (Chon, 2012). It is a huge opportunity for the APT. Increase in the disposable income would increase the spending of tourists. It would increase the number of tours as the more number of people are planning for tour. It is certainly a major opportunity for the APT. Life style of the people gets changed as the disposable income increases. A changed and better lifestyle would certainly be a major opportunity for APT. As the disposable income increases the number of tourists also increases. It would create lots of opportunities for APT. Company must design their style of tourism very well suitable with increasing disposable income of tourists. It must be very particular with its tour system to gain advantage out of these opportunities. Company can maintain a database of existing bunch of tourists which regularly tours with the company. Then company must select some tourists with very high disposable income and must offer their tour system to them. In this way APT can take advantage of this opportunity. It would help to achieve its TBL outcomes of the company. Educational Tourism It is tourism where students from different countries come to Australia for their study. Here students stay in the country for a fixed period of time (Christopher, 2008). In this case that student needs all the facilities to stay in the foreign country. It is a continuous process. After each and every year old students passes and new students take their place. It involve lots of opportunity as per as tourism is concern. APT has a major opportunity out of this tourism. Lots of foreign students in Australia are related with this tourism. It can give a huge base of tourists to APT. It opens lots of opportunities in front of APT. Company gets a continuous flow of customers. It provides opportunity to generate revenue out of continuous services without any disruptions. APT may design their establishments separately for foreign students. It would help the company in terms of student’s attraction for the company. An attracted foreign student is a great advantage for APT. It is also very help full and effective for global expansion. It is a very new concept which gives lots of competitive advantages to APT. APT would be hugely benefitted out of this opportunity and would be able to achieve its TBL outcomes. Threats Here in this section 5 different external opportunities are going to be discussed which would disturb TBL outcomes for the company. Political Developments Political situations in the modern world are very volatile in nature. It differs from place to place and city to city. It has huge impact on the tourism industry. Unstable political situations in any country would surely have negative effect on tourism of that country. Tourists would not venture out of their home and the numbers of tourists would be less. Political unrest is a great threat for tourism. It is a major threat for APT (Ryan and Page, 2012). As the country is facing political unrest people would not go for any tour that country. Less number of tourists would come up to APT. It would hamper its business without any shadow of doubt. If any political disturbance for example racist attacks takes place it would reduce the tourist’s inflow in Australia. APT would certainly have to bite the bullet of low business turn out. Company must be very calculative in nature. It has to monitor all the political development very closely and minutely. It must take decision regarding their tour plan according to the political situation of that place. Local political scenario must be focused very seriously. APT must invest very systematically in terms of their foreign market expansion. In this way company can counter the threat to achieve TBL outcomes (Roger, 2009). Environmental Environmental situations cannot be controlled by anybody. Different environmental hazards like floods, earthquake, rain fall, tsunami, volcanic eruption and Snow fall can be a great uncontrollable threat for tourism (Mckercher and Hilary, 2012). These are the threats which cannot be controlled or prevented. It can be disastrous for tourism. It disturbs the tourism very badly. This threat is a very major threat for APT. It would cause lesser number of tourists. It can even change the geographic map of any tourist spot. It would cause lots of damages to a tourist spot. It can cause a life risks for the tourists of APT. It can disturb the whole touring plans and fixtures of APT. It would threat the company both directly and indirectly. Environment is a major threat for APT as because of tourism and environment are two inseparable parts. APT must keep a close look to the environmental situations. It may track different weather reports to guess the weather of that place. Proper tracking of weather report can help the company to take its step according to the weather conditions (Luiz, 2011). It can help APT to create its tour fixture according to weather reports of the particular tourist place. In this way company can counter the threat to achieve TBL outcomes. Competitors Tourism industry is full of cut throat competitions. Lots of players are coming in to this industry. Sustainability is getting tougher in the market. Competitors are innovating and coming up with new products. APT also has lots of threats from different competitors. Lots of new foreign companies are coming in Australia. The market share of the APT is facing huge challenges from its competitors (Clare and Lynn, 2012). Competitors are very smart in terms of innovation and replication of their different tourism strategies. It is a major external threat that APT faces. Bargaining power of buyers is getting high as the options are more to them. It posing lots of threat for APT. Competitors are breathing down the neck of APT, it is a very big threat for the APT. Company must be very innovative and creative in terms of their strategy. It must take pro active measures to get the competitive advantage. There is no scope of complacency for the APT. It must be very vigil and keep monitor all the activities related to competitors. It must be very committed towards its bunch of tourists. It can go for different promotional activities to gain competitive advantages. These are the way by which company can counter the threat to achieve TBL outcomes (Christof and Peter, 2009). Global Financial Crisis Global financial crisis results in lower disposable income of people. Many people loses their jobs, Salaries are slashed down for cost cutting. People have less money to spend for touring purposes. APT of Australia faces threat from this crisis. Modern world is interconnected. Every financial effect has its global cascading effects (Ralf, 2011). A financial crisis in USA can have negative effect on Australian tourism. Tourist would reduce their number of tours; many people will postpone its touring plans. It means fewer tourists will come to APT. It would lower the revenue of APT. It would create a long term problem for APT. It would disturb the growing path of the APT. It is a major threat for the company. APT has to adjust its touring system according to the situations. Company may focus towards more and more economical and cost effective programs. The company may come up with some especial discounting offers to attract more and more Tourists. Company can go for some instalment schemes. It must promote more and more about their cost effective different offerings. In this way company can counter the threat to achieve TBL outcomes. International migration problems Visa systems are getting complex day by day. Very often people are finding it very difficult to get tourists visas. Without tourist visa people cannot go for international tourism. Number of the foreign tourists is reducing day by day. APT is also facing this kind of threat. Foreign people are coming less in numbers in Australia due to the scarcity of tourist visa. Reducing Numbers of foreign tourists is a great threat for APT. APT can face this threat not only in Australia but also in other countries (David and Laura, 2012). It would reduce the revenue of the APT. It would be a challenge for the company to do business in foreign currencies. Company may take some extra initiatives. It can tie up with some authorised global visa making agencies to making this process more and easier for Tourists. It can do a very extensive background check of the tourist. The company can send the request of those visas to governmental authorities. It is very important for the company to make the visa process very smooth and simple for foreign tourists. It must be very aware of each and every tourists minute back ground details. In this way APT can counter the threat to achieve TBL outcomes (Woodside and Drew, 2008). Synopsis This section of the study would give a brief combined outline about the external opportunities and threats of APT. The company is having lots of opportunities to achieve TBL outcomes. Those opportunities are discussed elaborately in previous sections. It shows that opportunities like Technology, Market Expansion, Green Tourism, Increasing disposable incomes and Educational tourism can be very help full for the company. People are spending their money for a good tour. All these opportunities would take care all three factors of TBL (Social, Economical and environmental) very well. These opportunities are very important and are with higher potential for the APT. All these opportunities would open different windows for doing business. Company must be very opportunistic in their attitude. They must utilise all these opportunities very wisely for achieving their desired TBL outcome. Company must use all these opportunity in line with its desired TBL outcome. Company must be very pro active in terms of utilising all these opportunities. Company must visualise this opportunity as early as possible and must take first mover advantage in the market. There should be a certain convergence between company’s desired TBL outcomes and different strategies related to different opportunities. The company is having lots of threats to disturb TBL outcomes. Those threats are discussed elaborately in previous sections. It shows that threats like Political developments, Environmental problems, Competitors, Global Financial Crisis and International migration problems can be very disturbing for the company. It would create problems for all three factors of company’s desired TBL (Social, Economical and environmental) outcomes. These threats are very serious in nature. It can be very counterproductive for the company. Some of this threat is very difficult to control. APT may take different preventive measures for negating those threats. Situations are changing very quickly. Battle is getting more and more intense. Company must continue with its innovation techniques to compete well with its competitors. Company must take very calculative decisions in terms of planning their touring programs. APT must invest in a calculative way. There is no place of complacency for APT. Company must be very particular in terms of tourists back ground check. All solutions suggested for different threats in the above section can effectively negate different threats to achieve desired TBL outcomes of APT. It shows that APT is having lots of external opportunities and threats. It is very important for APT to recognize all those opportunities and act according to that. APT must counter all threats according to its merit. Business world is ever-changing in nature. Change is the only constant thing in the business world. APT must adjust its all strategies according to the changing scenario of tourism industry. Tourism industry is full of services. APT must keep this basic thing in mind. It must not compromise with its services. It must maintain transparency in their business practises. It must abide by all legalities it may be Australian laws or any other foreign laws. The company must keep its focus towards the growth path. References Buhalis, D. and Darcy, S. (2010). Accessible Tourism: Concepts and Issues. Oxford University Press: NewYork. Chon, K. (2012). The Growth Strategies of Hotel Chains: Best Business Practices by Leading Companies. Routledge: London. Christof, P. and Peter, H. (2009). Crisis Management in the Tourism Industry: Beating the Odds?. London: Ashgate Publishing, Ltd. Christopher, K. (2008). Change Management in Tourism: From "old" to "new" Tourism. Berlin: Erich Schmidt Verlag GmbH & Co KG. Christopher.H and Claire, H.(2012). The business of tourism. Pearson: Harlow. Clare, I. and Lynn, M. (2012). Tourism Management: An Introduction. SAGE: London. Cooper, C.P. (2008). Tourism : principles and practice 4th ed. Pearson Education: Harlow. David, E. (2013). Tourism policy and planning,2nd edition. Routledge. London. David, W. and Laura, L. (2012). 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Woodside, G. and Drew, M. (2008). Tourism Management: Analysis, Behaviour and Strategy. London: CABI. Read More