Porters Five Forces

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S/ID- 21034681 2nd January 2011- Markets and Strategy Assignment Title- CW 1 Review of Srilanka tourism’s operating environment and Trends in Key economic variables within targeted countries. Content Section page 1.0 Introduction 2 2.0 Five forces in tourism 2 3.1 Rivalry 3.2 Threat of new entrants 3.3 Threat of substitute 3.4 Bargaining power of buyers 3.5 Bargaining power of suppliers 3.0 Review of Trends in economic variables 5 3.1 operating countries and segments of…show more content…
Europe being the main market segment for Srilanka, due to economic conditions there Is a growing tendency to travel within the region. Intra regional and domestic travelling is a clear substitute. Lake district in Uk, Croatia, Catalonia in Spain, and Mediterranean cruise ships are substitutes . Following chart indicates how the German Domestic travel has increased over the years. Trends in German domestic and outbound travel,2000-06 source: German travel – Monitor, IPK International. 2.4 Power of buyers . Power of buyers are high. Tour operator can be identified as the main buyer of the product .with the series of mergers and acquisitions, today few tour operators control most of the selling outlets. Further they are also In a position to centralize purchasing for the entire brand in all European countries. Eg-Kouni . A common complaint by hoteliers is that if the requested price is not given , tour operator has the ability to take the clients to another destination . Tour operators identify new destinations with low start-up cost and compete with existing destinations which are then forced to lower the price. 2.5Power of suppliers There are 3 As widely discussed in the tourism industry and the same can be considered as suppliers. Attractions, Amenities and Access. Attractions are natural or manmade features . Owners of such property should be willing to open such places for

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