Posted by: Amatmontree Sathiya | January 21, 2010

Statement of strategic approach

 

 The five-forces model is used to analyze the business environment and its position in the competitive market, thus I am going to use this model to analyze myself as a product with the competitive environment (the industrial situation).

  1. Buyer power: as I am a product in the hospitality and tourism industry thus, potential buyers are hotels, resorts and other employers who I will apply to work with after I graduate from UCCR and the future. So, the buyer power is very high because there are plenty of students around the world, especially in my country “Thailand”, who will graduate, or graduated already to compete with me in the marketplace. Therefore, the buyers can choose to buy and change the products whatever and any time  that they want and need. The best one will be hired (consumed or bought) by  those customers (companies or employers).
  2. Supplier power: my suppliers are my university “UCCR”, which is international hospitality and tourism management in Switzerland and also the hotels that I have done my training because they supplied my a good experiences to be ready to go out to the real world. For me I think the supplier power is low because there are a lot good and famous hospitality schools around the world not only in Switzerland. I am as a product provider can choose many suppliers to implement my product to be competitive advantage. However, my best choice is UCCR as I already chose it because its reputation of Swiss Bachelor of Hospitality and Tourism, good quality academic knowledge provided by UCCR’ s professors  and great opportunities  working with many famous international  hotel brands.
  3. Threat of new  entrants: in this field I think it is special and interesting because people will meet new things in every working day and also they can be paid a good salary. Therefore, it is typically high rate for new entrants in this industry that want to get into the field to complete with me. Those new entrants can be direct and indirect. The direct competitors are students, who are  from hospitality and tourism schools the same like me, which can be international and not, and  the indirect ones are people who want to change their working field to this industry.
  4. Threat of substitute products and services: as I mentioned before because the hospitality and tourism industry can open for everybody to work, thus a lot of people want to work in this industry even their skills are not related to the field,but still they can start from the beginning and work toward to be higher positions. So, they can be hired as part-time workers and they are paid less than people like me, hence they are substitute products and services for me and another one will be the technology. I think threat of substitutes are quite high because of some reasons. First of all, now the financial crisis is quite bad and every country faces the same problem, especially in U.S.A. which is a feeder tourism market for almost every touristic destinations, it has made people travel less and spend less. So, the hotels may hire part-time employees more because they can save the costs.  Next, due to the accelerating change of technology so, many hotels, airlines and others use more high technology in the operational processes such as booking process, thus it means people will be less important in some areas.
  5. Rivalry among existing competitors:I can say that the rivals are high and many. This makes me scare of unemployment because they are very competitive and strong even they are the same level or higher level education and experience with me. Thus, I need to gain more knowledge and experience in order to be more competitive advantage than them, chosen by good companies and earn above-average return.

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