Tag: strategy analysis

Understanding the forces to design strategy

Either if you are a small player searching for your niche or you are a bigger one willing to make a disruptive move, a sound analysis of the forces is necessary to design a successful strategy

Changing forces, reshaping profitability

So long as new technologies appear, there are mergers and acquisitions, emerging markets, new business models, etc. the industry structure changes and so do some of the competitive forces. This changes lead almost inevitably to reshape profitability

Factors to consider when analyzing the industry profitability

Beyond the 5 Competitive forces analysis, there are other factors to take into account when analyzing the attractiveness of a business sector for the destination

The 5 Competitive forces: Rivalry among competitors

Rivalry among competitors may be based upon price or value differentiation: the second is without any doubt the one that guarantees sustainable profitabilty

The 5 Competitive forces: The threat of substitutes

Substitutes in tourism are all those businesses not belonging to the industry which may satisfy the same needs: other tourism sector’s businesses, collaborative business models such as Airbnb or even video-conference suppliers in the case of business tourism