Answer To: dividual Assignment Write an essay of explaining the main strategy development tools and how they...
Azra S answered on May 02 2020
Strategy development tools in Australian tourism scenario
At the most basic level, a strategy can be defined as observing the present to plan for the future. In business, this takes a more complicated form. However, the basic understanding still remains the same. Various types of strategies are being used by different businesses in order to realize their goals. In theory, these strategies can be listed as PESTEL, 5F, RBV, PROFIT, I/O, SWOT, and CIA.
In our study, we shall look at three main types of strategy development tools PESTEL, SWOT and P5 in relation to Outback Spirit Tours, an Australian tourism company. Outback Spirit Tours run outback tours to provide visitors with the ultimate tourist experience.
PESTEL model
The PESTEL model revolves around studying the macro forces in the external environment of a company in order to analyze their impact on a particular business (Rothaermel, 2012, pp 56-61). These external factors include Political factors, Economical factors, Social factors, Technological factors, Environmental factors and Legal factors.
So a company like Outback Spirit Tours would have to gather information related to all these factors in order to develop an effective strategy to meet their goals.
After information has been gathered, the most relevant ones are selected for the study. After that, an evaluation of the same is undertaken in order to recognize the opportunities and threats the company may be facing due to these factors.
Political- The political factors that influence a company relate to the government. Since Australia enjoys a stable government, the condition is favorable in terms of stability. The Australian government has been largely supportive of the tourism industry. Visa regulations in the country are also fairly lax and encouraging of tourism. So political conditions for the company are favorable.
Economical-The economic impact of tourism has been positive so far and are expected to remain so. The Australian dollar as a currency is strong as well. In addition, the 2020 Tourism Industry Potential released on 15 November 2010 speculates the industry to be worth $140 billion in the near future. Employment due to tourism in Australia has also been on the rise with an estimated 580,000 jobs constituting about 5% of the total workforce in 2014-15. (Dale, L'Espoir, and BrianWeir, 2017).
Social- Austalia enjoys a lot of internal tourists. External tourists are majorly from China, New Zealand and U. K. The local culture is supportive of tourism. (EmilyMa, YulinLiu, JinghuaLi and SuChen, 2016).
Technological- Technology has allowed more people to search about the country and its attractions. This would positively impact tourism and the company. Online bookings have helped the market grow. However, people can also look for rival companies. Individual travelers are also a threat to the company.
Environmental- Australia is not prone to natural...