STRATEGIES AND SYSTEMS Strategies and Systems



Strategies and Systems

Task 1)

Porter's 5 Forces Analysis

In examining the academic tourism industry surrounding the proposed company, Porter's 5 Forces Analysis was used to separate the market forces which will affect the feasibility of the company (Porter, 2008). Porter's 5 forces analysis required the researcher to examine the threat of substitute products, the bargaining power of suppliers, the bargaining power of customers, the threat of new entrants and competitive rivalry within the industry.

Threat of substitute products

Several indirect competitors exist which pose a threat to the feasibility of the proposed concept. None of these competitors, however, will be able to provide an actual tangible experience of what it would be like to study at a preferred university by experiencing a campus first hand.

The United States News and World Report's annual university rankings give many international students a trusted basis to make decisions about what university to attend without ever having a tour before enrollment and attendance.

Academies in the United States which provide English summer camp programs for South Korean students offer the same security of exploring educational opportunities abroad. The company could partner with these academies to provide tours to students decrease the work load for camp staff.

University websites and videos may be sufficient for decision on study abroad without ever visiting the university itself. For example, many of the universities visited on the company's tours have a virtual walk through of the campus on the recruitment website.

Bargaining power of suppliers

The company's suppliers consist mainly of restaurants, hotels, charter busses, graduate students and university tour services. Bargaining power of frequently used restaurants, hotels and bus operators will be weaker once the company is able to purchase services more frequently. Discounts on the company's initial tours are not guaranteed and discounts provided by one company will not be used to assume that all similar providers will offer similar discounts.

Restaurants have fixed prices with menus requiring customers to pay a set price. It may be possible to negotiate a free meal for the bus driver at each restaurant where the company visits, but this agreement has not yet been arranged.

Bargaining power of customers

Customers will use the company's tours to avoid the problems of going on a trip with no preparation or assistance. The avoidance of making all arrangements for the trip should make a fair price seem like a firm offer which cannot be negotiated for less money.

Threat of new entrants

A capable team could form a duplicate business, but barriers to entry will be put in place, such as the pre-trip presentations with alumni, the image of expertise among the founding team and the established network of contacts in each university.

Task 2)

Identifying Mission and Agenda Setting for Strategic Formulation

The first step of the strategic formulation is identifying the mission of the organizations which gives us several ideas regarding the goal of the organisation and explains that “What the organisation seems out to ...