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MBAC1004 Global Business Environment Assignments Solution
Market analysis is considered as the study of the vitality of the market, which means, it evaluates the attractiveness particular market in the particular industry. In other words, evaluation of market is deemed as the business plan which mainly presents the information in terms of the important factors about the market in which business organizations are conducting their activities. (Market analysis deals with different types of the factors, and it is conducted in context of preparing the business plan for the organization. It can be said that, all these factors are important to consider while running the business of the organizational behaviour and deciding the future actions Business plan, no date).
The most important and common factors in this context are SWOT which stands for strength, weakness, opportunities, and threats. By evaluating the strength and weakness of the organization, management can decide the future strategies.
This paper mainly focuses on the market evaluation of the Waterfront Retreat at Wattle Point, as this is the organization which conducts its business in the hospitality industry and directly affected by the tourism industry of Australia. Structure of this paper includes the SWOT analysis of the Australian tourism industry in context of the selected organization, external analysis of the business environment which includes macroeconomic and microeconomic factors, and target market. Lastly, brief conclusion is stated for concluding the paper.
About the organization
Waterfront Retreat at Wattle Point is the resort which conducts its business in Australia, as it is situated at Wattle Point, Victoria. This property is situated in the 20 acres of natural bush, right on the edge of Lake Victoria. Management rights of this organization are purchased by mark and Sharon in September 2013 and it is assisted by the Debbie. The resort provides the best view and feeling to its guests. The facilities given by this organization are maintained and upgraded on constant basis.
Lodges in this resort are mainly owned by the people on individual basis, and the management of this organization ensures that staff takes care of the lodges in well manner.
Infrastructure of Australian tourism industry is robust in nature, as it put the data and numbers behind the tourism economy of the country. Tourism research Australia is the part of the government and this mainly indulged in the offering of the tourism intelligence to different national and state bodies. Recently, they introduced Tourism Forecasts – Spring 2013 and this provides the forecasts for 10 years in context of Australia inbound, domestic, and outbound tourism sectors.
As stated by this report, it is forecasted that arrival of the international visitors will enhance by 5.8% to 6.6 million between the year 2013-14 and 5.6% to 7.0 million in 2014-15. This growth is driven by the China, the United Kingdom, New Zealand, and the United States. Inbound expenditure is forecasted in context of growing on average 3.5% per annum and these figures will reach $39 billion by the year 2022-23.
Following is the SWOT analysis of the Australian Tourism industry in terms of the selected organization-
Strength- There is number of strengths of the tourism industry of Australia and all these strengths work as the opportunity for the Waterfront Retreat at Wattle Point to attract the customers. By using these strengths in their business Plan, this organization can attract more number of customers in their resort and enhance the Profitability of their business. Some of these strengths are stated below-
1. Australia is the appealing and unique destination for its visitors, and provides number of new experiences to its visitors.
2. Australian dollar is weaker than expected, and this enhances the tourism in the country.
3. Global economic recovery is in progress and this assist the country in the volume growth.
Important investments in terms of the digital marketing and online booking systems has been made in recent years, and this ultimately results in the healthy competition and kind of support from the tourism market at domestic level. This also makes the things easier for the tourists and they can easily make their bookings which ultimately gives rise to the tourism in the country.
Air fares are down by the aviation sector in terms of showing their support, and this ultimately enhance the movement of tourists in Australia (LaSalle, 2013).
Weakness- Weakness of the tourism sector in Australia cause negative impact on the Waterfront Retreat at Wattle Point, and this is necessary for the organization to plan their strategies after considering all these weakness of the tourism industry of Australia-
There are number of European countries, and many of these countries provide cheap packages of the tourism in comparison of Australia.
Growth of the domestic travel business is weak in the Australia and this cause effect on the hotel industry of tourism also (Dogancilia & Tarakçio?lub, 2017).
Opportunities- Australian tourism industry provides number of opportunities to all the business organizations, and similar situation is occurred with the Waterfront Retreat at Wattle Point. This organization can use these opportunities for ensuring the future business growth. Some of these opportunities are defined below-
1. Growth of Asian countries in context of income and region, and also the growth of their aviation sector will definitely enhance the tourism in the Australia.
2. Outbound demand in Australia is softening and this ultimately results in the reduced airfare and enhances the tourism research competitiveness.
Depreciation in the Australian dollar grows the economic value of the tourism through different factors that are improvement in the affordability appeal of the Australia in context of the price sensitive leisure, incentive, and events sectors (Buultjens, Gale & White, 2010).
Threats- Before making any business plan there are number of threats which are posed by the Australian tourism industry, and it is necessary for the organization to consider all these threats at initial stage-
1. Recoveries occurred in the corporate organizations engaged in travel and this does not support by the growth in economy.
2. High competition in the similar industry in which waterfront engaged is deemed as big threat for the organization, as there are number of existing competitors and there is also the threat of the new entrants.
3. China make number of changes in their tourism policy and this directly affects the tourism of Australia (Shankman, 2013).
External analyses of the business environment are those factors which lie outside the organization and on which organization does not exercise any control. Generally, this analysis is classified in two types that are microeconomic factors and macroeconomic factors. All these factors in context of Australian tourism sector is stated below-
1. Political factors- These factors play very important role in the industry of tourism and this is the only reason because of which each and every organization rely on the tourism industry get affected by this in direct manner. Tourism 2020 policy mainly focuses on the improvement performance of tourism industry and competitiveness by giving new opportunities for growth and also for addressing the supply side factors (Tourism, no date). This Policy gives number of opportunities to the Waterfront Retreat at Wattle Point.
2. Economic factors- Government across the globe recognized the importance of the tourism industry in the terms of their economy and in similar manner economies of the country affects the tourism industry. Tourism industry holds the potential in context of increasing its contribution in terms of the local economy. It must be noted that effects of the economy on tourism and vice versa are quite detrimental in nature if any one of this get declines. As stated, tourism industry generates almost AUD$60 billion for the Australia and this is deemed as great contribution (Oten, no date).
3. Social factors- It must be noted that social factors indirectly affects the tourism industry, as there are number of factors such as attitude of the locals, cultural impacts, etc. In other words, attitude of the locals and cultural reservations of the country generally attract the tourists in the country and also impose positive impact on the country. In other words, local community of the Australia is very friendly and Australia possess the rich cultural heritage, both these factors can be used by the Waterfront Retreat at Wattle Point to enhance their business (Igan, 2014).
4. Technology- digitalization of the technology makes the things easier for the tourists, such as online bookings and online financial transactions help the business organizations to reach the customers in well manner. It is clear from the above facts that technology makes things easier for both visitors and business organization. Waterfront Retreat at Wattle Point can use the technology to reach new customers (Hooper, 2011).
5. Environmental factors- Environment of Australia is very pleasant for the visitors, but increment in the number of visitors will cause negative impact on the environment. Tourist generally prefers those places which hold the heritage of environment and Australia is one of them.
6. Legal factors- There are number of laws which are introduced by the Federal government of Australia in context of the tourism industry of Australia and also for all those business organizations which operate their business in the tourism industry of Australia. It is the obligation of the Waterfront Retreat at Wattle Point to follow all these obligations because in case they failed to comply with the laws and regulations then it will cause severe consequences for the organization (Productivity commission, 2015).
As stated, tourism industry of the Australian witnessed high growth, which means, there are number of tourists which planned their trips to Australia. As Waterfront Retreat at Wattle Point can target number areas in the market, and some of these are defined below-
1. The biggest target market for this resort is the nature lovers, as those who want to enjoy the environment beauty of the Australia instead of city scenic.
2. This organization can also target the corporate organization in terms of arranging their meetings, conferences, and parties.
3. Honeymoon couples are another area of the market which can be targeted by this organization, as they can target them by providing different types of packages and facilities (Igan, 2014).
Market analysis deals with different types of the factors, and it is conducted in context of preparing the business plan for the organization. It can be said that, all these factors are important to consider while running the business of the organization and deciding the future actions. This assignment considers the tourism industry of Australia in terms of the Waterfront Retreat at Wattle Point. Infrastructure of Australian tourism industry is robust in nature, as it put the data and numbers behind the tourism economy of the country. Political factors play very important role in the industry of tourism and this is the only reason because of which each and every organization rely on the tourism industry get affected by this in direct manner. Tourism 2020 policy mainly focuses on the improvement performance of tourism industry and competitiveness by giving new opportunities for growth and also for addressing the supply side factors Government across the globe recognized the importance of the tourism industry in the terms of their economy and in similar manner economies of the country affects the tourism industry. Tourism industry holds the potential in context of increasing its contribution in terms of the local economy.
1. Business plan, (no date). How to do a market analysis for a business plan. Available at https://www.thebusinessplanshop.com/blog/en/entry/market_analysis_for_business_plan. Accessed on 28th September 2018.
2. Buultjens, J., Gale, D. & White, N. E. (2010). Synergies Between Australian Indigenous Tourism and Ecotourism: Possibilities and Problems for Future Development. Journal of Sustainable Tourism , 18 (4), 497– 513.
3. Dogancilia, O. & Tarakçio?lub, S. (2017). A Study on Examining Turkey and Australia by Swot Analysis in terms of Ecotourism, Journal of tourism and Gastonomy studies, 5(1), pp- 32-71.
4. Hooper, K. (2011). Australia’s Tourism Industry. Available at https://www.rba.gov.au/publications/bulletin/2011/dec/pdf/bu-1211-3.pdf. Accessed on 28th September 2018.
5. Igan, I. (2014). What are the costs? The social impacts of tourist development. Available at http://www.abc.net.au/local/stories/2014/09/29/4096559.htm. Accessed on 28th September 2018.
6. LaSalle, J. (2013). Tourism Australia. Available at http://www.tourism.australia.com/content/dam/assets/document/1/6/w/u/q/2002130.pdf. Accessed on 28th September 2018.
7. Oten, (no date). Tourism and the Australian economy. Available at https://yourdecision.oten.tafensw.edu.au/pluginfile.php/340/mod_page/content/83/Tourism%20Sample%20Unit/economic_impact_of_tourism.html. Accessed on 28th September 2018.
8. Productivity commission, (2015). Australia’s International Tourism Industry. Available at https://www.pc.gov.au/research/completed/international-tourism/international-tourism.pdf. Accessed on 28th September 2018.
9. Shankman, S.(2013). SWOT Analysis of a National Tourism Market: Australia’s Example. Available at https://skift.com/2013/10/29/swot-analysis-of-a-national-tourism-market-australias-example/. Accessed on 28th September 2018.
10. Tourism, (no date). TOURISM 2020. Available at http://www.tourism.australia.com/en/about/our-organisation/our-performance-and-reporting/tourism-2020.html. Accessed on 28th September 2018.
11. Waterfront Retreat at Wattle Point, (2018). Introduction. Available at http://www.waterfrontretreat.com.au/about-us/. Accessed on 28th September 2018.