10 April 2005 Competitiveness and Globalization: Model Building for a World Class Private Sector
Why prosperity matters... There is a  correlation between incomes  and: productive attitudes toward authority , tolerance ...
Seven Forms of Capital Part of the World Bank’s Comprehensive Development Framework Social Physical Knowledge <ul><li>Tang...
Competitiveness Theory What is Competitiveness? <ul><ul><li>Competitiveness has emerged as the preeminent issue in every n...
Competitiveness Theory Competitive Cluster Examples USA Advertising Aircraft Construction Equipment Germany Printing Press...
Two Paradigms Thinking in the “Era of Total Competition” <ul><li>Protected markets   Competition and globalization </li></...
National Change Process <ul><li>Phase I –  Selection of Key Sectors </li></ul><ul><li>Limited human, financial, and instit...
Competitiveness Theory Seven Patterns of Uncompetitive Behavior We have identified seven patterns of behavior that inhibit...
Patterns of Anti-competitive Behavior Declining Basic Commodity Prices, 1970–1998 Note:  Wholesale prices are adjusted for...
Note: 1) Basic products include raw materials and processed products based on natural resources and labor. 2) The coeffice...
Distribution of United States Exports Trade Statistics b y Category  Upstream Industries Materials / Metals Forest Product...
Distribution of Dominican Republic Exports Trade Statistics by Category  Upstream Industries Materials / Metals Forest Pro...
Competitiveness Theory Seven Patterns of Uncompetitive Behavior We have identified seven patterns of behavior that inhibit...
The Change Process Cost Analysis 0% 20% 40% 60% 80% 100% 1 Gastos de  Administración   Mano de Obra Gasto de Planta (Servi...
Distributor Sauce Manufacturers Glass Manufacturer The Change Process  Cluster Initiatives: Packaging JEA/EXIM Financing B...
Competitiveness Theory Seven Patterns of Uncompetitive Behavior We have identified seven patterns of behavior that inhibit...
Background and Context Recent Performance Number of Total Arrivals Thousands Source: Conduit Team Report; “The Contributio...
Strategic Assessment <ul><li>In summary: </li></ul><ul><li>Visitors to Bermuda pay high prices without getting the value t...
The Conduit Report sets clear, measurable goals for Bermuda’s overall tourism performance Source: Conduit Report, ontheFRO...
Bermuda’s Key Strategic Objectives Number of Air and Cruise Visitors (‘000) Travel segments that are actionable and have i...
Bermuda’s Key Strategic Objectives Bermuda Customer Segment Base — by Volume <ul><ul><li>Cruise </li></ul></ul><ul><ul><li...
Bermuda’s Key Strategic Objectives Bermuda Customer Segment Base — by Dollar Receipts  <ul><ul><li>Cruise </li></ul></ul><...
Visitor Segment Activation Guidelines Business Groups Needs <ul><li>Easily accessible information about accommodation, mee...
Visitor Segment Activation Guidelines Business Groups Competitor Analysis London, Los Cabos and Maui are three top busines...
Summary Guidelines for Improving the Business Group Experience <ul><li>Minimum Requirements </li></ul>Source:  Product Tea...
<ul><li>1.  Define and make explicit our  moral purpose: a high and rising standard of living for the average Qatari. </li...
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  • Today’s agenda How this goes forward Sales Break out by segments Pull from segment level strategies Communications Break out by segments Pull from segment level strategies Test Against Industry Trends GANT Chart
  • Fairbanks

    1. 1. 10 April 2005 Competitiveness and Globalization: Model Building for a World Class Private Sector
    2. 2. Why prosperity matters... There is a correlation between incomes and: productive attitudes toward authority , tolerance of others and support of civil liberties, openness toward foreigners , positive relationships with subordinates, self-esteem , sense of personal competence, satisfactions with one’s own life , the disposition to participate in community and national affairs, and interpersonal trust,… Alex Inkeles, Stanford University
    3. 3. Seven Forms of Capital Part of the World Bank’s Comprehensive Development Framework Social Physical Knowledge <ul><li>Tangible Articulations </li></ul><ul><li>Norms </li></ul><ul><li>Mental Models </li></ul><ul><li>Environmental Issues </li></ul><ul><li>Raw Materials </li></ul><ul><li>Climate and Location </li></ul><ul><li>Transportation, Communication </li></ul><ul><li>Power </li></ul><ul><li>Water and Sewerage </li></ul><ul><li>Financial Systems </li></ul><ul><li>Private Wealth </li></ul><ul><li>Public Wealth </li></ul><ul><li>“ Good, Clean Governance” </li></ul><ul><li>Justice System </li></ul><ul><li>Connective Organizations </li></ul><ul><li>Qualitative, Quantitative Data </li></ul><ul><li>Frameworks and Concepts </li></ul><ul><li>Knowledge Generation </li></ul><ul><li>Health and Population </li></ul><ul><li>Education and Training </li></ul><ul><li>Attitudes and Motivation </li></ul><ul><li>Architecture, Music, Language </li></ul><ul><li>Range of Acceptable Behaviors </li></ul><ul><li>Trust, Wealth Creation Attitudes, Long-Term Thinking </li></ul><ul><li>Conservation, Restoration </li></ul><ul><li>Agricultural, Mineral, Petroleum </li></ul><ul><li>Proximity to Markets </li></ul><ul><li>Roads, Ports, Telephone Systems </li></ul><ul><li>Electric Grids, Generation Capacity </li></ul><ul><li>Pipelines, Pumping Stations </li></ul><ul><li>Transparency, No Hidden Costs </li></ul><ul><li>Property Protection, Predictable Regulations </li></ul><ul><li>Chambers of Commerce, Unions </li></ul><ul><li>Statistics, Opinions, Records </li></ul><ul><li>Theories, Processes, Procedures </li></ul><ul><li>Universities, R&D, Market Learning </li></ul><ul><li>Nutrition, Medical & Mental Health </li></ul><ul><li>Primary & Secondary, Technical </li></ul><ul><li>Self-responsibility, action-orientation </li></ul>Representative Elements Representative Examples <ul><li>Banks, Stock Markets </li></ul><ul><li>Bank Deposits </li></ul><ul><li>Bank Reserves, Taxes, Duties, Macroeconomic Stability </li></ul>Cultural Human Institutional Financial Man-Made Natural Endowments
    4. 4. Competitiveness Theory What is Competitiveness? <ul><ul><li>Competitiveness has emerged as the preeminent issue in every nation – for companies and governments </li></ul></ul><ul><ul><li>Upgrading a nation’s export competitiveness requires a shared understanding of competitiveness within the nation </li></ul></ul><ul><ul><li>Competitiveness is not simply: </li></ul></ul><ul><ul><ul><li>A favorable exchange rate </li></ul></ul></ul><ul><ul><ul><li>Positive balance of trade </li></ul></ul></ul><ul><ul><ul><li>Industrial subsidies </li></ul></ul></ul><ul><ul><ul><li>Low inflation rate </li></ul></ul></ul><ul><ul><li>Rather, competitiveness is the productivity with which resources are deployed </li></ul></ul><ul><ul><ul><li>Human resources </li></ul></ul></ul><ul><ul><ul><li>Capital </li></ul></ul></ul><ul><ul><ul><li>Physical assets </li></ul></ul></ul><ul><ul><li>Since competitiveness relies on productive deployment of resources, industry sectors and their firms compete, not nations </li></ul></ul><ul><ul><ul><li>Government has a partial but significant role in creating the platform from which firms compete </li></ul></ul></ul><ul><ul><ul><li>Clusters of related and supporting firms are the building blocks of a competitive economy </li></ul></ul></ul>
    5. 5. Competitiveness Theory Competitive Cluster Examples USA Advertising Aircraft Construction Equipment Germany Printing Presses Chemicals Automobiles Japan Robotics Automobiles Facsimile Ecuador Bananas South Africa Diamonds Italy Ceramic Tiles Footwear Appliances <ul><li>Nations have very different natural resources, macroeconomics and management cultures </li></ul><ul><li>Learning and innovation at the level of the cluster and firm drive competitiveness </li></ul>
    6. 6. Two Paradigms Thinking in the “Era of Total Competition” <ul><li>Protected markets Competition and globalization </li></ul><ul><li>Macroeconomics Microeconomics </li></ul><ul><li>Influence leaders Firm-level Productivity </li></ul><ul><li>Natural Capital Human capital and knowledge </li></ul><ul><li>Hierarchy Meritocratic </li></ul><ul><li>Economies of scale Agility and Focus </li></ul><ul><li>Event driven Anticipation and shaping </li></ul><ul><li>Government as master strategist Shared vision and collaboration </li></ul><ul><li>Redistribution of wealth Wealth creation </li></ul><ul><li>Paternalism Innovation </li></ul><ul><li>Fatalistic Introspective </li></ul><ul><li>Marketplace Marketspace </li></ul>Comparative Advantage Competitive Advantage
    7. 7. National Change Process <ul><li>Phase I – Selection of Key Sectors </li></ul><ul><li>Limited human, financial, and institutional resources require clear choices </li></ul><ul><li>The list of potential sectors must be elaborated on the basis of two criteria; the advantages of the country, and the economic development of the sectors </li></ul>Selecting Priority Sectors Existing advantages in the potential sectors Short List of potential sectors Developing the economic potential of potential sectors <ul><li>Phase I I – Strategic Plan of the Sectors </li></ul><ul><li>The elaboration of the strategic plan for the sectors must be accomplished. OTF uses a methodology in five steps of analysis which allows us to formulate concrete action plans: </li></ul><ul><ul><li>_ Governmental policies </li></ul></ul><ul><ul><li>_ Rehabilitation and refurbishment of existing capacities </li></ul></ul><ul><ul><li>_ Specialized public and private investments </li></ul></ul>Analyze current situation <ul><li>Stage 1 </li></ul>Stage 2 <ul><li>Stage 3 </li></ul><ul><li>Stage 4 </li></ul><ul><li>Stage 5 </li></ul>Set sector objectives Understand customer needs Articulate unique positioning Develop action guidelines
    8. 8. Competitiveness Theory Seven Patterns of Uncompetitive Behavior We have identified seven patterns of behavior that inhibit the development of competitive firms and cluster. By using these patterns as a lens, we can see problems in new ways. <ul><li>Overreliance on Basic Factors </li></ul><ul><li>Lack of Customer Focus </li></ul><ul><li>Poor Understanding of Relative Position </li></ul><ul><li>Lack of Forward Integration </li></ul><ul><li>Poor Interfirm Cooperation </li></ul><ul><li>Defensiveness </li></ul><ul><li>Paternalism </li></ul>
    9. 9. Patterns of Anti-competitive Behavior Declining Basic Commodity Prices, 1970–1998 Note: Wholesale prices are adjusted for inflation using U.S. CPI of 1990 = 100, thus all prices are in 1990 dollars Source: IMF’s International Financial Statistics (various volumes), Monitor Analysis Copper Maize Nickel Cotton Sugar Tobacco Sorghum Tea US Cents / Pound US Cents / Pound US Cents / Pound US Cents / Pound US Cents / Pound US Dollars / Bushel US Dollars / Metric Ton US Dollars / Metric Ton CAGR 1970-1998: -4% CAGR 1970–1998: -3% CAGR 1970–1998: -3% CAGR 1970–1998: -2% CAGR 1970–1998: -1% CAGR 1970–1998: -3% CAGR 1970–1998: -2% CAGR 1970–1998: -1% By definition, commodity products are difficult to differentiate and producers are forced to compete on price. Real prices continue to decline, increasing pressure on producers to lower costs and reducing the average worker’s salary. Competing on commodity products is not a sustainable strategy for generating wealth for the average citizen.
    10. 10. Note: 1) Basic products include raw materials and processed products based on natural resources and labor. 2) The coefficent of correlation was .77. Source: IITC - International Trade Center, CIA World Factbook 1999, OTF Group Analysis. Macedonia 2001 data from OTF Group trade statistics analysis and CIA World Factbook 2002 Countries Unable to Reduce Natural Resource Dependency Have Lower Standards Of Living Patterns of Anti-competitive Behavior Relationship Between Natural Resource Exports and Wealth Percentage of Exports that are Natural Resources Percentage of Exports that are Basic Products versus Purchasing Power Parity, 1998 PPP per capita (1998 US$) U.S. GERMANY SWITZERLAND FRANCE JAPAN SWEDEN U.K. CANADA SINGAPORE KOREA MALAYSIA BRAZIL MEXICO INDIA PAKISTAN COLOMBIA CHILE COSTA RICA ARGENTINA VENEZUELA BOLIVIA ECUADOR TURKEY LITHUANIA RUSSIA IRELAND
    11. 11. Distribution of United States Exports Trade Statistics b y Category Upstream Industries Materials / Metals Forest Products Petroleum / Chemicals Semiconductors / Computers Food / Beverages Housing / Household Textiles / Apparel Health Care Personal Entertainment / Leisure Final Consumption Goods and Services Multiple Business Transportation Power Generation and Distribution Office Telecommunications Defense Industrial and Supporting Functions Note: Totals may not add to 100% due to rounding Source: OTF Group; COMTRADE / UN Trade Statistics (Rev. 2) <ul><li>1992 </li></ul><ul><li>1994 </li></ul><ul><li>1996 </li></ul><ul><li>1998 </li></ul><ul><li>2000 </li></ul><ul><li>2002 </li></ul>
    12. 12. Distribution of Dominican Republic Exports Trade Statistics by Category Upstream Industries Materials / Metals Forest Products Petroleum / Chemicals Semiconductors / Computers Food / Beverages Housing / Household Textiles / Apparel Health Care Personal Entertainment / Leisure Final Consumption Goods and Services Multiple Business Transportation Power Generation and Distribution Office Telecommunications Defense Industrial and Supporting Functions Note: Totals may not add to 100% due to rounding Source: OTF Group; COMTRADE / UN Trade Statistics (Rev. 2) <ul><li>1992 </li></ul><ul><li>1994 </li></ul><ul><li>1996 </li></ul><ul><li>2001 </li></ul>
    13. 13. Competitiveness Theory Seven Patterns of Uncompetitive Behavior We have identified seven patterns of behavior that inhibit the development of competitive firms and cluster. By using these patterns as a lens, we can see problems in new ways. <ul><li>Overreliance on Basic Factors </li></ul><ul><li>Lack of Customer Focus </li></ul><ul><li>Poor Understanding of Relative Position </li></ul><ul><li>Lack of Forward Integration </li></ul><ul><li>Poor Interfirm Cooperation </li></ul><ul><li>Defensiveness </li></ul><ul><li>Paternalism </li></ul>
    14. 14. The Change Process Cost Analysis 0% 20% 40% 60% 80% 100% 1 Gastos de Administración Mano de Obra Gasto de Planta (Servicios y transporte) Materia Prima Empaque 40% 28% 10% 17% 5% Jerk & Hot Sauce Cost Analysis: Glass bottles can account for up to 40% of production costs: Why?
    15. 15. Distributor Sauce Manufacturers Glass Manufacturer The Change Process Cluster Initiatives: Packaging JEA/EXIM Financing By consolidating their purchases cluster members have shifted the balance of power away from suppliers resulting in significant improvements in pricing, service levels, & credit terms. Glass Bottle Consolidation Program: <ul><li>Reduced pricing ~ 15% </li></ul><ul><li>Handling equipment </li></ul><ul><li>Technical Support </li></ul><ul><li>120 day financing facility </li></ul><ul><li>Brokering services </li></ul><ul><li>Trucking services </li></ul><ul><li>Warehousing facilities </li></ul><ul><li>Lower costs (unit & service) </li></ul><ul><li>Extended terms (N60 days) </li></ul><ul><li>Greater reliability of supply </li></ul><ul><li>Framework for consolidated purchases of other inputs (closures) </li></ul>
    16. 16. Competitiveness Theory Seven Patterns of Uncompetitive Behavior We have identified seven patterns of behavior that inhibit the development of competitive firms and cluster. By using these patterns as a lens, we can see problems in new ways. <ul><li>Overreliance on Basic Factors </li></ul><ul><li>Lack of Customer Focus </li></ul><ul><li>Poor Understanding of Relative Position </li></ul><ul><li>Lack of Forward Integration </li></ul><ul><li>Poor Interfirm Cooperation </li></ul><ul><li>Defensiveness </li></ul><ul><li>Paternalism </li></ul>
    17. 17. Background and Context Recent Performance Number of Total Arrivals Thousands Source: Conduit Team Report; “The Contribution of Tourism to Bermuda,” Brian H. Archer As the Conduit Team and other sources have highlighted, fewer visitors come to Bermuda, and a greater number of current visitors arrive on cruise ships and thus avoid paying high airfare and lodging costs. This situation is driven by a number of different factors, and the links between these factors need to be made explicit in a strategic assessment to build a “shared vision” of the problem Number of Air Arrivals Thousands Number of Available Beds Thousands Average Length of Stay / Night Thousands Number of Cruise Arrivals Thousands Bermuda Hotel Employees Thousands CAGR CAGR CAGR CAGR -0.52% -1.72% -1.16% 2.76% <ul><li>Case </li></ul><ul><li>Study </li></ul>
    18. 18. Strategic Assessment <ul><li>In summary: </li></ul><ul><li>Visitors to Bermuda pay high prices without getting the value they expect. </li></ul><ul><li>Despite high rack room rates, low occupancy rates drive revenue per available room down. </li></ul><ul><li>Furthermore, relatively high operating costs make it difficult for hotels to realize a decent return. </li></ul><ul><li>The current business model of Bermuda’s tourism industry is not sustainable, yet few strategic options seem economically and competitively practical </li></ul>Low Revenue PAR and High Operating Costs Drive Low Returns <ul><li>Case </li></ul><ul><li>Study </li></ul>
    19. 19. The Conduit Report sets clear, measurable goals for Bermuda’s overall tourism performance Source: Conduit Report, ontheFRONTIER estimates 552 602 $Spend / Visitor Number of Arrivals (‘000) 1999 Receipts $477MM 2003 Receipts $637MM 865 - 1,062 - Receipt growth between 1999 and 2003 <ul><ul><li>Increase occupancy rate to 70% </li></ul></ul><ul><ul><li>Spend per visitor growth by 20% </li></ul></ul><ul><ul><li>Cruise volume below 6000 / day </li></ul></ul><ul><ul><li>Add 500 new rooms </li></ul></ul><ul><ul><li>Increase “off-season” occupancy </li></ul></ul><ul><ul><li>Increase return on investment to tourism community, Bermuda </li></ul></ul>Conduit Objectives <ul><li>Case </li></ul><ul><li>Study </li></ul>
    20. 20. Bermuda’s Key Strategic Objectives Number of Air and Cruise Visitors (‘000) Travel segments that are actionable and have inherent seasonal patterns that fit Bermuda’s strategic objectives should be the ones to focus on; specifically, these would be Business Groups, as well as the two most seasonally flexible leisure segments (Romance-Escape and Explorer trip-experiences) Visitor Segments Seasonal Patterns Based on U.S. Outbound Travel (‘000) Business Groups Individual Businesses Family Romancers / Escapers Explorers Note: The shape of travel segment are illustrative. The shapes indicate the period where the majority of the travel occurs for a given segment Source: 1999 Archer Report and ontheFRONTIER analysis Overall Island Arrival Cycle and Segments Travel Patterns Cruise Visitors <ul><li>Case </li></ul><ul><li>Study </li></ul>
    21. 21. Bermuda’s Key Strategic Objectives Bermuda Customer Segment Base — by Volume <ul><ul><li>Cruise </li></ul></ul><ul><ul><li>Individual Business </li></ul></ul><ul><ul><li>Business Group </li></ul></ul><ul><ul><ul><li>Incentive (a) </li></ul></ul></ul><ul><ul><ul><li>Corporate (b) </li></ul></ul></ul><ul><ul><ul><li>Associations / SMERF (c) </li></ul></ul></ul><ul><ul><li>Individual Leisure </li></ul></ul><ul><ul><ul><li>Family (d) </li></ul></ul></ul><ul><ul><ul><li>Romancer/Escapers (e) </li></ul></ul></ul><ul><ul><ul><li>Explorers (f) </li></ul></ul></ul><ul><ul><li>All Others </li></ul></ul><ul><ul><ul><li>VFR </li></ul></ul></ul><ul><ul><ul><li>Etc. </li></ul></ul></ul>a c Every-thing Else <ul><li>An overall growth path towards a “Renaissance benchmark” goal of 600K arrivals by 2003 would have to be broken down by visitor segments </li></ul>CAGR b d f e 0% 4% 4% 0% 5% 2.2% 47% 50% 6% 6% 6% 5% 5% 6% 33% 36% 602 552 Thousands of Arrivals; Percent Actual and Projected Number of Arrivals Source: 1999 Archer Report and ontheFRONTIER analysis <ul><li>Case </li></ul><ul><li>Study </li></ul>
    22. 22. Bermuda’s Key Strategic Objectives Bermuda Customer Segment Base — by Dollar Receipts <ul><ul><li>Cruise </li></ul></ul><ul><ul><li>Individual Business </li></ul></ul><ul><ul><li>Business Group </li></ul></ul><ul><ul><ul><li>Incentive (a) </li></ul></ul></ul><ul><ul><ul><li>Corporate (b) </li></ul></ul></ul><ul><ul><ul><li>Associations / SMERF (c) </li></ul></ul></ul><ul><ul><li>Individual Leisure </li></ul></ul><ul><ul><ul><li>Family (d) </li></ul></ul></ul><ul><ul><ul><li>Romancers / Escapers (e) </li></ul></ul></ul><ul><ul><ul><li>Explorers (f) </li></ul></ul></ul><ul><ul><li>All Others </li></ul></ul><ul><ul><ul><li>VFR </li></ul></ul></ul><ul><ul><ul><li>Etc. </li></ul></ul></ul>a c Every-thing Else <ul><li>. . . and then in terms of dollar receipts associated with those volumes, expected receipts growth also needs to be broken down by segment </li></ul>CAGR b d f e US Dollars (M); Percent 4.7% 8.9% 8.0% 2.3% 6.9% 7.6% 73% 74% 8% 8% 9% 9% 1% 2% 8% 9% 639 477 Actual and Projected Revenues Source: 1999 Archer Report and ontheFRONTIER analysis <ul><li>Case </li></ul><ul><li>Study </li></ul>
    23. 23. Visitor Segment Activation Guidelines Business Groups Needs <ul><li>Easily accessible information about accommodation, meeting facilities, potential DMCs partners and activities </li></ul><ul><li>DMCs must be creative in proposed programs and able to orchestrate memorable group experiences with other local providers (hotels, activities, etc.) </li></ul><ul><li>Sometimes need Travel Agents or Incentive house knowledgeable about hot business groups destinations </li></ul><ul><li>Destination must be easy to access for large groups (cost and distance) </li></ul><ul><li>Overall cost of program must be within planner’s budget and be known well in advance; “Bang for buck” or value for money is very important </li></ul><ul><li>Need flexibility in rates and offering </li></ul><ul><li>Ease of booking complex set of activities for large groups is key for DMCs, Trip planners and Travel Agents </li></ul><ul><li>Destination must be safe </li></ul><ul><li>Participants need to feel special upon arriving at the destination (starting at the airport) </li></ul><ul><li>Accommodations must deliver rooms full of amenities and top service </li></ul><ul><li>Experience must have unique moments and include great golf, shopping, dining and entertainment moments Local flavor of the group experience is a plus </li></ul><ul><li>Meeting facilities for large groups are paramount </li></ul><ul><li>Trip planners need acknowledgement of trip success when participants are back in the office </li></ul><ul><li>Trip planners want to feel that the choice of destination was right </li></ul>Source: Monitor Analysis, Monitor Analysis, 1998 Travel FACTS survey, Incentive Magazine; The State of Industry Report 1998, Successful Meetings; Meetings and Conventions’ 2000 Meetings Market Report, Task Force Travel Agent Surveys, Task Force Guest Surveys, Monitor Interviews of Incentive Decision Makers Planning Selection On-Island Post-Trip <ul><li>Case </li></ul><ul><li>Study </li></ul>
    24. 24. Visitor Segment Activation Guidelines Business Groups Competitor Analysis London, Los Cabos and Maui are three top business group destinations that owe their success to a unique positioning London Los Cabos “ The British touch--a combination of technology and tradition switch to create a perfect experience” “ Cabo Caliente! For the more exciting, accessible and seamless experience” “ Aloha--Class and Culture for the sophisticated clientele” Source: Monitor Analysis, Incentive Magazine, Destination websites Maui <ul><li>Case </li></ul><ul><li>Study </li></ul>London success with Business Groups is based on:  Sophisticated experiences that leverage the UK’s rich cultural and historical heritage, i.e., – Exclusive tea party at castles – Changing of guards ceremony followed by black - tie dinner – Short trips to the be st golf in the world Los Cabos has recently emerged as a “ hot” Business group destination with:  Seamless and “bang - for - buck” experience for Business Groups – DMCs are creative (i.e., biker bashes for CEOs) – Plant upgrades to accommodate business groups (d oubling capacity to 10,000 rooms in 2011, larger roads for buses) Maui tops both London and Los Cabos as a business group destination by:  Expertly leveraging its rich Polynesian culture – Creative DMCs with unique experiences such as wine tasting at vol canoes, silk - leis and coconut pre - incentives  Technological capacity to simplify trip planning – On - line booking on - line for major hotels – Wealth of information for customization including activities, training, etc. geared towards business groups  Proximity and accessibility by air, road and sea – New airline routes have been added from major US cities – Two hours bus rides from California  State - of - Art technological capacity to simplify trip planning – Website with online specification sheets  Ease of access by Air from major US hubs
    25. 25. Summary Guidelines for Improving the Business Group Experience <ul><li>Minimum Requirements </li></ul>Source: Product Team <ul><li>Create feeling that each Business Group is on its own island </li></ul><ul><li>Provide information within a short timeframe using on-line inventory </li></ul><ul><li>Facilitate open dialogue between DMCs and trip planners </li></ul><ul><li>Focus on unique cultural / heritage environment to create experiences </li></ul><ul><li>Repackage island as a destination for Business Group participants to return to experience other forms of vacation </li></ul><ul><li>Create a post-trip feedback communication for trip planners and participants </li></ul><ul><li>Business Winning Elements </li></ul><ul><li>Ensure that Safety and Cleanliness standards are maintained </li></ul><ul><li>Launch group transportation alternatives </li></ul><ul><li>Create a one-stop-shop </li></ul><ul><li>Offer flexibility in package creation </li></ul><ul><li>Upgrade facilities to improve value for money perception </li></ul><ul><li>Build an adequate multipurpose Meeting / Convention facility </li></ul><ul><li>Educate public on the vision and rationale to expand the Business Group Segment </li></ul><ul><li>Improve ease of access </li></ul><ul><li>To be in the game, Bermuda must offer easy booking, solid transportation and other logistics, and a wide variety of business services </li></ul><ul><li>To win, Bermuda must emphasize special occasions in special locations, make travel planners into stars in their organizations, and help groups to customize and manage their experience so they feel they are meeting “on their own island” </li></ul><ul><li>Case </li></ul><ul><li>Study </li></ul>
    26. 26. <ul><li>1. Define and make explicit our moral purpose: a high and rising standard of living for the average Qatari. </li></ul><ul><li>2. Acknowledge that we are over-dependent on the basic advantage of natural resources. </li></ul><ul><li>3. Understand that wealth in the future is based on insight, sophisticated human capital, cultural attitudes focused on embracing competition, learning, trust, cooperation and investing in complex advantages. </li></ul><ul><li>4. Understand that competitiveness is productivity ; and productivity is where we choose to compete and how we choose to compete. </li></ul><ul><li>5. Acknowledge that the government must do everything it can to assist the private sector, except to impede competition ; invest in people, infrastructure, learning organizations and a non-defensive dialogue between the public and the private sectors. </li></ul><ul><li>6. Understand that the private sector needs to invest in more learning: customer preferences, knowledge of position relative to competition, possibilities of changing the distribution channels, and investing in the upgrade of its products . </li></ul>Qatar’s needs Six Imperatives <ul><li>This is a vision of knowledge intensive industries, and a Qatar differentiated from regional competitors by specialized innovation. This is a vision of creating new wealth versus uncovering found wealth. </li></ul>
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