2. Why San Diego and Methods
San Diego is a vacation town
This makes the city unique
Use of SWOT Analysis
Use of Porter’s Five Forces
Summary
3. SWOT - Strengths
Tourists will have a disposable
income
Looking for something different
Tourists will be searching via social
media
Facebook searching gaining
ground on Google
Double advertising from tourists
sharing with own connections
Can be applied to all business, not
just service
Example – anyone can get a
toothache on vacation
4. SWOT - Weaknesses
Strategies take time to develop
Weeks of research alone
Strategies take work to upkeep
What you are be doing may not be
seen by anyone
New Facebook algorithms make
visibility difficult, even to followers
May need to find outside help
Established tourists spots already
have word-of-mouth
Can be difficult to compete with,
however, social media levels playing
field
5. SWOT - Opportunities
Tapping into a new market*
Already seeing a boost
during tourist season?
Why not take a bigger piece
of that pie?
Many San Diego business are
not catering to tourists yet
Great time to get into a niche
Start by asking if you were
traveling to a new place what
would you want to do, and be
the business that answers that
question via content
7. Porter’s Five Forces
What are they?
Supplier power - An assessment of how easy it is for suppliers to drive up prices. This is driven by the:
number of suppliers of each essential input; uniqueness of their product or service; relative size and
strength of the supplier; and cost of switching from one supplier to another.
Buyer power - An assessment of how easy it is for buyers to drive prices down. This is driven by the:
number of buyers in the market; importance of each individual buyer to the organization; and cost to
the buyer of switching from one supplier to another. If a business has just a few powerful buyers, they
are often able to dictate terms.
Competitive rivalry - The main driver is the number and capability of competitors in the market. Many
competitors, offering undifferentiated products and services, will reduce market attractiveness.
Threat of substitution - Where close substitute products exist in a market, it increases the likelihood of
customers switching to alternatives in response to price increases. This reduces both the power of
suppliers and the attractiveness of the market.
Threat of new entry - Profitable markets attract new entrants, which erodes profitability. Unless
incumbents have strong and durable barriers to entry, for example, patents, economies of scale,
capital requirements or government policies, then profitability will decline to a competitive rate.
8. Supplier Power
Perfect opportunity to showcase
what makes your business unique
Show why EVERY San Diego tourists
needs to check you out
Prices and specials alone could
drive business through social media
Especially when accompanied with
pictures
Promotional codes and deals can be
pushed through platforms
Provide direct feedback to your
strategy
9. Buyer Power
Visitors have the ability to
drive down prices
Watching where tourists
are going
Viewing check-ins at
competitors locations
Gain a better
understanding of
competitors
10. Competitive Rivalry
Tourists have endless possibilities
Social media makes the comprehension
of competitors easy
If you aren’t providing information others
will
They will reap the benefits
Think about what attracts you to visit
places while out of town
Keep on eye on competitors as well
Competitors may not be in the same
industry
The tourists disposable income can be
spent on a vast array of activities but is
budgeted, therefore scuba lessons may
take priority over your restaurant
11. Threat of New Entry
Plenty of businesses
want to cash in on San
Diego tourism
Stay aware for new
businesses emerging
Forbes listed San Diego
as #1 place to start a
business
Competition is headed
your way
12. Summary
Thank you for taking the time to read through this, and I
hope you have found some value in what you have read. I
also hope that you see the opportunity that is in front of
you, I’m sure as a small business owner this is a time of
year you look forward to; now with these insights I hope
you can capitalize and get the most of this upcoming
season.
Sources: “Porter’s Five Forces of Competitive Position Analysis – CGMA.” Porter’s Five Forces of Competitive Position
Analysis – CGMA. American Institute of CPAs, n.d. Web. 25 Apr. 2014.
KriXis Consulting, www.krixis.com
All feedback is greatly appreciated
