7. MICHAEL E PORTER
Born on 1947
Professor in
Harvard Business
School.
Introduced Porter’s
5 Forces Model.
Written 18 books &
over 125 articles.
9. Threat of New Entrance
Threat of new entrance in tourism
industry is Medium to High
Major determinants of the market
environment can be changed by new
entrants.
Online Channels are growing rapid at
rate.
Govt. Regulations
10. Threat of Existing Rivalry
Organized players would barely have
40-50% of market place.
Most of organized players are present
in metros & mini-metros
As the growth of tourism industry is
growing faster the threat of existing
rivalry is Medium to High.
11. Bargaining Power of Buyers
Bargaining power of buyers is Medium
to High.
Switching costs for buyers is not high
as Brand Loyalty is low.
Better facilities are available in other
countries.
Luxury segment is brand conscious to
and willing to pay a premium for great
experience and service quality
12. Bargaining Power of
Suppliers
Power of suppliers in Indian tourism
industry includes airlines, hotels,
transportations, travel agency etc.
The bargaining power depends on the
product which are supplied by suppliers.
Thus bargaining power is Medium to
Low.
13. Threat of Substitutes
Alternative products which gives
competition are less.
Other entertainment purposes like
amusement parks, creation of relaxation
within boundaries.
Therefore threat of substitute is Medium
to Low.
14. Industry Attractiveness
Tourism brings in large amounts of
income in payment of goods & services.
According to World Tourism
Organization estimates, India will lead in
South Asia with 8.9 million arrivals by
2020.
India has been emerged as the 2nd
fastest growing(8.8%) tourism economy
in the world over 2005-14 according to
the World Travel & Tourism.
15. SUMMARY
Threat of New Entrants – Medium to High.
Threat of existing Rivalry- Medium to High.
Bargaining power of Buyers – Medium to
High.
Bargaining power of Suppliers – Medium to
Low.
Threat of Substitutes – Medium to Low.