Guam Visitors Bureau


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Analysis and proposals to get GVB out of its post-1990s slump. (based on a class case study about Guam Visitors Bureau in 2006)

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  • Island in the North Pacific Ocean, Oceania, three quarters of the way from Hawaii to the Philippines212 square miles, 32nd largest island in Micronesia (3 times size of Washington D.C.)Sandy beaches, surrounded by coral reefsCoastal cliffs, plains in northMountains in southTropical vegetationTropical marine weather, warm and humid cooled by northeast winds, little seasonal temperature variation1.3-1.5x as expensive as comparable non-island locationsLingering effects of Japanese occupation in WWIIGuam’s residents xenophobia => vandalism and activism183,286 (July 2011 est.)organized, unincorporated territory of the USEnglish 38.3%, Chamorro 22.2%, Philippine languages 22.2%, other Pacific island languages 6.8%, Asian languages 7%, other languages 3.5% (2000 census)212 square milesBeaches, cliffs, mountains, plainsGuam was ceded to the US by Spain in 1898. Captured by the Japanese in 1941, it was retaken by the US three years later. The military installation on the island is one of the most strategically important US bases in the Pacific.The economy depends largely on US military spending and tourism. Total US grants, wage payments, and procurement outlays amounted to $1.3 billion in 2004. Over the past 30 years, the tourist industry has grown to become the largest income source following national defense. The Guam economy continues to experience expansion in both its tourism and military sectors.
  • Guam Visitors Bureau

    1. 1. Guam VisitorSBureau<br />Orion Burt, Nabil Choudhury, Taeha Chun, <br />Richard Merino, Ardon Weiner, Sam Yusupov<br />
    2. 2. 212 square miles Beaches, cliffs, mountains, plains<br />US territory & military outpost <br />Guam, The North Pacific Island<br />
    3. 3. Guam, The 180000 People<br />
    4. 4. Guam Visitors Bureau<br />1963: Guam Tourist Commission<br />Public, non-profit corporation<br />“Tourist Attraction Fund” - $15 million<br />28 employees, 4 offices abroad<br />
    5. 5. “<br /> ”<br />GVB Mission <br />To efficiently and effectively promote and develop Guam as a safe and satisfying destination for visitors and to derive maximum benefits for the people of Guam.<br /> September 28, 1995<br />
    6. 6. Guam Visitors Per Year<br />
    7. 7. Outline<br />Strategic Analysis<br />Porter’s Five Forces<br />SWOT<br />Competitors<br />Recommendations<br />New Markets<br />Strategy<br />Unique Activities<br />
    8. 8. Main Issues<br />Over-reliance on Japanese markets<br />Lack of distinct identity<br />Low visitor retention rate<br />
    9. 9. Industry Analysis<br /> Suppliers<br />Bargaining Power of Suppliers<br />HIGH<br />Heavily dependent on few airlines & hotels<br />Possibility of withdrawal<br /> Buyers<br /> New Entrants<br /> Substitutes<br /> Rivalry<br />
    10. 10. Industry Analysis<br /> Suppliers<br />Bargaining Power of Buyers<br />HIGH<br />Buyers can easily switch to competing suppliers<br />Several other Asia-Pacific countries in which to enjoy a “tropical vacation”<br /> Buyers<br /> New Entrants<br /> Substitutes<br /> Rivalry<br />
    11. 11. Industry Analysis<br /> Suppliers<br />Threat of New Entrants<br />LOW<br />High Capital Requirements<br />Difficult to enter market<br />High Cost to create a new tropical island<br /> Buyers<br /> New Entrants<br /> Substitutes<br /> Rivalry<br />
    12. 12. Industry Analysis<br /> Suppliers<br />Threat of Substitutes<br />HIGH<br />Buyer switching costs are low<br />193 other countries which to visit for vacation<br /> Buyers<br />NewEntrants<br /> Substitutes<br /> Rivalry<br />
    13. 13. Industry Analysis<br /> Suppliers<br />Intra-Industry Rivalry<br />HIGH<br /> Buyers<br /> New Entrants<br /> Substitutes<br /> Rivalry<br />
    14. 14. Firm Analysis<br />Strengths<br /> Proximity to Japan and major Asian cities<br /> Image of pristine resort environment<br /> Unspoiled natural, uncrowded environment<br /> Multicultural community<br /> A diversity of activities within island, especially targeting families<br />
    15. 15. Firm Analysis<br />Weaknesses<br /> Inadequate infrastructure<br /> Unable to deliver continuous service quality<br /> Rare repeat visit / limited opportunities for longer stays<br /> Local population’s unfriendly attitudes toward tourists<br /> Graffiti, litter, dirty public restrooms give impression of public apathy<br /> Slow decision-making process within GVB<br />
    16. 16. Firm Analysis<br />Opportunities<br /> China is a huge potential market<br /> Increasing affluence of regional Asian consumers<br /> Educational and sports tourism<br /> Underutilized air route authorities<br /> Undeveloped cruise market<br /> Visa waiver program for Japan, Korea and Taiwan<br />
    17. 17. Firm Analysis<br />Threats<br /> Airlines have a lot of power<br /> Rising oil prices<br /> Sensitive to negative macro-economic and political developments<br /> Vulnerable to typhoon damage <br /> Local activism against tourism <br /> Insufficient budget due to the cash-strapped government<br /> Interest groups – i.e. GHRA, GTF and JOTA<br />
    18. 18. Main Issues<br />Over-reliance on Japanese markets<br />Lack of distinct identity<br />Low visitor retention rate<br />New Markets<br />Strategy<br />Unique Activities<br />
    19. 19. New Markets<br />
    20. 20. New Markets<br />
    21. 21. Strategy - Segments<br />Currently not segmented in marketing strategy<br />Elderly and families with children are identifiable groups that visit Guam<br />-<br />+<br />
    22. 22. Strategy - Targeting<br />Currently low advertising<br />Emergent East Asian countries<br />Emphasis on family fun, relaxation, beautiful scenery.<br />-<br />+<br />
    23. 23. Strategy - Positioning<br />Americana<br />Beaches<br />Good scenery<br />Close<br />Lack of history<br />Lack of good food<br />Lack of sophistication<br />Focus on differentiation<br />Emphasis on unique activities<br />-<br />+<br />
    24. 24. Strategy – Recent Attempts<br />-<br />+<br />
    25. 25. Strategy - Ideas<br />+<br />Targeted placement and advertising<br />Distribution of agents in emerging markets<br />Internal marketing<br />
    26. 26. Unique Activities<br />
    27. 27. Unique Activities<br />
    28. 28. Unique Activities<br />
    29. 29. Recommendations<br />New Markets<br />Strategy<br />Unique Activities<br />Over-reliance on Japanese markets<br />Lack of distinct identity<br />Low visitor retention rate<br />
    30. 30. Performance to Date<br />2008: Japanese & Korean travelers declined Chinese travelers grew by 29%<br />2009: Chinese & Russian Visa Waiver program to bring in $212 million by 2018 <br />2010: No significant airline growth<br />
    31. 31. Guam Visitors per Year<br />
    32. 32. Guam Hotel Occupancy Rate<br />
    33. 33. How does a small organization compete on a global scale?<br />How can you take on a global initiative with limited resources?<br />How do you market a service that you don’t control?<br />Takeaways<br />