Page 14 - Business Plan 2017

This analysis is a simple yet powerful tool to undersand
PORTER’s Fives Forces where power lies in the business situation. It will help to
understand the market better and to determine which are
the important elements to master in the project.

Intensity of Rivalry Bargaining power of Buyers

3/5 5/5

 Around 15 big direct competitors  Buyers here = clients = destination/hotel/DMC etc.

 Multitude of small direct competitors  They are the one who have the final word: about the strategy,
about the actions, about the suppliers, about the targets. Their
 Competitors are well established and owe other
power of decision is very important, therefore their influence
linked business to offer a complete service (ex. tra- is huge.
vel agency)
 They are expecting results from us, and can end the contract if
 Less choice for the potential clients, so the rep. com-
panies propose high prices. not satisfied.

 Prices are determined according to the offered ser-  They will look for the best offer among the competitors: price
vices, can change very easily. wise and service wise. The best value for money will be se-
lected.
 Associations around the business which allow every-
body to know everyone  If the market becomes really interesting for the buyer, it might
decide to open a branch in the country and hire local con-
 Loyalty: very unstable - contracts of 1 year rene- tracts under its company's name => costwise it might become
wable if results. cheaper. Ex: Atout France, Tourism New Zeland

Business Plan 2017 — NOM. 14