Page 15 - Business Plan 2017

Bargaining power of Suppliers Threat of Substitutes Threat of New Entrants

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Here suppliers will be the intermediates to the indian travellers, aka tour  Internet - ease the communication bet-  Anybody can enter the market with good
operators, travel agency, MICE companies, pharma companies.... ween countries and with the grow of relations, as there is no particular diploma/
OTA, the market might be easily (or technics required
 Around 5-10 big international TO have the global market : they are
more easily) covered without any repre-
into big marketing projects, willing to launch new trends which will sentative on site.  The biggest threat is the price: we offer a
influence indian travellers. They will ask for the best prices, best service, therefore it is a very subjective de-
commission for the best results in return. They have a high power of  Press & Media: they might extend their cision to price the service. Any competitor
negotiation. business into representation as they can get a new market with broken prices.
 Around 20 middle size and national deal with a good ratio as well: have the power of communication.  Case of a foreigner working in India: the
Veena middle budget of marketing, expensive but less results (not  For the Indian market, it is still essential prices will be higher to cover the visa costs
really influencal). They will target groups and bargain as much as to have a person in the country to follow (25K$/year).
possible the prices for mass concuption.
up with the different suppliers and to  Barriers: the "big" might want to "steal" the
 3 big OTA : mostly into ticketing and readymade packages. They give reports to the Buyer. The cultures potential clients to the new competitors and
are a huge window in terms of marketing as everything is made on- might not be easily understood, hence it they will have more legitimacy as they are
line and via mobile phones. is always good to have a mediator. already well established on the market. This
 A multitude of small travel agencies: they know their clients very well  However, with the globalization, people is why it is important to keep the potential
(loyal) and will create exclusive and personnalized packages. They tend to travel and work abroad, to com- targets secret until the contract is signed.
do not mind offering high prices if the service is perfect. For very municate more with international compa-  The threat will also come once the new en-
high end TA, they will require to test the product in order to better nies, to use internet as a unique tool. The
sell it to their customers. Often forgotten from the rep. companies, job of Sales Representant might slowly trant with its clients have come on the mar-
they can be of a very good help for niche and luxury destinations. ket: the competitors will be in connexion with
disappear - it is important to soon diver- the client to get the contract (with better
 The supplier will have a higher power if the destination is unknown : sify the business and offer more than just offer).
they will see an opportunity to earn money through marketing ac- a representative offer but to position
tions which might not give the expected results. However, as a new itself as a strategic consultant, while gi-  The GST imposed by the indian government
product, they will not want to help with any free action as they will ving the feeling of being part of the might influence on the prices of the services
not have any advantage in return. On the contrary, if the destination company and make it harder to start a new business
is famous and brings good money, they will have to marketing it, at a low price (if it increases).
and they will search for your (financial) help to market with them.

Business Plan 2017 — NOM. 15