Question

Shortly analyze Porter's 5-Forces in the US-based Tour-Operator industry.

Each of the 5 forces only needs 2-3 sentences to explain.

Answer 1

Porter 5 Forces in US Based Tour operator Industry:

Competitive rivalry: United states based our operator company must be creating analysis on number of competitors and how is the strength of each competitors, here, the company also should gather competitor’s data, this will include products as offered by them, quality of services, pricing and internal organizational data like employee satisfaction data, salary data,

Supplier power: here, US based Tour operator Industry should create assessment that will include supplier details with their power information, first, they should define who are suppliers and how they have power to control pricing,

Buyer power: here, industry should know about their target audience and they should define how is the power of buyer to negotiate with them, if within the industry of Tour and Hospitality, there are many competitors, then, buyer can have more power to negotiate the pricing of tour,

Threat of Substitution: here, US based Tourist organization should define the probability that customers can create substitute of the products and services, here, tourist service provider bring distinction in the service and offer unique approach with control mechanism, so customer can find creative products and services.

Threat of new entry: Tourist organization should create unique business and maintain privacy for business strategy, hence, new entry will not be generated, as organizational market share can be lowered due to evolving of similar company,