Competition Analysis in the Tourism Sector in South america According to Michael Porter's Diamond Model

 Competitiveness Research of the Travel Sector in Mexico According to Jordan Porter’s Diamond Model Essay

- International Organization Strategy --

Lecturer: Jamie Weatherston

COMPETITION ANALYSIS IN THE TOURISM SECTOR IN SOUTH AMERICA ACCORDING TO MICHAEL PORTER'S DIAMOND UNIT

October 2009

Made by JГ©rГґme Schiano

Contents

INTRODUCTION3

I) THE ASPECT CONDITIONS4

1)HUMAN RESOURCES4

2)NATURAL RESOURCES4

3)INFRASTRUCTURES4

II) THE FIRMS TACTICS, STRUCTURES AND RIVALRY5

1)A COMMON INSURANCE PLAN OF LASTING DEVELOPMENT5

2)FOUR MAIN CHALLENGES5

A) The importance of a private-public collaboration5

B) Innovation5

C) Teamwork5

D) Local motivated approach6

3)THE IMPORTANCE OF ECOMMERCE TO TRAVEL AND TOURISM6

4)LOW COST OFFERS6

5)FIRMS COMPETITION, EMERGENCE OF CLUSTERS6

III) DEMAND CONDITIONS7

1)THE " ECOTOURISM” DEMAND PARAMETERS7

2)THE " CULTURAL TOURISM” DEMAND PARAMETERS7

3)THE " BUSINESS TOURISM” DEMAND PARAMETERS8

IV) RELATED AND SUPPORTING INDUSTRIES9

1)THE TRAVEL INDUSTRY HELPS AND IS MAINTAINED VARIOUS OTHER SECTORS9 2)A HUGE PANEL OF DOMESTIC HELPING ASSOCIATIONS9

V) GOVERNMENT DRIVERS10

VI) CHANCE11

1)MEXICO'S 2009 MISFORTUNE11

2)MEDIUM AND LONG TERM PERSPECTIVES11

CONCLUSION12

REFERENCES13

Advantages

In 2009, as well as for a period of six month, I use travelled to Mexico as an exchange pupil. This encounter has allowed me to observer, in total immersion, the strategy executed by South america to maintain cost effective and sociable fast beginning. I noticed the development of travel was a extremely important issue in this strategy, and this is why I decided to analyse the competitiveness of Mexico just for this sector.

In the 2008 copy of the Travel & Tourism Competitiveness Index (TTCI), which in turn measures factors that make it attracting invest or develop organization in the travel and travel and leisure sector within a specific country, Mexico come to the 57th ranked throughout the world, the 6th ranked amongst countries in Latin America and the 9th in the American continent.

Travel remains one of many economic supports in South america. Thanks to the govt high investment policy, current benefits of its natural and historical appeal, Mexico reached the 6th rank worldwide most touristic countries last season, with 21 years old. 4 millions of international visits (67% from the USA).

Source: Euromonitor International

With this report, according to Michael Porter's diamonds model, we all will evaluate successively six drivers that have influence in international competition of the travel industry in Mexico: -The factor conditions (human solutions, natural assets, and infrastructures) -The companies strategy, structure and competition (main trends, challenges and emergence of clusters) -The demand conditions for three main tourism areas in Mexico: Ecotourism, Cultural and business travel. -The related and assisting industries

-The government actions to maintain development in the travel sector -The " chances” factor plus the case while using H1n1 virus

I)The element conditions

1)Human resources

Because the 1990's, the educative system was split into various, uncoordinated and inefficient programs. In accordance to a fresh law intended for education used by the federal government in 2006, people form 5 to 18 years old have had the duty to attempt a scholar instructions and the educative frame came to fit into the international requirements.

Nowadays, in every level of instruction, public and institutions have been completely settled as well as the government guarantees the free of charge access to education until the school.

The country bills dedicated to education represent a lot more than 5% of the GDP.

Therefore, the Mexican rate of alphabetisation may be the highest of Latin America (91%) and also a total of 111 mil of inhabitant, 36. 2 million (32%) are attending formal studies: -31. two millions happen to be in primary, middle and high school.

-1. 9 thousands are participating superior examine out of the college/university process -4. 1 hundreds of thousands are...

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