Future of the Australian Tourism Industry - myassignmenthelp.com

Question: Discuss about theFuture of the Australian Tourism Industry for Profit. Answer: The growing tourism industry in Australia is a major source of profit and economic stability for the country (McLennan, Becken and Moyle 2017). In response to that it is important for the government to evaluate the future scope and opportunity for the tourism industry in Australia. However, in course of retaining a healthy and stable tourism in practice the industry is facing some challenges internally and in the external environment as well. Therefore, the purpose of this essay is to understand the scope of future development for Australian tourism industry. In order to do this, the essay is going to address industry analysis tools like PESTEL, Porters five forces and SWOT analysis as major analytical mechanism in the context of tourism industry. PESTEL is a concept dedicated to put emphasis on the external environment of a company or industry. This external environment is determined by factors like Political, Economic, Social, Technological, Environmental and Legal constraints (Anton 2015). It helps the industry or some specific company to analyze the outer factors which can influence the future of that sector or organisation. In response to that it is important to identify different elements of PESTEL analysis. Due to the advent of globalisation the business dynamics of every country has increased in a rapid pace. It transcends the geographical boundary of the industry and provides it a transnational projection. The political activity globally or nationally can affect the ever rising trend of an industry. It can be direct or indirect but has a deep impact on the future of the industry. Besides this, economy has always been considered as the backbone of a business (Jones 2017). Therefore, it is evident that finance and econo my will be referred as a foundation basis of a business organisation. In respect to that it can be argued that the free trade economy widens the market orientation of the industry and brings it into the global platform. Therefore, economy has an influencing impact on business. Society is comprised of customers, their behaviours, the customs and traditions. As a result of that the Business Company or industry has to take strategy in relation to this. Technological advancement provides further impetus to this. In fact, in this new world without technology no country will be able to keep pace with the growing demand. In this regards, environment contributes more focus on sustainability. Ecological orientation of the company can be beneficial for the company to retain its customer by introducing holistic approach towards nature. Legal matters help to bring an equal and healthy business atmosphere in the competitive market. It also enables to create a fair and transparent relationship be tween the customers and organisation. In this context, it is very relevant to understand the correlation between tourism and PESTLE analysis. In their study Barkauskas, Barkauskien? and Jasinskas (2015) reflected the importance of macro environmental factors in influencing tourism. It can be defined that macro environmental factors are fostered positive and negative effects on tourism. Different macro environmental characteristics are liable to affect the business output of a company in different ways. (McLennan, Becken and Moyle 2017) Hence it is imperative to carry a PESTLE analysis for analyzing the possible threats and external condition of a company and set their strategies accordingly. The Porters five forces model is an internal analytical tool to perceive an idea about the interior condition of a company or an industry. The model is associated with five distinctive factors which are dedicated to alter the business dynamics of a company. In this regards the five forces can be termed as competitive rivalry, power of supplier, buyers power, threat of substitutions and possible new entrants. Introduced by Professor Michael Porter of the Harvard Business School in 1979 the model is very popular even in present days for analysing the internal business condition of a company (Dlken 2014). The first element is discussing with the competitive rivalry and the strength and weaknesses of the possible rival organisations. The reason behind understanding the position of the enlisted rivals is because it will beneficial for the organisation to estimate the depth of its strategy by analysing other competitors. Besides this, the power of the suppliers can influence the market ori entation of the customers. Monopoly in supply of raw products can heighten the expenditure of the company. On the contrary, influx of supplier can generate profit for the company. The buyers power is very significant in this regards where the amount of customer influence affect the company (Porter and Heppelmann 2014). After that, the threat of substitution can be fatal for the organisation if it is unable to generate uniqueness. Possibility of new entry is always considered to be an alarming event for any small and medium companies who are already in the market. It this regards, the role of five forces model in tourism industry is very pertinent. Tourism industry is covered with a number of tourism companies and service providers like hotels, restaurants and transport. As the industry is very lucrative in nature in Australia therefore it is the principal target for the organisation to assess its strength and weaknesses and comparing it with the given market environment (Curta, Petr usel and Iftinca 2015). SWOT is the acronym of four different elements in terms of strength, weakness, opportunities and threats. In other words, it can be defined as a mix analysis based upon the external and internal environment of the company. SWOT analysis has been discussed generally in a template formatting and the analysis is primarily take data from the internal and external environments (Zhang, Choi and Joppe 2016). After collecting the required data the tool analysed it on the basis of their character. In fact, the strengths and weaknesses of an organisation are identified as the internal factors where as the threats and opportunities are associated with the external environment. As a result of that SWOT analysis is considered to be a useful strategic mechanism in order to deal assess the companys future (Mcdonald 2016). In response to this it can be stated that, in the present case scenario intense competitiveness becomes a trend in Australian tourism industry. The more the industry flourishes th e more it has to face high competition. It can also be kept in mind that tourism industry generates a bulk of profit for the Australian economy. However, the growing market capitalisation by countries like Japan, Philippines and Malaysia gives a fatal blow to the monopoly of Australian tourism industry in the Asian continent (Fong, Wong and Hong 2018). As a result of that a SWOT analysis of the condition of tourism industry becomes very necessary in order to take necessary steps by the Australian government to revitalise it. Competition and threats are closely related to business and can be identified as a positive factor for the betterment. In fact, it is an inevitable factor for the business industries to take competition and threats on daily basis. In response to this, strategy assessment tools like PESTEL, five forces and SWOT model can depict the actual scenario of the business environment internally and externally. Hence it can be concluded that there is a de facto importance of these marketing mechanism in analysing the Australian tourism industry and the industry will be capable to shape a strong business activity in near future. Reference Anton, R., 2015. An Integrated Strategy Framework (ISF) for Combining Porter's 5-Forces, Diamond, PESTEL, and SWOT Analysis. Barkauskas, V., Barkauskien?, K. and Jasinskas, E., 2015. Analysis of macro environmental factors influencing the development of rural tourism: Lithuanian case.Procedia-Social and Behavioral Sciences,213, pp.167-172. Curta, N.C., Petrusel, R. and Iftinca, C.A., 2015. Business simulation of tourism companies using the level I exercise firm model.Quaestus, (7), p.65. Dlken, F., 2014.Are porters five competitive forces still applicable? a critical examination concerning the relevance for todays business(Bachelor's thesis, University of Twente). Fong, V.H.I., Wong, I.A. and Hong, J.F.L., 2018. 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