Guam Visitor’s Bureau Case Analysis
1. Do an internal and external analysis to understand the level of integration in Guam’s tourism Industry?
STRENGTHS * Unspoiled, non-crowded, pristine environment * Range of hotels from 1 star to 5 star * Close to Korea and Japan (3-4 hour flight) * Lot of visitors from Japan * Pleasant weather * Duty-free shopping * Largest K-Mart | WEAKNESSES * Lack of activities, events * Location of adult entertainment and business in the main family entertainment area * Inadequate infrastructure * Graffiti, litter, dirty public restrooms give impression of public apathy * Decision making process at GVB is slow |
OPPORTUNITIES * Start Cultural offerings (Chamorro heritage) * 90% visitors came for pleasure, can increase the business proposition * Number of American tourists is low, this can be increased * Target countries which are perennially cold. Control on tourist visa allocation * East Asia countries are a potential market to penetrate * Underutilized air route and cruise market | THREATS * Budget constraints due to badly-off government * 40% visitors were from low income brackets less than $45000 * Susceptible to typhoon damage * Local activism against tourism * Sensitive to negative macro-economic and political developments |
Porter’s five forces:
Suppliers: It is heavily dependent on few airlines and hotels for the tourists. So there is a threat of withdrawal in case of any disagreement.
Buyers: Buyers can easily go to competing tourist destinations. There are several tourist locations apart from Guam in Asia-Pacific which have tropical climate.
New entrants: The threat of new entrants is low as cost of entering into such markets is low.
Substitutes: There are many other countries giving better offers and facilities at cheaper rates.
Competitors: Competition in this market is high. E.g.: Australia, Hawaii, Bahamas etc.
2. What generic options does the GVB have to...