Rivalry Among Existing Competitors Marketing Essay

The Berjaya Beach Resort Tioman Island in Malaysia is located on the Tioman Island with international criterions. The resort is located of the East Coast of Peninsula Malaysia and is spread across 200 estates. This single paper work will measure the selling schemes that Berjaya Resort adapted and a structured recommendation on how the resort hotel can better their public presentation

Porter ‘s 5 Force Analysis

Porter ‘s theoretical account determines the fight of an organisation utilizing the five different forces and shows how the forces are related. To develop concern schemes efficaciously, organisations must understand and move in response to those forces. ( Porter, 1985 )

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Rivalry Among Existing Rivals

Competitive competition analysis is one of the cardinal countries that concern must see to find concern scheme that house must follow and implement continuously over clip ( Wood, 1994 ) ; ( Porter, 1985 ) . The hotel concern now yearss are really much competitory. With 1000000s of tourer travels every twelvemonth, epicurean hotel is the first pick for most tourers. Having legion rivals in market ( e.g. Jampala Resort ) the competition between participants are intense ( Burgess, 1982 ) . For illustration, foreign tourers are said to holding higher purchasing powers therefore will seek for high terminal luxuries. That works behind the ground why companies invariably compete for better merchandises and attractive monetary values. In order to be leader is epicurean market, Berjaya Tioman Resort has to offer alone offers ( E.g golf class, choice of culinary art ) ( Berjaya Tioman, 2009 ) . This force is in favour of Berjaya Tioman Resort.

Menace of New Entrants

Menace of new entrants may see the easiness of new entry, competitory advantages, topographic point and places, clients, authorities support etc ( Porter, 1985 ) . To open a new epicurean hotel by another house in Tioman would be rather wasy since there are non much limitations imposed by local authoritiess. Local authorities, nevertheless chooses to rede the bing hotels to better their concern instead than see allowing conveying new rivals. Besides, consumer now yearss does n’t seek much epicurean hotel ; alternatively they would prefer budget hotel. Therefore new entry to comfy hotel concern is hence deep ( Nailon, 1982 ) . This force is non in favour of Berjaya Tioman Resort.

Menace of Substitute Product and Services

This force is said to hold much influence in Berjaya Tioman Resort concern scheme in recent old ages. There force includes factors such as merchandise for merchandise substation, demand, installations, budget etc ( Reuland, Choudry, and Fagel, 1985 ) ; ( Porter, 1985 ) . Berjaya Tioman Resort non merely requires looking after new entrants as menace but besides substituted merchandise and service as a major menace. When there is affair of cordial reception, its consumer ‘s pick what they chose to take. For illustration, A luxury watering place may be few 100s of Ringgit which may be proven cheapest for similar sort in other dedicated watering place stores. For one dark stopper, back baggers and Berjaya Tioman Resort does n’t hold any particular monetary values which normally find their manner in budget hotel. This force is against Berjaya Tioman Resort ( Burgess, 1982 ) ; ( Berjaya Tioman, 2009 ) .

Dickering Power of Buyers

This force consists of high income, big service supplier, low exchanging cost etc ( Porter, 1985 ) . Before economic recession, consumers were holding high incomes and seek more luxuries. As there are picks available in the market, Berjaya Tioman Resort has to respond really rapidly to retain client purpose to be their pick of supplying universe category cordial reception in possible last monetary value ( Lewis, 1988 ) . Consumers will decidedly seek most low-cost holding all installations they required and so, cordial reception houses have to fight of adopts the new tendencies, lifestyle every bit rapidly as possible to offer their loyal clients ( Slattery, 1983 ) . However, as there are non much epicurean hotels in Tioman, travelers merely limited option is this beach resort. This force is in favour of Berjaya Tioman Resort.

Dickering power of providers

This force may include exchanging cost, high purchase cost etc ( Porter, 1985 ) . Natural stuff providers play an of import function in house ‘s concern growing ( Tideman, 1983 ) . A grocery provider may non offer today ‘s monetary value tomorrow due of supply deficit ( Middleton, 1983 ) . Therefore to offer providing to guest, Berjaya Tioman Resort has to buy the same materials in higher monetary values which will be sum of big sums of money ( Burgess, 1982 ) . If this excess money is to be imposed on invitees, this would ensue Berjaya Tioman Resort fring concern. Besides, exchanging to another provider would be a hard pick excessively ( Edgar and Umbreit, 1988 ) . This force is non in favour of Berjaya Tioman Resort ( Khan and Olsen, 1988 ) ; ( Berjaya Tioman, 2009 ) .

From the above analysis of Berjaya Tioman Resort ‘s 5 forces analysis, the diagram below will supply a sum-up of the house ‘s overall industry analysis.

Dickering Power of Buyers

( + )

Menace of Substitute Products and Services

( – )

Dickering Power of Buyers

( – )

Menace of New Entrants

( – )

Rivalry among bing rivals

( + )

Micro and Macro Environment Strategy Analysis

Micro Environment Strategy ( TOWS Matrix )

Strength-Opportunities Schemes

Berjaya Tioman Resort hotels have a good repute in cordial reception concern and a big sum of client concatenation. Introducing low cost bundles for travellers will intend a true cordial reception to the bing client every bit good as for new clients ( Slattery, 1983 ) . Berjaya Tioman Resort ‘s broad scope of services may be available to people of all income degree ( Edgar and Umbreit, 1988 ) .

Strength-Threat Schemes

Retain the talented and good managed employees for a drum sander concern in hereafter could be proven critical ( Pfeifer, 1983 ) . Berjaya Tioman Resort should ways execute undertaking fluctuation, and frequent conversation will all employees to forestall difference. Employee may be shifted to international ironss to derive experience so that they would be loyal to the house ( Burgess, 1982 ) .

Weakness-Opportunity Schemes

High cordial reception in low monetary value is decidedly a spell in front measure Berjaya Tioman Resort could follow to get the better of its failing ( King, 1995 ) . Now that, market is been volatile, Berjaya Tioman Resort may see go forthing high graduated table net income to high scope of client degrees to do its installations open to all clients ( Pfeifer, 1983 ) . For illustration, golf class installation should be opened to all hotel guests non merely for invitee who to boot buy the installation. Berjaya Tioman Resort may non free much sum of money but it would be proven a client oriented attack ( Jones, 1996 ) .

Weakness-Threats Schemes

Poor client service ( and hapless communicating job ) has been shouted long as major drawbacks for Berjaya Tioman Resort hotels. Sometimes client has been given something that is non inquiring for and has been charged for that said services ( Middleton, 1983 ) . Price construction really frequently is non described to client before offering therefore it brings confusion. In hotel client services is really important to keep in really high degree at ever and client must acquire the monetary value focal point than anything else ( Lewis, 1988 ) ; ( Reuland, Choudry, and Fagel, 1985 ) .

Macro Environment Strategy ( PESTE Analysis )

A PESTE Analysis is an analysis of external macro-environmental factor that affects houses concern. PESTE is an acronym for Political, Economic, Social, Technological and Environmental issues that influences the strategic development of a concern. These issues are different in different locations and therefore concern houses may follow different schemes in different states where it operates to place the concern chances every bit good as menaces. This assessment undertaking would see the worldwide scheme of Berjaya Tioman Resort ( King, 1995 ) .


Political factors include authorities regulations, ordinances and legal issues under which the house must run and adhere ( Nailon, 1982 ) ; ( Wood, 1994 ) . The issues discussed are environmental ordinance and protection, political stableness, corporate and consumer revenue enhancement, model for contract enforcement, rational belongings protection, trade ordinances, merchandising spouses, anti-trust Torahs, pricing, compulsory employee benefits, industrial safety ordinances, merchandise labeling demands, competition ordinance etc ( Edgar and Umbreit, 1988 ) .

The political motion can hold definite effects on hotel concern in Malaysia. For illustration, if authorities set a regulations under 18 old ages frequenters must be accompanied with parents or defenders, it may ensue the lessening of immature visitants. Enforcing high goods and service revenue enhancement ( GST ) or similar revenue enhancements would forestall more people to see the hotel more frequently. By fring these possible clients, Berjaya Tioman Resort may free income and may necessitate addition merchandises and services to retrieve losingss. Though Berjaya Tioman Resort groups are committed to utilize high graduated table safety criterions, Malayan authorities regulations may non give permission to run concern due to safety ground ( like hill, low lying countries ) even though there may hold pick if concern growing ( Middleton, 1983 ) . If the authorities programs to subsidies some of the service it provides ( e.g. for handicapped or senior citizens ) , the hotel may derive net incomes every bit good as addition services. Therefore political actions may hold both negative and positive impact on hotel concern ( Edgar and Umbreit, 1988 ) ; ( Berjaya Tioman Resort Worldwide, 2009 ) .


Economic factors positively effects cordial reception concern. It determines how easy or hard to prolong in a concern along with capital, cost, demand, pecuniary policy, unemployment rates, exchange rates of foreign currencies, revenue enhancement on exchanges ( Wood, 1994 ) . When economic growing is high, consumer ‘s income degree raises therefore demand for cordial reception will increase excessively. Since the recent economic recession started, cordial reception concern was hit severely and it is yet to retrieve from the losingss incurred. Increase of rates would forestall hotelier to seek for alternate picks ( e.g. budget hotel or even place stay ) . In Malaysia, hotel adjustment monetary values are non much higher than any other states around the universe. Nevertheless, consumer ‘s income degree did n’t lift up much and they fell the stringent budget allotment for day-to-day demands. Very few people will see disbursement vacations in epicurean hotels if they do n’t afford to. A higher income or rewards will let domestic traveller to acquire high category cordial reception in high category hotels ( King, 1995 ) .


Social factors are income degree, demographics, geographicss, life manner, instruction, conditions, civilization and manners ( Wood, 1994 ) . Social factors can be both chances and menaces for a cordial reception concern ( Lewis, 1988 ) . Different age or sex of people would necessitate different services ( Slattery, 1983 ) . Aged people demand is non similar to immature people. Business people will seek to hold more work related installations ( e.g. cyberspace, video conference ) while vacation shapers would seek more natural touch ( e.g. garden, fishing ) ( Burgess, 1982 ) .

Cultural differences are a major drama in cordial reception concern. While local people like crowd and chitchat, tourer would seek for quiet and soundless topographic point as they plan holiday. Season is besides an of import factor ( Middleton, 1983 ) . Year terminal and vacation season are peak clip for hotel concern while there ‘re non much crowd during working yearss or off-peak season. Most travellers are affected by bad conditions and normally do n’t believe for leisure during extreme either status particularly in showery season ( Edgar and Umbreit, 1988 ) ; ( Berjaya Tioman, 2009 ) .


This is the century of engineering sweetening ; so does concern. Aggressive development of technological factors brought rapid growing for hotel concern ( Slattery, 1983 ) . The factors may include pass on technological research ; authorities attempt focal point industry based engineering, new innovation and their impacts, communicating options, velocity of engineering transportation, cost of use, rate of technological diffusion ( King, 1995 ) .

Berjaya Tioman Resort ‘s concern will largely depend on technological factors. Customers from around the universe is now able to measure the merchandises and services provided by Berjaya Tioman Resort through the several web sites, comparison monetary values, seek advice and even can reserve a installation every bit early as one twelvemonth prior to arrival. Berjaya Tioman Resort group itself placed much attempt to maintain the website simple and user friendly so that visitant will non experience trouble to happen any available information. Any latest service or merchandises can make to 1000000s of clients through the web site or communications ( Reuland, Choudry, and Fagel, 1985 ) . Supplying inside informations of every installation Berjaya Tioman Resort placed itself to the top pick of any hunt engines. Traveler from any portion of the universe can pass on in existent clip with Berjaya Tioman Resort representative and made their picks, payments etc ( Burgess, 1982 ) .

Besides, for in-hotel client, Berjaya Tioman Resort offers state-of-the art high velocity radio, picture communications, and teleconferencing, to maintain invitees ever in touch with outside universe. These services received a bug thumbs up since it was introduced and continuously maintain heightening engineering to remain in front in concern ( Edgar and Umbreit, 1988 ) .


Environmental factors have been considered of import factors for big organisations which peculiarly operated worldwide ( Wood, 1994 ) . This factor includes environmental duty, betterment of public presentation towards sustainable hereafter, invitee and squad committedness to environments, reuse and recycle stuffs etc ( Khan and Olsen, 1988 ) .

As of present yearss, Berjaya Tioman Resort promised to cut down energy ingestion, CO2 emanations and waste end product by 20 % and H2O ingestion by 10 % . These stairss in front will put the house in lead place and will increase repute by agencies ( Berjaya Tioman, 2009 ) .

Recommendation ( SMART Objectives )

SMART objectives refer to an acronym for five steps of good marketing growing program. Often these steps are used to specify house ‘s aims and future ends and rating of selling program.

Specific ( What to make? For who? With whom )

Any selling scheme should be specific and certain. Confusion on ends will convey equivocal consequences which may turn out fatal for a cordial reception concern like Berjaya Tioman Resort ‘s. Well specified concern ends, responsible resources, affected peoples, impact on the houses concern should be good defined in this phase ( Burgess, 1982 ) .

Measurable ( Is measurable? How to mensurate? )

Of class, one time the selling program and aims are specified, a certain measure or quality must be assigned to find the success or failure of the procedure ( Pfeifer, 1983 ) . As an illustration, for future enlargement, Berjaya Tioman Resort plans to spread out 50 runs in following old ages. 50 is a mensurable sum. So so, if the existent success rate is merely 30 runs, it can be said that, the program did n’t win to the full ( Khan and Olsen, 1988 ) .

Accomplishable ( Can it be done within the resource available? )

Future selling depends upon many facets specially political, economical and societal facets. If a sudden alteration on policies, 50 runs may non be possible within the said budget. Re- computation might foretell a lower graduated table of marketing size ( Jones, 1996 ) ; ( Berjaya Tioman, 2009 ) .

Relevant ( Does this measure lead to expected outcome? )

Once accomplishable measuring are defined, Berjaya Tioman Resort must see whether 50 runs would be feasible ; specially see the recent economic downswing. In some topographic points, consumer may non afford to acquire Berjaya Tioman Resort ‘s service ; particularly hapless developed countries where touristry sectors are non blossoming, offering a luxury hotel service may non supply desired end product ( Edgar and Umbreit, 1988 ) ; ( Berjaya Tioman, 2009 ) .

Time-Framed ( How much clip demand to acquire the aims done? )

Time is a really of import factor for any aims to be proven really profitable or even failure. Timely determination and timely execution is the important mixture of time-frame ( Pfeifer, 1983 ) . For any selling scheme, Berjaya Tioman Resort must take the right clip to travel in front and set a clasp when the clip is non right ( Taylor and Edgar, 1996 ) . When demand competition is high, Berjaya Tioman Resort may offer lower monetary value for clients which may includes alone bundles for a limited clip ( Khan and Olsen, 1988 ) .


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