Offer a critical assessment of the current business Essay

Offer a critical assessment of the current business environments(Nestle), selecting industry examples based on your chosen pathway - Essay Example Porter’s five force analysis is one the most powerful tool that greatly facilitates evaluation of internal and external factors that impact performance (1980). The emerging new trends in the travel industry vis-Ã  -vis travel destination, special interest packages, integrated services for corporate customers with high spending potential etc. have given significant boost not only to the industry but to national economies also (UNWTO, 2006; Dwyer, 2002). MICE package has been developed for global firms that want to mix business with leisure activities to rejuvenate their workers. They are also designed to address the need of the international business community by organizing global meet for corporate buyers and sellers so as to exploit new opportunities for expanding business across globe (Spiller, 2002). The huge potential of MICE has increasing become the driving force for the success of the tourism industry. Porter’s five force analysis hugely facilitates in assessing market forces which can be exploited by the MICE firms and other tourism agencies. It evaluates the five forces: threat of new entry; buyer power; supplier power; th reat of substitute; and competitive rivalry. Threat of new entry is always a critical issue as it significantly reduces the economy of scale for big businesses. The technology and globalization have provided new entrants with huge opportunities and local agencies have emerged as major threats for tourism agencies. Differentiation, networking capability, financial backing, brand loyalty etc. become major factors to overcome the threat posed by new entrants. Buyers’ power is huge as technology has hugely enabled small family businesses to enter tourism industry with success. There are also more global players in this field which make switching easier. The industry firms, therefore, must focus on cost differentiation, brand equity and quality of service to gain leverage. The