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BIS Project Proposal

BIS Project Proposal

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Published by: trevorwang on Feb 22, 2010
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09/28/2010

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INSC 20263
Information Systems in eEnterprise
Powder 
Project Proposal
submitted to
Dr. Beata JonesByAnnie CumminsKendra FreymuthAlexa GonzalezTrevor Wang
 
1.
 Industry overview, based on library research (include sources):
The Resort Hotel industry is extremely competitive in Colorado. This is because it is a $5 billion industry, makingeach resort want to beat the competition to appeal to customers (Steiner). With “Aspen typically (hosting) around300 meetings each year” the resorts have a lot of incentive to build up their resort (Christen, Allure). Resorts arenow revamping their hotels to compete effectively with the new entrants coming into the Colorado industry. ThePark Hyatt Beaver Creek Resort and Spa recently spent “$27 million in renovations and improvements,” while $7million was spent by the Inn at Beaver Creek to update their hotel (Christen, Fall). With the baby boomers aging,the industry has to appeal to the younger generation in order to continue expansion in the industry (Steiner). Inorder to compete in this industry, resorts have to appeal to customers and constantly update their facilities to offer the best in Colorado.
 
Steiner, Christopher. "Ramping Up."
Forbes
185.3 (2010): 58.
Business Source Complete
. EBSCO. Web. 20 Feb. 2010.Christen, Lynne. "THE ALLURE OF ASPEN."
Successful Meetings
(2009): 2-3.
Business Source Complete
. EBSCO. Web. 20Feb. 2010.Christen, Lynne. "FALL UNDER BEAVER CREEK'S SPELL."
Successful Meetings
(2009): 3-4.
Business Source Complete
.EBSCO. Web. 20 Feb. 2010.
2.
 Perform a detailed Porter's Five Forces analysis for your industry. Be sure to discuss entrybarriers and switching costs.
PowerHIGHLOWJustify
 Buyer Power 
HighWhile there is a large buyer concentration, there is a larger firmconcentration. Customers have a lot of different firms to choosefrom and are able to compare prices between many that areupscale and offer similar services. In Colorado, there is a highamount of resorts that can be viewed online giving the customer more power and a high amount of information. It is very easy for customers to compare prices, quality, and locations. Switchingcosts are extremely low for customers since they can easily stayat different hotels on subsequent trips with little to lose. Thereare plenty of substitute products that customers could choose over our hotel such as other lodges and mountain resorts. All of thesefactors contribute to a very high buyer power.
 Supplier Power 
LowThe high concentration of suppliers for the hotel industry createsa low supplier power. There are many firms that we can purchaseeverything we need for our hotel such as food, furniture, andtoiletries for our hotel rooms. While there will be some contractsinvolved with our suppliers, generally there are no other costs of switching to a different supplier. This gives our company a lot of freedom in choosing our own supplier. Furthermore, our hotelcould use many different types of substitute inputs such asdifferent food items and towels.
Threat of Substitute Products or Services
HighColorado is a popular destination for luxury traveling includingoutdoor activities, fine shopping, and spas. There are numerousactivities for customers to participate in, including hiking, skiing,camping, biking, bird watching, horseback riding, white water rafting, and more, offered through various services apart from our resort. Additionally, there are other high quality shopping areas,dining areas, and spas to compete with ours. While many are inthe form of resorts similar to ours, the danger of substitute products and services lay in specialty organizations offering
INSC 20263 -- Project Proposal – Page 2
 
lower rates and more perceived expertise. However, customersmay be more inclined to stay with our resort’s activities becauseof convenience.
Threat of New  Entrants
HighWith the resort hotel industry being extremely prosperous,investors are quick to back new entrants in this industry.Combined with the low effect of switching costs, new entrants area threat to the established resorts. Customers do not have a bigincentive to continually return to the resort they had previouslystayed at, showing that there are minimal switching costs tocustomers. They are open to visiting the newer resorts with state-of-the-art facilities. The new smaller resorts are also a threat because they can offer cheaper prices since they are not trying tooffer all of the amenities that larger resorts have.
 Rivalry Among  Existing Competitors
HighThere is little diversity in the resort industry in Colorado.Multiple upscale resorts offer high quality products, competitive prices, and similar amenities to customers. This means that valueis not added to any one resort because there are multiple resortsoffering the same package to the same customers. This createshigh competition to receive the business. The customers arewilling to pay for the upscale resorts, but with little productdifferentiation, the resorts must compete constantly with their rivals. Customers could easily switch to one of your rivals due tothe low switching costs that would be incurred.
INSC 20263 -- Project Proposal – Page 3

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