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Case: Guams Visitors Bureau

1. What internal constraints does GVB face in becoming a more powerful player?
Tedious and time consuming decision making process Lacked the vision Financial constraint Vested interests

2. Conduct a resource analysis of Guams resources.


Finance. Natural Man Power Cultural Transport

3. Assess the stakeholders in the distribution channel, their positioning and the level of integration in Guams tourism industry.
Guam Hotel and Restaurant Association Guam Tourism Foundation Japan Guam Travel Association

4. Use BCG Matrix to determine the position of the each target market.
Star High LOW CASH

Hong Kong ,Korea,Taiwan,China Industry Growth


Less developed Lucrative Market that require cash investment to rise.

Russia,Philiphinnes New Emerging Market that require investment for awareness, brand building.

Industry Growth
Low CASH COW Japan

Dog NIL

Matured Market i.e cannot grow much further.


Low Relative Size with respect to top Competitors Low

High

6. Conduct a SWOT analysis of Guams tourism industry


1.Unspoiled, non-crowded, pristine environment 2.Range of hotels from 1 star to 5 star 3.Close to Korea and Japan (3-4 hour flight) 4.Lot of visitors from Japan 5.Pleasant temperatures

1. Location of adult entertainment and business in the main family entertainment area
2. Lack of activities and things to do 3. Lack of heritage and cultural shows

1. Start Cultural offerings (Chamorro heritage)


2. 90% visitors came for pleasure, can increase the business proposition 3. Number of American tourists is low, this can be increased 4. Target countries which are perennially cold 5. Control on tourist visa allocation

1. High exposure to Macro economics and political development 2. 40% visitors were from low income brackets less than $45000 3. Susceptible to typhoon/tsunami damage 4. Numerous countries had launched new tourism destinations at a competitive price and quality offering

7. Conduct an assessment of Guams tourism industry using the Porters 5 forces model.
Threat of substitute products NA The threat of established rivals eg.Hawaii The threat of new entrants eg.China The bargaining power of suppliers Dependence on airlines The bargaining power of customers Customers can go to competing tourist destinations.

8. Can the GVB or the government of Guam decrease the bargaining power of the suppliers?
The bargaining power of the supplier can be decreased by Increase the number of flights to and from Guam, by entering into agreements with various travel agents or increase government airlines Provide incentives to the travel agents, in order for them to send more tourists to Guam Set up some government run Hotels and tourist agencies

9. What generic strategies does GVB have to improve business performance?


The GVB should create a differentiating factor in order to be able to attract more number of tourists. They should focus of countries other than Japan for tourists. They should spend more money on advertising of Guam, create new value propositions for the tourists such as outdoor activities, diving and culture shows.

10. If you were the GM of GVB, how would you improve Destination Guam?
Identify more historical sites and create cultural shows to attract more American Tourists Promote sporting activities such as trekking, scuba diving etc. Increase the number of signages in English. Improve the hospitality service quality

11. If you were the GM of GVB, how would you grow the number of visitors?
Target customers from countries such as Russia, China Make the tourist visa process easier in target countries Increase the number of flights to Guam from other destinations Promote Guam as a destination to conduct business conference etc.

Thank You