Tourism Industry Operation Route - Case Study Example

• Introduction

The tourism industry projects itself as one of the main economic powerhouses of any country or region. For the proper operation of the industry, there have to be favorable environmental factors that affect the industry; they subsequently jeopardize the sector. In the Industry, America Express Global Business Travel takes the top seat, but its success is determined mostly by several strengths, weaknesses, opportunities, and threats. Subsequently, for progress to reign in business, companies can opt for an external environment with favorable industry market position, which matches the organization's capabilities or the internal organization through the development of competencies that enable the organization to perform better than the competition. Proper management of the issues makes the industry successful on its own through trust and considerable competition.

• Part 1
  • • Environmental Influences on Organizations operating in the Tourism industry

For an organization to succeed in the tourism industry, there are several environmental factors that it has to take note of before opening up. First, the weather structure is essential for the organization to take note of. Different regions experience diverse weather conditions at the same time. The tourism industry works best where there is balanced weather, with an extension of sunlight. By so doing, the sun must not be in the excess, but as an addition to the excellent weather. Tourism is at the peak during summer, where most families and students are on break, hence prefer regions that are less sunny at the time, such as Africa (Kamran & Omran 2018). Therefore, for an organization to succeed in the market, it must be aware of the weather change first because it determines the flow of tourists, hence plan better for different seasons.

Environmental pollution is another factor affecting the tourism industry. With increased travel and emission of poisonous gases from buses, trains, and airplanes, there is an increased likelihood of pollution, which can harm nature. Tourists are attracted more by nature, and when the environment appears to be hostile, they move to another point of the tour. As a result, the rate of pollution has to be minimal for a company to consider itself strategically positioned (Wang et al. 2019). All the existing modes of transport are often used, and their impact continues to be on the rise. They result in the creation of very high amounts of pollutants, including carbon dioxide, which leads to global warming plus other environmental challenges in the market (Wang et al. 2019). Generally, with these challenges in place, it is harder for companies to survive because they operate on an uncertain future courtesy of pollution.

The availability of natural resources affects the number of visit areas for tourists. Where there are several natural resources, tourists will be more attracted to such a region because they find better places to visit. Therefore, in the case of companies that plan to succeed in the industry, the best location for a business is an area that has several natural resources. Tourists prefer regions that have several options to visit. By so doing, the majority has to be natural resources. Despite being natural, the uniqueness of the areas is an added factor to be looked at as it affects the number of people intending to visit (Tuan & Rajagopal 2019). Therefore, for a company to succeed in the tourism industry, it has to look at a location with enough natural resources, because it is a booster in terms of the people who visit.

Existing environmental policies affect success in the tourism industry. For businesses to work well, they have to be in a region that has environmentally-friendly systems. The natural resources, flora, and fauna exist in an environment that has to be protected. There have to be enough policies in place for the protection to work, preserving the environment from any possible harm in the future (Tuan & Rajagopal 2019). As a result, the companies will mostly go to a market, and they are particular about their probable protection through good and favorable environmental policies. Primarily, the companies succeed independently, but the policies made up to protect the environment are a bonus factor.

• • • SWOT Analysis of America Express Global Business Travel

Strengths

The American Express Global Business Travel is among the most successful companies in the tourism industry. The company's strengths include; availability of capital, secure cultural and heritage products for the market and high satisfaction ratings by most customers. As an organization, the three strengths have worked for its success in several years and continue to be propelling factors for any future that the organization might hold.

Weaknesses.

Some of the few weaknesses to the business are; inadequate visa regime and little tourist information. The two factors have affected the business's prominence into some regions, such as Africa and India. They have left out some markets, making it harder for them to relate to these regions. The factors could negatively affect the business's growth pattern when they finally make a move towards the markets as they will not be easily recognized on arrival.

Opportunities

Employees ' attractiveness to business travelers and cultural sensitivity is a unique opportunity that America Express Global Business Travel rides on. They affect how the business conducts its operation and consequently attracts more worldwide customers to the business. Successful tourism agencies prefer to be attractive to the business market as it comes with better rates and a predictable schedule (Mahajan 2020). An added opportunity of cultural sensitivity by the employees makes the company more attractive to different kinds of markets across the world. They are faster to adapt to any changes and clients because they already have an adaptive workforce which is prepared for any changes. As an organization, their targets have been easier to achieve because to proper use of their business travelers' markets who pay more for the services offered.

Threats

The main threat for any company in the tourism industry across the planet is the stiff competition in the market. In the past, there were very few companies in the market. However, as years progress, more tourism agencies come in with new models, thus posing a great challenge for the established businesses. As a result of the competition, the top companies are equally forced to adopt new trends and habits for survival purposes. They are aware of the harshness of the market towards companies that are not adaptive; hence the best recourse remains to be dynamicity by the companies (Mahajan 2020). Through the ability to change, the company has set itself up as an economic powerhouse. Its recognition presently and in the future within the market is unconditional because it takes the right steps towards success.

• PART B
  • • Outside In

The strategy relates to opting for an external environment with the most favorable industry market position, which directly matches the organization's capabilities. It would mean that they would be going for a market they can manage and handle for most businesses. The strategy is a focused based measure where the organization does not go all out for the market or target the competition but prefers to strengthen where they are currently strong (Kilduff 2019). It could be the best move as a company because it would be directly related to ensuring the company focuses on the right ambitions in the market. Generally, the move saves time for the organization and puts it within the right frame of mind to handle a manageable market size.

Companies opting for outside-in strategies directly focus on their growth pattern only and ignore the competitor. When handling different competitors in the market, the best option for the organization to follow is to go through a procedure that does not focus on them. Instead, it looks into the growth of the individual business of the concern. Such companies find it easier to operate because they appreciate structure and plan on how best they can succeed in the market rather than beating their competitors. They do not engage in a tug of war with the competitors. Instead, they prefer to focus on a specific market, which they already have the strength within (Kilduff 2019). From such movements, the business can quickly grow in peace, knowing that it has a better framework to succeed. Primarily, companies that come up with an outside-in strategic option prefer to go for a market they are sure of managing rather than opting for a blind competition.

• • • Inside Out

Inside out strategy focuses more on the internal organization through the development of competencies, which enable the company to perform better than the competition. By making the structure at the initial stages, the company considers the steps made by the subsequent competitor within the same market. The competitor's option helps the adverse company know its direction within the market (Yrjölä 2020). Most companies would prefer to go for a market they already know and battle it out with the competitor from that front by creating better structures. The strategy necessarily engages the opposition directly rather than focusing on the organization's plan for success in the market.

Inside out acts as an opposition strategy rather than an offensive model. The company must have a strong competitor for it to survive because decisions are premised on what the competitor has done strategically. With the expansive nature of the market, the company does not go-ahead to take advantage of such opportunities but prefers to act on the defensive side. It studies the competitor's options first and then decides how to move next. In the long run, the company would be able to determine based on how the competitor has acted. Such a measure allows the company to succeed because they set standards above the market range.

Inside out focuses more on the future rather than the present. Instead of concentrating more on the strategies to make profits, it looks at the structures other competitors have made and decide how to move next. Companies of this structure prefer to push for a market with fewer competitors so that they can efficiently study the existing few before decision making. It would be harder to survive where the market is filled with other companies because the decision-making process would be stretched so much hence limiting the organization’s options. Reviewing the future helps the business assess its market position in the future, therefore keeping it relevant (Yrjölä 2020). The model makes sure the company secures the top spot at all times, such that the market would always have them as the preferred option to resolve to in future and present. Such businesses not only focus on profit-making but also their market position because they want to be the best the market can access. Essentially, inside-out enables firms to compete effectively by staying aware of their competitor's options within the market first, then prompting a reaction of the existing competitor’s growth models.

• • • Best option

Outside offers the business enterprise the better strategies to go for. As a company, the most important thing is how they can generate revenue effectively. Therefore, for the company to grow better, one would have to concentrate on coming up with effective methods to propel success rather than take up a tug of war mentality into the market, which might destroy the business image and structure. Exciting organizations focus more on their compositions. They work for the market and not the competitors hence come out profitable because they manage the market effectively. When a business within the tourism industry focuses on the market, it becomes more comfortable because it ensures they have the best services in place and have reasonable pricing. However, when considering competencies set up by the market, the organization would opt for a bully mentality such that the main interest is to shove the competitors and not succeeding on its own. The outside-in model allows the company to focus on its individual growth and brightly look into the future with a promise of delivering quality for the sake of the market.