Market Performance of Oz Jet Boating - Essay Example

Oz jet boating is a medium-sized company in the tourism industry when compared to its rival competitors. Oz jet boating is a company based in Australia. The workforce of the company is young people who have a lot of zeal and passion for tourism activities. The major rivals in the tourism industry include Sydney Harbour boat tours, Sydney Harbour and Sydney Harbour cruises. The services offered by Oz Jet boating company include sightseeing activities at the Opera House, Harbour Sides, Shark Island, Sydney Harbour Bridge and Taronga Zoo. The most appealing feature of Oz jet boating is the shark customer-tailored boats that are painted red. Another remarkable feature is the beautiful scenery found at the Opera house.

The competitive low prices offered by Oz jet boating attracts many customers because of its affordability. Adults part with $75, children with $45 and whole family parts with $195 for a boat tour. The purpose of this research paper is to describe Oz jet boating as a tourism company give details of the products it offers and finally conduct a situational analysis of the company. The target consumer group is the young population. Boat tours appeal to the young who are adventurous. Social media, advertisement agencies and the internet are the channels used to advertise Oz jet boating to the world. Oz jet boating offers flexible ways of booking tourist tours through email, telephone or any outlet located at the harbour.

Oz jet boating is a tourist company based in Australia. The products offered are sightseeing activities at the Opera House, Harbour Sides, Shark Island, Sydney Harbour Bridge and Taronga Zoo. The major rivals in the tourism industry include Sydney Harbour boat tours, Sydney Harbour and Sydney Harbour cruises. Prestige harbour cruises offer charter boats for hire used in corporate events, weddings and social gatherings (Sydney Harbour, 2014). Sydney Harbour Tours is famous for its day-guide tours. It also offers fresh food from the sea and beverages at Watsons Hotel. The charges are $129 for adults and $89 for children (Sydney Harbour Boat Tours, 2014). Sydney Harbour Escapes, on the other hand, is a family business started back in 2000 that offers boat services and tour activities (Sydney Harbour Escapes, 2014).

Oz jet boating needs to creatively and innovatively offer differentiated and unique products that give it a competitive edge above its rival customers. A proper care ought to be taken in pricing the products in such a manner that it will offer competitively lower prices than rival companies offer but also obtain profits from such prices. The consumer target group should be diversified and not limited to the young population only. Touring activities should be designed to include activities that will appeal to the ageing population and by thus doing revenue streams will increase. Advertising channels used must reach myriad people so that the public is familiar with the company and its products.

Porter’s five-force design is a fundamental tool used to analyse the current position of a firm in the industry it operates. It establishes the potential threats facing the business such as the entry of a new firm, product substitution threats supplier and buyer threats(Mind Tools, 2014). It helps to assess the equilibrium of powers in the market and, therefore, computes the profitability of venturing into the market (Hanlon, 2013).

Oz jet boating company as a company must pay license fees to the state that is a supplier according to the model. Alteration of policies regulating boat use is another potential threat that could adversely affect the business. Carbon taxes payable to the state will reduce the profits of the business. Differentiation of products will intensify the loyalty of customers consequently retaining customers. The model argues that when customer loyalty is high then there is less competition as opposed to when there is low customer loyalty (Riley, 2012). According to the above situational analysis Oz jet boating, stands a high chance of penetrating the market and becoming successful if the above recommendations are considered.