A Strategic Analysis Of Tesco

A Strategic Analysis Of Tesco This report is set out in order to evaluate the marketing strategy adopted by Tesco along with how they gain a competitive position internationally through globalisation. Under the findings of this report the approach which will be evaluated will be related to Porters competitive positioning. This will be used to show how Tesco gain a competitive advantage over their rivals such as Asda using the generic strategy. The five force framework will also be investigated to anaylse the competition it faces and finally how Tesco segments there market, identifying the gaps available to develop. In order to write this report a collection of different sources were used. These sources included books, journal articles, media articles, websites, Tescos annual reports and information from Tescos website. The information gained from these sources helped to discover how Tesco manages to gain the competitive advantage in their industry. It has also helped to focus the importance of successful competitive positioning with models from Porter to establish the position in the minds of the consumer. 1.0 Introduction This report includes a theoretical model which will reflect the practice of Tesco in relation to strategic analysis. It will look at the competitive positioning approach and the models/concepts used by Porter to gain a competitive advantage over Tescos rivals. By doing this it will show what other companies in the industry would need to do in order to take over the competitive advantage that Tesco have. Strategy is based on the long term of a business and is the direction and scope of the organisation. It aims to achieve advantage in a changing environment through its configuration of resources and competences (Johnson et al, 2008). There are generally three different levels of strategies associated with organisations. The top level is known as the corporate level strategy which is alarmed with the overall purpose and extent of the organisation. The second is the business level strategy which looks at particular markets and how to compete successfully in them and the third level is the operational strategies which look at how the organisation delivers successfully (Johnson et al, 2008). 2.0 Findings 2.1 History of Tesco Tesco began when Jack Cohen first opened a market stall in the East end of London in 1919 and since then began trading in 1924. This shows that Tesco has been serving customers in the UK for the best part of a century. Today, they class themselves as much more of a weekly shop as they have introduced new services, products and ways to shop all driven by their Every Little Helps philosophy (Tesco, 2008). In the last decade Tesco has grown their business to become the worlds third largest grocery retailer by determining an excellent level of service wherever they operate. They have a strategy for growth which is based in five parts. These include core UK business, non food, international, retail services and the community (Tesco, 2008). Tescos market share is still growing just short of 7% although that is not as fast as it was. This is because at present the economy is in a recession and so customers are changing their habits (Leahy, 2008). According to the Institute of Grocery Distribution (IGD), the UK food industry group predicts that Tesco will grow at a faster rate than Carrefour in the coming four years. Tescos growth will be spurred by international expansion in markets such as China, the US and India (Hall, 2008). This means that Tesco who are currently the UKs biggest retailer will leapfrog Carrefour by 2012 to become the second largest retailer in the world after Wal ­Mart (Hall, 2008). Within the UK, Tesco employ over 280,000 employees and have over 2,100 stores. Tesco stores have four different formats (See Appendix 1). These are the express stores which sell a range of up to 7000 products with the first express store opening in 1994. The metro store first opened in 1992 bringing the convenience of Tesco to town and city centre locations. The Tesco superstores began in 1970s and in recent years these stores have been introduced to a number of new non ­food ranges such as DVDs and books. Finally the Extra stores have been operating from 1997 and offer the widest range of food and non ­food lines. These products range from electrical equipment to homewares, clothing, health and beauty and seasonal items such as garden furniture. Along with food and non ­food products in different stores, Tesco also offers retailing services (See appendix 2). Tesco Personal Finance (TPF) has the choice of 26 products within their successful market. These range from their savings accounts and credit cards to car and travel insurances. Tescos strategy for growth (see appendix 3) has been well established and consistent which has allowed them to expand into new markets. The rationale for the strategy is to broaden the scope of the business to enable it to deliver strong sustainable long term growth (Tesco Strategy, 2008). 2.2 Competitive Positioning Competitive positioning emphasizes the importance of the environment and provides useful tools for analysing the business in the context of its industry (Campbell et al, 2002 p.298) Competitive positioning is the degree of difference in choice of product or service against the competitor (Lynch, 2003). The competitive positioning approach used by Porter, argues that the position of an organisation is successful if it places itself towards the environment (Campbell, 2002). Positioning within any organisation is achieved through the minds of the consumer and this is what enables businesses to gain a competitive advantage over their rivals (Darling, 2001). A strategic fit is used between an organisation and the environment which again is a way to gain competitive advantage. This is based on Porters Generic Strategy Framework (See appendix 4) (Campbell et al, 2002). 2.3 Identification and application of the models, concepts and theories used in competitive positioning within Tesco 2.3.1 Porters Five Forces The five forces framework (see appendix 5) was developed by Porter and is used in most industries to analyse competition, as it is of value to most organisations providing a useful starting point for strategic analysis (Campbell et al, 2002). Porter suggests that it is the structural characteristics of an industry (the five forces) that determine the relative success or failure of a firm (Jenkins Ambrosini, 2002 p.124). The five forces framework is complex in that different industries could be emerging, maturing or declining and Porter is able to recognise that his competitive strategies would need to vary accordingly (Jenkins Ambrosini, 2002). He believes that competition in an industry is rooted in its underlying economic structure (Jenkins Ambrosini, 2002 p. 29). Johnson et al, 2008 define the five forces as:â‚ ¬Ã‚    ·Ã¢â€š ¬Ã‚   The threat of entry into an industryâ‚ ¬Ã‚    ·Ã¢â€š ¬Ã‚   The threat of substitutes in the industrys products or servicesâ‚ ¬Ã‚    ·Ã¢â€š ¬Ã‚   The power of buyers of the industrys products or servicesâ‚ ¬Ã‚    ·Ã¢â€š ¬Ã‚   The power of suppliers into the industryâ‚ ¬Ã‚    ·Ã¢â€š ¬Ã‚   The extent of rivalry between competitors in the industry For more information on the five forces see table one. A criticism of the five force framework is that Porter implies all competitors within an industry are equal. However, this is not always true as it could be the size of the industry which is causing the threat. Also the macro ­ environment must be regularly reviewed due to the continuous movement as the five forces cannot be applied in isolation (Campbell et al, 2002). 2.3.2 Application of Porters Five Force Framework in Tesco Porters five force framework is used within Tesco in order to examine the external factors impacting upon their company. In relation to the threat of entry into an industry, Tesco along with rivals such as Asda, Sainsburys and other supermarkets put up extensive barriers to entry within their industry (Research Papers, 2007). An example of what Tesco accomplish within the market of certain products means that a new supermarket would not be able to find a cheap, reliable supplier. This would mean that Tesco has the advantage of buying in bulk giving them economies of scale (321 Books, 2007). The power of the buyer in Tesco can force down the price of products, as if buyers want products they know they can get cheaper in another supermarket it is more than likely that the buyer will move to the other supermarket. This means that supermarkets have a disciplined approach to setting the price of their products. Supermarkets destroying each other over profits are prevented due to the discipline used within Tesco (Research Papers, 2007). Tesco uses the power of the supplier to their own advantage. However, the price of products are demanded by the supplier otherwise the retailer will not be delivered the goods to sell (Research Papers, 2007). This would create poor customer service and a bad relationship with the suppliers. With Tesco being a larger supermarket, it has an advantage over smaller shopkeepers as they can dictate the price they are prepared to pay the supplier, as if they do not agree to this they will lose business in the long run (321 Books, 2007). Tesco has a very high competitive rivalry in food retail with competitors such as Asda, Sainsburys, Morrisons and Waitrose. All these competitors compete on price, products and promotions periodically (321 Books, 2007). The five force analysis is also complemented with another technique know as a SWOT analysis which is used to create synergy. A SWOT analysis of Tesco can be found in appendix 6. In order to gain new sales opportunities the major retailers in the UK such as Tesco must expand their product categories which is causing intense rivalry between the UK supermarkets (Hackney Birtwistle, 2006). There is also rivalry with competitors over the operation of online facilities, although Tesco has been proven to be the most successful in implementing their strategy. Due to this it means Tesco can sustain a competitive advantage. Sustaining a competitive advantage can be gained in three different ways which is shown in appendix 7 (Hackney Birtwistle, 2006). 2.3.3 Porters Generic Strategy Porters generic strategy framework is used to gain a competitive advantage and is the oldest approach based on an outside ­in approach. It is known as this as it examines the environment and then decides how to achieve a strategically desirable position (Campbell et al, 2002). However due to the recession the economy is in at present, the question relating to Porters generic strategy is it possible that Tesco can afford to look into the environment? (McNeilly, 2008) Generic strategies are used to attain above average performances within an industry in order to gain a competitive advantage. The generic strategies contain cost leadership, differentiation, cost focus and differentiation focus and can be found in appendix 4 (De Wit Meyer, 2004). Porter has argued that businesses should not get stuck in the middle so must choose either a differentiation or cost leadership strategy (Campbell et al, 2002). Competitive advantage within the broad segments of an industry include the cost leadership and differentiation strategies whereas the narrow segments of an industry aim to gain a cost advantage and include cost focus and differentiation focus. However, different industries will vary widely meaning the generic strategies must relate to that particular industry (De Wit Meyer, 2004). The Tesco generic strategy which is used will have to be cost leadership unless they can successfully differentiate their line of clothing so that they can begin to charge a premium price (Johnson et al, 2007). A critique of Porters generic strategies by Bowman is that he believes competitive advantage should be more effective within an organisation than its competitors in order to provide customers with want they want or need. Due to this criticism Bowman developed the strategy clock (see appendix 8) (Johnson et al, 2008). Positioning and competitive advantage can be gained using the strategy clock as it makes managers aware of how changing requirements of their markets and choices can be made (Johnson et al, 2008). In relation to the strategy clock developed by Bowman, Tesco adopts the hybrid strategy as it accepts elements of both cost leadership and differentiation (Campbell et al, 2002). A hybrid strategy seeks simultaneously to achieve differentiation and a price lower than that of competitors (Johnson et al, 2008, p.230). However, it could be argued that the price of products used by Tesco should not need to be lowered if differentiation can be achieved. The reason behind this is, Tesco should be able to obtain their prices at least equal to competitors such as Asda and Morrisons if not higher due to them being market leader (Johnson et al, 2008) Johnson et al, 2008 believe that Hybrid strategies can be advantageous for a number of reasons as detailed below: v Tesco is achieving a high standard of market share in the UK. This is due to the grater volumes being achieved over their competitors, meaning their margins could still be superior due to the low ­cost base they have. v Hybrid strategies can be used as an entry strategy in the market where there are established competitors. Tesco adopts this strategy when developing their global strategy. It allows them to target competitors and enter the market in different geographical areas with superior products at low prices. This enables them to get established and gain customer loyalty. 2.4 Identification of market segmentation A market segment is a group of customers who have similar needs that are different from customer needs in other parts of the market (Johnson et al, 2008, p.77). The advantages of market segmentation are shown in appendix 9. Typical bases for segmentation of markets are: v Demographic variables which include difference of age, stages of the family life cycle, gender, income, occupation, education, race and religion. v Geographic variables such as difference by country, region, type of housing/neighbourhood v Psychographic variables which exploit the lifestyle, personality or intelligence differences between people v Behavioural variables such as attitudes to brand loyalty, frequency of use, consumption occasion (Campbell et al, 2002, p.95). Tesco appeal to all customers as the products they sell attracts customers from low incomes to those who are more affluent (McNeilly, 2008). Their product choice is increasing in diversity which ranges from healthy living products, free from products, special healthy kids snacks, organic products and fair ­trade products (Tesco, 2008). This means they segment successfully which is shown in their profits (McNeilly, 2008). For Tesco customer segmentation see appendix 10. Due to segmentation, Tesco have recently identified a few gaps in the market which has enabled them to react to these particular markets before competitors notice them. The first gap they identified was the music download service which will have a major impact on Apples position as it will allow people to legally purchase and download (Beaumont Warman, 2008). Tesco digital is there new venture and plans to play Apple at its own game (Beaumont Warman, 2008). Another area were Tesco has identified a gap in the market is with cheese. The Dairy Farmers of Britain (DFB) have added a range of four different cheeses to their portfolio which they have launched in 650 Tesco stores. These are known as the 1st grade range and include mild, mature, Ploughmans vintage and red Leicester. These cheeses are aimed at a gap in the market between everyday brands and niche offerings (The Grocer, 2008). 2.5 Globalisation According to Lasserre, 2007 Globalisation is the phenomenon of the transition of industries whose competitive structure changes progressively from multinational to global. Industries such as telecommunications, processed food, personal care and retail are in the process of globalisation. It is also associated with consistency of products and practices alongside a high level of co ­ordination and integration of activities in Tesco value chain (Lasserre, 2007). See appendix 11 for this. According to Inkpen Ramaswamy, 2006 p.14 global companies must understand customers from the perspective of both domestic and international standards and must have the ability to learn in multiple locations far from the home base. The models which will be analysed to explain the basis of global strategy are Porters global generic strategies, Yips driver framework and Porters Diamond theory. 2.5.1 Porters global generic strategy When looking at globalisation, Porter adapts his generic strategy framework to global conditions. This model suggests five strategy alternatives what a business can use when operating internationally as shown in appendix 12. These five alternatives are positioned either with the extent to which the business is globalised or by the scope of the competitors within the industry (Campbell et al, 2002). In relation to Porters global strategy he considers that competitive advantage results from the global scope of an organisations activities and the effectiveness with which it coordinates them (Campbell et al, 2002, p.268). He also argues that configuration of value ­adding activities and coordination of value ­adding activities is what global competitive advantage depends upon (Campbell et al, 2002). Tesco has demonstrated that their value ­adding activities of allowing customers to shop for all of their needs under the one roof, has enabled them to gain a global competitive advantage effectively. 2.5.2 Yips Globalisation driver framework Yips Globalisation driver framework develops the concept of total global strategy and is much more useful than Porters global generic strategy framework as it evaluates both the overall degree of globalisation within an industry along with demonstrating the features of an industry which are more or less global naturally (Campbell et al, 2002). Yip also believes that his framework helps identify areas of an industry which are global and aspects of the industry which differ locally. Managers of businesses which are global should create their global strategy on the basis of the analysis made for the globalisation drivers (Campbell et al, 2002). 2.5.3 Porters Diamond Theory Sustainable competitive advantage is needed in any business international strategy. When entering into a foreign market/country a business will be at a disadvantage so must have competitive advantages in order to overcome this issue (Johnson et al, 2008). This can be done as Tesco has been successful in many different markets such as Europe, Asia and the US. For a list of countries which Tesco operate in and the year they first opened in that particular country see Table 2. Porters Diamond theory explains how some businesses such as Tesco have a sustained competitive advantage in their industry when their competitors have not been as successful (Johnson et al, 2008) Tesco have more than ten years experience overseas due to their international strategy which contains six elements. These are to be flexible, act local, maintain focus, use multi ­ formats, develop capability and build brands. This is the reason behind how they are able to sustain a competitive advantage and are the third largest supermarket worldwide (Tesco, 2008). Appendix 14 shows the determinants of national advantages using Porters Diamond theory. 3.0 Conclusion Recommendations From the findings of this report, there is evidence to suggest that Porters strategies are relevant in todays grocery industry in relation to competitive positioning. These strategies which Porter uses relate to all types of industries and they help businesses to gain a competitive advantage as in the case of Tesco. By having these strategies in place it has allowed Tesco to gain this competitive advantage in the UK and overseas making them the third largest grocery retailer in the world. These strategies have been used successfully for over twenty years and will continue to be successful in the future. At present the economy is in a recession, meaning that people are spending less and changing their behaviour and habits when it comes to shopping. However, Tesco try to assure their customers that they are about value so there is no need for them to shop anywhere else. Growth is what Tesco believe in and even though the economy is in a recession they have planned and prepared long ­term to expand and invest in the UK and internationally which will create up to 30,000 jobs. In recent recessions Tesco continued to invest which they believe is one of the best things they have done and will continue to invest during this economic recession. Ref erence s Johnson et al (2008). Exploring Corporate Strategy, eight edition, Essex, Pearson Education Limited Tesco (2008). Tesco PLC [Internet] Available from: http://www.tescoplc.com/ Leahy, T. (2008). Tesco Interim Results, 2008 ­2009: Full Interview [Internet] Available from: http://www.tescoplc.com/plc/ir/pres_results/results/r2008/sirterry_interview090 8/ Hall, J (2008). Tesco to be world number two by 2012 [Internet] Available from: http://www.telegraph.co.uk/finance/newsbysector/epic/tsco/3691672/tesco ­to ­ be ­wor Campbell et al, (2002). Business Strategy: An introduction, Second Edition, Oxford, Elsevier Butterworth ­Heinemenn Lynch, R (2003). Corporate Strategy, third edition, Essex, Pearson Education Limited Darling, J. (2001). Successful competitive positioning: the key for entry into the European consumer market, European Business Review, 13, (4), pp.209 ­ 220 Jenkins Ambrosini (2002). Strategic Management: A multi ­perspective approach, Hampshire, Palgrave Research Papers (2007). Porters Five Forces on Tesco. [Internet] Available from: http://www.oppapers.com/essays/Porters ­5 ­Forces ­Tesco/108949 321 Books (2007). Porters Five Forces at Tesco PLC. [Internet] Available from: http://www.321books.co.uk/catalog/tesco/porters ­five ­forces.htm Hackney Birtwistle (2006). The UK grocery business: towards a sustainable model for virtual markets, International Journal of Retail Distribution Management, 34, (4/5), pp.354 ­368 McNeilly, A (2008). Globalisation and the multinational Lecture Notes [24.11.08] De Wit Meyer (2004). Strategy process, content, context, third edition, London, Thomson Beaumont Warman (2008). Can Tesco topple iTunes? [Internet] Available from: http://www.telegraph.co.uk/scienceandtechnology/3357071/can ­tesco ­ topple ­itunes The Grocer (2008). DFB 1st Grade targets gap in cheese market [Internet] Available from: http://www.thegrocer.co.uk/articles.aspx?page=articlesID=195740 Lassere, P (2007). Global Strategic Management, second edition, Hampshire, Palgrave Inkpen Ramaswamy (2006). Global Strategy, New York, Oxford University Press Inc Morris, T (2004). Tesco: a case study in supermarket excellence, New Zealand, Corolis Research Business Teacher (2008). Tesco Swot Analysis, [Internet] Available from: http://www.businessteacher.org.uk/business ­resources/swot ­analysis ­ database/tesco ­swot ­analysis/ Bib liog rap hic Ref erencing Beaumont Warman (2008). Can Tesco topple iTunes? [Internet] Available from: http://www.telegraph.co.uk/scienceandtechnology/3357071/can ­tesco ­ topple ­itunes Business Teacher (2008). Tesco Swot Analysis, [Internet] Available from: http://www.businessteacher.org.uk/business ­resources/swot ­analysis ­ database/tesco ­swot ­analysis/ Campbell et al, (2002). Business Strategy: An introduction, Second Edition, Oxford, Elsevier Butterworth ­Heinemenn Darling, J. (2001). Successful competitive positioning: the key for entry into the European consumer market, European Business Review, 13, (4), pp.209 ­ 220 De Wit Meyer (2004). Strategy process, content, context, third edition, London, Thomson Hackney Birtwistle (2006). The UK grocery business: towards a sustainable model for virtual markets, International Journal of Retail Distribution Management, 34, (4/5), pp.354 ­368 Hall, J (2008). Tesco to be world number two by 2012 [Internet] Available from: http://www.telegraph.co.uk/finance/newsbysector/epic/tsco/3691672/tesco ­to ­ be ­wor Inkpen Ramaswamy (2006). Global Strategy, New York, Oxford University Press Inc Jenkins Ambrosini (2002). Strategic Management: A multi ­perspective approach, Hampshire, Palgrave Johnson et al (2008). Exploring Corporate Strategy, eight edition, Essex, Pearson Education Limited Lassere, P (2007). Global Strategic Management, second edition, Hampshire, Palgrave Leahy, T. (2008). Tesco Interim Results, 2008 ­2009: Full Interview [Internet] Available from: http://www.tescoplc.com/plc/ir/pres_results/results/r2008/sirterry_interview090 8/ Lynch, R (2003). Corporate Strategy, third edition, Essex, Pearson Education Limited McNeilly, A (2008). Globalisation and the multinational Lecture Notes [24.11.08] Morris, T (2004). Tesco: a case study in supermarket excellence, New Zealand, Corolis Research Research Papers (2007). Porters Five Forces on Tesco. [Internet] Available from: http://www.oppapers.com/essays/Porters ­5 ­Forces ­Tesco/108949 Tesco (2008). Tesco PLC [Internet] Available from: http://www.tescoplc.com/ The Grocer (2008). DFB 1st Grade targets gap in cheese market [Internet] Available from: http://www.thegrocer.co.uk/articles.aspx?page=articlesID=195740 321 Books (2007). Porters Five Forces at Tesco PLC. [Internet] Available from: http://www.321books.co.uk/catalog/tesco/porters ­five ­forces.htm Appendix 4 Competitive Advantage Differentiation Broad Cost Leadership Differentiation Asda Waitrose Tesco Competitive Scope Sainsburys Cost Focus Differentiation Focus MS Delicatessens Narrow The Generic Strategy Framework. De Wit Meyer, 2004 p. 262 Appendix 5 The Five Forces Framework Potential entrants Suppliers Threat of entry Competitive Rivalry Bargaining Power Bargaining Power Buyers Threat of substitutes Substitutes Johnson et al, 2008 p.60 Appendix 6 SWOT analysis of Tesco Strengths: à ¢Ã¢â€š ¬Ã‚ ¢ Tesco within the global market place won retailer of the year award 2008. this can drive advantage towards future growth and sustainability à ¢Ã¢â€š ¬Ã‚ ¢ Although global retail sales are declining, Tesco Group have gained sales of 13% in the UK and 26% growth internationally à ¢Ã¢â€š ¬Ã‚ ¢ As Tesco look to expand they have reserved funds of credit available Weaknesses: à ¢Ã¢â€š ¬Ã‚ ¢ Reduced profit margins can be the case of Tescos position as a price leader in the UK à ¢Ã¢â€š ¬Ã‚ ¢ Tesco Finance profit levels were caused through bad debt, credit card arrears and household insurance claims. à ¢Ã¢â€š ¬Ã‚ ¢ Due to current economy at present, Tesco will suffer due to the cost of living and lower disposable income Opportunities: à ¢Ã¢â€š ¬Ã‚ ¢ Statistics show that economies of scale can be gained through buying power, which is why Tesco are the third largest global grocer à ¢Ã¢â€š ¬Ã‚ ¢ Due to the acquisition in Asia there is opportunity for further growth internationally à ¢Ã¢â€š ¬Ã‚ ¢ Further growth and development will be made with Technology Threats: à ¢Ã¢â€š ¬Ã‚ ¢ The credit crunch has affected the UK and American markets so Tesco will focus on lower priced products à ¢Ã¢â€š ¬Ã‚ ¢ Wal ­Mart who are world leaders put persistent threats of takeover on Tesco à ¢Ã¢â€š ¬Ã‚ ¢ Products areas may need to be evaluated due to changes in consumer buying à ¢Ã¢â€š ¬Ã‚ ¢ profit margins may be affected by the rise in raw materials Business Teacher (2008). Tesco Swot Analysis, [Internet] Available from: http://www.businessteacher.org.uk/business ­resources/swot ­analysis ­ database/tesco ­swot ­analysis/ Appendix 7 Sustaining competitive advantage Price ­Based strategies à ¢Ã¢â€š ¬Ã‚ ¢ Accept reduced margin à ¢Ã¢â€š ¬Ã‚ ¢ Win a price war à ¢Ã¢â€š ¬Ã‚ ¢ Reduce Costs à ¢Ã¢â€š ¬Ã‚ ¢ Focus on specific segments Differentiation à ¢Ã¢â€š ¬Ã‚ ¢ Create difficulties of imitation à ¢Ã¢â€š ¬Ã‚ ¢ Achieve imperfect mobility (of resources/competences) à ¢Ã¢â€š ¬Ã‚ ¢ Reinvest margin Sustaining Competitive Advantage Lock ­in à ¢Ã¢â€š ¬Ã‚ ¢ Achieve size/market dominance à ¢Ã¢â€š ¬Ã‚ ¢ First ­mover advantage à ¢Ã¢â€š ¬Ã‚ ¢ Reinforcement à ¢Ã¢â€š ¬Ã‚ ¢ Rigorous enforcement Johnson et al, 2008. p. 225 Appendix 8 The Strategy Clock: Competitive strategy options High Perceived product/service benefits Low Price 2. Hybrid 3. Differentiation 4. Focused Differentiation 5. 6. 1. No Frills 7. Strategies destined 8. for ultimate failure Low Low High Price Needs/risks 1. No frills Likely to be segment specific 2. Low Price Risk of price war and low margins; need to be cost leader 3. Hybrid Low cost base and reinvestment in low price and differentiation 4. Differentiation a) Without price premium Perceived added value by user, yielding market share benefits b) With price premium Perceive added value sufficient to bear price premium 5. Focused differentiation Perceived added value to a particular segment, warranting price premium 6. Increased price Higher margins if competitors do not follow; risk of losing market share 7. Increased price/ low value Only feasible in monopoly situation 8. Low value/ standard price Loss of market share Appendix 9 Target market selection Differentiation Market Segmentation Tailored marketing mix Opportunities and threats Jobber, 2004 p, 275 Appendix Firm Infrastructure Support Activities Human Resource M

Tourism in Thailand :: Papers

Tourism in Thailand As we enter a new millenium the post-colonial nations in the world are still searching for ways to compete in an increasingly globalized, consumption driven economic environment. Many developing countries have speculated that Tourism is an effective catalyst for development as well as increased international understanding. Thailand, who has embraced tourism as the key to its modernization strategy, has been hailed by many as a paradigm for success. Over the past twenty years Thailand has enjoyed one of the fastest economic growth rates of any developing country. This rapid progress has allowed Thailand to emerge as an economic leader in the Third world. The $4 billion a year in tourism revenue is the core support of the Thai economy (Bishop, p. VI). Thai officials have attributed the success of the tourism industry to the "many attractions located in various parts of the country" as well as "the uniqueness of the Thai people" --- "their friendliness and hospitality (Bishop, p. 6 7)." However the Thai government has failed to recognize the contributions of sex tourism which is estimated to generate about $1.5 billion every year, according to Professor Krikiat Phiapatserithan of Thammasat University (World congress, regional profiles, p. 3). Thailand's failure to recognize the sex tourism is reflective of the discourse used by the worldwide tourism industry to analyze the industry's success. From the standpoint of the tourism industry the success of tourism is directly related only to economic factors, anything else is seen as unnecessary. It is in the best interest of tourism corporations and the countries that are dependent on tourism to discourage the circulation of information regarding any of the potential negative effects related to tourism. The censorship of information by these entities has caused much of the general public to be ignorant of the adverse consequences of the mass tourist industry in Thailand. The purpose of this paper is to give an overview of the sex tourism, using Thailand as the basis of my investigation. I will begin by shedding light on the complex social and economic factors that has formed the modern sex industry of Thailand. Then I will link the damaging effects to the Thailand's cultural values and quality of life to the emergence of child sex tourism, which in recent years has immerged as a significant contributor of tourist revenue.

Culture Bound Syndrome

Cultural-Bound Syndrome Yasenta Newman Immaculata University July 31, 2012 Dr. Sudol-Regan PSY 608 The term culture-bound syndrome was included in the fourth version of the Diagnostic and Statistical Manual of Mental Disorders. The term cultural-bound syndrome is said to be recurrent with specific patterns of abnormal behavior that can be linked to a particular DSM-IV-TR diagnostic category. Many of these patterns is said to be considered illnesses. The particular symptoms, development, and social responses are influenced by limited cultural factors. It is also limited to specific cultures.The knowledge about the culture-bound syndromes could help address the relationships between the syndromes and the disorders in DSM-IV. Researchers call this the comorbidity question on the assumption that studying the culture-bound syndrome's patterned relationship to psychiatric diagnoses is a more productive approach than attempting to include it prematurely into the DSM diagnostic categories. S ystematic research has identified strong correlations between culture-bound syndromes and criteria for a psychiatric disorder. But, there is rarely a one-to-one relationship between a culture-bound syndrome and a psychiatric disorder.The culture-bound syndromes is said to coexist with a range of psychiatric disorders and the comorbidity question brings culture-bound syndrome research in with current approaches in the psychiatric research. The differences in the symptomatic, emotional, and contextual aspects of cultural syndromes are said to signal different relationships with psychiatric diagnoses. The extra addition of culture-bound syndromes in DSM-IV provides the opportunity for improving the need to study this syndrome and the chance for developing a research to study it.The growing ethnic and cultural diversity of the U. S. population presents a challenge to the mental health field to develop truly cross-cultural approaches to mental health research and services. This addition can give researchers the chance to study the relationship between culture-bound syndromes and psychiatric diagnoses. In my opinion, a research program based on key questions goes one-sided. By understanding the culture-bound syndromes within the cultural context can help analyze the relationship between these syndromes and the psychiatric disorders.

Critical Thought And Popular Culture - 1311 Words

Mid-America Christian University has become my home in the four short months I have been here. It was a scary and tough decision for me to attend MACU but I wouldn’t want it any other way. Critical thought and popular culture was a required course to take and to be honest, I thought it was going to be a super boring class. But, it taught me a lot about myself and made me examine my calling in life a little deeper than before. In turn, I thoroughly enjoyed this course. Critical thought and popular culture taught me a lot about who I am. These realizations came from class discussions, learning my strengths, and even a little bit from reading Unlikely Disciple. For one, I didn’t know my strengths so that was super interesting and eye†¦show more content†¦I have been able to really figure out in depth what my calling is and what the next step in life might hold for me. During one of our discussions, we discussed homosexuality and how we should treat those who live that lifestyle. I came to the conclusion that although I strongly disagree with that way of living, I do not think that it is our job or our position to try and make them live the way we do. That was something that I went back and forth with ever since I moved to Mississippi. I moved at the end of my junior year, and the only person that talked to me was Colten Nugent, and Colten was gay. We became super close and he knew my view on his decisions but not once did I feel like it was my place to tell him to stop. He believed in the Lord and I think that things like addiction and homosexuality are things that the Lord has to work through with the person, not people. I discovered through this class that this is a social issue that I am passionate about. Although, I do still believe that we should set a good example of what being a Christian should be. This was a topic that was very apparent throughout the book by Kevin Roose, The Unlikely Disciple. I think my biggest pet peeve when it c omes to religion is when people call themselves â€Å"Christians† but do everything in their power to act otherwise. I always knew that my heart was built around kids, but MACU has helped shape the exact group of kids that my ministry is going to