Competitive Environment of M.I.C.E Tourism in Vietnam

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The Five Forces model of Porter will be applied in this part

Bargaining power of customers
Although there are some strong competitors are also providing M.I.C.E, the market in the North is joined by very few players. Therefore, the choices for Northern customer are somewhat limited. Despite the fact that they may come to Saigontourist of FidiTour in the South but it seems to be no convenient and cost effective. Hence, the bargaining power of customers in the market for NACI is at moderate level. It is also notable that for M.I.C.E tours, customers are more likely to come back for more if they satisfied, so that brand loyalty exists. As the result, the company should try to provide the customer with the value they demand and together with reasonable post purchase services, NACI may win their hearts.

Bargaining power of suppliers

In the context of an M.I.C.E tour, the suppliers would be ticket providers, transportation companies, and some related services providers. The number of these players is not small. Therefore, company can have many options when deciding these suppliers (most of them) and the cost of switching is not quite significant.

On the other hand, some suppliers have relatively high power. For example, if NACI order the flights from Vietnam Airlines, and due to some economic influences; they may change the faire and the company still has to take the price even when they cannot renegotiate with customers about the changes in transportation cost.

Therefore, the bargaining power of suppliers over NACI may vary due to the type of services/ products they provide to the company.

Threats of new entrants

Vietnamese Government tried to promote the country as the destination for tourism; they even paid nearly $280 thousand for an advertisement on CNN about Vietnamese attractions (Vietnam Travel, - Vietnam tours with foot prints, 2008).

Also in the focus point, the development of M.I.C.E is encouraged by...
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