Competitiveness Analysis of the Tourism Sector in Mexico According to Michael Porter's Diamond Model

- International Business Strategy -
Lecturer: Jamie Weatherston

COMPETITIVENESS ANALYSIS OF THE TOURISM SECTOR IN MEXICO ACCORDING TO MICHAEL PORTER’S DIAMOND MODEL



October 2009
Made by Jérôme Schiano

Contents
INTRODUCTION 3
I) THE FACTOR CONDITIONS 4
1) HUMAN RESOURCES 4
2) NATURAL RESOURCES 4
3) INFRASTRUCTURES 4

II) THE FIRMS STRATEGIES, STRUCTURES AND RIVALRY 5
1) A COMMON POLICY OF SUSTAINABLE DEVELOPMENT 5
2) FOUR MAIN CHALLENGES 5
A) The importance of a private-public collaboration 5
B) Innovation 5
C) Teamwork 5
D) Local driven approach 6
3) THE IMPORTANCE OF E-COMMERCE TO TRAVEL AND TOURISM 6
4) LOW COST OFFERS 6
5) FIRMS COMPETITION, EMERGENCE OF CLUSTERS 6

III) DEMAND CONDITIONS 7
1) THE “ECOTOURISM” DEMAND PARAMETERS 7
2) THE “CULTURAL TOURISM” DEMAND PARAMETERS 7
3) THE “BUSINESS TOURISM” DEMAND PARAMETERS 8

IV) RELATED AND SUPPORTING INDUSTRIES 9
1) THE TOURISM INDUSTRY SUPPORTS AND IS SUPPORTED BY VARIOUS OTHER SECTORS 9
2) A VERY LARGE PANEL OF DOMESTIC SUPPORTING ASSOCIATIONS 9

V) GOVERNMENT DRIVERS 10

VI) CHANCE 11
1) MEXICO’S 2009 MISFORTUNE 11
2) MEDIUM AND LONG TERM PERSPECTIVES 11
CONCLUSION 12
REFERENCES 13

Introduction

In 2009, and for a period of six month, I have travelled to Mexico as an exchange student. This experience has enabled me to observer, in total immersion, the strategy implemented by Mexico to maintain economical and social fast emergence.
I noticed that the development of tourism was a very important issue in this strategy, and this is the reason why I decided to analyse the competitiveness of Mexico for this sector.

In the 2008 edition of the Travel & Tourism Competitiveness Index (TTCI), which measures factors that make it attractive to invest or develop business in the travel and tourism sector in a specific country, Mexico reached the 57th ranked worldwide, the fifth ranked among countries in Latin America and the ninth in the American continent.

Tourism... [continues]

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