- International Business Strategy -
Lecturer: Jamie Weatherston
COMPETITIVENESS ANALYSIS OF THE TOURISM SECTOR IN MEXICO ACCORDING TO MICHAEL PORTER’S DIAMOND MODEL
Made by Jérôme Schiano
I) THE FACTOR CONDITIONS
II) THE FIRMS STRATEGIES, STRUCTURES AND RIVALRY
A COMMON POLICY OF SUSTAINABLE DEVELOPMENT
FOUR MAIN CHALLENGES
A) The importance of a private-public collaboration
D) Local driven approach
THE IMPORTANCE OF E-COMMERCE TO TRAVEL AND TOURISM
LOW COST OFFERS
FIRMS COMPETITION, EMERGENCE OF CLUSTERS
III) DEMAND CONDITIONS
THE “ECOTOURISM” DEMAND PARAMETERS
THE “CULTURAL TOURISM” DEMAND PARAMETERS
THE “BUSINESS TOURISM” DEMAND PARAMETERS
IV) RELATED AND SUPPORTING INDUSTRIES
THE TOURISM INDUSTRY SUPPORTS AND IS SUPPORTED BY VARIOUS OTHER SECTORS
A VERY LARGE PANEL OF DOMESTIC SUPPORTING ASSOCIATIONS
V) GOVERNMENT DRIVERS
MEXICO’S 2009 MISFORTUNE
MEDIUM AND LONG TERM PERSPECTIVES
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 remains one of the main economic supports in Mexico. Thanks to the government high investment policy, and with the benefits of its natural and historical attractiveness, Mexico reached the 6th rank of the world most touristic countries in 2009, with 21.4 millions of international visits (67% coming from the USA).
Source: Euromonitor International
In this report, according to Michael Porter’s diamond model, we will analyse successively six drivers that have influence in international competitiveness of the tourism industry in Mexico: -
The factor conditions (human resources, natural resources, and infrastructures) -
The firms strategy, structure and rivalry (main trends, challenges and emergence of clusters) -
The demand conditions for the three main tourism areas in Mexico: Ecotourism, Cultural and business tourism. -
The related and supporting industries
The government measures to maintain growth in the tourism sector -
The “chances” factor and the case with the H1n1 virus
The factor conditions
Since the 1990’s, the educative system was split into various, uncoordinated and inefficient programs. According to a new law for education adopted by the federal government in 2006, people form 5 to 18 years old have had the obligation to attempt a scholar instruction and the educative frame came to fit into the international standards.
Nowadays, in every level of instruction, public and private institutions have been settled and the government ensures the free access to education until the university.
The country expenditures dedicated to education represent more than 5% of the GDP.
As a result, the Mexican rate of alphabetisation is the highest of Latin America (91%) and over a total of 111 million of inhabitant, 36.2 million (32%) are attending formal studies: -
31.2 millions are in primary, middle and high school.
1.9 millions are attending superior study out of the college/university process -
4.1 millions are...
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