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PESTTG Analysis

PESTTG Analysis. PESTTG Analysis. The tool we use for understanding the macro-environment (big picture) in which we operate. The Big Picture. PEST. Political Economic Social Technical Megatrends Globalisation. Political. Critical Success Factor.

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PESTTG Analysis

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  1. PESTTG Analysis

  2. PESTTG Analysis • The tool we use for understanding the macro-environment (big picture) in which we operate.

  3. The Big Picture

  4. PEST • Political • Economic • Social • Technical • Megatrends • Globalisation

  5. Political

  6. Critical Success Factor • Your main Critical Success Factor is your ability to: COMPLY WITH THE RULES

  7. Political • ecological/environmental issues – kyoto protocol • current legislation host market • future legislation • international legislation • regulatory bodies and processes • government policies • ADS (Approved Destination Status) • government term and change • trading policies (FTA’s) • funding, grants and initiatives • home market lobbying/pressure groups • international pressure groups • wars and conflict

  8. http://www.eturbonews.com/8828/tourism-and-politics-collide-thailand-and-fijihttp://www.eturbonews.com/8828/tourism-and-politics-collide-thailand-and-fiji

  9. Rules of the game • You must understand government policy relating to your industry • Most policy is discussed for months and sometimes years in advance • You going to monitor these potential changes that could seriously affect the viability of your business

  10. Economic Environment

  11. Economic • home economy situation • overseas economies • general taxation issues • taxation specific to product/services • seasonality/weather issues • market and trade cycles • specific industry factors • market routes and distribution trends • customer/end-user drivers • interest and exchange rates • international trade/monetary issues

  12. Burton’s Four phases of Tourism Participation

  13. Economic Environment • The most common approach to the study of economics of tourism is to divide it into two major areas: • Supply (destination resources) • Demand (people or market)

  14. Supply • Movements away from the market equilibrium cause inefficiencies • Undersupply of product, leads to high prices and profit loading, with not everyone being able to buy what they wish, frustration • Oversupply of product leads to low prices and questionable sustainability, empty rooms, unused capacity, inefficiency of investment

  15. Demand Demand = Motivators x Facilitors Resistance Factors

  16. Economic Factors affecting demand • Disposable Income • Inflation • Interest rates (including Official Cash rates) • Employment • Foreign Exchange Rates • Non-economic Factors • Health • Time

  17. Socio-Cultural

  18. Socio-Cultural Impacts • People and their attitudes are the focus of socio-cultural impacts.

  19. Social • lifestyle trends • demographics • consumer attitudes and opinions • media views • law changes affecting social factors • brand, company, technology image • consumer buying patterns • fashion and role models • major events and influences • buying access and trends • ethnic/religious factors • advertising and publicity • ethical issues • trinketisation • overcrowding • corruption

  20. Technology

  21. Technology

  22. Technology • Scan and evaluate horizon looking for changes in technology that will enhance business • More to technology than just computer technology • Think faster, lighter, stronger, • Think of how you can make your customers ability to book easier! • If you aren’t innovating I bet your competitors are!

  23. Technological • competing technology development • research funding • associated/dependent technologies • replacement technology/solutions • maturity of technology • manufacturing maturity and capacity • information and communications • consumer buying mechanisms/technology • technology legislation • innovation potential • technology access, licensing, patents • intellectual property issues • global communications • research and development

  24. MegaTrends

  25. Advancements in Communications • Internet • Smartphones • Tablets • Laptops • Wi-fi • Accessibility • Viral marketing • Blogs • Forums • Youtube

  26. Eco Tourism • ENVIRONMENTAL PROTECTION • Protect natural assets • Conserve resources • Maintain cultural assets • Protect lifestyle • Monitor Impacts • Set limits to change

  27. Aging Population • Over 50% of the discretionary spending power • boomers accounting for about 80% of all leisure travel • 10,000 Baby Boomers will reach the age of 65 every day for the next 18 years

  28. http://www.youtube.com/watch?v=bu4v1F2LwpM

  29. Globalisation

  30. Globalisation • International Competition • Legislative requirements across Borders • Passport and Visa obligations • Diversity of staff • Cultural misunderstanding • Company structure

  31. Using PEST to develop strategy • Change type (PESTTG) • Nature of change • Impact implication • Market driver • Key success factors for winners • Strategy response

  32. Using PEST to develop strategy

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