Sustainable Surfing Tourism Development †MyAssignmenthelp.com

Question: Discuss about the Sustainable Surfing Tourism Development. Answer: Introduction: Gone are the days when businesses can remain safe and conventional for achieving success in the market. Increasing competition and technological evaluation has revolutionized the way businesses are conducted in the global market. With increasing competition, businesses have to focus on utilizing innovative strategies to remain competitive in the market. For successful utilization of all the strategies, businesses will have to focus on analyzing the current macro and micro environmental situation in an effective manner. The report focuses on evaluating the market potential of surfing products in Bali, Indonesia market. For that reason, the report will focus on analyzing different strategies initiated by a Melbourne Australia based organization namely Endless Wave Pty Ltd. The organization was established in 1980, with the objective of providing high quality surfing products. Endless Wave has already captured 10% of the total market share in Australia (endlesswaves.net 2017). For that reason, it is looking to expand its reach in the international market. Presently, Endless Wave targeted Indonesias Bali region for enhancing their sales volume higher. The report will focus on evaluating the present market condition in Bali, Indonesia for the successful business expansion in the global market. The report will also provide best possible way for Endless Wave to enter into the Indonesian market. It will also provide suitable recommendation so that Endless Wave can handle different types of market related challenges in a comprehensive manner. Over the years, the market for surfing products and wear has increased significantly across the Indonesia. Increasing number of tourists have provided huge market share for business entities for fulfilling all the roles and responsibilities in a comprehensive manner (Lueras and Lueras 2014). In order to evaluate present market situation of surfing products in Bali, Indonesia area, Porter five forces evaluation are provided as follows: Rivalry among existing competitors: Bali Island is probably the most touristic destination across Indonesia, as it provides different facilities for the tourists for having quality time (Towner and Orams 2016). Increasing popularity of tourism in Bali area has induced different business entities to focus on grabbing the surfing market share in an effective way. Moreover, Bali is very attractive surfing destination, which has intensified the competition level in the market even further. Indonesian government has not focused on developed too much rules and restrictions for the surfing equipment providers. As a result, it has provided free opportunity to the new businesses to enter into the market (Towner and Milne 2017). Moreover, Indonesian government has allowed foreign businesses to enter in to the market, which has increased the threat level regarding the new entrants in the market. Therefore, it is likely to increase the threat of new entrants in Indonesian market in a major way. In presence of intense competition among existing rivals, buyers are likely to have lot of substitute options for fulfilling the needs. As a result, Endless Wave will have to face massive threat at the time of expanding its reach in Bali, Indonesia market. Moreover, increasing number of new entrants has also increased the threat associated with the business procedure even further. However, Endless Wave has already established its presence in 20 markets across the globe, which has provided strong brand presence (Towner 2016). Therefore, it will be difficult for any new entrants to affect the business level of Endless Wave. Required numbers of suppliers are available in the surfing products industry. Therefore, it is likely to reduce the bargaining power of the suppliers in a major way (Kumar and Rajan 2012). However, Endless Wave has always focused on maintaining strong relationship with the suppliers in order to have high quality raw materials for the surfing products. Bargaining power of the buyers: Availability of different substitute options is likely to provide high bargaining power to the buyers (Lusch and Vargo 2014). However, Endless Wave has maintained uniqueness regarding the design and quality of the surfing products, which has allowed keeping the price above the average level of the organization. The business strategies of Endless Wave have always focused on targeting the prime surfing destination across the globe. For that reason, it has established the business Asia, Latin America and European region. However, adverse impact of global economic crisis has affected the business level of Endless Wave in a major way. For that reason, it is looking to expand the business in Bali, Indonesia market in order to maintain effective revenue level. Endless Wave has targeted the Bali area of Indonesia due to increasing popularity as a tourist destination. Endless Wave has always focused on Bali area as a footstep for expanding its reach in the entire Indonesian market. With more than 13,000 islands, Indonesia regarded as the ideal destination for surfing (Eggers, Hansen and Davis 2012). Moreover, tourism represents the second largest employment sector in Indonesia. It also contributes 30% of the Indonesian GDP, which is likely to provide huge potential market for the organization for en hancing the revenue level (Perreault Jr, Cannon and McCarthy 2013). In addition, Indonesia has achieved consistent growth of around 6.8% regarding the increasing number of tourists. As a result, it is also likely to enhance the potential market share of surfing products in an effective manner. Therefore, it is likely to provide enough opportunity for Endless Wave to expand its business in the Bali, Indonesia area. As per the article by Schwidder (2016), effective evaluation of the competitors is essential for any business entity for accomplishing all the business goals and objectives. For that reason, in order to expand the businesses in Bali, Indonesia, Endless Wave will have to evaluate the kind of competition it will have to face in an effective way. Now, Bali is extremely popular for its surfing activities. People from all across the globe visit Bali for having quality time with surfing and other sea activities (Borland and Lindgreen 2013). Therefore, it has allowed organizations like Deus Warung of Simple Pleasures, Quiksilver Boardriders Cafe, Rip Curl Legian Memorial, Drifter Surf Shop and ONeill Store Oberoi to achieve continues success in the market. Each of the mentioned companies has already created extreme popularity in the Bali market (Ponting and McDonald 2013). However, Endless Wave has more diversified product range including surfboards and accessories, wetsuits, bathers, board shorts, bikinis, t-shirts, jackets, jeans, belts, wallets, and specialised surf products. Therefore, it will likely to provide bigger potential market in Bali, Indonesia. For that reason, Endless Wave will have to focus on utilizing innovative strategies for capturing required amount of market share in an appropriate manner. Moreover, all the mentioned organizations have focused on using different tools and techniques for achieving continues success in the market. For instance, all the organizations have used social media and digital platforms for providing required information to the customers. Therefore, it is likely to increase the challenges for Endless Wave to achieve desired sales volume from Bali market (Anwar 2014). For that reason, Endless Wave will have to focus on analyzing its strengths and weaknesses for expanding its reach in the global market. Moreover, it will also have to focus on assessing the future trend in Bali market for avoiding market related risks and challenges in an effective manner. SWOT analysis: Factors Description Strengths Endless Wave is in the surfing products industry for more than three decades. It has already established in presence in 20 prime surfing destinations across geographical boundaries. It reflects strong brand presence of Endless Wave in global market (Charlie 2012). Therefore, it is likely to create positive impact on the business expansion process in Bali as well. It has variety of product range with high quality, which is likely to provide bigger potential market for Endless Wave to achieve business aims and objectives Weaknesses Endless Wave is completely new in Indonesian market. Therefore, people are likely to have very limited information about the provided quality of the product range. Global economic crisis is likely to create adverse impact on the tourist expenditure perspective (Gummesson, Kuusela and Nrvnen 2014). It can affect the business development perspective of Endless Wave in a major way. Opportunities Indonesia is among the most popular tourist destinations across the globe. It has achieved consistent growth in tourist sector over the past few years (West 2014). Therefore, it is likely to provide greater potential market share in Bali area for fulfilling all the business objectives. Innovative design and superior quality is also likely to provide more opportunity for Endless Wave to capture the major share of the Bali market. Threats Bali is an extremely popular surfing destination, which has induced many businesses to establish its presence in the market (Berthon et al. 2012). Therefore, Endless Wave will have to face massive competition from other surfing product providers for fulfilling all the business objectives. Increasing popularity of raw materials for developing surfboards and other surfing products is another critical aspect for Endless Wave. It can affect the profit level of the organization in a major way. Table 1: SWOT analysis (Source: Towner and Milne 2017) Strategy to utilize strengths and opportunities and reduce weakness and threats: Endless Wave will have to focus on developing strategies in such a way so that it can help to achieve objective of business expansion. Therefore, the marketing strategy of Endless Wave will have to highlight the strong brand presence in the global market. It will help to increase the trust level of the Indonesian people. Highlighting strong brand presence to the Indonesian people will help Endless Wave to reduce the adverse impact on weaknesses in an effective way (Leonidou et al. 2013). Moreover, the marketing team of Endless Wave will have to focus on identifying the geographical areas from where major tourists are visiting Bali, Indonesia. It will allow marketing department of Endless Wave to initiate different campaign in those areas for providing information related to the products and services. The strategy of Endless Wave will also have to include proper investment in designing and quality of the products for achieving continues success in new Bali, Indonesia market. It will h elp Endless Wave to reduce the threat level associated with intense competition in Bali, Indonesia market. Thus, the strategy of Endless Wave will have to focus on effective utilization of both marketing and RD activities for achieving success in the new market. As illustrated by Baker (2014) different ways are available including exporting, licensing, franchising, turnkey projects, wholly owned subsidiaries, joint venture and acquiring for the organizations at the time of entering in new market. Therefore, the business strategy of Endless Wave will have to focus on using the best possible market entry mode for creating desired impact on the market. Endless Wave can focus on acquiring existing organizations from Bali, Indonesia for creating immediate impact on the market. On the other hand, it can also focus on using licensing or export procedure for maintaining the same quality of the products in Bali market as well (Ponting and McDonald 2013). Utilization of licensing procedure can reduce the headache of the company related to the development of effective supply chain network. In fact, it will help Endless Wave to provide required amount of product to the select market section. However, the selection of market entry strategy will depend on the amount of investment Endless Wave is looking to made for fulfilling the business aims and objectives. Now, it has been assessed that Endless Wave is among the prime companies across the globe in surfing equipment development sector. Endless Wave has an employee size of around 950 across the globe (endlesswaves.net 2017). For that reason, it will be easier for Endless Wave to focus on investing acquisition method for creating immediate impact on the Bali market. Endless Wave will have to focus on acquisition method, as it will help to counter the challenges associated with the increasing competition in surfing equipment development market in Bali (Nobre and Silva 2014). On the other hand, Endless Wave will not focus on using licensing or exporting procedure, as it will take time to create required amount of popularity in the Bali market. Organizational structure: As stated by Morgan, Katsikeas and Vorhies (2012) maintenance of appropriate organizational structure is essential for the fulfilment of all the requirements of the operational procedure. Different organizations use different organizational structure including horizontal structure, vertical structure and matrix structure for ensuring the effectiveness of the operational procedure remains at the desired level. Now, in order to expand the business in the global market, Endless Wave has focused on using matrix organizational structure. It has allowed Endless Wave to develop effective cross department communicational platform, which has reduced obstacles in the business procedure. Moreover, Endless Wave has used matrix structure in order to ensure appropriate coordination between all the business units in an effective manner. It has allowed Endless Wave to maintain required amount of stock level based on the demand pattern in different markets. As a result, it has ensured buyers do not h ave to wait for longer time at the time of purchasing any products (Kumar et al. 2013). Moreover, Endless Wave will have to focus on using expats in the business procedure, as it will help to increase cohesion among different business units. Moreover, it will help senior management to understand the kind of market related obstacles it will have to face on regular basis. As described by Leonidou et al. (2013) proper evaluation of potential future trend is critical for achieving required success in the new market. For that reason, Endless Wave will also have to focus on assessing the expected level of impact it would have on the Bali, Indonesia market. The five year sales forecast for Endless Wave is as follows: From the evaluation of the above figure, it can be stated that Endless Wave will have to focus on achieving continues growth in Bali, Indonesia area. For that reason, Endless Wave is likely to create very limited impact on the Bali market, as majority of the people know very limited about the provided quality of products and services in the market. In this period, Endless Wave will have to focus on utilizing aggressive marketing strategies for ensuring all the required information are provided to all potential buyers. As a result, it would increase sales in the second and third year at a steady rate. Thereafter, the high quality product designs and services are likely to fulfil all the needs and wants of the customers. Therefore, it will keep the buyers satisfied with the provided quality of products and services. As a result, it would increase the loyalty level of the customers in a major way (Leonidou et al. 2013). For that reason, Endless Wave can expect around 40% market share in five years time. It will eventually help Endless Wave to emerge as the biggest name in providing high quality surfing products. Recommendations: From the above analysis, it can be mentioned that the initiated business strategies are likely to create desired impact on the business expansion perspective. However, it will have to focus on specific areas to avoid any types of challenges in fulfilling business aims and objectives. Firstly, Endless Wave will have focus on evaluating the culture and values of Bali in order to introduce all the surfing products in an effective manner. In the present competitive business environment, providing products according to the community culture is essential for fulfilling all the requirements of the business objectives. Secondly, Endless Wave will have to focus on assessing the type of designs or styles Bali, Indonesia people are linking more compared to other products. It will help Endless Wave to produce surfing products as per the needs and wants of the employees. Thirdly, Endless Wave will have to assess the type of legislative rules and regulation imposed by the Indonesian government at the time of introducing products in the market. It will help Endless Wave to identify different challenges related to business procedure in an effective manner. Therefore, it will eventually help management of Endless Wave to develop effective counter strategies for the fulfilment of all business objectives. Fourthly, Endless Wave will have to focus on keeping the internal workforce motivated towards the provided roles and responsibilities. Maintaining the motivation of the employees at the desired level will help Endless Wave to increase the efficiency level of the operational procedure. Conclusion: The above analysis illustrates the fact that effective evaluation of internal and external factors is essential for the fulfilment of all business objectives comprehensively. Proper evaluation of the external factors allows businesses to identify different market related challenges in an effective manner. On the other hand, internal evaluation allows businesses to identify the necessary areas for improvement. Endless Wave has tried to cover all aspect of the businesses comprehensively for the fulfilment of business objectives. It has maintained quality of the products at optimum level, which has created major impact on the global market. Moreover, the business procedure of Endless Wave has targeted niche market all across the globe so that it can able to create maximum positive impact on the revenue level. It has also focused on developing proper organizational structure for clear communication within the workplace. The effective utilization of resources has increased the efficiency level of the customers in a major way. 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