Strategic Intent of Visitor Economic Strategic Plan

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Requirement

To conduct an analysis critique of the Victorian Government's visitor economy strategy.You will use the tools of analysis from your strategic management unit's readings to assess the Macro and Micro level contexts in which the VVE strategy will operate.You will need to be able to distinguish between corporate,business and functional level strategies within their strategy as well as provide an examination of the performance of their business as it is being implemented.

Solution

Strategic intent of visitor economic strategic plan

The Victorian visitor economic strategic plan that was released by the Victorian government on 26 July 2016, sets the framework and direction for the growth and development of Victoria’s visitor economy for the coming ten years. The goal of the strategic plan is to increase the visitor spending to $36.5 billion till 2024-25 by identification of the nine priorities. The main objective of this strategic plan is to identify the opportunities for the growth of visitor economy, by focusing on communication and collaboration between the key stakeholders for driving jobs and investments across the state.The main intent of this strategic plan is to support and provide growth to the visitor economy in the state of Victoria.

Vision mission and values

The vision of the visitor economic plan is to attract international tourism in the state of Victoria till 2024-25 by focusing on the mission to make the state the most desirable tourism destination on the earth. The values that are followed in the plan states that the main essence of the plan is to identify the behavior and relationships with the stakeholders and the partners for providing authentic results in terms of strategic values and relationships.

Key stakeholders involved

The key stakeholders that are involved in the plan include the residents of the council, by taking into considerations the local business that helps in providing tourism related services like transport and hospitality, and the local enforcing bodies of law and the emergency service providers that will impact a lot on the tourism. The board also includes Australia Grand Prix Corporation, Emerald Tourism railway Board, Visit Victoria etc. which will impact a lot on the visitor economy.

Macro environment issues

For creating and attaining the strategic goals of the plans the Visitor economy ministerial advisory committee should consider the macro environmental issues that are prevailing in the state of Victoria. 

1. Political changes: Political factors affect a lot in the context of the tourism planning.According to the government agencies Victoria is not considered as the attractive one in context of tourismas a lot of government regulations are there in context of the high exchange rate, that will be seen as the problematic issue for tourist, who want to study or visit Victoria.(To summarize the Marco environmental issues affecting Australian Tourism,2018).But the political environment is seen as the stable one in the context of a skilled, well-educated and multilingual workforce that will provide a competitive base for the tourism industry.

2. Economic changes: The state is having a strong economic position with the abundant and diverse resources that attract the high level of investments in term of natural resources and earn a huge amount from the exports. But due to the financial crisis, the economy is fluctuating a bit as the exports are affected due to the financial and economic crisis.

3. Social factors: Higher education is seen as the lucrative concept in terms of attracting more tourism in the state of Victoria by becoming more productive and competitive. Along with the increase in the aging population, the aging tourists are seen as the potential target customers in market segmentation.In addition to that, the tourism industry has to develop more infrastructures for meeting the needs of the disability market. 

4. Technological factors: New technologies will create new products and processes, by reducing costs, improve quality and lead to innovation(Infrastructurevictoria.com.au, 2018). These developments will benefit the economy and the customers of the country. In addition to that, the researchers also led to effective funding of government which ultimately increase the infrastructure of the economy.

5. Environmental factors: Water is seen as the scarce resource in the economy which led to the cause of concern for the tourism industry. A cause of concern is also seen in the increased salinity in the area, which is caused by diverting the water inland from the coast, which led to water tables in eastern Australia.  

6. Legal factors: The introduction of age discrimination and disability discrimination are the examples of recent laws that affect the actions of organizations, which affect the cost of the business firm and demand.in addition with that the economy provide sanctions in terms of export and import restrictions, by prohibiting technical assistance which leads to problems for overseas partners and buyers.

Key industrial success factor relevant to VVES strategic plan’

according to the strategic plan, the key industrial success factors that will improve the tourism of state includes the Government investment are used for leveraging private sector investment by providing funding in tourism assets, for example through the Shipwreck Coast Master Plan and Phillip Island Nature Parks, will create conditions to encourage private sector investment.in addition to that the target market analysis, in terms of infrastructure and facilities will be used as the area of concern for the old and aging population, by providing them high-quality services. For example, the nursing facility will be provided at the tourist destinations(Deloitte Australia. (2018). The suppliers have to invent more 'green tourism' products and services not only to concern the environment, but also promote more travelers from Asia to enjoy the eco-tourism in the state of Victoria
Porters model for competitive advantage

Supplier power

The Victorian action plan committee needs to create more advanced and healthy tourism for the people who are old and disabled as the state of Victoria is considered as the important tourist destination by creating humanized destinations by providing nursing and caring facilities(Grant, 2018). In addition to that, the authority has to focus on Asian community especially the Chinese for increasing tourism.

Buyer power

From the customer’spoint of view, the trend of increasing aging group which is seen in the economy shows that there is a potential market for the tourism industry in Victoria(Barney, 2014). The growth of disability among old and aging population affect customers at three levels as the state has to create more comfortable infrastructure for promoting tourism.  

Competitive rivalry

Competitors for the tourism market is more in Australiaas the areas of Queensland and Brisbane are more popular among tourists, as these states offer more opportunities and advantages for promoting tourism.

Threat of substitution.

As the Australian tourism industry is the lucrative one due to islands, beaches the youngsters and the aging population both are attracted towards the destination (2018). So to promote tourism by reducing the threat of substitute countries like Mauritius etc., the commission has to focus on the attractiveness of beaches and hotels so that more customers will be attracted.

Threat of new entrants

Profitable and lucrative markets attract new entrants, which led to decrease in profitability(Porter, 2017). Same as is with Victoria, as it is seen as the lucrative market for competitors within Australia and other countries due to entertainment avenues, and events and due to flexible governmental regulations.

Evaluation and discussion of 9 priorities for delivery of goals

More private sector investment will be done on the most important 10 regional tourism projects by building on the potential of regional and rural Victoria byensuring new visitor opportunities across the area of Greater Melbourne. The committee also focus on improved branding and marketing by influencing people choice of travel destinations by examining opportunities in terms of marketing events that will attract the potential tourists by improving experiences for visitors from Asia especially from China in termsof development in transportation,accommodationandChinese food options at the major tourist destinations(Leidecker,2014).The country also has to adopt better tourism infrastructure by implementing the living heritage program which helps in effective coordination.

References:

• Deloitte Australia. (2018). The current and future state of Victoria | Deloitte Australia | Deloitte Access Economics, report, transport. [online] Available at: https://www2.deloitte.com/au/en/pages/economics/articles/infrastructure-victoria-current-future-state.html [Accessed 9 Apr. 2018].

• Infrastructurevictoria.com.au. (2018). [online] Available at: http://www.infrastructurevictoria.com.au/sites/default/files/files/Current%20and%20Future%20State%20of%20Victoria_%20a%20macro%20perspective.pdf [Accessed 9 Apr. 2018].

• To summarise the marco environmental issues affecting Australian Tourism - A-Level Geography - Marked by Teachers.com. (2018). Markedbyteachers.com. Retrieved 9 April 2018, from http://www.markedbyteachers.com/as-and-a-level/geography/to-summarise-the-marco-environmental-issues-affecting-australian-tourism.html

• (2018). Infrastructurevictoria.com.au. Retrieved 9 April 2018, from http://www.infrastructurevictoria.com.au/sites/default/files/files/Current%20and%20Future%20State%20of%20Victoria_%

• Barney, J. (2014). Firm resources and sustained competitive advantage. Journal of management, 17(1), 99-120.

• Grant, R. M. (2018). The resource-based theory of competitive advantage: implications for strategy formulation. In Knowledge and strategy (pp. 3-23).

• Porter, M. E. (2017). Technology and competitive advantage. Journal of business strategy, 5(3), 60-78.

• Leidecker, J. K., & Bruno, A. V. (2014). Identifying and using critical success factors. Long range planning, 17(1), 23-32.