Good Essay About Transportation Services To The Tourists From The Oasis To Other Tourist Attractions;
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International Business Project
Introduction to the study
One of the most challenging part of opening up an international business is to decipher how it can successfully reach its intended markets across the cultures and borders which it attempts to get over with (Lawrence & Weber, p. 5). To create a sound plan and succeed in any potential markets abroad, international companies must comprehensively do market research and assessment of various factors. These shall consist of the overall study of the international country’s economy, demographics, socio-cultural and political contexts, the market setting, the technological deployments, and the present competitive factors (p. 9).
After a careful study of the foreign markets and the best product and/or service to offer, international companies can develop a reasonable plan which will conceptually assure the companies’ success in the foreign market. The fundamental idea is that the companies’ needs should be combined with the country’s requirements so as to solicit the best market response. If the initiative to understand the business environment in a country is not fulfilled, then, a possible failure and severe competitive challenges will be faced by the companies in the new markets (Lawrence & Weber, 2011).
This paper carefully considers putting up a eco lodge business at the Northern Australian desert. This eco lodge shall be a joint venture of the investor with the local community in that area. It shall be a major eco tourist site in the Northern Australian desert since it will incorporate sustainable development with attractive outdoors and cultural experience for travelers from all over the world to enjoy. It is a venture which this proponent shall describe in the chapters below. It intends to give travelers accommodation service that combines the features and values of the Northern Territory, Australia. It also intends to educate the global travelers about the life and culture of the Northern Australian people.
Description of service
The Solaire Eco Lodge, as it is called, is an international business that this proponent aims to create. It shall provide dining, lesire, and entertainment to eco tourists who travel to the Uluru, Northern Australian desert at various parts of the year. The measures of its success rely on different factors such as efficient and targeted marketing and distribution channels which are vital to the success of this business proposal (Lawrence & Weber, p. 25). There is reduced rivalry in this business since the Solaire Eco Lodge business will be set in the Northern Australian desert. This is the first of its kind lodging service at this part of the Australian outdoors. The business location will attract many eco tourists and travelers as the consciousness of travelers now lean towards untainted tourist attractions.
This eco lodge business shall give travelers an accommodation service which combines the attributes and values of the Northern Territory, Australia. It also intends to promote eco tourism and the local community. It also aims to upgrade the local community by helping them find employment and worthy endeavors. This hospitality business will provide the following:
Meals and snacks for people touring the Australian desert;
Access to stops and rest areas in the desert;
Good customer services to the tourists;
Event management provisions such as tents;
Entertainment for the tourists.
This business will make a luxury Oasis with tents and palm trees in the Northern Australian desert. It will highlight two competitive advantages to enjoy a real desert experience such as the camel’s safari, with its own camel farms in the “Oasis of Uluru” and a vegetarian menu and extraordinary spa, which no other eco tourist sectors in or even near the Australian desert provide (Hill & Turton, p. 4).
There will be less competition because the Solaire Eco Lodge will be located in the Northern Australian desert, where there are no or few similar investments and numerous customers await this type of a service offering (p. 4). The location itself will attract many customers, especially tourists who would wish to have a good place to take a rest and enjoy a tour around the desert in an eco lodge environment.
A sales projection of 10% increase in volume after the first year of business operations and succeeding growth of another 10% after the second year of services are estimated. At the end of the 3rd year, the eco lodge business shall have ample income to aid its overall expansion. The company’s leadership shall put extra efforts to ensure a profitable gains from the business operation. Good sales techniques shall also be implemented to further improve the operations of the new business (“Developing the North.” p. 1). The successful sales strategies will increase the profit and lead to high sales income during the fourth year (Dorsey, Steeves, & Porras, p. 754)
This business will establish a luxury Oasis with tents and palm trees in the Uluru, Northern Australian desert. It shall emphasize two competitive advantages to enjoy a real desert experience: camel’s safari, with the own camel farms settle in the “Oasis of Uluru” and a vegetarian menu and special spa, which no other retreat joints in or even near the Australian desert offer (Australian Conservation Foundation, p. 3). This eco lodge will subscribe to a different business model.
Cultural environment analysis
Australia is divided into two territories and 6 states (p. 3). This continent is one of the richest in the world, with a size extending into 7.7 million square kilometers. It is called the “land down under” since the continent rests south of the equator. It rests between the Pacific and the Indian Ocean. The biggest cities of Australia are Sydney (3.7m) and Melbourne (3.1m) (p. 4). The capital of Australia is Canberra and it has 19 million in population (p. 4). The country produces minerals and meat, including wool. It shares all of the world’s climate. The people have higher standard of living.
The common language in the country is English, followed by Italian, Cantonese, Greek, Arabic, Vietnamese, and Mandarin. Other langugaes are also widely spoken at home (p. 4). More than 15% of Australians speak other languages than English. However, English remains as the national language. They are mainly Christians but they are free to choose any religion which they prefer. Around 88% of the people go to one cultural event every year (p. 5). More than 11 million or more participate in sport or any other physical activity (p. 5). While the country has a very diverse cuisine, it has no national dish.
Northern Australia has excellent features on both national and global scale as it is possesses major natural and cultural attractions. This is a major driver for tourism growth. It has the largest extent of near-natural tropical savannas worldwide (“Developing the North, p. 2). It is also a home to many endangered species and extra-ordinary animals. The region is also a place of great ethno-linguistic diversity, second to New Guinea (p. 2). It is a home of indigenous peoples. A previous assessment of the natural heritage importance of Cape York Peninsula showed that much of the Norther Australia would qualify as a World Heritage Site (p. 2).
In general, the environmental attractions of Northern Australia is naturally excellent. However, it is challenged by the rapid eco stress and the risks of climate change, altered fire regimes, stock grazing and the wide range of exotic plants and animals (Dorsey, Steeves, & Porras, p. 754). The overall socio-economic standards of the peoples of the region is low as compared to other peoples of the Australian continent. Its population density is very low, around 0.1 people per km2 (p. 755). The population of indigenous peoples, especially outside the major urban centrrs, is high (p. 755).
Even outside the indigenous communities, individual incomes in this region are relatively low. These poor socio-economic indicators are startling since the region is known for its mineral wealth is presently adding to a higher growth in the overall Australian economy. Experts related it to the general pattern of “wealth drain” related to mineral resource development in Northern Australia (“Developing the North,” p. 2). In the region, various socio-economic and environmental characteristics are important factors for growth and sustainability. Conservation development programs are mostly welcomed.
Economic and Political Environment analysis
Through the years, the Australian economy has gradually changed from agriculture and manufacturing towards services, with the highest potentials in the mining industry (Australian Conservation Foundation, p. 2). The country experienced increased exposure to foreign goods and this has helped speed up greater innovation to meet global competition. This has also served as a bridge to the instant diffusion of technological progress and organizational change (“Australia,” p. 1). The effects of technological developments is mainly experienced through the introduction of new products and new means of producing current or providing services companies in manufacturing industries (p. 2). The outsourcing of services such as accounting, marketing and IT support is also spured by the enhancements in communications technology and the greater exhanges of services, which revealed service industries to higher competition (p. 2). Greater information processing has also supported the spread of knowledge and it prospectively push the rate of technological developments in various sectors (p. 2). These changes improve the types of goods and services bought and how and where they are manufactured.
There is a national law which is a standard protection for consumers and this is called the Australian Consumer Law (ACL) (p. 2). It applies to all states and territories of Australia. As promulgated in 2011, this law replaced 20 varied consumer laws in various states and regions. The ACL includes the following: provisions which generally cover the past Trade Practices Act of 1974, the consumer protection provisions of the fair trading laws in each state and territory, including new penalties, enforcement laws and consumer redress alternatives, among others (p. 2). It also includes a guarantee on consumer rights when it comes to the procurement of products and services, standards for consumer contracts, consumer protection laws which are consistent with other jurisdictions (p. 2).
Corporate social responsibility is also a strong force in Australia (Australian Conservation Foundation, p. 1). Examples are focused on community development, environmental sustainability, among others. Northern Australia is emerging as a “powerhouse for sustainability innovations,” initiated by the Indigenous peoples’ special approaches to sustainability and catalyzed by the powerful drivers related to the global cultural and natural importance of the region, the risks from climate change, and the poor socio-economic results from conventional mining and agriculturally-based development (p. 1). The latest economic frameworks centralizing on the concepts of indigenous culture and country are showing early signs of success. However, the gap between the present condition and the attainment of long-term solutions from these innovations needs more initiatives and management (p. 1).
Strategy formation and recommendation
The intended business “Solaire Eco Lodge” will need to invest 10-15% of its income to its marketing and advertising initiatives during its first five years of operations. Its strategy formation includes a very good marketing program that is intended to keep the travelers delighted, ensuring repeated accommodations, and service extension to attract other types of travelers.
The cost of investing in this international business will be $800, 000, which might come from various personal and institutional resources. The Solaire Eco Lodge will serve Class B and Class C travelers from different North American and European countries who love the outdoors and are looking for a sustainable tourism holiday with a greater experience and fulfillment of the nature and people of the Northern Australian outback.
Create a strong partnership between the company and the local community where the Solaire community. The company will give half of its income (50%) to the Solaire Eco Lodge community. This income can be used to conserve the site and after a specific number of years, it will begin to earn additional income for the operation of the NGOs in the site.
Establish a consultative process for the inclusion and the coordination of the major community stakeholders (“Developing the North,” p. 1).
Introduce Solaire to the local and foreign travelers particularly those who are into adventure travelling and have not yet explroed the Northern Australian outback. The company shall also expand this marketing promotions via online and social networking sites. This will let the business gather more customers and develop a higher occupancy rate and better income.
Apply targeted and efficient marketing and distribution channels which are vital to the success of Solaire.
Make an attractive interactive website that captures the global travelers to visit the eco tourist spot.
Conserve and properly manage the environment of the eco site.
The market customers for this type of an eco lodge will be from local tourists and eco trekkers, local customers, international adventurers, and tourists, in general. They will become attracted to this eco lodge through the company’s Internet website, advertisements and promotions in various television, radio and Internet sites (Dorsey, Steeves, & Porras, p. 2). The company will also invest in travel guides and travel magazine advertisements anf features which are widely read by travellers from all over the world (p. 2).
Target marketing approaches shall be used to attract the said market which are classified as follows: cultural travelers, adventurers/outback enthusiasts and walk ins. The major marketing opportunity is by selling to these ready market segments by circling on their vacation and recreational requirements. It is forecasted that the adventurers/outback enthusiasts are the primary market segment and the location of the Solaire Eco Lodge is best for them.
For the first two years, the company will make an introductory prices for all its amenities and lodging services to gather more clients. It will also ascertain the highest customer service and point of contacts to successfully promote the Solaire Eco Lodge. Personal communications through direct and electronic mails will be made as follow ups so as to encourage repeat business and referrals.
This paper intends to open an eco tourism business in the Northern desert of Uluru, Northern Australia. It aims to set up an eco lodge that shall provide eco tourism business for the region’s outback. This business is a unique foreign business proposition since it shall involve and empower the local community as important stakeholders in the local business. This is a special venture since it entails doing business in a foreign culture and also involves the local peoples and local organization in making the business successful.
Australian Conservation Foundation. “A Cultural and Conservation of Economy for Northern Australia. January 2008. Accessed on 7 March 2015 < http://www.acfonline.org.au/sites/default/files/resources/Beinformed_NT_CCEReport.pdf>.
“Australia.” 2015 Index of Economic Freedom. Accessed on 08 March 2015 < http://www.heritage.org/index/country/australia>.
“Developing the North.” Northern Territory Economic Development Strategy. 2005. Accessed on 7 March 2015 < http://dcm.nt.gov.au/__data/assets/pdf_file/0005/62879/Economic_Development_Strategy.pdf>.
Dorsey, E. R., Steeves, H. L., & Porras, L. E. Advertising Ecotourism on the Internet: Commodifying Environment and Culture. 2004. New Media & Society, 6 (6), p. 753-779.
Hill, R. and Turton, S. M. (eds.). Culturally and environmentally appropriate economies for Cape York Peninsula. 2004. Cooperative Research Centre for Tropical Rainforest Ecology and Management and Australian Conservation Foundation. Rainforest CRC, Cairns, Queensland.
Lawrence, Anne T. & Weber, James. Business and Society: Stakeholders, Ethics, Public Policy (13th). 2011. New York: McGraw-Hill/Irwin.
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