Five Forces Model

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DELIVERING A NEW COMPETITIVE FORCES MODEL FORTHE TRAVEL AND TOURISM INDUSTRY Before proposing a revised model of competitive forces, it should be stressedthat the major notions of Porter’s forces are as valid today as they used to be 25 yearsago. As a result, it is not our intention to challenge the points Porter made soeffectively. Instead, this paper concentrates on forces that were not distinctiveelements in the original model, as well as on new ways of thinking about the originalforces.In reality, due to changes having taken place in the travel and tourismindustry, as well as the distinctive nature of the industry, it is necessary to revise themodel in order to make it more relevant. In this respect, Figure 1 represents a revisedcompetitive forces model, which reconfigures Porter’s five original forces by addingtwo more, namely the power of ITs and the impact of government regulation, and, by proposing an additional element to buyers perspective, namely the bargaining power of intermediaries. Figure 1: A revised competitive forces model for the travel and tourism industrySource: Compiled by Porter (1980) This model will be tested in the case of the Greek travel and tourism industry.More specifically, to provide a critical analysis of the competitive forces in the case of Greece, this paper adopts a case study approach based on data collected throughsecondary sources. However, before going into detail in the case of Greece, it should be noted that in the travel and tourism industry there are different types of enterprises,such as: hotels, campings, travel agencies, airlines, shipping companies, etc. that may present differences when using the proposed model. As a result, the proposed model 5 Risk of entryby potentialcompetitorsRivalry AmongEstablished FirmsBargaining power of buyers / Intermediaries Bargainingpower of suppliersThreat of substituteproducts
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