Strategy Development Tools for Australian Tourism: PESTEL, Five Forces, and SWOT Analysis

HI6006
Assessment 1: Individual
Assignment
Tourism
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HI6006
Table of Contents
Introduction.................................................................................................................................................3
Main context................................................................................................................................................3
PESTEL...................................................................................................................................................3
Five Forces..............................................................................................................................................4
SWOT.....................................................................................................................................................6
Conclusion...................................................................................................................................................7
References...................................................................................................................................................8
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HI6006
Introduction
The paper will help in explaining the main strategy development tools and the way of using them
in order to execute the concerned business processes. PESTEL analysis is used in order to
determine the factors related to the political and economic factors that can impact on the growth
of the business. The use of the Five Forces is done mainly to investigate the demands of the
customers and formulation of the specific strategy to increase the profitability of the firm. SWOT
analysis is to investigate the strengths and weaknesses of the industry o the firm and to use the
opportunities available by reducing the crucial threats.
Main context
Development of the strategy is considered as t be vital for the growth and development of an
organization. There are various tools which need to be analyzed effectively in order to develop
effective strategies, these are PESTEL, SWOT and Five forces.
PESTEL
Political factors
Australia is considered as one of the most politically stable countries that provides desired
platform for various types of business organizations to execute their respective business
processes. The country is considered as to be the safe destination for making suitable
investments and the tourism sector is rising significantly throughout Australia and thus, it will
provide opportunities to all of the tourism business organizations (Johnson, 2016). The country
is having skilled candidates throughout different parts of the country and it retains multi-lingual
workforce which helps in enhancing the growing economy.
Economic factors
The prices of various properties are increasing high in relation to the income levels throughout
Australia and it has created the great demand for the rental properties. It is very important for
the tourism companies to analyze capital growth, off-plan, exchange rates of the currency and
economic stability (Darcy et al., 2017). The currency exchange rates against the euros, dollars as
well as sterling are found to be favorable within the Australian market segments. Therefore, it
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