Event Management Industry Analysis

This assignment delves into the event management industry, analyzing its competitive landscape. It highlights the industry's growth, diverse categories, and increasing customer demand. A SWOT analysis reveals the industry's strengths (growth, variety) and weaknesses (customer bargaining power, competition). Opportunities lie in expanding target audiences and building customer trust, while threats stem from competition, new entrants, and technological advancements.

Running head: HOSPITALITY AND TOURISM INDUSTRY
Hospitality and Tourism Industry
Name of the Student
Name of the university
Author note

1
HOSPITALITY AND TOURISM INDUSTRY
Table of Contents
Introduction......................................................................................................................................2
Micro Industry Analysis..................................................................................................................2
Macro Industry Analysis..................................................................................................................3
SWOT Analysis...............................................................................................................................5
Conclusion.......................................................................................................................................6
References........................................................................................................................................7

2
HOSPITALITY AND TOURISM INDUSTRY
Executive summary
The aim of the people is to analyze the macro and microanalysis of event management industry.
Event management industry is known as one of the most fragmented industry due to increasing
types of events taking place in today’s world. The company faces huge threat from the
competitors and companies find it easy to enter the industry whenever they want. However, the
huge growth prospect of the industry due to changing lifestyle of the people has benefitted them
greatly.

3
HOSPITALITY AND TOURISM INDUSTRY
Introduction
Event management is one of the industries that involves multiple of activities, which
ranges from wedding to festival events. This is the reason behind the growth of this industry in
the global sphere. Every event differs in some way or the other. With a change in lifestyle,
people like to arrange an event for every reason. This increases the demand for such events with
successful people involvement. Event can be small consisting of local region or it can be a big
event covering a bigger prospect. However, it is seen even with fast growth of such events on
every ground, be it for festivals or exhibition, the industry still lacks behind due to various
reasons (Ibisworld 2018). The paper discusses the competitive nature and growth prospect of the
industry by carrying out a micro level as well as macro level analysis.
Micro Industry Analysis
Micro industry analysis explains the competitive nature of the industry and demand of
people for the industry. Micro level analysis visualizes the threat that the company is facing and
the reason behind it being laid behind even after rising demand.
Competitors Analysis
The industry faces huge competition due to existence and emergence of many small and
big events in local or global level (Grant 2016). There are several diversified industries that
emerged rapidly in local as well as international level. This was the main reason behind the
fragmented nature of the industry. There has been keen competition for different types of events
such as travel, meetings, exhibition and others. These events are known as MICE events and
companies are entering into these events largely. Reed Exhibition is the similar kind of company

4
HOSPITALITY AND TOURISM INDUSTRY
entering the industry. The company arrange exhibition and faces huge competition from other
event management company.
People Analysis
Exhibition sector is one of the growing sectors in the event management industry. This is
because the rising demand for exhibition has made it grow drastically in 2012. Exhibition is also
oneof the most attractive types of events compared to others. This is because the event is the
most profitable of all the other events of the industry. The event saw a huge customer traffic
since it has started. This has also led to huge customers for Reed Exhibition and made them one
of the largest event organizers of the world (Porter and Heppelmann 2014).
Macro Industry Analysis
Macro environmental analysis will analyze the threat and opportunity the business is
facing by analyzing its buyers, supplier and other competitors.
Threat from new entrant
Event management industry faces huge threat of new entrant in the industry. This is
because; event can be organized by anyone at a small level and later increases by investing very
little. Thus, new companies find it easy to enter the industry and start their own business.
Moreover, compared to cost, profit is quite high in this industry (Jones 2014). Thus, demand for
entering the business increases.
Threat from rivalry

5
HOSPITALITY AND TOURISM INDUSTRY
Industry faces huge threat from rivalry within the industry due to existence of high
competition. The industry faces huge competition from various typesof events. Even in the
exhibition event, the industry has seen many new companies entering and organizing exhibition.
Competitors not only come from exhibition organizers, it also comes from wedding, meeting and
other types of meeting organizers (Mallen and Adams 2017). Similar threat is experienced by
Reed Exhibition organizer due to an increase in similar type of organizers in the industry.
Threat of substitutes
The industry faces huge threat from substitutes because even though the demand for such
events has increased in recent time, yet there are people that arrange their own family events.
Moreover, many companies arrange for their own events from time to time, instead of giving it
to the event organizers (Bhatt, Manadhata and Zomlot 2014). These substitute event Organizers
Company face increases the substitute threat to the industry.
Bargaining power of suppliers
Bargaining power of the suppliers is low in the industry because the supplies that the
industry needs are common and are available easily everywhere. Thus, an increase in price by
one will force the company to shift to other suppliers. Thus, this reduces the power in the hand of
the suppliers (Bhatt, Manadhata and Zomlot 2014). Moreover, there is no switching cost for the
companies to move from one supplier to the other. Suppliers have to go according to the event
management company in some factors in order to keep getting business for themselves.
Bargaining power of buyers

6
HOSPITALITY AND TOURISM INDUSTRY
Bargaining power of the buyers are high in this industry as there are large number of
companies that the customers can choose according to their own preference. Moreover, the
consumers also face no switching cost for switching from one company to the other (Fleisher and
Bensoussan 2015). Thus, it is necessary for the companies to go according to the consumer
preference in order to gain the trust of the consumer.
SWOT Analysis
SWOT analysis helps in defining the strength and weakness that the industry is facing
based on the operation and competitive environment (Bull et al. 2016).
Strength
 Huge growth in the past years
 Huge range of increasing demand
 Various type of event management
categories
 Face to face business activities
Weakness
 Large bargaining power of the
customers
 Rising competition lead to reduction in
price
 Large number of substitute to industry
Opportunities
 Extensive growth prospect
 Better target audience
 Winning trust of the customers and
increase loyal customers
Threat
 Threat from competitors
 Threat from new entrant to the
industry
 Threat from technology improvement
Topic: SWOT Analysis
Source: Author’s creation

7
HOSPITALITY AND TOURISM INDUSTRY
Conclusion
From the above analysis, it can be deduced that event management industry is one of the
competitive industry. This is because of the increasing competitors in the industry, both small
and large scale. Moreover, the company also faces huge threat from substitute, which increases
the competition even further. However, due to high growth prospect the industry is considered as
one of the fragmented industry. This is because of huge varieties of event that the industry
organizes. The industry is experiencing increasing types of event organizers due to increasing
demand from the public.

8
HOSPITALITY AND TOURISM INDUSTRY
References
Bhatt, S., Manadhata, P.K. and Zomlot, L., 2014. The operational role of security information
and event management systems. IEEE Security & Privacy, 12(5), pp.35-41.
Bull, J.W., Jobstvogt, N., Böhnke-Henrichs, A., Mascarenhas, A., Sitas, N., Baulcomb, C.,
Lambini, C.K., Rawlins, M., Baral, H., Zähringer, J. and Carter-Silk, E., 2016. Strengths,
weaknesses, opportunities and threats: A SWOT analysis of the ecosystem services
framework. Ecosystem services, 17, pp.99-111.
Fleisher, C.S. and Bensoussan, B.E., 2015. Business and competitive analysis: effective
application of new and classic methods. FT Press.
Grant, R.M., 2016. Contemporary strategy analysis: Text and cases edition. John Wiley & Sons.
Ibisworld.com.au. (2018). Event Promotion and Management Services in Australia Market
Research | IBISWorld. [online] Available at:
https://www.ibisworld.com.au/industry-trends/market-research-reports/administrative-support-
services/event-promotion-management-services.html [Accessed 12 Jan. 2018].
Jones, M., 2014. Sustainable event management: A practical guide. Routledge.
Mallen, C. and Adams, L.J. eds., 2017. Event management in sport, recreation and tourism:
theoretical and practical dimensions. Taylor & Francis.
Porter, M.E. and Heppelmann, J.E., 2014. How smart, connected products are transforming
competition. Harvard Business Review, 92(11), pp.64-88.