HI6006: Examining Strategy Tools - PESTEL, SWOT, Porter's Five Forces

This essay provides an overview of strategy development tools and their application in business, with a focus on the tourism, aged care, and education industries in Australia. It includes a SWOT analysis of Pure Travel, a travel agency, and Porter's Five Forces analysis of Mercy Place, an aged care center. Additionally, a PESTLE analysis is conducted for Sydney Metro College, an educational institution. The essay also discusses the strengths and weaknesses of each industry, offering insights into competitive strategies and market dynamics. Desklib provides access to similar solved assignments and study resources for students.

Running head: COMPETITIVE STRATEGY
Competitive Strategy
Student’s name:
Name of the university:
Author’s note:

1COMPETITIVE STRATEGY
Tourism industry Australia
The tourism industry in Australia has a significant role in the Australian economy.
Tourism industry provided 4.5% of the Australian GDP in the year 2016-2017 (Mistilis et al.
2014). In addition, domestic tourism also provides significant revenue to the Australian
economy. Strengths of the tourism industry of Australia are associated with the safe environment
and world-class nature. Weaknesses of the tourism industry are associated with the busy
destinations, immense distances between two places and expensive tourism.
Pure Travel is an Australia based travel agency and this organisation mainly does the
corporate travelling. Pure Travel organisation was established in the year 2001 and this
organisation is licensed as a travel agent (Puretravel.com.au 2018). Pure Travel has accreditation
from Australian Federation of Travel.
SWOT analysis
Strengths: Pure Travel is the member of American Express and this partnership offers
the client assistance from 2,200 travel locations in more than 133 countries. American Express
helps the organisation with worldwide buying power on car rental, hotel and airfares. In addition,
Pure Travel runs as boutique style travel service led by hands-on owner. Moreover, Pure Travel
offers exceptional service and guarantee that the guests will be impressed by the hard-working
staffs. The strength of Pure Travel lies in the leadership of the CEO Valerie Davis and with the
exceptional team members (Puretravel.com.au 2018). This travel agent has bulk deals for the
guests and the guests have world-class facilities.
Weaknesses: Pure Travel mainly provides corporate travelling and therefore, the leisure
travellers are not enthusiastic about Pure Travel. Pure Travel has been facing the issue of

2COMPETITIVE STRATEGY
providing value to the customers. The service to the corporate guests must be high standard;
otherwise, the corporate booking will be reduced with time. In addition, Pure Travel does not
adopt new service or patterns quickly enough and the organisation is not much technology
friendly. The travel industry has less or more been standing as onlookers on the technical
revolution and not being technology friendly can be a loss to huge potential (Armstrong et al.
2016).
Opportunities: Pure Travel needs to educate the guests regarding the customer service
and tourism destinations. Mainly millennials must be the target and Pure Travel can make a
partnership with the large corporate houses to increase the customer base. Pure Travel needs to
embrace the technology and it would enhance the customer experience. Online packaging will
increase the customers and customers will know what they would be getting from the package.
Threats: In Australia, the threat lies on the expensive travelling in Australian tourists
spots and the domestic guests are not ready to pay this much. Pure Travel is doing mainly
tourism in the international market and general economy may not support the travel companies to
rise up. The downturn of the economy may affect the customers' travelling habit (Armstring et al.
2016). Pure Travel needs to attract the corporate offices more to survive in the industry.
Aged care Australia
The Australian population is going aged and this demographic shift is changing the
healthcare scenario in Australia. Strengths in aged care are the ability to work in team and
availability of nurses (Baldwin et al. 2016). Weaknesses of aged care lie in the involvement of
the healthcare professionals and knowledge gap of the practitioners. In addition, opportunities in

3COMPETITIVE STRATEGY
this industry are the growing aged patients and expenditure related to health among aged people
in Australia.
In East Melbourne, Mercy Place is an inner city home aged care centre that offers
personalised care to the aged patients. Mercy Place is a cosy; however cosmopolitan and modern
with city views (Agedcareonline.com.au 2018). The staffs in this aged care home are caring
those offer the interests towards the service users who live here.
Porters’ Five Forces analysis
The threat of New entrants: Level of attractiveness in the aged care industry is medium
and barriers to entry are also medium. The government gives permission to open a new aged care
home in order to open for-profit organisation. The income of the aged care homes has been
increased by almost 9% during 2015-2016. The numbers of patients have been increased and the
price charges of the aged care homes have been increased by 6% (Henderson et al. 2017). Future
profitability is certain for the aged care homes and therefore, the threat of new entrant force is
medium.
Competitive Rivalry: Aged care industry has been going through changes and maximum
changes are occurring in technology and increase of beds, the Competitive rivalry is not high as
the geographical positions of the aged care homes are planned in such a way that these homes
may not compete with each other. Therefore, the force of competitive rivalry is low.
The threat of substitutes: In Australia, healthcare centres are numerous and the patients
can go to nursing homes, public hospitals, healthcare centres and residential care homes.
Therefore, the people have enough choices to opt for the health care homes (O’Connor et al.
2017). There are many non-profit care homes as well from where the people can choose to admit.

4COMPETITIVE STRATEGY
The aged care home is not the only one for the aged patients to take proper care. It is clear that
the substitutes are many in the healthcare industry.
Bargaining power of suppliers: The suppliers for the aged care centres are consumable
medical supplies, medicines, medical equipment and medical practitioners. This influence is not
activated positively that it can negotiate with the organisations. This current force is low.
Bargaining power of customers: More than 9 million people in Australia are over 40
years. As stated by Madsen and Walker (2015), Australian people want own home for their aged
life and almost 6% Australian people live in aged care homes. Customers of aged care are mainly
older people and they have the power to influence the aged care industry in a negative way. The
people will choose the aged care homes of their choice for their pricing. Hence, this force is also
moderate.
Education industry Australia
Education industry in Australia has been growing in past few years and many
international students are coming for studies in the colleges and universities. Revenue of the
education industry in Australia touched the mark of $120 billion and annual growth in this
industry is 4% (Verger et al. 2016). Strengths of education industry in Australia are based on
affordability value, programmes offered and instruction quality. Weaknesses of education
industry are mainly the process improvement and communication and collaboration between
colleges and district.

5COMPETITIVE STRATEGY
Sydney Metro College is an educational institution that offers courses like Business
Diploma, Diploma in Business Certificate and Accounting. This college helps the students to get
the visa, provides airport pick and the opening of bank account (Sydneymetrocollege.edu.au
2018).
PESTLE analysis
Political: In Australia, the political condition is stable and the government takes the
initiative to change the skills required for the teacher. Many of the schools and colleges are
privatised in Australia and changes in curriculum are also seen in Australia.
Economic: The international education sector is to export the earning to get almost $33
billion. The economic condition in Australia steady and education industry is expected to grow
almost 5% (Coduto 2017). The students can spend the money on their education in Australia as
annual growth of the educational institution is almost 3.8%. The educational institutions provide
the cost to provide the resources staffs, technology and basics. Interest rates for the students are
low so that the students can afford the money for education.
Social: Social factors in education in Australia are associated with the declining of birth
rate, demographic changes and closures of the local firms. Average gross salary of Australians
are AU$ 1,605 in weekly basis; therefore the individuals have the ability spend on education.
Literacy rate in Australia is high and the people spend money on education.
Technological: The colleges and schools are using the technologies regarding standards
and equipment (Coduto 2017). Within the classrooms, the faculties use the technologies, laptops,
projectors and internet to teach the students. Sydney Metro College has an online portal from
where the students can learn. E-books are given to the students.

6COMPETITIVE STRATEGY
Legal: In Australia, new legislation has been created regarding education where the
educational institutions may create risks on non-compliance with the law. Health and safety of
the students are ensured and the protection of the international students is guaranteed.
Environmental: The educational institutions should provide emphasis on environment
and they do not dispose of waste. The educational institutions do not reduce the green space.

7COMPETITIVE STRATEGY
Reference List
Agedcareonline.com.au. 2018. Mercy Place East Melbourne Residential Aged Care East
Melbourne | Aged Care Online. Available at: https://www.agedcareonline.com.au/residential-
aged-care/facilities/mercy-place-east-melbourne [Accessed 18 Apr. 2018].
Armstrong, F., Armstrong, D. and Barton, L., 2016. Inclusive education: policy, contexts and
comparative perspectives. Abingdon: Routledge.
Baldwin, R., Chenoweth, L., Rama, M. and Liu, Z., 2016. Quality failures in residential aged
care in Australia: The relationship between structural factors and regulation imposed
sanctions. Australasian Journal on Ageing, 34(4), pp.23-28.
Char-lee, J.M., Becken, S. and Watt, M., 2016. Learning through a cluster approach: lessons
from the implementation of six Australian tourism business sustainability programs. Journal of
Cleaner Production, 111, pp.348-357.
Coduto, D.P., 2017. Foundation design: principles and practices. Sydney: Pearson.
Henderson, J., Willis, E., Xiao, L. and Blackman, I., 2017. Missed care in residential aged care in
Australia: An exploratory study. Collegian, 24(5), pp.411-416.
Madsen, T.L. and Walker, G., 2015. Modern competitive strategy. New Jersey: McGraw Hill.
Mistilis, N., Buhalis, D. and Gretzel, U., 2014. Future eDestination marketing: perspective of an
Australian tourism stakeholder network. Journal of Travel Research, 53(6), pp.778-790.

8COMPETITIVE STRATEGY
O’Connor, M., O’Connor, E., Tarasuik, J., Gray, S., Kvalsvig, A. and Goldfeld, S., 2017.
Academic outcomes of multilingual children in Australia. International journal of speech-
language pathology, pp.1-13.
Pure Travel. 2018. About Us - Pure Travel. [online] Available at:
https://www.puretravel.com.au/about-us/ [Accessed 18 Apr. 2018].
Sydney Metro College. 2018. Sydney Metro College. Available at:
http://www.sydneymetrocollege.edu.au/ [Accessed 13 Apr. 2018].
Verger, A., Lubienski, C. and Steiner-Khamsi, G. eds., 2016. World yearbook of education 2016:
The global education industry. Abingdon: Routledge