Essay Example: SWOT Analysis of Perth Tours

Published: 2023-02-15
Essay Example: SWOT Analysis of Perth Tours
Type of paper:  Presentation
Categories:  Company Tourism SWOT analysis
Pages: 7
Wordcount: 1823 words
16 min read

SWOT analysis is a unique tool that enables an organization to asses its strengths and opportunities the business has at the time of evaluation. The device also evaluates the weaknesses of the firm and the possible threats which may impact the growth of the company. The SWOT analysis tool enables the business to carve a market niche in the industry it operates from. Furthermore, SWOT analysis tools allow an organization to craft a strategy that a firm can use to distinguish itself from the market rivals. Below is a SWOT analysis of Perth Tours, WA, and how it can utilize the SWOT tool to remain competitive in the bust tourism industry (Tegegne, Anteneh, Moyle, and Becken, 2018).

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Affordable Price

Perth Tours WA Company has established itself as a giant travel firm that focuses on quality tours for its clients. Perth Tours WA Company's services are also affordable to the majority of its market target. Currently, Perth Tours Company is among the most affordable transport companies (Perth-Tours, 2019).

Significant Brand Loyalty

Perth Tours WA Company enjoys favourable brand loyalty among its clients, especially in Australia and the neighbouring states (Perth-Tours, 2019). Perth Tours WA has a broad market awareness hence creating a ready market for its products. The firm also enjoys unmatched product development. Perth Tours WA Company designs a variety of travel packages depending on the clients' needs and budget. The innovativeness guarantees customer satisfaction, therefore, ensuring customer loyalty to the firm (Pearls and Wines, 2016).

Celebrity Acknowledgement

Perth Tours WA Company has also received celebrity and sports people acknowledgment due to its excellent services. The recognition from prominent individuals within the society will fuel the growth and expansion of Perth Tours WA as more people will want to associate with what there celebrity figure use (Gregory, 2015). The excellent management, front office administrators, and the human resource team is a strength that Perth Tours WA Company enjoys. The social resource team at Perth Tours WA Company is friendly and professional in their delivery of service. The professionalism of the human resource team and the front office administrators attracts more clients to the firm. The qualified management runs the organization by ensuring the proper allocation of resources for maximum production and trickling of benefits (Byrne et al., 2019).

Availability of Instant Mechanics

Perth Tours WA Company has employed instant mechanics who repair vehicles in case of a breakdown during travel. The company offers an alternative travel vehicle to transport its clients when their vehicles breakdown. The provision of alternative vehicles improves efficiency as clients reach their destinations on time. Therefore saves time (Pearls and Wines, 2016).


High Charges for Vehicle Hire Services

The primary weakness of Perth Tours WA Company is the high cost it charges its clients to hire services. The firm considerably charges a higher travel fee compared to a majority of its competitors (Pearls and Wines, 2016). The higher travel fee being charged will likely scare away or limit some of its clients from using their travel vehicles due to the need to save on costs. The firms also incur high maintenance costs (Tegegne et., 2018). Perth Tours WA Company probably does daily maintenance of their vehicles to ensure they are in excellent condition for the transportation of clients. The firm also has staff who are likely to lower the firm's benefits (Gregory, 2015).

Lack of Diversity

The other weakness that negatively impacts Perth Tours WA Company is the lack of diversity. The company solely depends on travel services. The primary disadvantage of over-relying on one line of business is that the company can easily wind up due to stiff competition from the market rivals (Byrne et al., 2019). Perth Tours solely deals with transport services.

Loss of Documents

Perth Tours WA Company has poorly maintained travel records due to the crashing of their travel registration system. Poor maintenance of documents by the firm will likely cost them as it will be challenging for the company to restore its system and track all the records. Failure of the travel system will lead to significant losses as debtors will likely fail to pay. Lack of a backup system is also another weakness that Perth Tours WA Company faces (Gregory, 2015).

Lack of Proper Communication Channel

Perth Tours WA Company lacks a proper communication channel for its significant alerts. Some clients have often complained of not being notified upon delivery of their parcels (Byrne et al., 2019). The failure to communicate in time has lead to the loss of clients by the company. When packages are sent from one destination to another within Perth, it will make the company fail, record, and plan for their timely delivery. Perth Tours WA Company needs to enhance its delivery system to eliminate the possible hitches that cause communication failures between the company and clients (Pearls and Wines, 2016).


Recognizable Brand in Japan

Perth Tours WA Company enjoys considerable recognition in Japan. The excellent services the firm provides to its international tourists across the continent have spread to other countries (Perth-Tours, 2019). Perth Tours WA Company has built a recognizable brand that will promote its growth and expansion in the travel industry. Studies show that once a firm has developed a positive perception among its clients, it is easier for the firm to retain them due to loyalty. Perth Tours WA Company enjoys brand loyalty. Perth Tours WA can use online marketing techniques due to its advancement in technology. The firm can also improve its product to surpass clients' needs (Byrne et al., 2019).

Improvement of Travel Package Designs

Perth Tours WA Company has different buses and other travel vehicles that are unique from its rivals. The firm can improve in the design of its seats and other travel services to enhance customer satisfaction (Perth-Tours, 2019). The seats need to be comfortable with clients who fancy long-distance travel. Perth Tours WA Company also has the opportunity of diversifying its services to include catering services to its clients. The firm will significantly boost its market base if they provide meals and snacks to their clients who book for a picnic and other long-distance travel services (Vellas, 2016).

Less Legality in Transport Sector

The favourable travel laws in both Australia and Japan offer excellent opportunities for Perth Tours WA Company to venture. The travel taxes are considerably low, and other permit fees are few. It is, therefore, providing an opportunity for Perth Tours WA Company to venture and expand without much government restrictions (Pearls and Wines, 2016).

Market Expansion

Perth Tours WA Company also has the opportunity of expanding its services to other regions apart from Australia and Japan. In case of success in Japan, Perth Tours WA Company can focus on covering the broader Asian continent. By doing so, Perth Tours WA Company will maximize its market, therefore, increase profits. The firm can improve its market coverage by investing in densely populated cities (Pearls and Wines, 2016). The company also has ensured the security of its vehicles and passengers by obtaining third party insurance premiums. In case of accidents, the company will be compensated by the insurers (Dave, 2019).


Stiff Competition

The primary threat that Perth Tours WA Company faces is stiff competition from rivals. The company faces competition from Adelaide's Tours, who have significantly enhanced their travel services to attract more clients. The fluctuation of currencies in Asian markets is also another threat to Perth Tours WA Company. The firm venture in Japan will be a considerably different considerable difference in the value of the currency (Byrne et al., 2019). The uniqueness of travel laws between the two stats is also likely to be a threat to Perth Tours WA Company. The organization also faces the risk of the introduction of an alternative travel medium. Suppose Australia decides to change its travel policies and introduce another means of transport, Perth Tours WA Company will negatively be impacted due to a lack of diversity in its business. The high cost of foreign labour also poses a threat to the success of the Perth Tours WA Company. The Japanese rules regarding the cost of labour are different from Australia's considering Perth Tours WA Company will be a foreign investor in the country. The other considerable threat that Perth Tours WA Company need to fight is the frequent market fluctuation (De, 2019).

Fluctuation in Market Demand

The Australian travel market is unstable due to the availability of alternatives to Perth Tours WA Company. Recent studies indicate that the demand for luxury travel facilities in Australia is unpredictable (Mathews et al., 2019). It is hard to gauge the specific months the demand will be high or low. The unpredictability of the demand for luxury travel services is a significant threat to the survival of Perth Tours WA Company. The rapid advancement in technology further threatens the success and market dominance of Perth Tours WA Company. The revolution in technology has facilitated the automation of a variety of travel aspects. Perth Tours WA Company has had difficulties in managing its customer system due to poor app programming (Byrne et al., 2019).

Unstable Online Booking Services

The Perth Tours WA Company's client booking app frequently crashes, therefore, giving clients a challenging time to book for their services online. The frustrations that customers experience while using the Perth Tours WA Company's online services are likely to compel them to choose alternative travel service providers. In case a client is frustrated with the type of services he or she receives from a firm. It is likely to put them off, therefore, abandoning the firm's services and products for good. The Perth Tours WA Company rivals further pause threats to the success of the firm by introducing enticing travel offers to the clients. Adelaide's Travel Company has previously provided its clients' free rides in an attempt to lure more clients. It was a successful move, as it significantly acquired a new customer. This is the threat that Perth Tours WA Company needs to tackle strategically (Perth-Tours, 2019).

An Increase in the Number of Accidents

An increase in the number of accidents is another threat that faces Perth Tours WA Company. Consumers are always sensitive, and in case they hear of accidents from a specific firm, they tend to shun from the company. Previously, Perth Tours WA Company was involved in an accident, and its market base significantly reduced. The firm will need to ensure it hires qualified staffs who are experienced in driving the company's vehicles (Byrne et al., 2019). Fluctuation in the price of oil also impacts Perth Tours WA Company. The varying prices of oils in both Australia and Japan compel the firm to hike its travel prices as a reactive measure to maintain their profits. On the other hand, the hiking of prices shuns the client away (Haider et al., 2019).

Marketing Mix

Perth Tours Company needs to diversify its venture to attract a significant market. The firm needs to improve on its strength to ensure a competitive advantage over its market rivals. Perth Tours Company van uses its established brand to influence clients in Japan.

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