Tourism: An Essential Reason San Diego Should Engage in

Social MediaKriXis Consulting

April 25, 2014

Why San Diego and Methods

San Diego is a vacation town

This makes the city unique Use of SWOT Analysis Use of Porter’s Five Forces Summary

SWOT - Strengths Tourists will have a disposable

income

Looking for something different

Tourists will be searching via social media Facebook searching gaining

ground on Google

Double advertising from tourists sharing with own connections

Can be applied to all business, not just service Example – anyone can get a

toothache on vacation

SWOT - Weaknesses Strategies take time to develop

Weeks of research alone Strategies take work to upkeep What you are be doing may not

be seen by anyone New Facebook algorithms make

visibility difficult, even to followers

May need to find outside help Established tourists spots already

have word-of-mouth Can be difficult to compete with,

however, social media levels playing field

SWOT - Opportunities Tapping into a new market*

Already seeing a boost during tourist season?

Why not take a bigger piece of that pie?

Many San Diego business are not catering to tourists yet

Great time to get into a niche Start by asking if you were

traveling to a new place what would you want to do, and be the business that answers that question via content

SWOT - ThreatsIf You Don’t,

Others Will,

Listen At Your Own Peril.

Porter’s Five ForcesWhat are they?

Supplier power - An assessment of how easy it is for suppliers to drive up prices. This is driven by the: number of suppliers of each essential input; uniqueness of their product or service; relative size and strength of the supplier; and cost of switching from one supplier to another.

Buyer power - An assessment of how easy it is for buyers to drive prices down. This is driven by the: number of buyers in the market; importance of each individual buyer to the organization; and cost to the buyer of switching from one supplier to another. If a business has just a few powerful buyers, they are often able to dictate terms.

Competitive rivalry - The main driver is the number and capability of competitors in the market. Many competitors, offering undifferentiated products and services, will reduce market attractiveness.

Threat of substitution - Where close substitute products exist in a market, it increases the likelihood of customers switching to alternatives in response to price increases. This reduces both the power of suppliers and the attractiveness of the market.

Threat of new entry - Profitable markets attract new entrants, which erodes profitability. Unless incumbents have strong and durable barriers to entry, for example, patents, economies of scale, capital requirements or government policies, then profitability will decline to a competitive rate.

Supplier Power Perfect opportunity to showcase

what makes your business unique Show why EVERY San Diego

tourists needs to check you out Prices and specials alone could

drive business through social media Especially when accompanied

with pictures Promotional codes and deals can

be pushed through platforms Provide direct feedback to your

strategy

Buyer PowerVisitors have the

ability to drive down prices

Watching where tourists are goingViewing check-ins at

competitors locationsGain a better

understanding of competitors

Competitive Rivalry Tourists have endless possibilities

Social media makes the comprehension of competitors easy

If you aren’t providing information others will They will reap the benefits

Think about what attracts you to visit places while out of town Keep on eye on competitors as well

Competitors may not be in the same industry The tourists disposable income can

be spent on a vast array of activities but is budgeted, therefore scuba lessons may take priority over your restaurant

Threat of New EntryPlenty of businesses

want to cash in on San Diego tourism

Stay aware for new businesses emerging

Forbes listed San Diego as #1 place to start a businessCompetition is headed

your way

SummaryThank you for taking the time to read through this, and I hope you have found some value in what you have read. I also hope that you see the opportunity that is in front of you, I’m sure as a small business owner this is a time of year you look forward to; now with these insights I hope you can capitalize and get the most of this upcoming season. Sources: “Porter’s Five Forces of Competitive Position Analysis – CGMA.” Porter’s Five Forces of Competitive Position Analysis – CGMA. American Institute of CPAs, n.d. Web. 25 Apr. 2014.

KriXis Consulting, www.krixis.com

All feedback is greatly appreciated