HAT203 | Management | Analyze of The Changes In The Target Market
Answer:
Introduction
Reeds exhibition is considered to be a widely known event organizing organization. The company has a portfolio of organizing more than 500 events across 40 countries including USA, China, UK, France, Germany, Australia, USA and Middle Eastern countries like India, Russia and China. The chief focus of the company is large scale business to business events. However, the organization also runs a smaller number of consumer events (Rogers and Davidson 2015). The purpose of this report is to analyze the micro as well as macro environment of the mentioned organization. In order to conduct macro analysis, STEEP analysis of the mentioned organizing will be performed. For micro analysis, SWOT and Porters five forces analysis of the Reeds exhibition will be performed in this report.
Macro context: STEEP analysis
In order to analyze the changes in the existing or target market and develop strategies to cope up with the changes, it is highly crucial for the management of Reeds Exhibition to conduct STEEP analysis.
Socio-cultural Influence:
Globalization was considered as one of the driving forces for the growth of the exhibition industry. Due to globalization the demand of holding exhibitions due to higher product inflow and direct foreign investments and capitals have increased. Along with that, with the enhancement of brand awareness among consumers has made it more obvious for companies to hold exhibitions (Reedexpo 2018). Thus the socio-cultural factor imposes positive impact on the event and exhibition industry.
Technological influence:
Technology plays a major role in the development of the event and exhibition industry. Due to the enhancing power of the digital interface that takes place between buyer, exhibitions and intermediaries prior to the event help the organization to understand the specific needs of the consumers and enhance consumer loyalty. Moreover, technology also enhances the organizations to enhance their business through popular social media platforms like Facebook and LikenIn.
Environmental Influence:
The environmental factor imposes mostly positive impact of the exhibition company. Enhanced environmental awareness across the world have resulted is increase in the overall revenue of the industry since the mentioned factor have opened the scope of conducting exhibition by the companies for perceiving environmental awareness (Evans 2015). However, there remains the risk of events getting cancelled due to natural disasters like flood. Moreover, in order to gain competitive advantage, event and exhibition organizations need to develop eco friendly materials as well as production technologies in order to avoid pollution.
Economic Influence:
The growth of the exhibition industry is highly dependable on the local economic condition. For instance, considering the fact that one of the most potential markets of Reeds exhibition is china, the economic development of the nation along with increasing number of exhibition centers is enhancing the opportunity of the events and exhibition industry to enhance its yearly profit (Rogers 2013). Though, the fact that the recent recession all over the world had imposed a negative impact on the revenue of the mentioned industry cannot be ignored.
Political factor:
Increasing political pressure in order to make regulations as well as policies to reduce greenhouse gas emissions is one of the chief political factors that influenced the mentioned industry. However, the fact that with the support of the local government the event and exhibition industry can reduce it operational cost cannot be ignored.
Micro Context: Porter’s five forces
Market Rivalry:
The rivals of the Reeds Exhibition in the Event Management and organiser market across the globe are highly competent and experienced in their industry. The major competitors of Reeds Exhibition Company are UBM, Messe Frankfurt, Comexposium, Emerled, ITE and others (Huang 2016). This huge number of competitors is creating a strong market rivalry in Event Management and Exhibition Organising Industry.
Threats from New entrance:
The market competitiveness in global Event Management and Exhibition Organising Industry is already higher and it is continuously increasing. Apart from that, to start a global level Event Management and Exhibition Organising Company, it needs a large volume of capital. As a result, the number of new entrees in this industry is comparatively low.
Threats from substitutes:
The market competitors of Reed Exhibition Company are incorporating new services and faculties in their business to beat the market reputation of the Reed for its versatility. However, dor capturing a larger area of event management industry there are multiple fragmented substitute services. Therefore, in this situation, the threat of substitutes is higher.
Bargaining power of the consumers:
The range of service, facilitates and delivering quality of Reed Exhibition is higher than others along with their price range, especially for B2B business. At the same time, competitors are trying to attract the market segment by implementing lowering price strategy. Therefore, the bargaining power of consumers is increasing.
Bargaining power of the suppliers:
Due to have international level consumer base and market expansion Reeds Exhibition can never experience lack of suppliers. Due to have, high profit margin and revenue the company can offer better trading price for suppliers (Lee and Fenich 2016,). Moreover, the bargaining power of the suppliers is very low for Reed Exhibition Company.
SWOT analysis
|
Strength |
Weakness |
|
Reed Exhibition is one of the largest and most successful event management and exhibition organising company across the globe with a portfolio of organizing more than 500 events across 40 countries. The revenue growth of the company is stable and even slightly inclined towards more profitability. |
Multiple numbers of acquisitions have weakened the brand reputation Reed and therefore the Reed Exhibition is being affected. Being a company of different business activities Reed Exhibition experiences a fluctuated competiveness in the market. |
|
Opportunity |
Threat |
|
Reed Exhibition can save their operational cost by reducing their energy usage with the help of advance technological implementation. Reed Exhibition organises events for many companies of key industries such as oil, gas and others. Therefore, the company has the potential to take over other companies easily. |
The increasing number of market competition and the high bargaining power of the consumers of Event management and Exhibition Organising industry are causing strong threat for Reed Exhibition (Lai 2015). The change in international relationships and trading rules and regulation, can cause turbulence for the event management market in future. |
Reference List
Evans, N., 2015. Strategic management for tourism, hospitality and events. Routledge.
Huang, H.C., 2016. How does meetings, incentives, conventions, and exhibitions industry attract exhibitors?. Asia Pacific Journal of Tourism Research, 21(1), pp.73-93.
Lai, I.K.W., 2015. The cross-impact of network externalities on relationship quality in exhibition sector. International Journal of Hospitality Management, 48, pp.52-67.
Lee, S.H. and Fenich, G.G., 2016, April. Perceived fairness of room blocks in the Meetings, Incentives, Convention, and Exhibition industry. In Journal of Convention & Event Tourism(Vol. 17, No. 2, pp. 159-171). Routledge.
Reedexpo., 2018. Home - Reed Exhibitions. [online] Reedexpo.com. Available at: https://www.reedexpo.com/ [Accessed 28 Aug. 2018].
Rogers, T. and Davidson, R., 2015. Marketing destinations and venues for conferences, conventions and business events. Routledge.
Rogers, T., 2013. Conferences and conventions 3rd edition: A Global Industry. Routledge.
Buy HAT203 | Management | Analyze of The Changes In The Target Market Answers Online
Talk to our expert to get the help with HAT203 | Management | Analyze of The Changes In The Target Market Answers to complete your assessment on time and boost your grades now
The main aim/motive of the management assignment help services is to get connect with a greater number of students, and effectively help, and support them in getting completing their assignments the students also get find this a wonderful opportunity where they could effectively learn more about their topics, as the experts also have the best team members with them in which all the members effectively support each other to get complete their diploma assignments. They complete the assessments of the students in an appropriate manner and deliver them back to the students before the due date of the assignment so that the students could timely submit this, and can score higher marks. The experts of the assignment help services at urgenthomework.com are so much skilled, capable, talented, and experienced in their field of programming homework help writing assignments, so, for this, they can effectively write the best economics assignment help services.
