Market Analysis of Australian War Memorial Essay Example

  • Category:
    Marketing
  • Document type:
    Assignment
  • Level:
    Undergraduate
  • Page:
    2
  • Words:
    1245

Marketing

Porter’s Five Forces

This is a tool used to gain an understanding of where power lies in a business. It deals with forces that are outside an industry that affect the kind of competition in that industry. Porter’s five forces further give an account of factors inside an industry that shape how firms compete. The Canberra Australian War Memorial is classified as the greatest establishment containing large collection of pictures, media, and details about war in addition to personal and public records. They are a reflection of wars that Australian has contributed across the world including Korean War, South African war and others.

Intensity of Competitive Rivalry

This is the main determinant of industrial competitiveness. Competitive rivalry is high since Australian War Memorial, standing at the top of Anzac Parade, is one of the 4,000 War Memorial sites. Competition has been intensified by the fact that small competitors have been competing to become market leaders. Increasing rivalry is further contribute by expanding market growth which then implies that revenue is high and firms are willing to enter the profitable market (Porter, 1998). Existence of several war memorial sites indicates that the country values war. Materials found at the memorial site are a collection of pictures, media and other records that reflect wars participated by Australia. Other memorial sites can easily present the same product.

Threats of substitutes

According to Porter (1998), substitute product simply indicates the product that can be found in other industries. There is bound to be a treat of substitute in a situation where a product demand is affected by change in price of a substitute product. Australian war memorial has very few substitutes thus its price elasticity is low. It is imperative to note that there are several heritage sites in Australia but they do not act as close substitute of Australian War Memorial. It is therefore difficult for customers to switch from visiting the memorial site in favour of other heritage sites e. g uluru or kakadu.

Buyer Power

This is explained by the impact that customers have on specific industry. In the case of Australian War Memorial, the power of buyer is weak since products available at the site are not standardized and not easily found in any other place. It is therefore hard for customers to switch to other products. As aforementioned, heritage sites in addition to War Memorials found in Australia are numerous but do not display similar products to found in the war memorial site (AWM, 2005). The low buyer power is further enhanced by inability of the consumer to influence the product or its price.

Supplier Power

As a reflection of wars, the memorial site requires excellent artists to draw or rather supply pictures, media, and information concerning wars that Australia participated in. Briefly, the memorial site hosts various activities and information aimed paying tribute to thousand of people who lost their lives serving their home county. The power of suppliers is high since such information, activities and pictures can only be supplied by few and specific persons. An example is guns used during wars, which cannot be found easily and cheaply.

Threat of New Entrants and Entry Barriers

Threat of new entrants is low in the industry since specific inputs are required in the War Memorial Place. The site is different from any other business that sorts its input material. This factor can be linked to asset specificity where inputs into the industry cannot be used to produce other products. Materials found in Australian War Memorial are specific which means that it is hard for any other firm to supply similar gadgets. This memorial park was established by the government with a view of paying tribute to departed heroes thus it is regulated for the benefit of common person.

SWOT Analysis

This tool will be used to examine Australian War Memorial and its environment. The strengths and weaknesses are internal factors while opportunities and weakness are external variables that are critical in a strategic planning process. These internal and external variables provide a base where a firm’s resources and abilities are compared to the immediate competitive environment (Porter, 1998).

Strengths

Australian War Memorial is recognized across the global as the greatest national monument that acknowledges services of Australian men and women in defending the country. This recognition earns the War Memorial recognition among the population both within and across national boundaries. The other strength springs from its location at the prominent Canberra and its infrastructural designs. Site of a project at the Hyde Park Corner is strategically placed in fulcrum ceremonial channel through London and shared by 18th century monuments of Welllington Arch and Decimus Burton. The Australian Memorial unites the green space at the intersection. The design offers a respectful gesture to classical monuments and landform. Its memorial wall encloses the project’s sloping grassed amphitheatre that presents a good ground for reflective and commemorative events. Additionally access to the memorial is easy due to the assistance of iTour audio guide (Australian War Memorials, 2005). By using technology touch-screen hand held device, a visitor is assisted by iTour guide to appreciate the Hall of Memory. In summary, the structure of the memorial is its main source of strength given that it provides a prolific ground for customers to reflect.

Weaknesses

The weakness of the memorial lies in the presence of over 4,000 War Memorial sites in Australia. The War Memorial throughout Australia focuses on monuments upon the First World War and Anzac. It simply sends a message that the country prides itself in war. This is bound to hamper the outlook of Australia as it creates a bad perception in the minds of people around the world. The other weakness lies in poor governmental funding which then forces War Memorial to reduce the number of its employees and further cut services and programs (Massola, 2011).

Opportunity

One major opportunity for Australian War Memorial is the rapidly progressing technology. The project should venture into e marketing where customers can be reached from any part of the world. Eventually, number of people visiting the site would increase substantially.

The treat to Australian War Memorial is competition from 4,000 other memorial sites in Australia. It is therefore the responsibility of the government to differentiate the war memorial or rather strategically reduce cost such that it becomes competitive and attracts customers. The second threat is global recession, which has reduced disposable incomes of common person. This eventually reduces funds available for customers to spend visiting the memorial site.

Competitive service strategy

In recognition of the fact that there are several other War Memorials in Australia, cost leadership is more favourable. In this context, personal element in service delivery should be reduced through a process of promoting self-service. Technology comes in handy to support the use of self-services that eventually reduces costs incurred in running an establishment. The use of iTour guide is an innovative strategy at Australian War Memorial since it reduces the element of personal service (AWM, 2005). Other measures to reduce costs include standardizing custom service e. g personal transport and entertainment.

Reference List

Australian War Memorials. www.awm.gov.au/.

AWM., 2005. Australian War Memorial: Annual Report 2004-2005. Canberra: Commonwealth of Australia.

Massola, J. 2011. Canberra’s iconic Australian War Memorial pleads in vain for funding to arrest decline.The Australian, [online] 15 February. Available at: http://www.theaustralian.com.au/national-affairs/defence/canberras-iconic- australian-war-memorial-pleads-in-vain-for-funding-to-arrest-decline/story- e6frg8yo-1226006209685. [Accessed 11 May 2011].

Porter, M., 1998. Competitive Strategy: Techniques for Analyzing Industries and Competitors. New York: Free Press.