Five Forces Analysis

A useful tool for analyzing event industry’s attractiveness is the five forces model. This model recognizes the influence of five industry force:

Rivalry among companies competing in the event planning industry, the competition is very strong, the numbers of competitors is big, even competitors are not similar in size, but similar in capability, those industry can grow at a fast pace, the numbers of event planning companies are four, some hotel company like Venetian has its own congress and hotel department, which can deal with its own depend for event planning.

Bargaining power of buyers is very big, the industry customers like international company and Chinese company can switching the contract to competitor unless the budget is lower, have more creative and attractive ideas and experience. But the substitute products are relatively low. The numbers of customers in the event industry are very large.

Bargaining power of suppliers to the industry is very big as well, such as the place for holding event like exhibition, if there is an huge exhibition, it is believe that the facility like exhibition hell, the supplier - facility owner has extreme big bargaining power, if there is no choice like Macau only has Venetian is able to provide such huge space for huge exhibition. On the opposite, if the exhibition is not so big, the event plan may have a lot of choices on choose places or shift the exhibition to Hong Kong, here, the bargaining power of supplier is relatively low. If an event has the section of road show, it is needed to find some female models through model companies, the bargaining power of them is relatively low, since the event company like us can visit another model company to look for the model

Threat of new entrants to the industry is big, because capital requirement to enter the industry are low, open an each event company is not a difficult task, in Asia market, very often, most of the companies are extremely “brand-loyal”, they will look for same event planning company to help them to plan an event, there is possibility of making it easier for new company “new entrants” to the industry to draw them away from existing businesses

Threat of substitute products or services is relatively low, the type of event including conferences, exhibition, business to business event, launch event, ceremonies, public event, gala dinners, celebrations, receptions, roadshows and product launches. The purpose of company that holding the events like exhibition, launch event, product launches and roadshows are to introduce or promote something to the consumer or public, the substitute product or services which can replace such event service are advertisement, by making TV advertisement, poster and flyer. However, some public relation activities like opening ceremony, public event, gala dinners, celebration and reception, it is likely that there are no substitute services which can replace holding such events