Feasibility Study
1. Introduction
Internet has developed from merely a media for communicating new ideas, news, and chatting into becoming new ways of generating revenues. Thanks to the advancement of information technology including increased security that encourages customer to shop online. For corporations that target worldwide audiences, internet is very helpful since customers can reduce costs due to the corporations’ website is virtually global, it is accessible by a worldwide audience.
In order to spread organization wings and become a multinational enterprise, top managements of a company might take various policies such as exploring new market, developing new products, or conducting mergers and acquisitions to strengthen companies’ presence in a specific market.
While the famous business model of online companies cast by Google and Amazon.com, virtually any online companies can follow similar success of the two companies if they employ similar strategy and apply them to strengthen their brand equity, maintain competitive advantages to generate larger sales and revenue.
Concerning the potential of becoming a market leader through product diversification and developing competitive advantage, this paper discuss the comparison between several event and expo service providers in the U.K. The focus of the discussion in on CTS Limited and then we compare the business positioning and competitive advantage of CTS limited (http://www.ctsnet.co.uk) to its competitors: Expo Systems (http://www.opex.co.uk), Interchange Communications Ltd, Event Advantage Solutions Ltd (http://www.eventadv.com).
2. Comparison of Exhibition Service Providers in the U.K
2.1 Competitive Advantage
The success of Amazon.com, Google in performing online marketing is the results of differentiation strategy that the companies perform. A differentiation strategy becomes keyword for any company in order to win a fierce competition by delivering products or services that have particular features that are different from competitors have. The reason of conducting differentiation strategy is to attain a competitive advantage by creating a product (good or service) that is perceived by customers to be unique in some important way.
By definition, Tutor2U (2005) characterizes the competitive advantage as a company’s particular advantage over its competitors, which is obtained through offering consumers greater and appropriate value like lower prices or by providing greater benefits and service that justifies higher prices such as customized services that exactly match customers’ needs.
In exhibition service providers in the U.K, we witness that each company strives for differentiating its offering from competitors’ services. It is important since customers have particular needs at a specified time when looking for exhibition service providers.
When we visit some websites of exhibition service providers in the U.K., we witness that each company declare itself as the leading company in the industry. Therefore, the differentiation will help customers to sort out which provider suits their needs.
CTS, for example, in its website declares to be the UK’s premier exhibition registration service provider that has a wide variety of products to help companies in carrying out exhibition, conference and other corporate events (CTS, 2006).
Concerning the competitive advantage of CTS, we consider that the group’s product diversification becomes its competitive advantages since the company’s four services -data services, registration, research and IT Technology- are complementary and customers in obtaining comprehensive solutions. For example, instead of merely providing registration services, CTS also provide additional benefits like data management that enables CTS to advice customers on all aspects of data processing, direct mail targeting, which in turn will generate new revenues for customers (CTS, 2006).
Another competitive advantage of CTS is its service that enables customers (exhibitors) to immediately order online through this online link http://www.ctsnet.co.uk/cts_tech/ExhibitorOrderOnline.html (Figure 1). This feature highlights the competitive position of CTS as comprehensive provider of exhibition service in the UK.
Figure 1 Feature of Order Online in CTS
Meanwhile, CTS competitors somewhat similar services as exhibition service providers with some value added. Expo System, for instance, in addition to becoming specialist in the provision of registration, the company also provides additional services such as direct marketing and data management services that also help customers to managing their data, planning and budgeting, response handling. Unfortunately, this company does not provide customers to perform online orders since the company requires customers to call +44 (0)1923 690690 or email [email protected] for further information or registering in an event (Opex Group, 2004).
Similarly, Event Advantage Solutions (2005) does not show to be online marketer since the company’s website shows to be information website instead of luring customers to make the orders immediately (Figure 2). The company’s portfolio includes event organizing, logistics, marketing and registration. Unfortunately, this company does not provide customers to perform online orders since the company requires customers to call +44 (0) 207 375 7530 or email us at [email protected] (Event Advantage Solutions, 2005).
Another company, Interchange Communications, appears to have similar services like the other exhibition service provider that offers four services: Exhibition, Conference and Event Organizers for the management of exhibition data and creation of media channels between the Organizers, Visitors and Exhibitors. Unlike CTS, Interchange Communications does not enable customers to book online (Interchange Communications Ltd, 2006)
Figure 2 Website of Event Advantage Solutions
2.2 Positioning
According to Recklies (2006), positioning is a process that deals with conveying product value to buyers, which results in driving all type of outbound communications. Therefore, the best positioning strategy is visibly position how the product will solve specific customer problems.
Keys to the Amazon.com success are strong customer services and timely product delivery. By providing feature of online order, CTS stands out the crowd and highlights them to be internet marketer. This is quite similar to approach of Amazon.com that creates interactive website. This service makes customer return to the site and obviously, it presents a great value to CTS. In addition, CTS also position itself as service providers for both exhibitors and visitors of exhibitions (Figure 3).
Figure 3 CTS Features for Visitors of Exhibitions
Unlike CTS, Expo Systems only focus on providing services to exhibitors or corporations. This Expo Systems philosophy is obvious since in the company’s website, we find that the company only intend to “reach, welcome, thank and understand your audience” (Opex Group, 2004).
Similarly, Event Advantage Solutions also focus on delivering services to corporations or exhibitors since in the company website; they intend to “increase corporations’ conversion rates, help customer to attract more quality attendees to corporations’ event.
Table 1 Matrix of Four Exhibition Service Providers in U.K.
CTS Limited,
Expo Systems
Interchange Communications Ltd
Event Advantage Solutions Ltd.
Competitive Advantage
· product diversifications (data services, registration, research and IT Technology)
· Data processing, direct mail à generate new revenues for customers
· Online order
· direct marketing and data management services à data management, planning and budgeting, response handling
· Business improvement and cost reduction employing wireless, e-business and Communications technologies
· event organizing, logistics, marketing and registration
Positioning
· Service providers for exhibitors and visitors of exhibitions
· Focus only on targeting exhibitors and corporations
· Focus only on targeting exhibitors and corporations
· Focus only on targeting exhibitors and corporations
3. Conclusion
The advancement in communications and internet technologies has spawn a new model of the world’s economy, borderless economy. The terminology refers to the existence of cross-nations or even cross-continents trade, commerce, and other economics process. In internet era, companies need to remember that the Web is inherently global – when a company launches a Web site, it is accessible by a worldwide audience.
This paper has elaborated industry comparison in terms of competitive advantage and product positioning among exhibition service providers: CTS Limited, Expo Systems, Interchange Communications Ltd, and Event Advantage Solutions Ltd.
We consider CTS leads the exhibition-service-provider industry and comply with Porter’s suggestion to attain competitive advantage through four strategies: differentiation, cost leadership, differentiation focus, and cost focus.
Bibliography
Berner, Robert and David Kiley. “Global Brands.” Business Week July 2005
CTS. 2006, ‘Welcome to CTS’, [Online] Retrieved November 8, 2006 Available at: http://www.ctsnet.co.uk/cts_tech/index.html
Event Advantage Solutions. 2005, ‘Event Advantage Solutions’, [Online] Retrieved November 8, 2006 Available at: http://www.eventadv.com/
Interchange Communications Ltd. 2006, ‘Welcome to Interchange Communications Online’, [Online] Retrieved November 8, 2006 Available at: http://www.interchangecomms.com/
Opex Group. 2004, ‘Welcome to Expo Systems’, [Online] Retrieved November 8, 2006 Available at: http://www.opex.co.uk/expo/
Recklies Management Project GmbH. Marketing. 2006, ‘Segmentation / Target Marketing / Positioning’, [Online] Retrieved November 8, 2006 Available at: http://www.themanager.org/Knowledgebase/Marketing/Segmentation.htm
Tutor2U. 2005, ‘Strategy – competitive Advantage’, [Online] Retrieved November 8, 2006 Available at: http://www.tutor2u.net/business/strategy/competitive_advantage.htm
