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Tourism Industry in Malaysia: SWOT Analysis

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    According to What is SWOT Anlysis (2011), SWOT analysis is an analysis used to identify the internal factors (strengths and weaknesses) of the company as well as external factors (opportunities and threats) of the company.

    Strength

    The supports from the Malaysia’s government for tourism industry become one of the powerful strength for this industry. According to Hamzah (2008), tourism industry gives second highest contributor after Manufacturing industry. According to Asia-Web.com (2012), Langkawi island is one of the most popular holiday destinations. Again, the supports from Malaysia’s government will create a greater changes for tourism industry in Langkawi Island (as well as for Meritus Resorts & Spa). By offering some recreational activities (i.e. water sports, adventures activities, etc), it become a crucial strength for Meritus Resorts & Spa to gain people attentions. Langkawi Island is more strategic to become a good holiday destination, one of the factors is because some airlines companies in Malaysia (like Malaysian Airlines, Air Asia, and FireFly) offer flights to go to Langkawi Island (Langkawi-online.com, 2012) which is a great strength for this industry.

    This is because the airlines partnership can be a critical point to increase the number of visitor. Here are some of the facilities which offered by this resort to gain more customers’ satisfactions: Online Reservation System: Meritus Pelangi Beach Resort has an online reservation feature embedded on it’s homepage website. This gives a good hospitality for people who want to stay at the resort. People can check the availability of vacant room on their desired days and they can check their previous reservation online. Unlike in other resort, some of their website doesn’t provide online reservation system that is accessible via the resort’s own website. This gives power for Meritus Pelangi in engaging more customers, offering ease planning of future booking/reservation. Family Package: Meritus Pelangi Beach Resort offer a reservation package special for family holiday.

    This package offers various bonuses for the family members, such as lounge service offer (breakfast, cocktail, internet access) for 2 persons, free children dine menu and complimentary children club activity for two persons, and also discount at spa. This superiority can attract more families who want to spend holiday at resort while getting better offer for family holiday. Wide Choice of Suites: The large variation of suite choices enable wide options for the tourists which suites they might like. Most of the choices are categorized by the type of the terrace, such as terrace which opposite the lake, opposite the beach, or the natural garden of the resort. They also offer Langkawi style traditional design for tourist who look for traditional atmosphere. Airlines partnership: The hotel offer variety of discounts for food and beverages up to 20% at the hotel’s restaurants for travellers who had become members of the listed airlines in the affiliates program. Big Company Name: Meritus is a large company name that are located at various eastern countries, from China, Singapore, and Malaysia.

    Weaknesses

    Regarding the global economic recession which discussed in the STEEP Analysis – Tourism page, price becomes the biggest issues for this four star resorts which provide luxury staying for their visitor with highly price on them. This resort is highly recommended for the rich family and couple who want to have luxury stays and honeymoon packages. Nowadays, the visitors are concerned about money and they demand a good service with a affordable price. This can be a factor that force this Meritus Resort and Spa to do the price reduction or improve their quality of service highly above the other resorts so the visitors are willing to come to this resort.

    Opportunity

    As the development of IT world today, the usage of portable devices like tablets, pocket notebook and smart phones can be the biggest opportunity for this resort. Having a mobile website to attract more customers to this resort which can become an effective way to be more successful, since it offers better convenience and flexibility for mobile users. The growth of social networking currently dominating the world.

    By promoting their resorts and put some advertisements (which most of them are free) can be a good opportunity for this resort. This can increase the number of travelers to choose the resort as a destination, while having minimal advertisement cost. Thus, published advertisements like TV and billboard advertisements, newspapers and even magazines advertisements can be minimized since they are more costly. The third opportunity is to participate by offering their services with a low cost (discounts or coupons) in some website like Milkadeal.com, Groupon.co.my, jackcow.my, etc which become popular nowadays. These websites have large number of users, thus it is easier to get a bunch more attention from many online users by joining in them.

    Threat
    Langkawi island is internationally famous as holiday destination. However, there are lots of other resorts besides this Island. Thus, the competitions in the tourism industry is quite high. Not only competitors from Malaysia it self like Redang Island, Tioman Island, etc, but also international destination places like Bali in Indonesia, Phuket in Thailand, etc. This four star resort and spa can use their priority services as their competitive advantages and “beat” their competitors simultaneously because each resort will have their loyal customers who are willing to spend their time and money to get the services provided by them. Meritus Resort and Spa only needs to maintain their loyal customers who has trust in their service and do some sales forces which mentioned earlier to gain new customers.

    Natural environment is one of the biggest threat for almost all industries in the world which is not controllable by human which can be used to make the number of visitors dropped down. For example in Langkawi island, which is located at the west side of Malaysia main island, face the plate border below Indian Ocean. The earthquake and tsunami threat can drastically reduce the visitors number in visiting the island. Analysis points

    Strengths:
    Strengths (S) is an enterprise beyond the capacity of its competitors, or unique to a company can improve the company’s competitiveness things. For example, when two companies are in the same market or that they have the ability to provide products and services to the same customer groups, one of the enterprises have a higher profitability or profit potential, then we think this enterprise than other enterprises have a competitive advantage.
    Strengths can be the following aspects:ž  Technical skills strengths: unique production technology, low-cost production methods, leading innovation capabilities, strong technical strength, perfect quality control system, a wealth of marketing experience, superior customer service, excellent large-scale procurement skills ž The strengths of tangible assets: advanced production lines, modern workshops and equipment, with a wealth of natural resources, storage, attractive real estate locations, adequate funding, comprehensive data and information ž Intangible asset strengths: a good brand image, a good business credit, a positive corporate culture ž Strength in human resources: key areas with expertise staff, highly motivated staff, strong organizational ability to learn, a wealth of experience ž The strengths of organizational system: quality control system, and improve the information management system, a loyal customer base, strong financing capability ž Competitiveness strengths: product development cycle is short, strong dealer network, supplier partnerships, respond quickly to changing market conditions, market share leadership position

    Weakness
    Weakness (W) refers to some kind of missing or do bad things, or that some kind of make the company at a weakness conditions. May lead to internal weak factors: ž lack of competitive significance of technical skills ž lack of competitiveness of tangible assets, intangible assets, human resources, organizational assets ž The key areas of competitiveness is being lost.

    Opportunity
    Companies face potential opportunities (O): the market opportunity is a major factor affecting the company’s strategy. Company managers should confirm that every opportunity to evaluate every opportunity, growth and profitability prospects, select those with the company’s financial and organizational resources to match the best chance of the company gained a competitive advantage with the greatest potential. Potential development opportunities might be: ž widening customer base or product segments ž skills transfer to the new product and new business, for a larger customer base ž forward or backward integration ž Market entry barriers to reduce ž acquisitions of competitors ž strong growth in market demand can be rapid expansion of ž expansion to other geographic regions to expand market share opportunities

    Threats
    Endanger the company’s external threats (T): the company’s external environment, there is always some factors that pose a threat to the company’s profitability and market position. Company managers should confirm the threat of endangering the interests of the company’s future, make evaluations and to take strategic action to offset or mitigate the impact. The company’s external threats may be: ž powerful new competitors will enter the market ž alternatives to seize the company’s sales ž The main products market growth rate ž exchange rate and trade policies adverse change ž demographic characteristics, adverse changes in the way of social consumption ž customer or supplier negotiations capacity ž reduce the market demand

    Tourism Industry in Malaysia: SWOT Analysis. (2016, Jun 13). Retrieved from https://graduateway.com/swot-analysis-2-2/

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