 Abstract | China represents a huge opportunity for the development of world tourism in
the coming years. Now this opportunity has come closer as China’s admission
into the WTO (World Trade Organisation) has occurred. This has raised the
expectation that foreign firms will explore and benefit from Chinese outbound
market growth. However, what are the risks associated with entry into the
Chinese outbound market? What strategies are most likely to succeed in the
Chinese outbound market? This research is a timely study undertaken to
examine the structure of the Chinese outbound tourism industry, its
characteristics and the influencing factors which drive its evolution.
Successful entry strategies can only grow out of sophisticated understanding
of industry structure and how it evolves. Based on a review of the Chinese
travel history, the competitive theories of West and East, and a thorough
analysis of industrial practice in China, a conceptual framework for industry
structure has been created in Chapter Four. The conceptual framework is
tested by a random sample of 210 personal interviews with Chinese travel
operators in Beijing, Shanghai and Qingdao.
The findings of this research demonstrate that Australia holds a favourable
market position in the current and future Chinese outbound industry. The
research demonstrates that Australia’s unique position is derived from a
market perception of ‘famous, fresh and authentic’, a profile that can serve
Chinese market needs in the coming years. The research also shows that the
current outbound industry structure in China is the outcome of government
policies. It has high barriers to entry. However, future industry structure and
market competition will be determined by a company’s capability to perform
(including firm capability, structure and performance, strategy for future and
product offerings).
Finally, the research analyses the choices of entry strategy available for
Australian travel firms, and the possible future direction for market growth
under WTO open policies.
research demonstrates that Australia’s unique position is derived from a
market perception of ‘famous, fresh and authentic’, a profile that can serve
Chinese market needs in the coming years. The research also shows that the
current outbound industry structure in China is the outcome of government
policies. It has high barriers to entry. However, future industry structure and
market competition will be determined by a company’s capability to perform
(including firm capability, structure and performance, strategy for future and
product offerings). |
