HTM 3080 Chapter : HTM3080.ch10&11.docx

• School: University of Guelph
• Department: Hospitality and Tourism Management
• Course: HTM 3080
• Professor: Statia Elliot

Document Summary

Macro-competition is any other organization that competes for the same customer"s dollar industry level competition. New products, new services, and new applications are harder to come by. The problem with services is that one can often readily substitute for another, often at a much lower price. Marketing threats they occur when environmental trends endanger the competitive advantage of a firm. Michael porter delineated the competitive threats in the environment into a framework of five forces that shape competition within an industry. Micro-competition- competition as any business that competes for the same customers in the same product class at the same point in time. An alternative in a different product class can become a competitor if the one product class is not fulfilling customers" needs. The managers were at a loss to explain this, since they received favourable customer comments. They decided to add a prime rib buffet and did other things that other restaurants in the area were doing.