Adventure Excursions unlimited 2.3 Competition Strengths and weaknesses of the competitors The competitors in this market are of two primary types. First there is the adventure pi who specializes in a single type of hard adventure activity such as white water rafting typically serve clients who purchase trips for less than $2, 000 and closer to the mean purchase price of around $900. Their strength is their expertise in a given sport. Their weakness is that they provide an undifferentiated product in a competitive market. In addition they do not have the resources, ability or desire to target andyor accommodate a customer demanding more accommodation and a more luxury/adventure oriented service Companies that offer higher-priced, more luxurious packages generally provide asoft adventure. The activities are more along the lines of sightseeing and low-risk alternatives. The twenty years. They are familiar with local service providers and have established stales 3 advantages these companies have include established reputations, extensive knowledge of the industry, and key personnel and management. some have been in operation for more than relationships. They can therefore offer trips at a lower price Disadvantages to us: It will be difficult to price ourselves competitively when we first enter the market Many of the AEU's activities are seasonal. Recurring revenue will depend upon successful trips in various regions of the world. For example, ski trips will end in April in north America. AEU will then have to move ski operations to places like Las Lenas, Argentina The weather for a given year is hard to predict. Poor conditions will threaten the success of trips. Unforeseen occurrences such as inadequate snowfall could effect the viability of activities such as sking and white water sports Closely related competitors Their focus is mainly on" soft" adventure packages such as safaris, river tours(e. g. Amazon), trekking, sightseeing, etc. However they do offer a Connoisseur"line of packages. These are generally priced starting from $4-7, 000. Some of their packages include white water activities and hiking. However, most are touring packages Competing or substitute products There are many activities and types of travel available to people contemplating a vacation Theme parks, motor home trips, and cruises are just a few. Substitutes could include less expensive, self-planned trips, trips geared towards soft-travel, adventure trips involving huntil or fishing as primary activities or exclusive adventure trips such as personal submarine tours the Titanic or a trip around the world in a Leer Jet. Many activities that take place outside and involve some level of risk could be seen as hard adventure competition another alternative is to do nothing. Consumers do not have to vacation. they may opt to spend the money they would have otherwise spent on a vacation on something else Page 62.3 Competition Strengths and weaknesses of the competitors: The competitors in this market are of two primary types. First there is the adventure provider who specializes in a single type of hard adventure activity such as white water rafting. They typically serve clients who purchase trips for less than $2,000 and closer to the mean purchase price of around $900. Their strength is their expertise in a given sport. Their weakness is that they provide an undifferentiated product in a competitive market. In addition, they do not have the resources, ability or desire to target and/or accommodate a customer demanding more accommodation and a more luxury/adventure oriented service. Companies that offer higher-priced, more luxurious packages generally provide a "soft" adventure. The activities are more along the lines of sightseeing and low-risk alternatives. The advantages these companies have include established reputations, extensive knowledge of the industry, and key personnel and management. Some have been in operation for more than twenty years. They are familiar with local service providers and have established strategic relationships. They can therefore offer trips at a lower price. Disadvantages to us: • It will be difficult to price ourselves competitively when we first enter the market. • Many of the AEU’s activities are seasonal. Recurring revenue will depend upon successful trips in various regions of the world. For example, ski trips will end in April in North America. AEU will then have to move ski operations to places like Las Lenas, Argentina. • The weather for a given year is hard to predict. Poor conditions will threaten the success of trips. Unforeseen occurrences such as inadequate snowfall could effect the viability of activities such as skiing and white water sports. Closely related competitors: Their focus is mainly on "soft" adventure packages such as safaris, river tours (e.g. Amazon), trekking, sightseeing, etc. However they do offer a "Connoisseur" line of packages. These are generally priced starting from $4-7,000. Some of their packages include white water activities and hiking. However, most are touring packages. Competing or substitute products: There are many activities and types of travel available to people contemplating a vacation. Theme parks, motor home trips, and cruises are just a few. Substitutes could include less expensive, self-planned trips, trips geared towards soft-travel, adventure trips involving hunting or fishing as primary activities or exclusive adventure trips such as personal submarine tours of the Titanic or a trip around the world in a Leer Jet. Many activities that take place outside and involve some level of risk could be seen as hard adventure competition. Another alternative is to do nothing. Consumers do not have to vacation. They may opt to spend the money they would have otherwise spent on a vacation on something else. Adventure Excursions Unlimited Page 6