MONACO - blog.bearing-consulting.com · Monaco’s National Diamond Source: Harvard Business School...
Transcript of MONACO - blog.bearing-consulting.com · Monaco’s National Diamond Source: Harvard Business School...
MONACO:PLACE EXCELLENCE AND CLIENT
ATTRACTION
Analyzing the current
capabilities of Monaco in
order to attract key clients
IUM MBA 2014
OUTLINE
•Team Profiles
•Project Task
•National Performance of Monaco Country profile
2013 National Performance & financial crisis impact
Monaco vision, values, & strategy
•Tools & Methodology Blue Ocean Strategy
Determinants of National Diamond
Strategic Sweet spot & Country Radar
Place Excellence
•Research and Analysis Customer Profiles
Benchmark: Dubai
•Monaco Brand Analysis
•Proposed Strategies and Solutions
•Conclusion & Key Takeaways
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TEAM PROFILES
3
Svetlana Masjutina
Strategy & Research
Brett Lowers
Benchmark Specialist
Olga
Zubrilova
Strategy & Research
TEAM PROFILES
4
Arbia Ziadi
Customer Profile
Specialist- Middle East
& Medical Tourism
Specialist
Nuriya Khusainova
Customer Profile
Specialist- Middle East
MONACO NATIONAL PERFORMANCE AND VISION
2013 National Statistics
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COUNTRY PROFILE: KEY CHARACTERISTICS
MONACO is the 2nd smallest country in
the world with , with only 0.75 square miles in
area with 7 centuries of history.
The Principality is a hereditary and
constitutional monarchy
Location
Southern Europe, on
the shores of the
Mediterranean,
between the French
and Italian Riviera
The Climate The PopulationLanguage
Religion Currency Access
Mediterranean,
about 360 sunny
days per year
Cosmopolitan country with
more than 120 nationalities
represented:
about 8000 Monegasques,
almost 10,000 French
nationalities, over 6,500
Italians and
2,600 British people and
several hundred nationals
such as those of Belgium,
Switzerland, Germany
and the USA
French is the official
language but English and
Italian are widely spoken
and understood
Roman
Catholicism
(State religion)
Other religious
freedom is
guaranteed
Euro (1st January
1999) and used on
Monegasque
territory since 1st
January 2002
Easy access to European
motorway
Nice airport
Helicopter links
Underground station
2 ports for pleasure craft
and semi floating see
wall to receive ships
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2013 NATIONAL ECONOMIC PERFORMANCE
10.1%0.5%3.5%
3.2%
7.3%
2.8%0.0%
8.1%
2.4%
7.1%
3.9%8.1%
42.9%
Distribution of the 2013 Principality’s revenue
2013 Revenue in Monaco – euro15.86 billion
Source: IMSEE Monaco Statistics
GDP in Monaco rose to 4.48 billion euro in 2012, compared to 4.37 billion in 2011. This
represents a 0.9% growth in volume (adjusted for inflation). There is no official data yet for 2013.
GDP per person employed is growing less quickly than global GDP due to an increase in
employment (+2.6% in the number of employees on 31/12/2011). As the increase in the
working population (+1.9%) is higher than that of GDP, the level of GDP per employed person
has fallen (-0.9%).7
MONACO VISION, VALUES, & STRATEGY
Vision
Monaco strategy
Values hospitality, underpinned by friendliness and
generosity**
Strategy enhancing the attractiveness
Lab country (innovation hub) **
To be “a country generating models:
a model of life;
a model of development,
a model of well being,
a model of peace*
To build up strong long-term competitive advantage Prince Albert determined his
national vision and strategy based on Monaco values:
* Investiture speech H.S.H. Prince Albert IInd of Monaco, July 12th, 2005.
** Monaco Welcome Business Office, www.monaco-welcome.mc
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TOOLS AND METHODOLOGY Tools for Achieving
Excellence
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TOOLS & METHODOLOGY
To provide the holistic analyses and comprehensive solution for our
project we used an innovative management methodology and tools
Blue Ocean Strategy:
Innovative strategy to make the competition irrelevant by changing
the playing field of strategy and achieve long-term advantage
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TOOLS & METHODOLOGY (CONT.)
Firm strategy,
structure and
rivalry
Demand
conditions
Related and
supporting industry
Factor
conditions– Resources;
– infrastructure
Home market buyers
press to innovate faster
than competitors
– provide cost-effective inputs,
– participation in the upgrading process,
– drivers for companies in the chain to innovate
GOVERNMENT
CHANCE
KEY MANAGER OF THE
NATIONAL ADVANTAGE
CREATION
OCCURRENCES
THAT ARE OUTSIDE
OF FIRM CONTROL
Porter’s diamond: the determinants of national competitive advantage
The way in which companies are created,
set goals and are managed is important for success.
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TOOLS & METHODOLOGY (CONT.)
Strategic sweet spot:
to define unique Monaco capabilities
Country Radar :
to identify new national dimensions
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TOOLS & METHODOLOGY (CONT.)
Place excellence:
To provide recommendations for Monaco National Brand Strengthen
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RESEARCH & ANALYSISTourism Trends
Client Profiles
Benchmark: Dubai
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WORLD TOURISM TRENDS
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TOURISM TRENDS 2009-2013
•Asia, Middle East and Latin America are top growth markets
•Tours and city holidays by consumers in emerging markets have driven tourism growth
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TOURISM TRENDS 2009-2013 (CONT.)
•Meetings, Incentives, Conferencing, Exhibitions (MICE) travel has seen much faster growth than traditional business travel since 2009
•The MICE segment now accounts for 54% of the total business travel market due to Substantial cuts in corporate travel spending
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Type of Travel Percentage Increase/Decrease
Incentives +61%
Conventions +44%
Conferences +27%
Traditional Business Travel -10%
INTERNATIONAL CUSTOMER PROFILES
“To expand your vision, you
must first understand your
customers…”
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Top Tourism Destinations
1. St-Barth's
2. Malaysia
3. Lebanon & Turkey
Regional Economic Indicators
• Saudi Arabia 576.8 billion USD
• United Arab Emirates 360.2 billion USD
• Qatar 173 billion USD Motivators for Selecting a Destination
1. Extravagance & Recognition
2. Infrastructure & Personal service
3. Visa & Language
Types of Tourism
1. Luxury retreat
2. Business
3. Events & Shopping
Top business destinations
1. London
2. Geneva & Luxembourg
3. Dubai
MIDDLE EAST
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Culture
• Hospitality
• Collectivism
• Islamic life
Top Destinations
1. Hong Kong/Macao
2.Australia
3.Dubai/Singapore
Regional Economic Indicators
-100 mln. outbound tourists are expected in 2014
-The fastest growing outbound tourism market in the world
Motivators for Selecting a Destination
1.Sightseeing 75%
2.Dining 65%
3.Shopping 51%
Types of Tourism
1. Leisure
2.Business
3.Educational tours
Important Statistics
1. 62% prefer to travel independently
2. 4,3 trips per year
3. 1,7 week per stay
4. Travel to Europe between May and September
CHINA
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Top Destinations1. South East Asia/ Asia Pacific (Singapore,
Malaysia, Thailand)
2. Dubai
3. Nepal
4. USA, Australia, Europe
Regional Economic Indicators
- One of the fastest growing markets in the world (4,7% in 2012)
- Rising disposable income
- Outbound tourist departures: 20.5 Mil (2015), 50 Mil (2020)
Motivators for Selecting a Destination1. Sightseeing- 64%
2. Explore new countries- 47%
3. Leisure- 25%
Types of Tourism
1. 40-65% business
2. 35% leisure/ visiting friends and
relatives/ immigrants
Destination Selection
1. Nature and environment 62%
2. Culture and art 53%
3. Safety 50%
INDIA
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Top Destinations
1. United States
2. Neighbouring Countries + Caribbean
3. Europe (France, Italy, Germany, Spain)
Basic Information
- 590 million Latin Americans
- 85%+ speak Spanish
- Biggest potential in Brazil, Mexico &
Chile Motivators for Selecting a Destination
1. Proximity (ease of access, direct flights)
2. Language Barrier (Spanish)
3. Visa Requirements
Types of Tourism
1. City holidays (47%)
2. Touring holidays (27%)
3. Sun and Beach Holidays (12%)
Relevant Information
1. Outbound trips grew 22% since 2010
2. Outbound spending grew 28% since
2010
3. Biggest travel in Summer and Easter
Main Economic Indicators
- Expected growth of 3.4%+
- Increase Disposable Income
- Increasing Middle & High class
LATIN AMERICA
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BENCHMARK:DUBAI
Fierce Competitor? or
Valuable Mentor?
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PROFILE
Remains one of the most popular travel destinations in
the world
9.89 Million international overnight visitors in 2012…
Up 8.2% from ’11
What drive’s Dubai’s Popularity?
Place Branding & Cohesive Vision
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PLACE BRANDING & AND COMPETITIVE ADVANTAGE
Positioning
•Diversified economy
•Developed infrastructure (hard and tech), education, hospitals and tourism
Innovation
•Every project developed driven by continuous drive for differentiation and innovativeness
•Luxury, monuments, and record breakers
•Unified vision driven by government determination
Holistic Brand development approach & clear
vision
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DUBAI BRAND DEVELOPMENT
Brand axes Strategic positioning Primary attributes
Business & Trade “Global business and
trading hub”
Specialized free zones, large
commercial venues
Tourism & Hospitality “Global touristic
destination”
Luxury hotels, state-of-the-art
architecture, leisure and
entertainment facilities, premium
services, heritage and cultural
attractions, ease of access
Events “Global powerhouse in
the events industry”
Sports and cultural facilities, leading
conference and exhibit centers,
complimentary services
Healthcare “Global healthcare hub” Integrated platform for heal thcare
and wellness services
Real Estate “Exclusive properties” Unique developments, green-driven
Entertainment “Global entertainment
destination”
‘It’s happening’- world-class concerts,
venues , innovative attractions
Dubai… a key benchmark!
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Dubai has built a diversified innovation portfolio to strengthen national brand based on strong government vision & strategy and support.
DUBAI INNOVATIVE RADAR
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“This reflects the approaches of our government and its awareness
towards spreading this culture in a way that pushes the economic and
social development process forward and offers the opportunity for all
UAE citizens to create, innovate and participate actively in enhancing
the place of the UAE on all levels and in all fields”.
- His Excellence Mohammed Helal Al Muhairi
ROLE
to increase the awareness of Dubai to global audiences and
to attract tourists and inward investment into the emirate
RESPONSIBILITY
To organize the marketing of tourism and commerce for Dubai
DTCM is the key strategic thrust area of the national 2015 Plan
VISION:To position Dubai as the leading tourism destination and commercial hub in the world
MISSION:DTCM's mission is to strengthen the Dubai economy via
The development of sustainable tourism.
The provision of a unique visitor experience combining quality service and value for money.
Innovative promotion of Dubai’s commercial and tourism opportunities.
Further development of partnerships with our industry stakeholders.
ORGANIZATIONAL STRUCTURE IS FOCUSED ON CUSTOMERS
to interact with it efficiently to transact information and business.
TRAVEL TRADE INVESTORS VISITORS (BUSINESS AND LEISURE)
GOVERNMENT AGENCY 28
To demonstrate consistent innovative approach we analyzed DTCM business model, how national strategy properly
embedded:
Eco-tourism
Spa-tourism Education Tourism Sport-tourism
Business-tourismHealthcare-tourism
Cruise-tourism
DTCM responsibilities:
Licensing and classification of hotels, hotel apartments, tour operators,
travel agents and all other tourism services.
Supervisory role covers archaeological and heritage sites and to
ensure sustainable and responsible tourism for Dubai.
Training programs for personnel from the tourism industry to ensure
that Dubai’s tourism industry continues its world-class development
with world-class people involved at all levels.
PIVOTAL ROLE TO PROMOTE DUBAI ECONOMIC GROWTH AND PLACE EXCELENCE
THROUGH
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COMMUNICATION BENCHMARK: DUBAI ONLINE PRESENCE
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And DTCM official web-site translates one strong message – the same as Dubai
Government web-site regarding national strategy
COMMUNICATION BENCHMARK: MONACO ONLINE PRESENCE
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Compare to DTCM there is no clear message provided by Monaco Tourism
official web-site.
DUBAI: COMMUNICATING THE BRAND POSITION
•Unique cultural experience, that attracts all backgrounds.
•Clear, concise, and detailed explanations of experiences
•Unique marketing, available to all, and publications provided to the luxury market
•Luxury publications available in luxury hotels in target markets
Clear Brand Communication
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VISIONSTRONG
COMMUNICATION
MONACO NATIONAL BRAND ANALYSIS
Current Capabilities
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Monaco’s National Diamond
Source: Harvard Business School Analysis “Monaco’s Tourist
Cluster”, Porter, 2011
Source: Harvard Business School Analysis “Monaco’s Tourist
Cluster”, Porter, 201134
We examined Monaco’s economic performance and competitiveness both at the national level and the tourism
cluster level. One of the key message is Monaco does not have a good track record of registered patents, which
measures national innovative capacity, knowledge flow and government encouragement for business development.
There were only 10 patent and trademark registrations in 2008 (no public data for 2009-2013 yet)
Monaco Tourism Cluster Map
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Tourism Cluster is very developed. But it faces stagnation and for the past years decline in demand: less
residents because of the financial crisis and their inability to pay high rents, the devaluation of the UK pound
(decrease in UK tourists), the expensive euro (decrease in US visitors), new competition (Dubai, Singapore) ,
“old” image of Monaco amongst the younger generations and resurgent local competition from Cannes and St
Tropez.
Source: Harvard Business School Analysis “Monaco’s Tourist
Cluster”, Porter, 2011
The Tourism Cluster Diamond
Source: Harvard Business School Analysis “Monaco’s Tourist
Cluster”, Porter, 201136
MONACO INNOVATIVE RADAR
Monaco lacks a well-balanced innovative portfolio to strengthen national brand.
Goals to attract target clients will prove to be difficult- vision communication must improve
Lack of Government communication and lack of Government Innovation
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PROPOSED STRATEGIES & SOLUTIONS
Updating the Vision of
Monaco through Place
Excellence Analysis
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PLACE EXCELLENCE MODEL
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We suggest that before any recommendations for Tourism Office we need to look at the whole
picture on national Level –based on Place Excellence model.
NATIONAL LEVEL A nation’s competitiveness depends on the capacity of its industry
to innovate and upgrade. Government proper role is as a catalyst
and challenger: it is encourage –or even push-companies for
excellent performance (Porter, 1990). That is why we suggest:
1. to develop more robust and precise NATIONAL
INNOVATION STRATEGY and designed a strategically
balanced portfolio that between exploitative and the
exploratory:
PLACE EXCELLENCE MODEL (CONT.)
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2. Reach out to the emerging markets of India, China, and Latin America by
lowering export restrictions for Monaco-based companies (we expect that the
Prince will be an Ambassador for the brand).
3. Eliminate company tax policies that favor domestic firms.
4. Eliminate labor hiring process and policies that “favor” Monaco citizens and
simplify hiring practices.
5. Create innovative context - unify the political leadership agenda and acquire
a solid mandate
6. Designed and implement strong communication & marketing strategy
through all national channels (digitalization national strategy) to strength
Monaco national Brand
PLACE EXCELLENCE MODEL (CONT.)
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TOURISM CLUSTER LEVEL
1. Regulate against anti-competitive behavior between SBM holding and other
players to encourage a level playing field and increased competition.
2. Create special attractiveness policy to all target audiences from emerging markets
(multiple languages and appropriate labeling for attractions, tailored services in the
hotels & restaurants, casino etc.). On-going human capital training to achieve
excellent services.
PLACE EXCELLENCE MODEL (CONT.)
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3. To strength cluster internal collaboration: help all sectors understand the true
needs of their industries, cooperate and better integrate their individual value
propositions to achieve increased overall competitiveness. IFC and Academia
need to be embedded to decision-making process (HBS, 2011).
Focus on innovative way for dynamic
clusters development
ALL ASSETS, ACTORS AND ACTIVITY NEED TO BE FIT
TO PROVIDE PLACE EXCELLENCE BASED ON HEALTH
BUSINESS, POLITICAL ENVIRONMENT WITH ENTERPRENERSHIP SPIRIT
Eco-tourism
Spa-tourism Education Tourism Sport-tourism
Business-tourismHealthcare-tourism
Cruise-tourism
DTCMONACO
Proposed Solutions
1. Communications Strategy
2. Accommodation & Hosting Policies
3. Expanded Partnerships
4. Cultural & Event Policies for Strong Brand
Perception
PIVOTAL ROLE TO PROMOTE DUBAI ECONOMIC GROWTH AND PLACE EXCELENCE
THROUGH
“ONLY MONACO”
COMMUNICATION STRATEGY
1. Updated digital “portal” tied closely with Monaco’s vision
2. International publications targeted towards clients in home countries
3. Improved media preference. Television, movies, and partnerships with target countries
4. Digital Applications- multilingual and targeted
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SPECIAL THANKS TO OUR CONTRIBUTORS:
H.E. Henri FissoreAmbassador Prime Minister Office, Monaco
Axel HoppenotExecutive Vice President, Sales & Marketing Monte-Carlo
SBM – Hotels & Casinos
Jean-Claude MessantManaging Director of the HOTEL METROPOLE Monte-Carlo
Aymeric PazzagilaAdministrator MWBO
Jorgen ErikssonFounding Partner of Bearing Consulting Group
Katerina TerentyevaUAE IUM MBA Alumni
Mandirra PuriIndia/UAE IUM MBA Alumni
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1. www.imsee.mc
2. www.monaco-welcome.mc
3. Global Competitiveness Report 2013-
2014,
http://www.weforum.org/reports/global-
competitiveness-report-2013-2014
4. World Trade Organization Report 2013,
http://www.wto.org/english/res_e/reser_e/wtr_
e.htm
5. Harvard Business School Analysis,
“Monaco’s Tourist Cluster”.
http://www. ibobel.pbworks.com
Key Sources