Increased Competition
Abstract
Special events occur for a number of purposes such as celebrations, commemorations, education and promotion purposes. Event planning enables the clients to engage with their audience fully through the creation of design as well as memorable live events as individuals often lack the necessary expertise and time of planning events themselves. The special event planning industry over the last two decades has grown enormously, and the job market in the sector is on the uptick. This industry has played a great role in the human society as it has existed to be of influence in the hospitality and tourism industry. However, apart from the significance of the event planning industry, a number of factors that affect the event planning companies have been evidently wide especially the increased level of competition among the stakeholders involved. Competition in the event planning industry has been fierce and has become a major issue that many companies are facing. This has forced many of the event planning companies to reexamine their enterprises and focus on their core markets in an effort of staying ahead of competition as well as seeking new business markets. Thus, the paper analyzes the issue of increased competition in the event planning industry that is also an issue of contention faced by my company and discusses on strategies for reducing the associated increased competition.
Introduction
Event management entails the application of management in the creation and development of large-scale events. Thus, as the event manager of my event planning company, it is important to apply the appropriate management skills in ensuring that the company attains success. However, the company is faced with the challenge of increased competition from other similar companies. The event planning industry has grown enormously over the last decades, and it is thus, important for the company to develop new strategies for reducing the associated competition (Constantinides, 2006). According to Allen & Gale (2004) direct competition that many businesses face such as my company exists in cases where companies produce similar goods and products meant to target similar customers or market segment. The nature, range of services and products that many companies sell as well as the prices that they charge on the commodities greatly influences a company’s level of competitiveness in the market segment (Tjosvold, Johnson, Johnson, & Sun, 2006). For the company to attain success and grow to be a global brand, it is thus, paramount for it to recognize the need to adapt to the ever-changing global business environment to be able to get the competitive edge over its rivals (Allon & Federgruen, 2007). In this regards, the paper presents a literature review addressing the issue of increased competition currently confronted by the company.
Special events occur for a number of purposes such as celebrations, commemorations, education and promotion purposes thus, they can be purely social, business related or may lie somewhere in between. Whether planning for a conference, a product launch or a holiday party, event planning enables the clients to engage with their audience fully through the creation of design as well as memorable live events. Individuals often lack the necessary expertise and time of planning events themselves but through event planning these special events receive the attention that they deserve.
The event planning company serves as a one-stop shop that offers everything for its customers such as wedding cakes, fresh flowers, wedding flavors, tables, chairs, draping, lighting, linens among other items. In achieving its objectives, the company has incorporated an array of stakeholders such as wedding coordinators, photographers, catering personnel, and entertainment person among others. The company offers a gamut of event planning services in an effort of providing every event the full attention that it deserves and gives the best services to its customers (Corrado, 2011). When planning for an event, the company incorporates three goals to its clients, which is increasing interest in attendance, making the greatest impact on the audience and encouraging the audience to stay (Emmers, & Wolff, 2008). Moreover, the company carefully considers the customer budget because it takes into the consideration that every event is an investment.
The challenge of increased competition
The special event planning industry over the last two decades has grown enormously, and the job market in the sector is on the uptick(Constantinides, 2006). This is due to the effect of globalization that has added to the surge as individuals, and multinational business are now calling on event planners to develop meetings for their clients and staffs. According to statistics, an average event planner can earn over $65,000 with more plenty room for future growth and expansion. This industry has played a great role in the human society as it has existed to be of influence and part of the hospitality and tourism industry. However, apart from the significance of the event planning industry, a number of factors that influence the event planning companies have been evidently wide especially the increased level of competition among the stakeholders involved (Allen & Gale, 2004).
Competition in the event planning industry has been fierce and has become a major issue that many companies are facing such as my Company, but it is not insurmountable. This has forced many of the event planning companies to reexamine their enterprises and focus on their core markets in an effort of staying ahead of competition as well as seeking new business markets. More event planning services are being introduced into the marketplace at an overwhelming rate (Tjosvold, Johnson, Johnson, & Sun, 2006). The consumers also need to enhance the level of knowledge for them to differentiate the massive array of services that are competing for their attention. Therefore, it is the responsibility of these event-planning companies to employ appropriate ways such as good marketing strategies in an effort of enlightening and attracting more customers to reduce competition. As well, in coping with the above challenge companies need to place a stronger emphasis on the importance of corporate reputation management. Building and maintenance of a good reputation is essential as it enables companies to retain their customer’s loyalty, be able to command prices for their services, create a competitive advantage over their rivals, enhance the employee loyalty and morale and seek international expansion (Allon & Federgruen, 2007).
Corporate reputation management
The concern identifies the importance of reputation management as a strategic approach for companies to survive in the highly competitive industry. A healthy corporate reputation needs a good reputation management process and is essential in promoting and protecting the enterprise. According to Gentzkow & Shapiro (2008) reputation management is also key in shaping an effective corporate image. A company’s corporate reputation is normally evaluated by the stakeholder’s experiences with the business as well as any form of symbolism and communication providing information on a firm’s actions or comparison with its rivals. Trust and respect are fundamental in corporate reputation that creates a competitive advantage. Companies have a responsibility of creating value by investing in activities that encourage customers to perceive them as credible, trustworthy and reliable just like an individual gains their reputation by endowing personal skills through education and training (Emmers & Wolff, 2008).
Customers will do business and demand for companies that are reliable. Employees working in these companies need to be able to trust them, as the community wants the companies to act responsibly. Thus, it is essential for a company to invest heavily in maintaining and building excellent relationships with all the necessary stakeholders. With the high levels of competitiveness in the event planning industry companies, need to advance their understanding of reputation management in enhancing corporate reputation. This entails enhancing reliability as the customers demand that the products be of greater quality and reliable than those of the competitors (Grönroos, 2007). In building reliability companies need show professionalism. The event planning industry is seeking greater quality and professionalism standards in enhancing competition. Thus event planning companies such as my company need to strengthen professionalism in building reliability to be able to attract more customers as well in saving cost and time, making organizational partnerships more efficient and effective as well as adding more security in the event planning companies (Corrado, 2011).
Moreover, it is crucial for event planning companies to show credibility and good faith when dealing and placing orders with the customers as part of corporate reputation creation. It is important for a company to convey the risks of their strategies involved, be able to disclose warnings of impending problems as well as facts that ought to influence the customer’s assessment of their performance. By determining and knowing the future availability of the customers and their capabilities, companies can be able to make better business decisions in regards to the markets that they may potentially enter into an effort of reducing competition (Constantinides, 2006). Another concept for enhancing corporate reputation is by incorporating the concept of social responsibility into their strategies. A healthy business requires the community around to be healthy to be able to thrive. Thus, it is important for event planning companies to be able to take part in social and environmental fabric of their neighborhoods. The customers take interest on how companies deal with community and environmental issues thus, it is essential for them to put back as much as they take from the physical and social environment (Martin-Flatin, Jakobson, & Lewis, 2007). This is a good strategy that event-planning companies need to use in attracting more customers such as my company to be on a competitive edge over the rivals.
Marketing
Marketing is a crucial strategy of reducing competition with the increased competition rivalry in the industry. It is critical for the customers to know and see what a company offers. Thus, networking and marketing recommendations through friends help in attracting more customers to the enterprise. This entails being smart, selecting and creating a marketing budget as well as selecting opportunities that optimize exposure (Constantinides, 2006). Marketing helps the enterprise by creating awareness to the public about the services available. It is best accomplished using the social media, word of mouth, television or through newspaper and magazines ads. Thus, event planning companies need to incorporate marketing strategies in reducing competition. Furthermore, companies need to network with the relevant personnel such as caterers and hotels providing a chance of meeting with other stakeholders whose services are important in enhancing growth (Martin-Flatin, Jakobson, & Lewis, 2007).
Social media advertising and word of mouth are the common strategies that are used in acquiring new customers in the industry. However, it is important for companies to consider other forms of marketing such as the use of brochure, mailing and magazines as highlighted above. Small businesses ads in a business magazine can be crucial in attracting new customers to the company. According to Sterritt (2002) if a company is not on the social media, then it does not exist. Thus, event-planning companies need to make good use of the social media in attracting customers through creating Facebook pages, websites for their companies for customers to reach them and be able to determine easily what they offer as well as other forms of social media advertisement such as Twitter and LinkedIn. This makes it very easy for the potential customers to understand what the company does, specialize in and eventually the customers can recognize the enterprise as an industry guru. Event planners need to provide good and valuable information on the social media that will give the audience ideas of substance (Tjosvold, Johnson, & Sun, 2006). In regards to the above information in reducing competition, my company as well as other companies need to employ a good marketing strategy through the use of social media as it only relies on word of mouth advertising. This will be important in attracting more customers and help in reducing competition in the industry.
Personal branding
It is important for companies to brand themselves by having a clear vision of what they are, and this makes a clear difference between a successful planner. Branding enables the clients to view the company as a partner to be part of them not as a vendor. It is also important to get and let the customers always see the consistent enthusiasm of the event planner. Customers need to be aware of what services are offered, and it is important also to create a logo for the company that it will be identified with (Allon & Federgruen, 2007). This is an essential part of marketing in an effort of attracting more customers to the company. Successful event planners called by their loyal customers time to time are the ones who do not let their customers see their sweat. As part of branding, it is important to offer affordable prices to the customers, to be able to attract more and retain the existing ones. Steiner (2008) states the one of the best strategies for positioning a company in the event planning industry to be able to attract the right number of customers by pricing services at a slightly lower price as compared to the competitors. Thus, my company should consider the idea of company branding, the creation of a logo and review it pricing strategy to be able to attract more customers.
Market analysis
It is crucial to determine the market limit of an event planning enterprise depending on the services offered. In conducting a market analysis it is important to determine the population base and needs whether they can support the event planning service, the economic base as well as the demographic characteristics that are compatible with the market (Allen, & Gale, 2004). Through consideration of the above factors, planners can be able to make the best decision on the services to offer that will attract a great number of customers with limited competition. When conducting a market search, it is important to enroll in industry related associations as they provide networking opportunities and market statics for the planners to use. Another way of doing a market analyzes and getting the relevant information is by interviewing the prospective clients and determining their needs (Corrado, 2011). Other means of surveying the targeted market is through the use of emails and telephones. The market analysis also offers the company new markets to operate in with reduced competition. Thus, it is important for the company to do a market analysis and identify new markets in an effort of reducing competition in the industry (Constantinides, 2006).
Conclusion
Event management entails the application of management in the creation and development of large-scale events. As the event manager of my event planning company, the company is faced with the challenge of increased competition from other similar companies. The event planning industry has grown enormously over the last decades, and it is thus, important for the company to develop new strategies for reducing the associated competition. Among these strategies that the company needs to employ is conducting a market search for new markets or services with lesser competition to be able to attract more customers as well as considering the idea of personal branding. This will enable the company to communicate clearly and associate with its customers and attract more clients. Another strategy is through marketing by providing useful and valuable information with an aim of attracting more customers through the social media sites and other channels like television advertisement, magazines, newspaper and word of mouth advertisements. As well, in coping with the above challenge companies need to place a stronger emphasis on the importance of corporate reputation management. Building and maintenance of a good reputation is essential as it enables companies to retain their customer’s loyalty, be able to command prices for their services, create a competitive advantage over their rivals, enhance the employee loyalty and morale and seek international expansion.
References
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