Environmental review is necessary to determine the success factors to consider when starting a business. Apart from the microeconomic factors such as suppliers, customers, competitors and government policies that are to be taken into account on incubation of a business opportunity, the macro environment shapes opportunities and poses threat to a business.
One such factor is the demographic environment, which primarily involves the people who make up the target market. As such, any change in demographic factors has significant implications for any business. Thus in marketing close track should be kept on demographic trends and developments in the target market (Lehmann & Russell, 2004).
Secondly, the economic situation in a firm’s operating environment also affects the consumers spending power and structure. Consequently, it will determine the success of a business or challenges it will face in its development.
Thirdly, technology, more than ever, has become a tremendous force in the business plan and its impact on the modern business world are of enormous magnitude. Technology creates a new environment, products and most importantly-opportunities. Therefore, a company that adopts new technology by a company will have a competitive advantage over its rivals.
Moreover, the cultural values of the people cannot go undetermined in the formulation of a business plan as the business should be able to adapt to accommodate people of diverse cultures.
The report, however, will examine competitive forces as one of the major forces in the Ripley’s aquarium macro environment in order to determine whether the new scheme will thrive in light of the fierce competition in its target market.
The Aquarium to be opened in 2013 will be one of the premier destinations for tourists. The building of the aquarium below the CN tower is an opportunity for it as there is an already available market. The tower is one of the Seven Wonders of the World besides ranked the second greatest tower in the world; two million visits annually (“Facts at a Glance”, 2005). This will be an opportunity for visitors to get a glimpse of the attractions of the aquarium thus a high probability of them visiting it. The safety record of the tower is perfect, making its visitors feel safe and secure; it has a 24 hour monitoring activity. The security measures will, therefore, table the aquarium as a prime hub to the tourists as they are safe and secure. The CN tower also has a restaurant and a gift shop. The visitors in the aquarium will, therefore, have the advantage of being able to purchase and eat food as they visit.
The Toronto Zoo located in Ontario poses a threat to the Ripley’s aquarium; the zoo being the largest in Canada has seven zoo graphic regions. The regions have got animals found in those regions thus it is easier to find the different animals found in the various parts of the world. The impact on the Ripley’s aquarium will be low because apart from losing accreditation in April 2012 it is also far from the location of Ripley’s aquarium (“Toronto Zoo loses its Accreditation”, 2012). The zoo has got other animals rather than the aquatic animals alone thus having a broader market than the aquarium, but the location of the aquarium below the CN tower attracts more visitors thus the effect of the zoo would be low. The aquarium also incorporated high technology in its construction thus having an advantage over the zoo.
The Ripley’s aquarium will draw two million tourists this is way above the number of visitors in Toronto museum; an average of one million investors usually visit the museum. Therefore, the impact of the museum would not be high. Despite the fact that the aquarium got different animals similar to the diverse cultures in Canada, the museum has over six million of items hence a threat to Ripley’s aquarium as it rivals it on products they offer. The museum contains dinosaurs, minerals and meteorites; these are different from what the aquarium has so it will take a small impact on the business offering an opportunity to the aquarium to grow.
The target market is, therefore, supportive of Ripley’s Aquarium. The macroeconomic environment within the city allows for its development as a tourists centre in Canada. Compared to its established competitors such as the Toronto museum and Toronto Zoo, it caters for different generations and is accommodative to people of different cultures. In addition, it is broadly inclusive and offers each age group what they would love to experience in a tourist destination. The economy will also experience a tremendous boost, as the taxes paid to the government by the Aquarium will go a long way in aiding other sectors of the economy in Canada while at the same time creating employment opportunities.
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Facts at a Glance. (2005). CN Tower. Retrieved from the <http://www.cntower.ca>. On 2
Lehmann, J. & Russell, K.D., (2004) Analysis for Market Planning, 6th ed. NY: New York
Pearson Prentice Hall
Toronto Zoo loses international accreditation. CBC News. (2012). Retrieved on
2 October 2012