Threat of New Entrants

Threat of New Entrants

i. Economies of Scale

The booming of Malaysia's tourism industry which has a good development was causes a lots organization interested to participate in this tourism industry. As new entrants of tourism industry, they are looks for greater economies of scale by introducing common platforms for multiple type hotel and multiple markets. Therefore, there are many different new place of interest had been exploited and build up the different style hotel. This action was bringing a huge affect to Resort World Genting, because tourists are given a lot choice to choose for the local vacation. Consequently, Resort World Genting would not be the first or only choice for the community to planning their holiday. For example, tourist may choose Cameron Highlands or Bukit Tinngi which have a nice weather like Genting Highlands for the vacation with family. Those places are setting more attraction point to the tourist and provide different type facilities to tourist.

ii. Product / Service Differentiation

The type hotel offered by Genting is diversification if compared to other hotel like Equatorial Hotel, Federal Hotel and Shangri-La's Rasa Sayang Resort. Resort World Genting had build up the main six hotels in Genting Highlands, include: Genting Hotel, Highland Hotel, Resort Hotel, Theme Park Hotel, Maxims and First World Hotel. Besides, there are also have a Awana hotel and resorts which perform in apartment style. Compare to other hotels in Malaysia, Genting was successfully present the different type hotel to provide to their customer during the vacation. Those type hotels and resorts also state in different prices, so the tourist may book the hotel they are preferences and suit with their economic. Thus, it creates high entry barriers to other new entrants of tourism industry as Resort World Genting cheaper and