Introduction through their online presence when Singapore went through

Introduction
to Capstone Topic

Destination
Management Companies (DMCs) are known for its supportive functions towards the Meetings,
Incentives, Conferences and Exhibitions (MICE) industry. The key business
strategy of a DMC is to offer their local expertise to international clients (Motta & Ricci, 2016). Using their local
network and partnerships with local vendors, DMCs can provide quality products
and services at a competitive rate (Tocca, 2015).
In the recent years, various articles have established the rising trend in
hosting world’s meetings in Asia. As an appealing destination in the MICE
industry, Chew (2015) has indicated a positive outlook for Singapore in the upcoming
years. On the contrary, the use of destination management companies (DMC) is
predicted to decrease as budget cuts (American Express Global Business
Travel, 2017),
despite the flourishing MICE industry.

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In
addition to budget cuts, technology advancement has made information readily
available for anyone that has access to internet. According to Bughin et al.
(2011), the search technology has become a powerful tool in people’s lives,
giving them an easy access to any specific products and services required.
Mehta & Dixit (2015) studied that current technology has made
communications across long distance much easier, and digitalized information
further enriched data storage globally. The continuing development of technology
is likely to challenge the value proposition and functions of DMCs as one of
the key intermediaries in the MICE industry.

The
growing and ever-changing technology landscape has changed the way people do
things and communication. This may potentially cause disintermediation to DMCs’
supportive roles in the MICE industry. The ability to gather information and
communicate with vendors directly would have made DMCs at a disadvantage when
it comes to price competitiveness. However, some DMCs in Singapore have
probably strategically benefited through their online presence when Singapore went
through an industrial revolution of computerization in the early 2000s (Infocomm Development Authority of Singapore, 2003).

As
DMCs recognise and acknowledge how technology will affect the needs and demands
of their target market, they should identify upcoming and future challenges the
company will face. A predicted outlook gives DMCs an opportunity to re-evaluate
their value proposition and redefine their roles in the MICE industry, while
looking at potential collaborative business opportunities to maintain
relationship amongst the industry.

 

Research
Objectives

This research paper aims to assist DMCs in Singapore to redefine
its value proposition to thrive with the MICE industry.

Using both primary and secondary research the methods, the
paper should be able to:

1.   
Identify the current issues and concerns of DMCs from their own
perspectives as well as their key clients (through other research papers, interviews
with relevant parties)

2.   
Identify the current services being offered by online competitors (i.e.
Online Travel Agents) as part of the threats and opportunities for DMCs

3.   
The current and future competition and markets for DMCs and how the
current business model of DMCs will be impacted

 

By understanding the above
statements, the research will investigate the feasibility of a DMC
adopting the business model of a Professional Congress Organization (PCO), by
completing and comparing a strength, weakness, opportunity, threats (SWOT)
analysis of both DMCs and PCOs, to increase, if not maintain their current
market share and businesses in the MICE industry.

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