MONACO: Analyzing the current

capabilities of Monaco in
PLACE EXCELLENCE AND CLIENT order to attract key clients

ATTRACTION 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

Olga Svetlana Masjutina

Zubrilova Brett Lowers
Strategy & Research
Strategy & Research Benchmark Specialist

3
TEAM PROFILES

Nuriya Khusainova Arbia Ziadi

Customer Profile Customer Profile

Specialist- Middle East Specialist- Middle East
& Medical Tourism
Specialist

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 MONACO NATIONAL 2013 National Statistics
PERFORMANCE AND VISION
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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 The Climate Language The Population

Southern Europe, on Mediterranean, French is the official Cosmopolitan country with
the shores of the about 360 sunny language but English and more than 120 nationalities
Mediterranean, days per year Italian are widely spoken represented:
between the French and understood
and Italian Riviera about 8000 Monegasques,
almost 10,000 French
Religion Currency Access nationalities, over 6,500
Italians and
Roman Euro (1st January Easy access to European 2,600 British people and
Catholicism 1999) and used on motorway several hundred nationals
(State religion) Monegasque Nice airport such as those of Belgium,
Other religious territory since 1st Helicopter links Switzerland, Germany
freedom is January 2002 Underground station and the USA
guaranteed 2 ports for pleasure craft
and semi floating see
wall to receive ships
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 2013 NATIONAL ECONOMIC PERFORMANCE

2013 Revenue in Monaco euro15.86 billion

Distribution of the 2013 Principalitys revenue

10.1%
0.5%
3.5%
3.2%

42.9% 7.3%

2.8%
0.0%

8.1%

2.4%
7.1%
8.1% 3.9%
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%).
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MONACO VISION, VALUES, & STRATEGY

To build up strong long-term competitive advantage Prince Albert determined his

national vision and strategy based on Monaco values:

To be a country generating models:

a model of life;
Vision a model of development,
a model of well being,
a model of peace*

hospitality, underpinned by friendliness and

Values generosity**

Monaco strategy
enhancing the attractiveness
Strategy Lab country (innovation hub) **

* 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.)

Porters diamond: the determinants of national competitive advantage

Firm strategy, The way in which companies are created,

CHANCE structure and set goals and are managed is important for success.
rivalry
OCCURRENCES
THAT ARE OUTSIDE
OF FIRM CONTROL

Home market buyers

Resources; Factor Demand
press to innovate faster
infrastructure conditions conditions than competitors

Related and
GOVERNMENT
supporting industry

provide cost-effective inputs, KEY MANAGER OF THE

participation in the upgrading process, NATIONAL ADVANTAGE
drivers for companies in the chain to innovate CREATION

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 TOOLS & METHODOLOGY (CONT.)

Strategic sweet spot: Country Radar :

to define unique Monaco capabilities 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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 Tourism Trends

RESEARCH & ANALYSIS 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

Type of Travel Percentage Increase/Decrease

Incentives +61%
Conventions +44%
Conferences +27%
Traditional Business Travel -10%

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INTERNATIONAL CUSTOMER To expand your vision, you
must first understand your
PROFILES customers

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 MIDDLE EAST Culture
Regional Economic Indicators Hospitality
Saudi Arabia 576.8 billion USD Collectivism
United Arab Emirates 360.2 billion USD Islamic life
Qatar 173 billion USD Motivators for Selecting a Destination
Top Tourism Destinations 1. Extravagance & Recognition
1. St-Barth's 2. Infrastructure & Personal service
2. Malaysia 3. Visa & Language
3. Lebanon & Turkey
Top business destinations
Types of Tourism 1. London
1. Luxury retreat 2. Geneva & Luxembourg
2. Business 3. Dubai
3. Events & Shopping

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 CHINA
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

Top Destinations 1.Sightseeing 75%
1. Hong Kong/Macao 2.Dining 65%
2.Australia 3.Shopping 51%
3.Dubai/Singapore
Types of Tourism Important Statistics
1. Leisure 1. 62% prefer to travel independently
2.Business 2. 4,3 trips per year
3.Educational tours 3. 1,7 week per stay
4. Travel to Europe between May and September

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 INDIA
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 Destination
1. Sightseeing- 64%
Top Destinations 2. Explore new countries- 47%
1. South East Asia/ Asia Pacific (Singapore, 3. Leisure- 25%
Malaysia, Thailand)
2. Dubai
3. Nepal Destination Selection
4. USA, Australia, Europe 1. Nature and environment 62%
Types of Tourism 2. Culture and art 53%
1. 40-65% business 3. Safety 50%
2. 35% leisure/ visiting friends and
relatives/ immigrants

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 LATIN AMERICA

Basic Information Main Economic Indicators

- 590 million Latin Americans
- 85%+ speak Spanish
- Biggest potential in Brazil, Mexico &
Chile
Top Destinations
1. United States
2. Neighbouring Countries + Caribbean
3. Europe (France, Italy, Germany, Spain)
- Expected growth of 3.4%+
- Increase Disposable Income
- Increasing Middle & High class
Motivators for Selecting a Destination
1. Proximity (ease of access, direct flights)
2. Language Barrier (Spanish)
3. Visa Requirements

Relevant Information
Types of Tourism
1. Outbound trips grew 22% since 2010
1. City holidays (47%)
2. Outbound spending grew 28% since
2. Touring holidays (27%)
2010
3. Sun and Beach Holidays (12%)
3. Biggest travel in Summer and Easter

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BENCHMARK: Fierce Competitor? or

DUBAI 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 drives Dubais

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 Specialized free zones, large
commercial venues
trading hub
Tourism & Hospitality Global touristic Luxury hotels, state-of-the-art
architecture, leisure and
destination entertainment facilities, premium
services, heritage and cultural
attractions, ease of access

Events Global powerhouse in Sports and cultural facilities, leading

conference and exhibit centers,
the events industry 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 Its happening- world-class concerts,

venues , innovative attractions
destination

Dubai a key benchmark!

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DUBAI INNOVATIVE RADAR

Dubai has built a diversified innovation portfolio to strengthen national brand

based on strong government vision & strategy and support.
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
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To demonstrate consistent innovative approach we analyzed DTCM business model, how national strategy properly
embedded:
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 Dubais 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
 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
DTCM ensure sustainable and responsible tourism for Dubai.
responsibilities: Training programs for personnel from the tourism industry to ensure
that Dubais 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

Cruise-tourism Spa-tourism Education Tourism Sport-tourism

Eco-tourism Healthcare-tourism Business-tourism

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COMMUNICATION BENCHMARK: DUBAI ONLINE PRESENCE

And DTCM official web-site translates one strong message the same as Dubai
Government web-site regarding national strategy
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COMMUNICATION BENCHMARK: MONACO ONLINE PRESENCE

Compare to DTCM there is no clear message provided by Monaco Tourism

official web-site.
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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

STRONG
VISION COMMUNICATION

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MONACO NATIONAL BRAND Current Capabilities
ANALYSIS
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 Monacos National Diamond

We examined Monacos 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)

Source: Harvard Business School Analysis Monacos Tourist

Cluster, Porter, 2011
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Monaco Tourism Cluster Map

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 Monacos Tourist
Cluster, Porter, 2011
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The Tourism Cluster Diamond

Source: Harvard Business School Analysis Monacos Tourist

Cluster, Porter, 2011
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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 & Updating the Vision of
Monaco through Place
SOLUTIONS Excellence Analysis

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 PLACE EXCELLENCE MODEL
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 nations 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:

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 PLACE EXCELLENCE MODEL (CONT.)

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

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 PLACE EXCELLENCE MODEL (CONT.)

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.

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 PLACE EXCELLENCE MODEL (CONT.)

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
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 1. Communications Strategy
DTC 2. Accommodation & Hosting Policies
MONACO
3. Expanded Partnerships
Proposed Solutions 4. Cultural & Event Policies for Strong Brand
Perception

ONLY MONACO
PIVOTAL ROLE TO PROMOTE DUBAI ECONOMIC GROWTH AND PLACE EXCELENCE
THROUGH

Cruise-tourism Spa-tourism Education Tourism Sport-tourism

Eco-tourism Healthcare-tourism Business-tourism

COMMUNICATION STRATEGY

1. Updated digital portal tied closely with Monacos

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 Fissore Jorgen Eriksson

Ambassador Prime Minister Office, Monaco Founding Partner of Bearing Consulting Group

Axel Hoppenot Katerina Terentyeva

UAE IUM MBA Alumni
Executive Vice President, Sales & Marketing Monte-Carlo
SBM Hotels & Casinos
Mandirra Puri
Jean-Claude Messant India/UAE IUM MBA Alumni

Managing Director of the HOTEL METROPOLE Monte-Carlo

Aymeric Pazzagila
Administrator MWBO

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 Key Sources
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,

Monacos Tourist Cluster.
http://www. ibobel.pbworks.com

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