Research On Application Of Strategic Alliance In Operation Model Of The MICE Industry In China

As a key development direction of tourism industry in the world, MICE has a century old history in the western world. It covers trade, transportations, finance and tourism. Based on the major characteristics of MICE industry:There will be high development potential, high added value, high economic benefits and high rate of employment.Countries all attach high importance to developing the industry and investing heavily in the industry. The development of MICE industry has become a major criteria measure of the development and level of internationalization. The past decade has witnessed fast development of MICE since its entry to China market. The number of exhibitions has increased by50%year on year and has become top one in Asia and number two in the world. It’s projected that by2020. It’s very likely that China will take over United States and become the top one destination for business travel and it’s forecasted to increase at a yearly rate of10%despite its fast development pace. MICE is still at its infancy stage in China and its management is at a considerably low level and lags far behind MICE industries in developed world. The major players in the MICE industry originated from the traditional tourist industry and related industries characterized by a lack of professionalism, Coordination, low efficiency and low service quality. The relationship between MICE and traditional tourist industry determined its much-alike operating model, which has greatly impeded the development of MICE industry. On the other hand, MICE consumers are demanding more diversified and differentiated MICE products, which has put more and more pressure on the MICE operators. It’s of paramount important and urgency that MICE operators find a solution with a new operation model so as to improve the operating efficiency of the whole MICE industry and provide high-quality and diversified services to customers in an efficient manner and ultimately drive the MICE industry towards sustainable development. This thesis is organized in following manner. Firstly, it defines the concepts of MICE and strategic alliances. Secondly, based on the analysis of the operating model, major characteristics, issues and development trend of current MICE industry in China. the concept of MICE strategic alliance is introduced and the necessity and feasibility of establishing MICE strategic alliance and its operating model is analyzed. The MICE alliance must have a leadership at its core. An analysis of the operating model of MICE strategic alliance reveals that the feasibility lies in the strategic alliance with large-scale tourism firms at its core. Further, the thesis focuses on the operating status quo and model of MICE industry in China, elaborating the necessity of MICE firms establishing alliances, through an analysis of the operating status qui and issues. The absence of strategic alliance hampers the sustainable development of MICE industry in China. Next. the feasibility of MICE strategic alliance is studied, deducting the structuring principles and methods of strategic alliance with large-scale tourism firms at its core, through an analysis of the framework and nature of MICE strategic alliance. Chapter Five explores the operation and maintenance of MICE strategic alliance with large-scale tourism firms at its core. Chapter Six is the conclusion pointing out MICE alliance can better integrate industry resources., raising the core competency and improving the overall economic benefits of the industry. Consequently, ensures the economic benefits of the alliance partners and the healthy and sustainable development of the whole MICE industry.