Lonely Planet Publications

The initial business for Lonely Planet covered far distant destinations for primarily budget travelers. Over time, the scope of the business widened to cover a number of popular locales and a good-value proposition for travelers in all economic classifications. The company has a reputation for offering very solid, down-to-earth travel information, accurate maps, and solid background information about the area in which the traveler will be visiting.

In 1980, The Wheelers recruited Jim Hart, a family friend with a mixture of travel and publishing experience, into the organization as a partner. Jim joined Lonely Planet from a major publishing company located in Adelaide, South Australia. It is through Jim's experience that the company was able to move from what was a "shoestring" presence into a more permanent structure. Having Jim on board also allowed the Wheeler's more time for travel and research associated with the production of a guide to travel in India. Over time, the company was able to expand its presence from its headquarters posit

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Potential Competitors While Lonely Planet certainly has the potential for seeing this type of competition, it enjoys a strong position in a niche area of this industry in that it provides a very high accuracy/quality product. Strictly speaking, the four main barriers to entry are: brand loyalty, absolute cost advantages, economies of scale, and government regulation. For Lonely Planet Publishing, the quality of their work speaks for itself and garners for the company a strong brand recognition/loyalty factor. Cost advantages would certainly be a concern, as would economies of scale. Since they are selling to a very specific audience, it is likely these factors would be secondary to the strength they gain from brand loyalty. Government regulation is not considered to be an obstacle. Rivalry Among Established Companies Generally speaking, if the rivalry is weak, companies have an opportunity to raise prices and earn greater profits. If the rivalry is strong, significant price competitionùincluding price warsùmay happen. Neither of these is considered to be that strong of a factor in the Lonely Planet situation. Bargaining Power of BuyersùBuyers are most powerful in the following circumstances: When the supply industry is c
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Approximate Word count = 2583
Approximate Pages = 10 (250 words per page)

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