Zuri Ignite Events

PORTER’S Five Forces Model

a) Identified Factors and their Characteristics

FORCE EXAMPLES CHARACTERISTICS

Main Competitors
Waziri Events  Global and local market presence
Rwanda Events  High brand perception
Flawless Events  Huge Client and service portfolio
izone AFRICA  High capacity
Expose Limited  Exquisite and Innovative solutions
Mosound Limited  High pricing
TEMCO  Regional market visibility
Skye Planners  Products and service portfolio
Urban Live Events  Significant Client Portfolio
Seraphic Events Management  Price Competitiveness
TrueBlaq Limited  Flexible pricing
Target Customers
Corporates Government  Price sensitive
(National, County & Sub-county)  Demand more for less
 Demand exceptional service
 Rigid competitive procurement
Financial Service Providers  Demand value for money
Telecommunication Co.  High safety and quality standards
Manufacturing Co.  Demand professionalism and exceptional
IT Service Providers service
Law firms  Strategic competitive procurement
Academic Institutions  Price sensitive
Healthcare Service Providers  Demand more for less
Hotel and Tourism  Demand exceptional service
 Flexible competitive procurement
NGO’S and Sector Specific  Price sensitive
Associations  High quality and safety standards
 Demand exceptional service
 Flexible competitive procurement
Private Clients Middle of the Pyramid – MoP  Price sensitive
(Individuals/Event  Demand more for less
Agencies)  Demand timely delivery
Top of the Pyramid - ToP  Highly conscious about quality
 Demand value for money
 Demand exceptional service
Substitutes
Virtual MICE(Meetings, Incentives,  Saves on time and resources
Conference and Exhibitions)  Reduced human contact
 High risk of cyber crime
Event Management Software  Event tech. integrated platform
 Event registration and online check-in
 Tracks vital details and related services
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 Social media engagement

Major Suppliers
Product & Service Suppliers  High pricing
(Fabricators, Designers, Rental Co,  Innovative solutions and products
Sound & Visual, Hospitality )  Highly professional
Specialist Agencies  Flexible pricing
(Marketing, Logistics, Print & Digital,  Responsive due to market access
Translators)  Reliable support
Potential Entrants
MNC’s  Global access and networks
 High brand equity
 Global industry insights
 Higher pricing
Local companies  Strategic partnerships, Mergers and
Acquisitions
 Local market access
 Local industry knowledge
 Flexible pricing
Table 1: Porter’s Five Forces Analysis for Events Industry

a. Analysis of the Five Forces by ZI

Force Key Feature ZI understanding
Bargaining Number of customers  Many; corporates and private clients from diverse sectors
power of Average service/product per  Single event
Buyers Client  Combined services and/or products to meet customer needs
Competitor Differences  Brand equity
 Client and service portfolio
 Capacity and delivery time
 Price competitiveness
Price Sensitivity  High price sensitivity for government and non-commercial in
‘customers’ table
 Commercial sector is driven by other factors other than price
Ability to substitute  Fairly easy owing to numerous competitors
Cost of changing  Depends on competitors’ event pricing
Threats of Substitutes performance  Limited to software’s specifications and features
Substitutes Cost of change  Depends on software features, user needs and subscription
price plan
Bargaining Number of suppliers  Numerous; local, international; contracted , subcontracted
Power of Size of suppliers  Differs; individual, group; local, international
Suppliers Uniqueness of services and/or  Differs with expertise, creativity and execution
products  Limited product differentiation
Ability of ZI to substitute  Flexible; limited to price, capacity and time
Cost of changing  Moderate; determines quality and customer satisfaction
Threat of New Time and cost of entry  Significant; due to the capital required to run normal
Entrants operations
Specialist knowledge  Not inhibiting; skills and technology are readily available
Economies of Scale  Moderate; limited to the number of event types
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Cost Advantage  Significant with economies of scale

Technology protection  In terms of Intellectual Property Rights
Barriers to entry  Negligible; enabling economic/political environment
Rivalry Number of competitors  Significant; small, medium, large; local, international
Amongst Quality differences  Varies with the event type; Corporate, Cultural or Social
Existing Firms Other differences  Brand equity
 Financial and human capacity
 Partnerships and networks
 Customer support and after event services
Switching costs  Varies with event type and objectives
Customer Loyalty  Government and private companies are loyal to specific
brands
 Significant to price sensitive ‘Customer’ in table
Table 2: Analysis of the Five Forces by ZI

Zuri Ignite Shareholders’ Analysis

 Zuri Ignite Events

Stakeholder Description Key Advantage How to Support ZI ZI’s Role

Event Managers • Practitioners’ body for
Association of corporates or individuals in the
Kenya(EMAK) event management industry
Event Organisers • Representative body for all event
Association of related businesses in the public
Kenya(EOAK) and private sector
Local Authorities • City, Municipal, Town, Urban
and County Councils
NEMA • Legislative body mandated to
undertake environmental
conservation
Kenya National • Membership based trade support
Chamber of Institution for the commercial
Commerce and and industrial sector
Industry(KNCCI)
African Society of • Umbrella body for association
Association executives in Africa
Executives (AfSAE)
International Congress • Global association leader for the
and Convention international meeting industry
Association(ICCA)
Events Industry • International umbrella body for
Council(EIC) individuals, associations and
firms in the sector
Event Greening • A non-profit organisation that
Forum(EGF) promotes sustainability
United Nations World • The specialized United Nations
Tourism Organization Agency for the promotion of
(UNWTO) responsible, sustainable and
universally accessible tourism
National Government • Legislative body in Kenya
Kenya Revenue • National body mandated to
• The platform for key national
industry leaders
• Ensure exceptional service
delivery in the unregulated
industry
• To develop and maintain the
market infrastructure
• Licensing and permits
• Publish and disseminate
guidelines relating to
environmental management
• Facilitate and promote
sustainable economic growth
• Vital link to key industry
players
• Ensure sustainable association
management in Africa
• Platform for key stakeholders
in the global meetings
industry, ranging from
suppliers to associations
• Promotes sustainability,
professionalism and high
standards
• Promote green dimensions in
the events industry
• Provide a platform to key
stakeholders for sustainable
development in tourism
• Mandate to create and enact
laws
• Mandate to create and enact
• Capacity building through training and
workshops
• Coordinate networking and mentorship
opportunities
• Promote sustainable growth in the industry
• Avail networking and training opportunities
• Power to enact laws
• Create conducive environment for business
• Ensure a safe, sustainable and healthy
environment for ZI
• Timely issuance of environmental licences
• Lobby for policies that create an enabling
business environment
• Coordinate events for networking, policy
change and capacity building
• Facilitate exchange of knowledge, expertise
and networking opportunities with the
global community
• Capacity building through offering
unrivalled data, education and advisory
• Facilitate global networking, business
development and communication channels
• Provides a vibrant, collaborative platform
for capacity building
• Facilitate networking opportunities
• Lobby for principles that enhance
sustainable growth
• Enhance healthy competition in the sector
• Facilitate capacity building forums
• Avail networking opportunities
• Pass friendly laws
• Enhance good working relations
• Offer customized tax advisory and
• Actively participate in EMAK
initiatives
• Make good contacts and
establish key relationships
• Adhere to the code of conduct
established within the
association
• Make key contacts
• Adhere to set laws
• Acquire required
licences/permits
• Undertake environmental
conservation as outlined by
NEMA
• Comply to NEMA laws
• Engage in KNCCI activities and
forums
• Maintain valuable networks and
relationships
• Actively engage in AfSAE
activities
• Establish key relationships
• Genuine commitment to ICCA
initiatives
• Build key relationships with
members
• Establish new business
relationships
• Forge and maintain key
networks
• Establish key relationships
• Partake in UNWTO initiatives/
forums
• Adhere to enacted laws
• Ensure full disclosure
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Authority (KRA) collect revenues and allocate laws guidelines • Timely and precise remittance of
licences • Determine rates(TAX) • Establish friendly tax rates taxes
Product & Service • Printers ,Logistics , Fabricators, • Technical capacity to provide • Timely delivery • Timely communication
Suppliers Installers, Sound, Visual, products or offer services • Deliver quality products • Expert handling
Designers • Offer quality service • Timely payments
Advertising & PR • Experts in the advertising sector • Network and publicity • Discounted services and sector advisory • Timely communication and
Agencies payment
Other Industry Players • Strategic partners and • Technical expertise and • Conduct valuable industry research • Make good contacts and
collaborators premium industry insights • Negotiate rates for services maintain key relationships
Table 3: ZI Shareholders’ Analysis
Zuri Ignite Events

Risk Analysis Matrix

Type Description of Risk Level of Risk Mitigation Owner
Market Risk  Unanticipated  Medium  Ensure continuous value  Management
competition innovation to make
competition irrelevant  Sales and
 Compliance with  High  Professional advice on HR Marketing
Labour laws issues  HRM
 Unethical  Medium  Promote ethical practices  R&D
competition  Conduct market research
 Low brand market  High  Strategic B2B and B2C
visibility marketing
Operational Risk  Labour restrictions/  Medium  CBA  Management
Increased wage bill  HRM
 Turnover of key staff  High  Staff empowerment to  Purchasing and
increase productivity and Logistics
satisfaction  Insurance
 Low skills level and  High  Hire based on merit  Operations
proficiency  Sustain level of growth,
training and development
 Institute a robust project
 Delayed Project  High management system
completion  Emergency services and
 Fatal  High equip staff with safety
Injuries/accidents equipment
 Expert handling and
 Poor product  High security surveillance
handling and
Insecurity  Sufficient waste
 Pollution and  Medium management
property damage  Effective crowd
management
 Set and stick to budget
 High CapEX and  High limits
OpEX

Tech. Risk  Sound, lighting and  High  Deploy efficient  Management

visual issues technology and back-up  ICT
 Dynamic technology systems  Legal
 System or new
technology failure  Performance guarantee
 Poor or lack of
support  SLA’S with technology
service providers
Strategic Risk  Poor or no  Medium  Link strategy to  BOD
implementation performance  Management
 Unfair compensation  Deploy an effective  HRM
performance management
 Low employee system
involvement in
strategic planning  Create a sense of
 Resistance to change  High ownership among ZI staff
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and unrealistic targets

 Unsupportive culture  Implement a change
 Lack of a succession management system
plan  Set realistic targets
 Develop and implement a
robust corporate culture

Financial Risk  Delayed receivables  High  Ensure timely collection of  BOD
 Constraints due to receivables  Management
limited resources  Medium  Improve on relative  Finance
 Inaccurate cost bargaining power
estimates & forecast  High  Stick to set budget limits
errors
 unexpected changes
in interest rates,  High  Diversify investments
credit ratings, capital
supply, cash flows
and rentals
 Mismanagement of  High  Promote accountability and
assets transparency

Reputation Risk  Costly Lawsuits  Medium  Settling through re-  Management

 Delayed project  High negotiation  Legal
completion  Utilize a robust project  Operations
 Negative public  High management system  Customer
image  Deploy a public relations Relations
 Event  High policy
cancelation/postpone  Promote open and timely
ment communication
 Food & beverage  Maintain F&B health and
safety concerns  Medium safety standards
Other Risks  Environmental risks;  High  Informed planning and  Management
weather effective setup  HRM
 Government  High  Forge proper relations with  Legal
interference the government
 Safety, alcohol and
drugs  Ensure compliance with
 Breach of contract the safety and legal
requirements
 Obtain optimal contracts
 Cushioning through
customized insurance
package
Table 4: ZI Risk Matrix