TOURISM PETER ROBINSON MICHAEL LÜCK STEPHEN L. J. SMITH

Tourism and Destination Strategy 13

Learning Objectives To explain the concept of strategy and strategic planning within the context of tourism organizations To assess a range of different growth strategies appropriate to the sector To evaluate external factors that impact upon a tourism business To construct a tourism strategy

A strategic plan is an articulation of the aims and goals of an organization over a period of time, usually based on a 5-year period, and always between 3 and 10 years Strategies can be either deliberate or emergent, and in any case lead to the realized strategy (see next slide) Strategic Planning

Deliberate strategy: is the intended and chosen strategic direction for the organization, based upon a detailed planning process, assessing external factors and future opportunities Emergent strategy: describes the way a strategy may change and develop a response to external factors Realized strategy: is the final strategy that may occur as a result of the merging of the deliberate and emergent strategies (Mintzberg and Walters, 1985) Strategic Planning

Strategic Analysis Strategic Purpose Strategic Choice Strategic Implementation The Strategic Management Process

Profile Collaboration Innovative focus Support Stakeholders Members Strategic Objectives

Micro-environment versus macro- environment Strategic Analysis The Organization SWOT Analysis The Micro- Environment Resource Audit and Porter’s 5 Forces The Macro- Environment PESTLE Analysis

Strengths Weaknesses Opportunities Threats SWOT Analysis

1.The threat of new entrants and barriers to entry 2.The bargaining power of suppliers 3.The power of buyers 4.The threat of substitute goods and services 5.Rivalry amongst competitors Porter’s Five Forces

Political factors Economic factors Social factors Technological factors Environmental factors Legal factors PESTLE Analysis

Stakeholder Analysis

Porter’s Generic Competitive Strategies

Market penetration –Existing markets, existing products Market development –New markets, existing products Product development –Existing markets, new products Diversification –New markets, new products Strategic Direction

Ansoff’s Directional Matrix

Integration –Backward integration –Forward integration –Diagonal integration –Horizontal integration Directional Strategies

Organic growth (or internalization) Mergers and acquisitions Strategic alliances and joint ventures Franchising Licensing Marketing cooperatives Strategic Growth

Managing change Strategic drift Evaluation of tourism strategies Implementing and Monitoring

References Mintzberg, H. and Walters, J. (1985) Of Strategies, deliberate and emergent. Strategic Management Journal 6, 257–272.