TOURISMPETER ROBINSON MICHAEL LÜCK STEPHEN L. J. SMITH

Tourism and Destination Strategy13

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 Auditand Porter’s 5 Forces

The Macro-Environment

PESTLE Analysis

• Strengths• Weaknesses• Opportunities• Threats

SWOT Analysis

1. The threat of new entrants and barriers to entry2. The bargaining power of suppliers3. The power of buyers4. The threat of substitute goods and services5. 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.