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.