Chapter 8 Strategy for Tourism

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Chapter 8Strategy forTourism
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Strategy

• is the planning of a desirable future and the
  design of suitable ways of bringing it about
• Four Key elements
• Mission direction you are aiming for
• Strategic Analysis usually S.W.O.T.
• Strategic Choice choosing best strategy
• Strategic Implementation putting into practice

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Mission Stakeholders

• a succinct achievable, visionary statement
  looking to the future, describing your aim
• Accompanied by objectives (SMART)
• Specific, Measurable, Agreed upon, Realistic,
  Time-constrained
• Open objectives vs. closed objectives
• Includes mapping of Stakeholders
• External and Internal

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Strategic Analysis (S.W.O.T.)

• Opportunities Threats
• Future external elements (C-PEST)
• Competitive (Porters Five-forces Model!)
• Political (changes in laws/regulations)
• Economic (exchange interest rates, inflation,
  etc.)
• Socio-cultural (population, attitudes, values,
  etc.)
• Technological (both opportunities and threats)
• Strengths Weaknesses
• Current, internal elements
• Analysis of resources, products services

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Strengths Weaknesses

• Key Resource Elements
• Physical Resources (buildings, etc.)
• Human Resources (skills, etc.)
• Financial Resources (liquidity and debt/credit)
• Intangibles (brands, image, knowledge, etc.)
• Types of analyses for Resources
• Analysis of efficiency (ratio of inputs to
  outputs)
• Financial Analysis (share prices, earnings, etc.)
• Appraisal (evaluation of human resources)
• Comparative Analysis (benchmarking against)

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Strengths Weaknesses (cont)

• Evaluation of Orgs Products Services
• Effectiveness
• Are products/services meeting objectives?
• Value-Chain Analysis
• Effective from advertising through after-sales?
• Portfolio Analysis
• Are range of products well-balanced?
• Product life-cycle analysis
• Intro, growth, maturity and decline/stable/rejuven
  ate
• where are you?

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Strategic Choice

• Usually positioning by price
• Quality/price compared to competitors
• Must be suitable, feasible acceptable
• Four options (Fig. 8.3)
• Price-based lowest price in industry
• Differentiation Product quality uniqueness
• Through design, innovation attention to quality
• Hybrid High quality/low price (difficult)
• Zone X High price/low quality (failure)

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Strategic Dvlpt. Methods

• Withdrawal (decluttering)
• Getting rid of undesired products
• Consolidation
• Concentrating on best performing products
• Market Penetration
• Increasing Market Share of current markets
• Market Development
• Bringing existing products into new markets
• Diversification
• New markets unrelated to current offerings

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Ways to Develop Strategy

• Internal Growth
• Best when you with want to maintain control
• Mergers (voluntary) Takeovers
• Can be vertical or horizontal
• Joint Ventures Alliances (less formal)
• Usually for Marketing purposes
• Franchising
• rapid market penetration

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Mgmt. of Change (4 Cs)

• Calculation
• Discovery Management of Change
• Communication
• What is everyones new role?
• Culture
• Is It a threat to established routines?
• Compliance
• What will the rewards punishments be?
• Case Study 8.1 EasyJet!