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TOURISM

PETER ROBINSON MICHAEL LÜCK STEPHEN L. J. SMITH


Tourism and
13 Destination Strategy
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
Strategic Planning
• 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)


The Strategic
Management Process

Strategic Strategic
Implementation Analysis

Strategic Strategic
Choice Purpose
Strategic Objectives
• Profile
• Collaboration
• Innovative focus
• Support
• Stakeholders
• Members
Strategic Analysis
The Organization

• Micro-environment SWOT Analysis

versus macro- The Micro-


environment Environment
Resource Audit
and Porter’s 5 Forces

The Macro-
Environment
PESTLE Analysis
SWOT Analysis
• Strengths
• Weaknesses
• Opportunities
• Threats
Porter’s Five Forces
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
PESTLE Analysis
• Political factors
• Economic factors
• Social factors
• Technological factors
• Environmental factors
• Legal factors
Stakeholder Analysis
Porter’s Generic
Competitive Strategies
Strategic Direction
• Market penetration
– Existing markets, existing products
• Market development
– New markets, existing products
• Product development
– Existing markets, new products
• Diversification
– New markets, new products
Ansoff’s Directional Matrix
Directional Strategies
• Integration
– Backward integration
– Forward integration
– Diagonal integration
– Horizontal integration
Strategic Growth
• Organic growth (or internalization)
• Mergers and acquisitions
• Strategic alliances and joint ventures
• Franchising
• Licensing
• Marketing cooperatives
Implementing and Monitoring
• Managing change
• Strategic drift
• Evaluation of tourism strategies
References
• Mintzberg, H. and Walters, J. (1985) Of Strategies, deliberate and emergent. Strategic Management
Journal 6, 257–272.