TOURISM
PETER ROBINSON
MICHAEL LÜCK
STEPHEN L. J. SMITH
13
Tourism and
Destination Strategy
Learning Objectives
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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
Implementation
Strategic
Analysis
Strategic
Choice
Strategic
Purpose
Strategic Objectives
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Profile
Collaboration
Innovative focus
Support
Stakeholders
Members
Strategic Analysis
The Organization
• Micro-environment
versus macroenvironment
SWOT Analysis
The MicroEnvironment
Resource Audit
and Porter’s 5 Forces
The MacroEnvironment
PESTLE Analysis
SWOT Analysis
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Strengths
Weaknesses
Opportunities
Threats
Porter’s Five Forces
1.
2.
3.
4.
5.
The threat of new entrants and barriers to entry
The bargaining power of suppliers
The power of buyers
The threat of substitute goods and services
Rivalry amongst competitors
PESTLE Analysis
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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
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Backward integration
Forward integration
Diagonal integration
Horizontal integration
Strategic Growth
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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
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Mintzberg, H. and Walters, J. (1985) Of Strategies, deliberate and emergent. Strategic Management
Journal 6, 257–272.