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Competitive strategy and strategic direction for tourism, hospitality and…

- - - - demand for its product will be less price elastic than demand for competitors’ products
      - above-average profits can be earned
      - its products will command a premium price
      - it creates an additional barrier to entry to new businesses wishing to enter the industry
    - - Creating products which are superior to competitors
      - Offering a superior level of service
      - Distinctive or superior product promotion
      - Having access to superior distribution channels
      - Creating a strong brand name through design, innovation, advertising, loyalty programmes and public
        relations
  - - - allows specialization and greater knowledge of the segment being served
      - makes entry to a new market simpler and less costly
      - requires a lower investment in resources
    - - Focusing on a particular group of buyers
      - Catering for the benefits sought by a particular group of buyers or a particular product.
      - Specializing in particular geographic destinations
  - - - Allows the possibility to enter a new market by charging a lower price than competitors
      - Can be particularly valuable in a market where consumers are price sensitive.
      - Provides the possibility of increasing both sales and market share by reducing price below that charged
        by competitors
      - Creates an additional barrier to entry for organizations wishing to enter the industry
      - Can earn higher profits by charging a price equal to or even below that of competitors because its costs
        are lower
    - - Producing products with ‘no frills’
      - Achieving economies of scale by high-volume sales
      - Using less expensive resource inputs
      - Using high-volume purchasing to obtain discounts
      - Reducing costs by copying rather than originating product design features
      - Locating activities in areas where costs are low or government help
      - Obtaining experience curve economies
      - Standardising products or resource inputs
- - - - Pause/proceed with caution
      - No change
      - Profit
  - - - Captive company
      - Sell out/divestment
      - Turnaround
      - Bankruptcy/liquidation
  - - - market development
      - product development
      - market penetration
      - diversification