STRATEGIC MANAGEMENT IN TOURISM

Strategic Management in Tourism

Strategic Management in Tourism

Strategic Management

Strategic Management involves looking at ground realities and formulating an approach that can achieve desired results in the context of these realities. It follows that strategy will differ from context to context. Readymade strategies rarely work, and, this is the main problem with strategy development; businesses have to take pains to observe, think and plan. All businesses need:

Marketing Strategy to ensure that they can get a profitable volume of orders for what they offer, at a remunerative price.

Technology Strategy to select the most appropriate technology, obtain the requisite know-how and implement it in their business.

Operational Strategy to carry out operations at low enough costs while ensuring that they can deliver a quality product or service to their customers.

Human Resource Strategy to hire, train, develop and retain people, equipped to handle the varied tasks involved in running the business with the required degree of competence.

These options serve as the basic framework for creating a marketing strategy along with business strategy of the firm.

What is Strategy?

According to Ansoff, business strategy is piloting changes in business relations system with its environment. According to Michael Porter, business strategy is the attainment of the choice of allocation of resources (financial, human, technological, etc.), committing the company in the long term goals and objectives and to attain a sustainable competitive advantage in a decisive and defensible way. According Fred R David, business strategy is all about setting goals based on the configuration of the environment and resources in the organization and allocation of resources to achieve a sustainable competitive advantage. The purpose of formulation of business strategy is not only to make a profit but to ensure the sustainability of the company.

Steps of Forming, Implementing Business Strategy

Forming business strategy is a proper procedure that follows sequenced steps. The steps of forming, implementing and evaluating business strategy are as follows:

Step 1: Strategic Analysis

Step 2: Choice and selection of the strategy

Step 3: Strategy implementation

Step 4: Strategy evaluation

Overview of the organization

The travel company Hindocha travel international (HTI) is planning to start its operation this year, which will serve products and services in the travel industry. The company will provide its services to the domestic and international tourists. The Dream line has the intention to provide both individual and group travel facilities to the cities in UK to the cities in India. The services that will be included in the package of the tour will include pre-arranges tours, custom packages according to client's specifications, travel consultation, and as time progresses making reservations for lodging amongst other related services. The travel company Hindocha travel international is planning to have a competitive edge over other travel businesses by implementing a differential strategy by giving a premium services as the premier international online travel agent within UK. The company ensures its clients and aims to provide its clients with the lowest possible fares. The company also aims for certain goals to be achieved over next ...