Strategic Management
To begin with, tourism is one of the largest industries in the world contributing 6 trillion dollars annually into the global economy. World travel & tourism council, 2011 predicted that tourism could create 69 million jobs in the Asia and Mexico. Tourism has been part of this world from the very beginning. People have been travelling from one place to another for leisure and fun. And now with modernization more people can travel in lessor time. This thing has made this industry worth trillions of dollars. From sea routes to airlines everything advanced now. (Jain, page 510, 1992). Europe has always been the most hotspot place for travellers for many years even in 2019 top 2 countries with most travellers were France and Spain (Romecitynow, 2020).
Moreover, as stated by Thompson, Strickland and Gamble that the meaning of Strategic management is the main plan of a business, in which they decide how to keep growing as a organization, stay competitive in the market, how to reach the targets in order to enhance the organization’s performance and to keep attracting and satisfying customer’s needs (Tapera, 2014).
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As well as, the concept of management needs to be understood as it’s a big challenge in tourist organizations. Trends in global market changes the perspective of tourist management in the dimension of strategy of new models in tourist organizations. (Maric and Page 427, 2012).
The benefits which can be obtained from strategic management helps encounter planning process. Key factors for this are internal and external environmental issues which effects organization directly and indirectly and can change the way an organization operates. Strategies make sure that organizations are well set on its goals and objectives with a guideline.
Moreover, it provides a path for employees of that organization to follow. Without such strategies and guidelines organization cannot determine their routes or implement any policies in the organization. This could further affect their survival in the industry.
Due to this process of strategic management all the loop holes and questions could be answered in a much systematic way. Thus, they will get a much clear picture of their routes.
Evolution of Strategic Management in Tourism & Hospitality
In recent years, tourism and hospitality management has gained significant importance and development and has become important part of people’s life. Attractive places and promotional spots have gained enough famous that people don’t just go for enjoyment but to spend their best time of life. This has increase competition in global market of tourism. (Getz and Page 593, 2016).
The management is a crucial innovation which is a modern revolution in tourism industry. In such way managements try to overcome the hindrance in the industry which can cause the problem for people. Its importance can be understood by the complexity of the industry and competition in the global market.
Further, this leads the people and the organizations towards information and knowledge. It helps maintain the coordination within the organization effectively and efficiently (Robbins et al., 2009:10).
It helps win the market and increase the profit with significant percentage. Organizations must strategize plans for long term future in order to compete and act accordingly with changing market. (Banja, page 120, 2016).
Importance of Strategic Management in Tourism & Hospitality
The primary purpose of strategies is to have a guidance and be competitive in the market. With dynamic changes in domestic and international market it is impossible to survive without a strategy. Even if the data of tourism industry is put together of last decade, significant changes can be observed.
Furthermore, sometimes strategies could be problematic as well due to changes in the market. Internal and external factors affect businesses in different ways and organizations can never predict them. The best way is to stay updated and be flexible with the strategies so they can change easily.
In this context, Entouristik can develop strategies as well to effectively grow their business by changing market by implementing effective strategies.
Strategic Marketing
Strategic marketing is all about developing a marketing strategy for an organization. Primary focus is on the competitive and consumer advantage a business can has in the market. Strategic marketing is different from strategic management although there are some similarities. Strategic marketing helps identifies the market to compete and survive on the basis of advantages. Furthermore, Hambrick And Fredrickson (2001) stated that marketing strategies has five following elements:
- It deals with where organization plans to be active
- How it will get there
- How it will succeed in the marketplace
- What the speed and sequence of moves will be
- How organization will obtain profit
However, it has a resource and budget limitation under which it has to be operated. Strategic marketing can be for short term and long terms depending upon the situation and resources available. But with this strategy company can analyse its performance and make changes (Jain, page 510, 1992).
Importance of Strategic Marketing in Tourism & Hospitality
As mentioned earlier, tourism and hospitality industry is the world’s biggest industry is not just because of customer’s satisfaction or desire but because of the marketing strategies which have been implemented by the businesses to attract customers. One of such strategy is marketing strategies which helps sustain the competition in the market and grow with a tremendous speed. Everyday millions of ads and marketing tools are used to attract customer to travel different places. From airline to hotels to restaurants and different destination spots. People are attracted and choose these things to travel.
Tourist organizations have adopted this strategy not only to grow but to meet the challenges of changes markets. Organizations can define such marketing strategies as “integrated pattern of decision making”. Crucial decisions are made in this strategy which can easily affect the market in positive and negative manner (Varadananjan, 2010, p. 128).
As experts suggest that strategies which are driven by market and customer preference should be the starting point of any business (Cravens & Piercy, 2009). Thus, every market and customer factor have to be considered in making strategy like customer taste, seasonality, etc. Referring to the benefits and advantages of the strategic marketing, it is becoming very important. However, this market still lacks many crucial elements in marketing. One of the reasons is that now the marketing strategy is more focused towards destinations than consumers. Consumers are the main elements because of which this organization is running and they are the one need to be focused (Williams, 2006).
Due to the advancement in the market, organizations have lost their interest in offering packages rather than outlets and destinations. The preference and desire of consumer is being neglected completely. Now consumers have more knowledge of tourist spots and the demand high value service from the tourism industry (e.g. Web 2.0 and Web 3.0)
Tools for Strategic Marketing in Tourism and Hospitality
The competitive strength in the environment of tourist services, especially hotels are strongly related to the policies and strategies which are developed through the process of new information technologies (Oltean et al., 2014).
Technological innovation has greatly impacted the traditional tourism marketing strategies in the last decade as well as, changing the behaviour of implementing the strategies and tasks of service providers. With the increase in demand for quality services and high satisfaction have forced companies to modify themselves and adopt technologically advanced systems.
Such innovations are becoming part of every organization in the industry. This is obvious that investment in information technology will increase the effectiveness and efficiency of the organization. Although, this will also increase the competition by reducing the cost and time spend on each task and capturing markets globally (Bilgihan et al., 2011).
As stated by, Eurecat Tourism Innovation Department Director Salvador Anton Clave said during the Forum TrisTIC de Barcelona event that “the change goes beyond improving processes of the tourist experience; it entails transforming the tourism system itself.”
Some elements like mobile phones have major effect. They have made everything available in one click from booking to travelling everything can be done on your cell phones. People can locate restaurants, hotels, top tourist spots and even purchase anything they like. And most importantly people can never get lost in new location thanks to GSP and google map (Global growth agents, 2019).
Mobile apps
In terms of technology and future growth, smartphones are the most important development. Today, instead of just connecting people now they are used for booking tickets of airlines. Book Uber cars to reach different locations and to choose places where one wants to go.
Faster and safer with biometrics
The biometric system at airports and hotels have made trips extremely safer. On the basis of this all the gather can be collected with the help of fingerprint. In future it is possible that people will not need to carry passport and tickets with them instead with the help of biometric system their booking record will be displayed on computer and travelling will become very safe and easy.
Fewer hotels, more private homes
Sharing foods and living places is becoming new thing in tourism industry. With the help of Airbnb people can book their accommodations much cheaper than hotels and have the luxury of living in homes. This make things safer for people and increase the diversity in people to share their things and make money.
Furthermore, COUCHSURFING has made life much easier than Airbnb. This app has allowed people to connect and live free in different countries, reducing their cost of travelling to minimum level possible. In COUCHSURFING people share their houses and food with travellers for free and give them tour of their places. And each people can know another even before they meet by their profile and references, they get by other peoples. Such new technologies have made things secure and easy for everyone.
Car rentals with GPS
Nowadays, people don’t need navigators to track locations but they have smartphones for them. People can track their cars and distances. Rental companies have taken great advantage of this and Ryanair airline is also using this service in their benefits (Tourism Review News, 2019). It has become simpler to book a car online and locate it through the GSP about where the car is.
Customers us informational technology system to compare alternative solutions for traveling and finding best suitable offers. Using different servers like Kayak, TripAdvisor they can find best travel guides and secure bookings to meet their requirements (Buhalis & O,Connor, 2005)
Online shopping also differs due to the complexity of the website, the easier it will be more customer will shop from that website. (Beldona, Morrison, & O'Leary. According to an Australian study, different people have different comfort zone in terms of website and they act according to their preference. Even while booking on the website it have to secured which increases the trust of costumer to again visit (Benckendorff, Moscardo, & Murphy.
Kim and Han (2007) concluded that potential consumers of seven different agencies identified that low fares and security is the most important aspect of any website.
Customer loyalty and satisfaction is highly integrated with quality service and secured channel (Ho and Lee (2007). In developing countries like India, Brazil, research has showed that IT staff have high technical skills and need more development to grow their businesses (Tetteh & Snaith).
Additionally,
In case of Entouristik, the management should also adapt such marketing strategic to expand their business effectively.
External Environment Analysis
This theory is based on the ideology of maximizing company’s profit and building long term advantage for an organization. The industrial organization perspective is the basis of the theory which shows that the external factors of the market are more crucial to gain and sustain competitive advantage in the market (Porter, 1981).
Comparison
Strategic management is a long-term strategy planned by the business in order to establish a clear path for the business to follow which portrays how will the business expand, target achieving, how to maximize the profits, which can provide a sense of motivation for the employees.
Whereas, strategic marketing is about segmenting and targeting markets through multiple techniques such as, launching new products which are trending in the market, by setting up prices according to the strategies of long-term management. The primary goal is to satisfy the customer needs and wants far better than the rival comapny and achieve and sustain a competitive advantage. Many businesses face failures to sustain their relationships with existing customers. (Romecitynow, 2020).
Conclusion
In order to expand and effectively run their business Entouristik should use strategic management for the long-term future, and to prepare for the changing marketing conditions. As well as, develop marketing strategies using new era technological marketing tools to attract and sustain customers in order to maximize the profits.
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