Thesis
Business strategies and tourism : an investigation to identify factors which influence marginal tourism firms to move into or remain on the fringe of tourism markets and actions taken to achieve either strategy
Southern Cross University, School of Tourism and Hospitality Management
Doctor of Philosophy (PhD), Southern Cross University
2001
Metrics
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Abstract
This study is concerned with the business strategies of marginal tourism firms, that is suppliers of routine consumable goods and services and whose markets comprise tourists and non-tourists. A primary aim of this study is to identify factors that influence these firms to pursue a strategy to target tourists or not target tourists and actions taken to achieve either initiative. This study also aims to determine whether significant tourists among the customers served by a firm are synonymous with a business strategy to target tourists.
A theoretical framework for the research is established in Chapters Two and Three, drawing on secondary sources relating to the supply side of tourism industries and business strategy. Approaches for defining and measuring the supply side of tourism are discussed in Chapter Two. The focus here is on the need for a more accurate approach to measuring tourism supply and the theoretical and practical utility of a business strategy approach is investigated. The focus then shifts to a discussion of the business strategy literature in Chapter Three. The conceptual development of the factors influencing choice of strategy and actions taken during implementation are identified from the theoretical constructs including the forces in a firm's internal and external environments and organisational structure and the marketing mix. Analysis of the tourism strategy literature identifies a gap in the area of business strategy and strategy development at the level of the individual firm.
Chapter Four presents the quantitative research. Marginal tourism firms in and near the Sydney CBD were selected for empirical study because Sydney is a popular tourist destination with significant tourist consumption and associated supply. Included in the sample were firms operating as a restaurant, attraction or retail outlet located in a popular tourist precinct. These firms were selling general products and services not specific to tourists, however their location in an area known to be popular with tourists meant there was a good chance that a proportion of their customers would be tourists. In assessing whether significant tourist numbers to a firm are synonymous with a strategy to target tourists, the findings indicate that whilst the majority of firms have a significant number of tourists among their customers, less than half of these firms are targeting tourists, therefore implying that significant tourist numbers are not synonymous with a strategy to target tourists. Also an investigation of the various factors that influence choice of strategy for these firms and actions taken to implement the chosen strategy found that firms that target tourists have given significant thought and attention to targeting tourists and their choice of strategy is most influenced by factors in their external environments. To implement their strategies these firms focused on making changes to elements of the marketing mix such as their products and services, pricing structures, advertising media, and promotions.
A key outcome of the quantitative stage of this study is that factors relating to influences on choice of strategy and actions taken to implement strategy from the general literature on strategy are too broad to provide meaningful insight into strategy development in tourism firms. Therefore Chapters Five and Six outline the qualitative stage of this study, which involved conducting eleven interviews with managers of marginal tourism firms in Sydney to develop seven cases of firms that target tourists and four cases of firms that do not target tourists. Analyses of the seven firms that target tourists presented in Chapter Five highlighted various reasons for targeting tourists. Reasons included a lack of spending and visitation by locals, the likelihood that tourists will spend more money than local markets, and the expected influx of visitors to Sydney pre and post the 2000 Olympic games. Businesses implementing a strategy to target tourists mostly focused on taking action in areas of the mix. Actions included making changes to the products or services on offer, the use of new
advertising media, changing the business location, a greater emphasis on industry association membership and the development of cooperative relationships with other businesses in the industry.
Chapter Six assesses the reasons cited by the managers of firms for not targeting tourists. The findings indicate that for these firms tourist markets were not considered discrete, measurable and appropriate in terms of necessary market segmentation criteria. Also these firms believed that tourists were not compatible with existing markets comprising Sydney residents and therefore it would not be appropriate for the firm to target tourists. These factors meant that tourists were not considered actionable market segments. To implement their strategies that did not involve targeting tourists these firms relied more on direct marketing activities such as point of sale and word of mouth advertising, and customer loyalty programs aimed at generating repeat business.
Chapter Seven discusses the key findings of this study in relation to the relevant theory. Implications of the findings are considered and a conceptual framework developed. The factors and actions cited by managers during the case research along with selected constructs from the literature underpin this conceptual framework. As no theoretical models specific to strategy development in tourism firms are known to exist, the aim of this framework was to highlight the differences between marginal tourism firms based on whether or not they targeted tourists, and to provide a theoretical model from this study to be tested in future research.
Details
- Title
- Business strategies and tourism : an investigation to identify factors which influence marginal tourism firms to move into or remain on the fringe of tourism markets and actions taken to achieve either strategy
- Creators
- Tracey Martine Firth
- Contributors
- Neil Leiper (Supervisor) - Southern Cross UniversityNerilee Hing (Supervisor) - Southern Cross University
- Awarding Institution
- Southern Cross University; Doctor of Philosophy (PhD)
- Theses
- Doctor of Philosophy (PhD), Southern Cross University
- Publisher
- Southern Cross University, School of Tourism and Hospitality Management
- Number of pages
- xiii, 237
- Identifiers
- 991012960800302368
- Copyright
- © Tracey Firth 2001
- Academic Unit
- School of Business and Tourism
- Resource Type
- Thesis