The use of Porter Generic strategies
International Journal of Trade, Economics and Finance, Vol. 1, No. 2, August, 2010
2010-023X
The Use of Michael Porter’s Generic Strategies in the Romanian Hotel Industry
Ovidiu N. Bordean, Anca I. Borza, Răzvan L. Nistor and Cătălina S. Mitra,
Abstract— Porter’s generic strategies remain one of the most widely accepted typology of strategic options for businesses.
Using a survey a sample of 69 hotel managers from the
Nord-West part of Romania was questioned about their current strategic practices. A factor analysis revealed that hotels are pursuing only two strategies that can be identified as those of
Porter. The regression analysis was used in order to test if there are certain practices that correlate with the strategies identified earlier in the study. The ANOVA results indicate between two and five strategic practices were significant for each of the four strategies. The results of the study are important as they support much of the literature and discussions about aligning strategic practices with the chosen strategy.
Index Terms—cost leadership strategy, differentiation strategy, focus strategy, hospitality industry, Romania.
I. INTRODUCTION
The hospitality industry – which includes the restaurant, accommodation, entertainment and transportation businesses
[1], [2] is facing fiercely competition. Accordingly, the approaches that the hotels take in making strategic choices need careful consideration if they are to gain or retain competitive advantage.
The literature suggests that two main perspectives shape our understanding of strategy and strategic choices: the industrial organization (I/O) perspective [3], [4] and the resource-based view [5], [6], [7]. As strategic group assessments identified clusters of businesses employing similar strategies, researchers were beginning to categorize similarities within strategic groups across studies. In the past several generic strategies have been developed and utilized as
2010-023X
The Use of Michael Porter’s Generic Strategies in the Romanian Hotel Industry
Ovidiu N. Bordean, Anca I. Borza, Răzvan L. Nistor and Cătălina S. Mitra,
Abstract— Porter’s generic strategies remain one of the most widely accepted typology of strategic options for businesses.
Using a survey a sample of 69 hotel managers from the
Nord-West part of Romania was questioned about their current strategic practices. A factor analysis revealed that hotels are pursuing only two strategies that can be identified as those of
Porter. The regression analysis was used in order to test if there are certain practices that correlate with the strategies identified earlier in the study. The ANOVA results indicate between two and five strategic practices were significant for each of the four strategies. The results of the study are important as they support much of the literature and discussions about aligning strategic practices with the chosen strategy.
Index Terms—cost leadership strategy, differentiation strategy, focus strategy, hospitality industry, Romania.
I. INTRODUCTION
The hospitality industry – which includes the restaurant, accommodation, entertainment and transportation businesses
[1], [2] is facing fiercely competition. Accordingly, the approaches that the hotels take in making strategic choices need careful consideration if they are to gain or retain competitive advantage.
The literature suggests that two main perspectives shape our understanding of strategy and strategic choices: the industrial organization (I/O) perspective [3], [4] and the resource-based view [5], [6], [7]. As strategic group assessments identified clusters of businesses employing similar strategies, researchers were beginning to categorize similarities within strategic groups across studies. In the past several generic strategies have been developed and utilized as