An exploratory study of competitive strategies among hotels in a small developing Caribbean state

Abstract

Purpose -The purpose of this paper is to examine a typology of competitive strategies, which has not been extensively researched in the context of the accommodation sector in Barbados, a small developing island state in the Caribbean. Design/methodology/approach -Data is collected through self-administered questionnaires from 51 per cent of the hotels in Barbados. Respondents are Human Resource Managers, General Managers or Managing Directors. Findings -Hotels in the five-star and higher category place substantial strategic focus in the area of defining service standards and performance, as compared with hotels in the one-star category. This study suggests that hoteliers should focus on a combination of different strategies advanced by Vandermerwe et al. as a means of securing a competitive advantage. Changes in strategy should be accompanied by training employees as the service and the quality of hotels change. As their customers' demands change, and as the competition changes, the competitive strategies of hotels will change.Research limitations/implications -Due to cultural differences among the islands in the Caribbean, the findings in this study need to be confirmed by undertaking similar investigations in other islands. Future research should consider the use of a more qualitative approach to better understand the nature of these competitive strategies in the hotel sector. Future research should examine the link between these strategies and company performance in order to determine the best combination of competitive strategies needed for maximum organisational performance. Practical implications -This study highlights many challenges to be met and opportunities to be seized by managers in Barbados's accommodation sector. Systematically linking different strategies highlighted by Vandermerwe et al. and proactively managing the hotel is one way to do both. Originality/value -Few studies in this area have been undertaken in small developing island states in the Caribbean. This study attempts to fill this gap by comparing and contrasting the competitive business strategies employed by hotels in Barbados.

The effect of competitive strategies and organizational structure on hotel performance

“…Law and Jogaratnam (2005) investigated IT applications in the Hong Kong hotel industry. Their results showed IT to be an essential component of the strategic planning process for boosting hotel business performance and improving customer service, similar conclusions to those drawn by Jonsson and Devonish (2009). Advanced IT can distinguish market offerings, help firms to meet customer expectations, deliver service standards and performance, and mobilize employees and business partners within the organization.…”

“…This study investigated the influences of competitive strategies and organizational structure on hotel performance, as well as the moderating effects of organizational structure on the relationship between these strategies and hotel performance. Its results show a competitive HR strategy to have a direct impact on a hotel's behavioral performance (Crook et al , 2003; Wang and Shyu, 2008) and a competitive IT strategy to have a direct impact on a hotel's financial performance (Jonsson and Devonish, 2009; Law and Jogaratnam, 2005). Organizational structure is found to have a moderating effect on the relationship between both of these strategies and behavioral performance, a result similar to those reported by Jogaratnam and Tse (2004) and Tarigan (2005).…”

“…Capitalizing on areas of strength in internal resources plays an important role in the success of a hotel. Many studies have explored the relationships between firm performance and brand image (Enz, 2008; Holverson and Revaz, 2006), HR (Enz, 2008), and IT (Jonsson and Devonish, 2009) and that between organizational structure and organizational success (Barth, 2003; Galetic et al , 2007; Olsen et al , 2008), but the role played by organizational structure and the question of whether a mechanistic or organic such structure is more appropriate for business implementation are largely unexamined issues. Further, the nature of the relationship between – or the respective roles played by – organizational structure and performance has not yet been clearly identified (Burns and Stalker, 1961; Covin and Slevin, 1990; Jogaratnam and Tse, 2004; Tarigan, 2005).…”

Budget and midrange hotel managers’ perceptions of and responses to Airbnb

“…The hotel industry is highly competitive (Lee and Jang, 2013), and achieving superior performance is a major goal for hotel managers, so identifying and implementing effective competitive strategies is of crucial importance (Tavitiyaman et al , 2012). The extant literature highlights several competitive strategies commonly adopted by hotels, including leveraging information technology, ensuring cost competitiveness, differentiating market offerings and promoting service quality (Jönsson and Devonish, 2009; Senior and Morphew, 1990; Wong and Kwan, 2001; Chen et al , 2016). However, the hospitality industry is dynamic, and hotels are often challenged by the need to adapt to a changing industry environment (Yong Kim and Oh, 2004).…”

Exploring consumer doubt towards local new products innovation and purchase intention

“…These competitive strategies show how a business should compete in a specific industry (Parnell, 2006), they will make firms to be distinguished in the market (Porter, 1986). And in different researches is suggested to firms to use mixed strategies such as innovation and cost reduction to be differentiated from other rivals either domestic or international ( Jonsson and Devonish, 2009). So as Awuah and Amal (2011) mentioned innovation and internationalization are one of the best factors in differentiation, and in another research done by Roberts and Amit (2003) is proved that innovation can be a leading core competency in firms' profitability.…”