Destination marketing: competition, cooperation or coopetition?

Abstract

Purpose -The purpose of this paper is to understand the business relationships among the tourism industry stakeholders in conducting collaborative destination marketing activities. Design/methodology/approach -This research takes a case study approach by focusing on the investigation of the business relationships among tourism industry stakeholders in Elkhart County, Indiana. Interviews with five staff members from the Elkhart County Convention and Visitors Bureau as well as 32 tourism industry representatives were conducted in order to answer the research questions. Findings -The interview results indicate that different relationships of cooperation, competition and coopetition coexist among the tourism stakeholders. Four cooperative relationships with various degrees of formalization, integration, and structural complexity are involved. In addition, four factors have been identified as affecting this relationship configuration. The perceived relationship between cooperation and competition was also found to be vital with reference to the marketing of a destination.Research limitations/implications -Given the exploratory nature and case study approach of the research, caution is required in interpreting the results of the study, particularly in generalizing the study results to other destinations. Originality/value -The paper provides practical implications to tourism businesses in their efforts to collectively market their destination, particularly in relation to how they balance the relationship between cooperation and competition, individual benefits and common benefits in order to achieve success for both the destination and their individual businesses.

Tourism Events and the Nature of Stakeholder Power

“…Getting more visitors could mean increased ticket revenue to the event, which in turn would reduce the need for public subsidy and-at the same time-lead to more business at the destination for local enterprises. Such a coopetition relationship is, in fact, the most mutually advantageous to all stakeholders (Wang & Krakover, 2008). To sum up, diffuse stakeholders should not be forgotten as stakeholder influence is neither static with regards to resources nor the network position.…”

“…Information and knowledge are important tourism resources in the networks used by all stakeholders to collectively market their destination and at the same time compete with each other for individual benefits (Hazra et al, 2014). Such coexistence of cooperation and competition (coopetition) relationships with each other is regarded as an efficient way of achieving success for individual benefits as well as common benefits (Wang & Krakover, 2008). Centrally positioned stakeholders have direct influence on the exchange of resources in this "coopetition" relationship, whereas peripheral stakeholders tend to depend on other stakeholders to access other regions of the network (Rowley, 1997).…”

A study of inter-firm dynamics between competition and cooperation – A coopetition strategy

“…The fi rms investigated in this study engage in indirect competition against each other for the main purpose of value appropriation and utilization 32,42,43 and for the purpose of gaining market position. However, the resources and capabilities of the fi rms (vendors in the Food Court, Fujitsu Services and AWPK) are the primary determinants of their strategies and performances (see also Prahalad and Hamel, 30 Grant 57 ).…”

“…34 The main motive for cooperation is to adopt collective strategies for value generation. 43 Basically, fi rms cooperate for the purpose of achieving a common goal, and as a result share resources with other competing actors or acquire them in the event they are lacking. 43 Firms also cooperate for the purpose of learning or sharing organizational expertise.…”

Innovations and networking fostering tourist destination development in Slovakia

“…In order to compete in the international market, the cooperation of all relevant stakeholders is very important (Wang, Krakover 2008). Although these stakeholders have various interests and in a particular situation can act as competitors, it is crucial for them to collaborate in order to reach new target groups, new markets and keep their customers.…”