STRATEGIESFOR QUALITY SERVICE

• Strategy

  Plans that are designed to help an organization reach a specified goal
• Strategic Planning


  • Identifying a company's internal and external characteristics which will contribute to the attainment of its goal
  • Pointing to a specific direction
  • Formulating different policies on how best to achieve it
• Strategic planning has been utilized extensively for developing tangible products rather than used in service-related industries like hospitality and tourism
• Strategies

  • Help a company identify its competitors
  • Help a company satisfy the needs and wants of its guests
• Elements of Strategic Planning

  • Identification of Long-Term Goals and Objectives
  • Adoption of Different Courses of Action
  • Allotment of Resources
• Porter's Generic Strategies

  • Cost-Leadership Strategy
  • Differentiation Strategy
  • Focus Strategy
• Cost-Leadership Strategy

  Focuses on reducing costs and charging lower prices
• Cost-Leadership Strategy

  • An economy-level hotel that charges low rates but has only basic amenities for a standard room
• Differentiation Strategy


  Focuses on making the company's service being attractive and unique in comparison to those of its competitors
• Differentiation Strategy


  • A hotel utilizing green technology in its operations
• Focus Strategy


  Concentrates on developing services for a niche market
• Types of Focus Strategy

  • Cost focus - refers to cost leadership in a narrow or focused market
  • Differentiation focus - refers to differentiation in a narrow or focused market
• Focus Strategy


  • Study hubs in the university belts
  • A coffee shop that adapted the drive-through business model
• Internal Analysis


  • Examines a company's internal components, both tangible and intangible, such as resources, assets and processes
  • Helps the company decision-makers accurately identify areas for growth or revision to form a practical business strategy or business plan
• External Analysis


  • Determines a company's position in the external environment
  • Showcases its opportunities and threats through different tools such as the PESTEL Analysis
• Factors to Consider in Strategizing the Future of Hospitality and Tourism

  • Demographics
  • Economic and Natural Forces
• Coexistence


  Exists in social exchanges between competitors; each competitor knows about each other but does not interact with them
• Cooperation


  When there are frequent exchanges between the players, which comprise business, information, and social exchange; Formal agreements exist if the competitors have formed strategic alliances
• Competition


  A relationship that is based on an action-reaction pattern
• Co-opetition


  Cooperation between competing players; This relationship includes economic and other forms of exchange
• Types of Competitors

  • Coexistence
  • Cooperation
  • Competition
  • Co-opetition
• Other Stakeholders and Relevant Groups

  • Resource Suppliers
  • Capital Suppliers
  • Labor Supply
• Without a stable labor supply, the tourism and hospitality operations will be significantly affected as they drive the operation itself
• A disruption in the operation of the resource supplier will ultimately affect the company
• Because capital available is crucial, a company's decision-making should be exact not to dampen the entire operations
• A company cannot continue its operation without the raw materials, equipment and other supplies
• A company may need to spend more time forecasting the availability of capital as it is a crucial resource
• Group activity regarding a company's strategy for service quality