Essay on The use of Porter Generic strategies

3041 Words Dec 4th, 2013 13 Pages
International Journal of Trade, Economics and Finance, Vol. 1, No. 2, August, 2010

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
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During this period lots of
investments have been made for modernizing the
accommodation structures and to increase the volume of the
green-field investments.
Within the context of hotel industry from Romania, recent
changes have seriously affected industry profitability,
forcing hotels to adopt a variety of business strategies. For
that reason, we have assumed to find hotels pursuing Porter’s
generic strategies in both a mutually exclusive manner, as
well as in hybrid forms. Although various studies have
examined the application of Porter’s strategies to different
industries [12], [13], [14], [15], [16], [17], no study has
examined to what extent the various strategic types are
prevalent in the Romanian hotel industry.
This study has its aim to analyze the strategies used in the
Romanian hotel industry and to determine if there is any
evidence that could link these strategies to the generic
strategies developed by Michael Porter [8]. The relevance of
the study lies in the fact that it simplifies the complex reality
of the hotel industry indentifying the way in which managers
make use of the business strategies they implement.
This paper is organized in several sections. It starts with a
brief review about the strategic management and the role of
generic strategies. A description of the…

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