Essay on The use of Porter Generic strategies

3041 Words Oct 1st, 2013 13 Pages
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
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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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