Introduction
Tourism contributes significantly to the social, cultural and economic growth of a country. Development of sophisticated competitive strategies ensures a tourism industry receives more tourists and achieves a competitive advantage. Most tourism destinations conduct surveys on the potential areas where to receive more visitors bearing in mind the strategic flexibility of the changing environment (Steers, Runde & Nardon 12-14). The Slovenian tourism strategy aims at developing a plan the will ensure the destination wins the global competitive advantage in the tourism sector. In addition, the strategy falls under the Ministry of Economic Development and Technology that is assisting in the development of a perfect development model for Slovene Tourism. This paper analyses the competitive situation of Slovenian tourism, seeking the best solution from the provided articles and, determining the effectiveness of Dwyer tool for solving strategic competitive challenges.
Question one
Analyze the competitive situation of Slovenian tourism described in the two documents with specific emphasis on the term strategic drift. Define and discuss the term strategic drift.
The impact of strategic drift on Slovenian tourism sector
The enhancement and sustainment of tourism destination competitiveness is full of increasing saturated markets. The growth of a market share is influenced by the competitiveness of a tourism destination, forcing tourism managers to identify and explore competitiveness advantages while analyzing the actual competitive strategy (John, 22). However, strategic drift has greatly affected tourism sector in Slovenia. The Slovenian tourism industry has been competing well in the global market but, changes in the tourism environment resulted into its downfall making the market experience a strategic drift. Strategic drift refers to a situation whereby an organization that uses to enjoy considerable success is affected by changes in the external environment due to slow respond to change. The documents provide various approaches that will enable Slovenian tourism industry respond faster to the changing environment in order to win the competitive advantage and evade strategic drift. The advancement in technology has seen many industries remain behind in the global market due to changes in the technological environment, which is the main cause of strategic drift today (Bruno and Damjana 58-61).
On the other hand, the competitive situation of Slovenian market should have a strategic flexibility that enables the destination to respond effectively to turbulent environment. The planned management process will assist tourism suppliers in overcoming challenges of gaining the competitive advantage that will eliminate the aspect of strategic drift. The rapidly changing tourism environment effects both the organization’s market orientation and the competitive advantage. The changes in direction of values of main environmental variables are the main character of the ever-changing environment (Johnson et al 45). The competitive situation of Slovenian tourism described in the two articles clearly shows that a lot need to be done in order to ensure Slovenian meets its objectives. The tourism industry is growing at an alarming rate globally and many destinations are developing new techniques of attracting customers. Jackson argues that a tourism industry incurs many losses in case the destination management fails in designing the best features that attract more visitors (17–24).
Theory and model for analyzing competitive situation of Slovenian tourism
Different theories and models explain the aspect of competitiveness in the tourism industry (Kozak 784–807). The articles discuss the Dwyer theory developed in collaboration with researchers from Korea and Australia. The tourism strategy being developed in Slovenian aims at making it a sustainable developed destination by the year 2013. The destination will be made up of modern, top quality tourist offer and diverse services based on modern technology and innovations. The Slovenian tourism activities provide an important aspect of social-cultural well-being, sources of revenues and job creation that contributes a lot to the Slovenian economic growth. The following strategy will ensure Slovenian creates an intensive marketing of tourist products that are internationally recognized (Dwyer et al 3-5).
Destination management plays a significant role in influencing tourism destination competitiveness. Activities such as destination marketing, planning and development and human resource development are involved in forming a competitiveness destination (John 56-57). The two documents focus on developing a tourism destination in Slovenia that provides a unique comparative advantage and provides a special long-term appeal of the area. A model that clearly describes approaches necessary for winning the competitive advantage would be of great help here. The destination competitiveness model plays a significant role in the analyzing of tourism competitiveness in Slovenia. The mode l explores important issues involved in exploring the nature of competitiveness as discussed by researchers in the tourism sector. Figure 1 shows a display of the model representing all six main elements of destination competitiveness (Dwyer and Mellor 45).
Figure 1: Destination Competitiveness Model
The brand theory also plays a significant role in marketing a tourism destination through critical decision-making processes (Pike 102-103). Slovenia aims at encouraging brand-positioning strategy that ensures they offer only services that are pleasing to their visitors in order to attract potential tourists. Moreover, Tourism destination branding provides a significant gap in conducting tourism services. Slovenia puts into consideration the functional destination attributes, like the cultural events and sporting events. In addition, the destination ensures customers get travel motivation benefits in order to sell their services to their friends and relatives. The marketing manager should focus on functional activities that ensure the destination faces no political and financial constrains. Demand conditions also play a special role in marketing a tourism destination. Slovenia destination is attractive to different groups of tourists that make it win the competitive advantage due to motivation of travelers. The domestic and foreign demands for travel in Slovenia are high that increases the competiveness due to awareness, perception, and preferences.
Question two
Are the two documents congruent in their solutions for Slovenian tourism? If so, how can this be seen? If not, why may this be the case?
Yes, the two documents have provided enough solution for Slovenian Tourism. Firstly, the document analyzing about the effect of current technology on improving the competitiveness of an organization places more weight on this matter. Tourism is an expanding industry and so is the world advancing therefore; tourism destinations ought to utilize the present technology in order to attract more customers. In addition, the document speaks of the changing and unpredictable environment. Change in an organization demands that the stakeholders establishes the necessary mechanisms for managing, controlling, and implementing change. Most of the organizations in the tourism industry face the challenge of technological change management and have ended up failing to adopt change. Change acts as a steering gear towards optimization of organization performance and gaining better results. Appreciation of change by stakeholders of a given organization is a crucial step that aids in implementation of change. However, most organizations appreciate change extensively, but managing change becomes a significant challenge. Thus, there is a need of comprehending change management strategies in order to formulate the most effective measures that need adoption during change implementation process (Barnard & Stoll 56-60). The solutions offered on this documents plays a significant role in taking Slovenian tourism industry to the next level.
Secondly, the Slovenian government has developed some strategies aimed at improving tourism in the region. The Slovenian Republic developed the Promotion of Tourism Development Act that focuses on the improvement of Slovenian tourism. The following article lays down a 5 years strategic plan, from 2012 to 2016, aimed at ensuring tourism in Slovenia achieves a competitive advantage. The 2012-2016 Slovenian tourism Development Strategy will provide solution to the challenges facing the tourism sector in the country. The strategy solves the problem in many ways.
On the other hand, the development strategy developed some objectives that Slovenian republic wishes to achieve by 2016. These objectives include;
- Increasing the volume of tourist activities by increasing number of overnight stays by 2% and, number of annual tourists by 4%.
- Successfully enforcing the principles of sustainable development of the tourism sector,
- Creating a favourable business environment, and
- Creating efficient and innovative marketing and promotion strategies for Slovenia in order to attract more tourists.
All these objectives are geared towards providing solution to Slovenian tourism destination through increased competiveness, favourable business environment, and innovative marketing.
Thirdly, the documents have provided a concrete solution to the issue of Slovenian tourism by stressing on the importance of strategic flexibility in a business. Dwyer and Edwards propose that Slovenian tourism industry should modify its business strategies to meet the emerging opportunities. The small changes that characterize a business strategy referred to incremental changes enables an organization adapts to a dynamic environment. The solution offered at this context ensures that the Slovenian tourism destination utilizes the available resources in order to improve their activities and achieve the 2016 objectives. Understanding marketing characteristics ensure the success of any business because it has full details about competitors. Most tourist destination centres in Slovenia provide beautiful sceneries and high standard hotels for their visitors. The destinations have not realized the importance of utilizing the available resources to create room for innovations. The ideas offered on this document would assist Slovenia make use of such resources in increasing the number of tourists.
Finally, the documents offer approaches to a strategic flexible market that Slovenia should adapt. Firstly, the industry should come up with core competencies that provide the firm with strategic options for realizing their marketing goals. Secondly, Slovenia tourism sector should develop brands that respond to the emerging marketing opportunities in the tourism industry. Improved customer relations are another important factor to consider while developing a strategic plan. The industry should focus on improved customer relations during this turbulent and dynamic business environment in order to attract more visitors. Finally, the solution proposes a stronger networking and more innovations in order to take advantage of the current generation. Improved networking with government agencies, enterprises, and local population plays a significant role in achieving a competitive advantage (Adobor 122-125).
Question three
Is the IPA grid used by Dwyer et al. in your opinion an appropriate tool to solve strategic competitive challenges both on a firm level and a national level? Please base your answers on sound academic argumentation.
Many models are used in solving problems arising from poor marketing strategies in a firm. The IPA grid used by Dwyer et al provides a better way of analyzing the performance of a firm and assisted in solving Slovenian tourism industry problems. The main reason for supporting his method is because it clearly highlights areas that require improvement in order for the tourism sector to perform effectively. In addition, the model identifies areas requiring immediate action in relation to activities that promotes development of core competencies in the Slovene tourism sector. The use of IPA grid will enable Slovenian tourism sector maintain a strategic flexibility on various activities that makes the industry achieve a competitive advantage. In addition, the method promotes communication, support and training as part of the aspects necessary to foster strategic option assimilation in an organization. Communication of these strategies ensures that employees comprehend change in an effective manner (Dwyer et al 10)
On the other hand, the IPA grid developed by Dwyer assists firms in establishing available opportunities in a business environment. The method establishes the necessary activities that a tourism destination should focus on depending on the type of environment exposed to. For instance, IPA grid has the capability of identifying the rate of changes found in an environment. The grid helps managers in understanding market focused strategic flexibility in order to explore new opportunities thus, more innovations. Moreover, some organizations may find it necessary to make use of strategic options to facilitate acceptance of change within the organization. Such a method needs to have elements expertise in managerial judgment and high-level of competence. This ensures that the change manager easily understands the change, barriers to change, and factors that aid in adoption and facilitation of change process (Dwyer et al 10).
Conclusion
The following discussion shows that tourists are very sensitive to the environment of any destination. Slovenia should carry out promotions and teaching the surrounding communities on the need for welcoming visitors as they travel in different sites. . A well-planned tourism marketing strategic plan will give the Slovenian firm an opportunity to build its foundations for consultation, and development of an excellent relationship with other potential partners. Moreover, Slovenia is a stable nation that faces no crisis giving tourists a favorable environment to enjoy themselves and learn more about the nature. The city should use this as an opportunity to encourage people to invite their friends and relatives in the destination. People travel for different purposes, and depending on the reason, the destination should design attractive activities for different purposes. The solutions offered in the two documents if well implemented will see Slovenian Tourism sectors grow not only locally, but also internationally.
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