Industry Specific Environment Analysis – Strategic group analysis and Porter’s Five Forces analysis
Objective:
To develop an understanding of the competitive environment within the hospitality industry sector.
To identify key factors that differentiate brands in the industry and create strategic maps to visualize the competitive landscape.
To evaluate the industry-specific environment using Porter’s Five Forces framework and identify opportunities and threats for the industry.
Instructions:
Assignment Overview
Each student is assigned an industry sector within the hospitality and tourism industry, which includes 20 brands. Students conduct both strategic group analysis and Porter’s Five Forces analysis to identify opportunities and threats for the industry in the specific environment.
Strategic Group Analysis
- Evaluate each brand for five factors using a 1 to 5 scale or categorical evaluation. Example factors are size(small to large), location (local, regional, national, international), price/quality (low to high), location (urban, suburban, rural, airport), customer segment (business, family, leisure, luxury), and brand identity (traditional, trendy, eco-friendly).
- Choose two factors that differentiate the brands well and create a strategic map that visualizes the competitive landscape. The map should show the brands and their positions in relation to the two chosen factors.
- Summarize the findings from the strategic map by identifying opportunities and threats for the industry based on the map.
Porter’s Five Forces Analysis
- Evaluate the five forces in the industry sector given by categorizing them as high, moderate, or low.
- Explain why you think each force is high, moderate, or low based on the industry-specific environment.
- Summarize the findings from the Porter’s Five Forces analysis and identify opportunities and threats for the industry. Make sure to incorporate the information from the strategic group analysis.
