A key question in strategy research is why companies diverge in their conduct and profitability. Researchers have determined to view companies as autonomous entities, striving for competitive advantage from either external sources, or from internal resources and capabilities. (Gulati/Nohria/Zaheer (2000): 203)
Certainly, the objective of a company's strategy is achieving competitive advantage, but additionally, the strategy itself is a source of competitive advantage. (Luffman/ Lea/ Sanderson/ Kenny (1996): 102)
The intensifying competition on the "world marketplace" (Wright/ Kroll/ Parnell (1998): 281) is a great challenge for strategic management. Understanding of how technology and globalization affect a company's competitive positioning and creating global competitive advantage are the most important determinants of strategic management today.
European tourism is forced to respond to the pressure built by the globalisation of travel markets. Travel destinations become more and more remote while travel times become ever shorter. The developed tourism countries are consequently faced with cutthroat locational competition and forced to innovate and to lower prices. It is now widely understood in tourism locations that simply selling landscape, nature or comfortable hotel beds is no longer sufficient.
[...]
Some of these artificial adventure and holiday worlds, such as Disneyland or CenterParcs, have meanwhile developed into so-called mega-tourism projects and are setting new standards in the fight for guests and visitors. Their size permits them to go in for global marketing and to substantially reduce the costs per visitor. The business formula is larger equal less expensive. This formula disregards the follow-up costs caused by growing traffic volumes, noise, accidents, landscape use, and environmental pollution. (Freyer (1998): 117)
Strategic management applies to managerial decisions that fuse the organization to its environment, guide internal activities, and concern organizational long-term performance. The strategy determines markets and products or services, it is about selecting where and how to compete, which organizational structure has to be established, how can employees be motivated, and how to allocate resources to create the greatest overall success. (Houlden (1996): 13; Stahl/Grigsby (1997): 21)
[...]
Table of Contents
Introduction
PART A
PART B
SWOT- analysis
Objectives & Core Topics
The primary objective of this assignment is to conduct a strategic analysis of CenterParcs as the European market leader in the short-break holiday sector. The research focuses on identifying the organization's current strategic features and assessing their appropriateness in light of competitive challenges, market developments, and future growth potential.
- Strategic analysis of the European short-break tourism market.
- Evaluation of CenterParcs’ competitive positioning and business model.
- Application of Porter’s Five Forces framework to analyze competitive dynamics.
- Analysis of internal strengths and external environmental opportunities via PEST and SWOT frameworks.
- Assessment of strategic integration and brand label management.
Excerpt from the Book
Rivalry among existing competitors
To demonstrate the force a look at Gran Dorado, the main competitor of CenterParcs is useful. CenterParcs knew about the threat of existing competitors and therefore they took over the five best systems of Gran Dorado to its European Portfolio and opened a new market segments.
Starting from 1. January 2003 all parks are led under the roof label CenterParcs. In order to be able to better control guest expectations, all 15 continental-European parks were divided into three sub-labels: CenterParcs original (consisting of ten existing CenterParcs systems in Germany, Holland, Belgium and France), FreeLife from CenterParcs (three former Gran Dorado park in the interior of Germany and Holland) and SeaSpirit from CenterParcs (two former Gran Dorado park at the Dutch coast). (CenterParcs (c) (2002))
For the conversion of the label strategy a very extensive investment total was released, in order to strengthen the entire Portfolio and to emphasize the peculiarities of the three sub-labels more clearly. The roof label CenterParcs connects the three sub-labels and guarantees in all 15 continental-European parks a continuously high quality level for its guests. (CenterParcs (c) (2002))
Chapter Summary
Introduction: This chapter introduces the strategic management context, highlighting the importance of competitive advantage and the evolving nature of the global tourism market.
PART A: This section provides an overview of the organization’s history, core business model, and its strategic focus on short-break holidays in the European market.
PART B: This section details the strategic assessment of the firm, focusing on environmental scanning, market analysis, and the specific application of management theories to the company’s current situation.
SWOT- analysis: This chapter presents a structured evaluation of CenterParcs' internal strengths and weaknesses alongside external market opportunities and threats.
Keywords
Strategic Management, Tourism, CenterParcs, Competitive Advantage, Market Leadership, Short Break Holidays, Porter’s Five Forces, PEST Analysis, SWOT Analysis, European Tourism, Business Strategy, Globalisation.
Frequently Asked Questions
What is the core focus of this assignment?
The assignment provides a strategic analysis of CenterParcs, examining how the company maintains its position as the European market leader in the short-break holiday industry.
What are the central thematic areas covered?
The report explores competitive strategy, label management, environmental impact, and the organizational response to market-wide economic challenges.
What is the primary research goal?
The goal is to identify CenterParcs' current strategic features and evaluate their effectiveness in addressing competitive pressures to ensure long-term sustainability.
Which scientific methods are employed?
The study utilizes theoretical frameworks including Porter’s Five Forces, PEST analysis, and SWOT analysis to evaluate the organization’s strategic environment.
What topics are discussed in the main body?
The main body covers the company's background, its competitive rivalry with Gran Dorado, the restructuring of its brand labels, and the macroeconomic factors impacting its operations.
Which keywords best characterize this work?
The work is defined by terms such as Strategic Management, Competitive Advantage, Short Break Holidays, and Market Leadership.
How does the acquisition of Gran Dorado impact CenterParcs' strategy?
The acquisition allows CenterParcs to diversify its portfolio, enter lower-price market segments, and integrate new systems under a unified roof label to reinforce its market position.
Why did the author find it difficult to evaluate CenterParcs?
The author highlights a lack of transparent historical financial data and limited access to insider strategic plans, which necessitated a level of speculation regarding the company’s future direction.
- Quote paper
- Stephanie Schütte (Author), 2002, CenterParks. Strategic Management of Tourism, Munich, GRIN Verlag, https://www.grin.com/document/9027
