Strategy and the Global Competitive Environment

Strategy and the Global
Competitive
Environment

Table of Contents
INTRODUCTION
Industry Details
Hospitality Industry trends
Key trends and developments developed on the basis of analysis
Grid
Four Quadrants
CONCLUSION
REFERENCES

INTRODUCTION
External strategy environment refers to environment of a business that involves all factors that
are in outside organisation.
This environment involves all important factors that contribute in developing different trends
affecting an organisation and its growth and success.
This study will contextualise Hospitality industry, this is a type of service industry and services
included in lodging, food and drink services, event planning, theme parks, transportation.
This study will discuss include industry trends, key trends and developments on the basis of
application of Pestle Analysis and Porters’ five forces analysis.
On the basis of existing trends of hospitality and also future trends of hospitality scenarios will
be developed.

Industry Details
Market Scope
Scope of hospitality includes vast range of products and services including
accommodation, travel and tourism, food and beverages, entertainment, gaming and
recreational activities.
Accommodation services are provided where people can stay and these services are
offered by hotels, resorts and lodges.
Food and beverages services are offered by businesses that includes restaurants, cafe and
bars.
Travel and tourism organisations offer services of travelling and for tourism to different
locations to their customers.

Cont..
Market Segment
Market segmentation involves determination of target markets for the
industry and segmentation of target markets on the basis of price
sensitivity and booking behaviour of customers.
Hospitality industry segments market on different basis in which it
targets customers from all type of social economic status.
On the basis of that provides varied type of services on the basis of price
sensitivity as well as on the basis of services required to customers.

Cont..
Market Size
In relation with hospitality industry and market size of industry in terms of global hospitality
industry Asia Pacific is largest market for hospitality which accounts for 42% of overall
hospitality market size.
Global hospitality industry is expected to decline because of reason of economic slowdown in
which market size of hospitality industry is likely to decline by 4623.2 billion in 2019 to $4516.8
billion in 2020 at CAGR of -2.4
Regarding market size of hospitality industry in UK it has a market size of more than 100 billion
Euros and this is expected to grow in future which has been affected by economic slowdown.
