Competitive Advantage and its Relative Importance in Tourism Industry

In present scenario, industries play a vital role in the development of any economy. Different types of industries having various specialties in their fields are growing fast and adapting it with the latest changes occurring in various sections in their concerned industry. Tourism industry is a valuable pillar in all available industries alternatives. It is the age of competition and one can survive only if it has competitive advantage over its competitors. Competitive advantage is a condition or circumstance that puts an entity in a favorable or superior business position. There is a great need of maintaining sustainable competitive advantage. For achieving favorable long-term position over competitors, individual attention must be given on the various sources of competitive advantage e.g. people, organizational culture and structure, processes and practices, products and intellectual property, capital and natural resources, technology etc. Practical implication of competitive strategies may open new avenues for better understanding of the said concept. A harmonious coordination among cost leadership, differential strategy and focus strategy results progressive stages of advantages for tourism industry. Porter’s five forces and SWOT analysis provide macro-analytical and micro-analytical tool respectively for interpreting the various dimensions of the said one. Inter and intra-competitive advantages may provide broad and comprehensive outlook of the concept. It can provide a sound platform to grab the opportunities taking into account the outcome of analysis and interpretation of strengths. By getting the nerve of weaknesses and threats, preparation for handling future unwanted or contingent situations can be identified and responded accordingly. Enrichment in tourism industry will also foster the growth of other interrelated industries. There is a need of continuous study of prevailing business environment to match the requirements of various new alternatives taking birth in tourism industry i.e. rural tourism, spiritual tourism, ecotourism and agro-tourism. For achieving the long-term goal of getting the advantages of positioning and marketing management, internal factors and components of business environment affecting the competitor’s entity must also be taken into account. A sound correlation among the various factors affecting the spirit of competitive advantage can positively contribute in the development of said industry result a strong foundation for the growth and development of an economy.