Strategic Group Analysis in the Tourism Industry: A Destination’s perspective

Abstract

Strategic group analysis is one of the most important methodological tools a decision-maker can use to explore the external environment of a business. In a constantly evolving sector like tourism, this analysis becomes even more significant, especially at the destination level, where there is a limited number of studies in the literature. To address this, the present research first provides an extensive literature review of the applications of strategic groups at the level of tourism businesses and destinations. Subsequently, the model is applied to cases of competitive destinations in Greece, distinguishing them based on their completeness, carrying capacity, and attractiveness in terms of overnight stays. This form of analysis can be useful for both Destination Management Organizations (DMOs) in the strategy formulation process and potential investors, as it offers a combined approach to attractiveness, tourism demand, and sustainability in terms of the destination’s carrying capacity relative to its competitors.