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In the competitive economy, strategic management provides strength to face unfavourable circumstances by increasing the internal capabilities of a firm. In the tourism and hospitality industry, strategic management is focused on the customers, long term goals and shareholder during business operations so that it creates a positive impact on the environment (Bartlett, Johnson, and Schneider, 2016). Strategic management process in the tourism and hospitality sector includes planning, formulation of strategies and their effective implementation. The present report is based on a study of Eight Hotels Collection and its strategic management in tourism and hospitality industry. The major issue faced by the selected company is competition and this issue is creating obstacles in the success and growth of the brand.

Main body

In the current market condition, tourism and hotel industry organisations are facing several difficulties at the time of managing the business strategies. Eight Hotels Collection faces problems and the brand is now required to emphasise on improving its strategic management. In the tourism and hospitality sector, issues such as competition, the standard of business strategy, organisation structure, globalisation, leadership techniques, sustainability, continuous changing expectations of stakeholders, rapid technological changes, shortage in skilled labour, etc affects the success of business (Altinay, Paraskevas, and Jang, 2015). 

In the case of Eight Hotels Collection, the management is facing high level competition in the Australian market, and this is the one major strategic management issue at present. The selected firm also faces many other strategic management problems but competition is the issue which is directly affecting its business operation. The competition factor in the market creates several difficulties for the business in terms of carrying out smooth business running operations. Due to the highly competitive market, the selected entity faces customer’s negative support in the business activities. It has also been identified that in the hotel industry, customers always need high- level standard goods and best services. So, in such conditions many multinational firms are making their entry in the tourism and hospitality industry (Moutinho, and Vargas-Sanchez, 2018). This has resulted in creating unfavourable circumstance for the business operation in the long run. Due to high competition issue in strategic management, Eight Hotels Collection is facing following difficulties in the business environment-

  • Impact on sale and profits- In the present scenario, increasing and intense competition in the industry is affecting the business transaction and the revenues of Eight Hotels Collection in a negative sense (Altin, Koseoglu, and Riasi, 2018). In the case of the selected firm, due to an ineffective strategy formulation, the management is facing situation of falling and low sales in the Australian market. Along with this, high competition in the hotel industry creates a problem for the management in context of increasing funds. For example, Eight Hotels Collection working environment wants to create positive, innovative technological changes in the business operation, but due to high standard competition in the market firm is earning less profit. This is a major disadvantage for the selected entity to survive in the market. The high rate of returns is essential in the tourism sector to provide attractive services to consumers (Bartlett, Johnson, and Schneider, 2016). The firm management should focus on business planning and implementation process to resolve the strategic management problems.
  • Make an influence on the customers- The increasing competition in the hospitality industry creates problem for the Eight Hotels Collection in terms of enhancing its customer base. The competitors marketing strategies and attractive offers create influence on the consumers and this further affects overall business performance. For example, increasing competitors has created issues for the brand and these competitive firms influence customers by the latest technology and new innovative services. The result of this is that companies face issues in terms of attracting new customers and retaining the new ones in the long-run (Lee, 2016). The competitive Australian market in tourism sector decreases the chance of representing company capabilities in front of customers. Eight Hotels Collection should find out alternative options to handle high level competition in the market. An entity can integrate attractive discount and special offers to make a positive influence on customers.
  • Low level in business operation- With the high competition in the market, the selected company management has also faced issues in terms of business operations. The competitive environment created problems in the development of business operations that are not appropriate in the current market condition. Due to high competition, Eight Hotels Collection is providing services in the limited areas that effect unfavourable for earning customer trust level. For example, the selected organisation is currently providing hospitality services in the Australian market only because of the high rate competition that become a barrier in development. For attractive business services, the firm needs improvement in the current business operations. By taking the support of a strong business, strategy firm can make increase business activities and attract maximum customers (Evans, 2015). The Competitive environment emphasises on management to change the business plan as per the market trends.
  • Less market share- To cover maximum market share, the selected company have to overcome the strategic management problem competition. The intense competition in Australian market in the tourism and hospitality industry becomes a barrier for the firm to enter in a new economy. The higher standard competition decreases chances for the service in the market (Kotler, et al. 2017). Eight Hotels Collection management operations are trying to increase market share by using innovative services, but due to big brand competitors such as Park Hyatt and Hilton Hotels, the firm is unable to cover market share effectively. For example, in comparison to other hotel industry, the selected entity is providing facilities only in the Sydney with limited rooms around 165 that attracts more customers and becomes a barrier in covering large market share for Eight Hotels Collection. The selected firm should adopt collaboration activities and increase market share to compete with Australian tourism and hospitality industry.
  • Decrease in the brand image- In strategic management, high competition issue creates several difficulties for the entity and low rate brand value is one of them that impact on the customers. The competitive working culture directly related to entity brand name, which is the major sources to attract customers (Altin, Koseoglu, and Riasi, 2018). The brand value of the firm decreases by the competitors marketing strategic and attractive business planning implementation. The selected firm is unsuccessful strategic management activities are unable to handle the changeling competitor environment. In the Australian market, big brand companies develop innovative services and advance resources in tourism and hotel industry, so most of the customer attract toward big brand image and selected entity faces problem of low level brand value in the market. 
  • Less productivity and poor quality services – In the sector of tourism and hospitality industry, improper strategic management issues which is increasing competition that makes a direct impact on the business productivity and service’s quality (Rahimi, et al. 2017). Comparison with competitors, the selected firm goods and services less effective in the market that affects business profits. For example, Eight Hotels Collection is providing limited facilities to the small part of the market due to high rate competition that affects business activities. Due to high competition, company management has to decrease the number of goods and services to save the entity from huge losses (Koseoglu, 2016).

Hence overall, in the strategy management, large scale competition issue create a negative impact on the business working environment of the selected firm.


The current report is a summary of the strategic management issue of Eight Hotels Collection that faces high -level competition in the Australian market. The high rate competitive environment in tourism and hospitality sector creates several difficulties for the such as less improvement in the productive, low profits, decreasing in business operations, fewer customers support, negative brand image and influence on customers priority level. These negative impacts are harmful to the selected entity in long-run survival in the market. The firm management should find out an effective business plan to compete with the market several competitors.


  • Improve marking strategy- The selected entity should focus on global marketing activities to attract a large number of consumers. In the marketing, process firm should make advertisements on the different website along with that send email to the customer about several offers. The Eight Hotels Collection should apply the promotion process on the social media platform by posting effective videos and pictures of several goods and services. In marketing activities, the company should give attention to increasing brand image in the market.  
  • Making collaboration activities- The selected entity can also make collaboration and joint agreements with the multinational firms to increase market share in the tourism and hospitality industry. This will also support to management for attracting shareholder that indirectly decrease competition level from the Australian market. The collaboration process helps the firm to increase different resources and to improve business performance.
  • Pricing strategy implementation – The selected company should give more attention to the products and services pricing strategy to attract large scale customer. For increasing customers, the firm should adopt a low price strategy. In that process, the company should set different categories of services at different prices in business operations. Along with this, the company should give allot several gif card coupons vouchers to attract customers interest area toward services.
  • Product innovation process- The Eight Hotels Collection should majorly focus on the goods and services innovation process and development activities. At present, the company is operating with limited resources such as less number of accommodation facilities and untrained human resources for business activities. So, the company should effectively focus on increasing business working structure with the innovation process.

By adopting the above recommendations, the selected company can easily resolve strategic management issues and can ensure its long-term growth and development. 

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