Development Strategy Based On The Theory Of Industrial Organization, Hotel Enterprises In Yunnan Province

Along with the globalize and unified development of world economy, the internationalization of domestic competition and the indigenization of international competition, enterprises should to make the correct choice of their strategy in the competition conditions which become more intense and complicated that they facing, in order to make themselves long-term development.Yunnan's hotels are also facing the same problem. On the one hand, the tourism of Yunnan province are going forward to becoming one of the pillar industry of Yunnan after developing in recent years, the quantity of hotels are expandable, on the other hand, the hotels of Yunnan are small scale and inordinate competition, the aggregated and networked of the hotels are also very low. There are two indexes of Yunnan's hotels are at the bottom of our whole country, one index is the achieved profit per people, the other is realized taxes per people. This paper discusses two core problems that are the inherent reasons of the hotels losing and how to progress.This paper makes the theory of industrial organization theory as the fundamental theory. Basing on the comprehensive analysis on the market structure, market behavior and market performances of Yunnan hotels, discussing the inherent mechanism of the losing in the background of tourism and hotels industry, this paper make a research on the development strategy of Yunnan's hotels. The main idea is: in the short-term, the market structure of Yunnan hotel industry (like the low market concentration degree, low entering barrier and high quitting barrier, and so on) resolve the market behaviors (like price war, etc) and influence the market performances of hotel industry at last, in the long-term, the relations of these three sides are mutually.This paper make a research on the paradigm of strategy management and suggest that the key elements of the paradigm of hotels' strategy management should concluding four parts: (1) The analysis of outside surroundings and competition of hotels; (2) The resources and core ability of hotels; (3) The development path and position of product of hotels; (4) The internal support system of hotels. It also thinks that the result of corporation strategy choice is an equilibrium solution in essence, after which the corporation should fit to the circumstances and suggest that the hotel corporations should make the market demand and corporation core competence as the guiding logic of their strategy. Also, this paper question the price alliance and believe that the price alliance is a non-Nash equilibrium, it will fall into the prisoners' dilemma. The resolving way is to carry out non-price strategy except the so-called price alliance.Then, this paper put four suggestions about the development idea of Yunnan's hotels: Firstly, Yunnan's hotels should establish the company group to push the industry more central and realize the scale economy. Secondly, it is the only way to grow up that Yunnan's hotels should implement the strategy of trademark. Thirdly, culture strategy is the marrow for Yunnan's hotels to operate characteristic. Finally, it is the tendency for Yunnan's hotels to participate in the international competition and run in internationalization.