Strategic options available to the service marketer in a highly competitive uncertain environment: Illustrations from travel agencies

Service marketers in the travel industry will need to pay attention to scanning the external forces affecting their firms and to formulating strategies for coping with this environment. Since the deregulation of the airline industry, concerns about the traditional agency arrangement being too expensive and in need of change have been expressed. Managers can face environmental uncertainties by responding to the changing environment, or they may attempt to change the environment with a more proactive stance. Reactive strategies include position defense and strategic withdrawal from problem areas. Proactive strategies include independent strategies, cooperative strategies, and strategic maneuvering. Domain selection is a type of strategic maneuvering where a competitor attempts to target only those growth industries or markets in which competition is limited. Diversification and merger and acquisition strategies are other forms of strategic maneuvering.