IDEAS home Printed from https://ideas.repec.org/a/gam/jtourh/v5y2024i1p11-166d1346088.html
   My bibliography  Save this article

Compete or Avoid? Assessing Brand Competition Strategies with Spatial Colocation Analysis

Author

Listed:
  • Lijuan Su

    (School of Tourism Management, Sun Yat-sen University, Guangzhou 510275, China)

  • Andrei Kirilenko

    (Department of Tourism, Hospitality, and Event Management, University of Florida, Gainesville, FL 32611, USA)

  • Svetlana Stepchenkova

    (Department of Tourism, Hospitality, and Event Management, University of Florida, Gainesville, FL 32611, USA)

Abstract

Spatial competition considerations are important in hotel location selection. This study proposes and demonstrates a method of colocation network analysis to quantify the potential encroaching effect of spatial inter- and intra-competition between units of business brands that seek expansion. The environmental context of the study is a network of the top five budget hotel brands in the Beijing hotel market. The results reveal that brands implement different strategies in their hotel placement, which are subject to different levels of the encroaching effect. However, the method is applicable in a variety of hospitality settings, specifically in those that involve the development strategies of chain brands. The simulation capability of the method can assist hospitality brands in assessing the outcomes of a proposed development and, thus, aid hoteliers in the spatial allocation of new units with the least adverse effects on their existing business networks.

Suggested Citation

  • Lijuan Su & Andrei Kirilenko & Svetlana Stepchenkova, 2024. "Compete or Avoid? Assessing Brand Competition Strategies with Spatial Colocation Analysis," Tourism and Hospitality, MDPI, vol. 5(1), pages 1-7, February.
    • Handle: RePEc:gam:jtourh:v:5:y:2024:i:1:p:11-166:d:1346088
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2673-5768/5/1/11/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2673-5768/5/1/11/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Brian T. McCann & Timothy B. Folta, 2009. "Demand‐ and Supply‐Side Agglomerations: Distinguishing between Fundamentally Different Manifestations of Geographic Concentration," Journal of Management Studies, Wiley Blackwell, vol. 46(3), pages 362-392, May.
    2. Arturs Kalnins, 2004. "An Empirical Analysis of Territorial Encroachment Within Franchised and Company-Owned Branded Chains," Marketing Science, INFORMS, vol. 23(4), pages 476-489, September.
    3. Abdullah Dasci & Gilbert Laporte, 2005. "A Continuous Model for Multistore Competitive Location," Operations Research, INFORMS, vol. 53(2), pages 263-280, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wang, Liang & Tan, Justin & Li, Wan, 2018. "The impacts of spatial positioning on regional new venture creation and firm mortality over the industry life cycle," Journal of Business Research, Elsevier, vol. 86(C), pages 41-52.
    2. A. Yeşim Orhun & Sriram Venkataraman & Pradeep K. Chintagunta, 2016. "Impact of Competition on Product Decisions: Movie Choices of Exhibitors," Marketing Science, INFORMS, vol. 35(1), pages 73-92, January.
    3. Burcin Bozkaya & Seda Yanik & Selim Balcisoy, 2010. "A GIS-Based Optimization Framework for Competitive Multi-Facility Location-Routing Problem," Networks and Spatial Economics, Springer, vol. 10(3), pages 297-320, September.
    4. Kočišová, J. & Horváth, D. & Brutovský, B., 2009. "The efficiency of individual optimization in the conditions of competitive growth," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 388(17), pages 3585-3592.
    5. Li, Jin & Hu, Zening & Shi, Victor & Wang, Qian, 2021. "Manufacturer's encroachment strategy with substitutable green products," International Journal of Production Economics, Elsevier, vol. 235(C).
    6. O. Cem Ozturk & Sriram Venkataraman & Pradeep K. Chintagunta, 2016. "Price Reactions to Rivals’ Local Channel Exits," Marketing Science, INFORMS, vol. 35(4), pages 588-604, July.
    7. Butt, Moeen Naseer & Baig, Ahmed S., 2024. "Assessing the firm-level financial consequences of clustering," Journal of Business Research, Elsevier, vol. 178(C).
    8. Guo, Shiau-Ling, 2023. "The governance implication of the geographic concentration of franchise activities for franchise relationships," Journal of Business Research, Elsevier, vol. 157(C).
    9. Helmers, Claes Gustav & Connor, John M. & Florax, Raymond J.G.M. & Vroom, Govert, 2009. "Entry, Ownership Form, and Spatial Location: An Analysis of the Hotel Industry," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49561, Agricultural and Applied Economics Association.
    10. Anil Arya & Brian Mittendorf & Dae-Hee Yoon, 2008. "Friction in Related-Party Trade When a Rival Is Also a Customer," Management Science, INFORMS, vol. 54(11), pages 1850-1860, November.
    11. Evan Rawley & Robert Seamans, 2015. "Intra-Firm Spillovers? The Stock and Flow Effects of Collocation," Working Papers 15-01, Center for Economic Studies, U.S. Census Bureau.
    12. Thierry Pénard & Rozenn Perrigot, 2015. "Search Online – Purchase Online in Franchising: An Empirical Analysis of Franchisor Website Functionality," Economics Working Paper Archive (University of Rennes & University of Caen) 201517, Center for Research in Economics and Management (CREM), University of Rennes, University of Caen and CNRS.
    13. Mandal, Prasenjit & Jain, Tarun, 2021. "Partial outsourcing from a rival: Quality decision under product differentiation and information asymmetry," European Journal of Operational Research, Elsevier, vol. 292(3), pages 886-908.
    14. Blanquero, Rafael & Carrizosa, Emilio & G.-Tóth, Boglárka, 2016. "Maximal Covering Location Problems on networks with regional demand," Omega, Elsevier, vol. 64(C), pages 77-85.
    15. Arturs Kalnins, 2017. "Pricing Variation Within Dual-Distribution Chains: The Different Implications of Externalities and Signaling for High- and Low-Quality Brands," Management Science, INFORMS, vol. 63(1), pages 139-152, January.
    16. Han, Shuihua & Jia, Xinyun & Chen, Xinming & Gupta, Shivam & Kumar, Ajay & Lin, Zhibin, 2022. "Search well and be wise: A machine learning approach to search for a profitable location," Journal of Business Research, Elsevier, vol. 144(C), pages 416-427.
    17. Sergio Currarini, & Elena Fumagalli & Fabrizio Panebianco, 2012. "Games on Networks: Direct Complements and Indirect Substitutes," Discussion Papers in Economics 13/04, Division of Economics, School of Business, University of Leicester.
    18. Dilek, Hande & Karaer, Özgen & Nadar, Emre, 2018. "Retail location competition under carbon penalty," European Journal of Operational Research, Elsevier, vol. 269(1), pages 146-158.
    19. Vivian Zheng, Xu & Jenny Ji, Li & Su, Chenting, 2020. "Mitigating the Negative Effects of Regional Clustering in Franchising: The Roles of Governance Mechanisms," Journal of Retailing, Elsevier, vol. 96(3), pages 434-444.
    20. Jang, Seongsoo & Kim, Jinwon, 2022. "Remedying Airbnb COVID-19 disruption through tourism clusters and community resilience," Journal of Business Research, Elsevier, vol. 139(C), pages 529-542.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jtourh:v:5:y:2024:i:1:p:11-166:d:1346088. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.