Benefits of implementing strategic planning to development of small hotel companies in Osijek-Baranja County

The competitiveness of tourism market forces hotel companies to adopt strategic management and smaller entities to opt market niches where they realize their personalized offer. Therefore, the purpose of this research is to point out advantages of using appropriate development strategies. Desk research methodwill be used for gathering information on business performance for hotels in Osijek-Baranja County and possibilities of strategic planning, case study method for hotel Waldinger and in-depth interview method for its employees. Also SWOT method and Porter's competitiveness model are used for the analysis of business environment. Results should provide an insight into possibilities and limitations of small hotel companies's market expansion, and the need for differentiated products and optimal market positioning. Hotel Waldinger is used as an example of good practice where a company successfully identified its strategic factors and focused business on profitable strategic units, applying social responsibility. Given that hotel companies represent an important component of tourism in eastern Croatia, the object of research is improving and increasing their competitiveness. This paper's focus is their organization and development strategies, and the contribution will be reflected in guidelines for appropriate strategies, implementation and controlling. While gathering information, restrictions were manifested in dividing small, medium and large hotel's performances data. Regarding hotel Waldinger and the questionnaire for its employees, there is a possibility of recent data absence because they were collected a year ago.The hotel industry represents an important determinant of tourism in Osijek-Baranja County and companies have recognized the need for business specialization. Stated is achievable with implementation of correct developmental strategies, generating increased business efficiency. Therefore, this study is about the possible use of the mentioned concept.