Selecting a marketing strategy for private hotels in Taiwan using the analytic hierarchy process

Grounded in the resource-based view (RBV) of the firm to competitive advantage, the current study attempts to identify specific resources and capabilities of small ventures by focusing on private hotels and by doing so develops an evaluation framework of marketing strategy in a service industry within its unique conditions. Given the complexity and difficulty of utilizing allocated specific and limited resources with a marketing strategy toward a competitive advantage for private hotels the purpose of the current study is to employ the analytic hierarchy process (AHP) method to select a competitive marketing strategy for private hotels. After reviewing theory and research on competitive advantage in general and in the service industry in particular, the resources and capabilities are identified as managerial capabilities, customer-linking capabilities, market innovation capabilities, human resource assets, and reputational assets. Finally, the findings indicate that the differentiation strategy is the best strategy for private hotels. The study emphasizes the importance of allocating specific and limited resources and capabilities to evaluate and select an appropriate marketing strategy so as to capture a sustainable competitive advantage.