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. Abdullah Dasci & Gilbert Laporte, 2005. "A Continuous Model for Multistore Competitive Location," Operations Research, INFORMS, vol. 53(2), pages 263-280, April.
    2. 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.
    3. 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.
    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. 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.
    2. 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.
    3. 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.
    4. 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.
    5. 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.
    6. Zoltan Kuscsik & Denis Horvath, 2007. "Statistical properties of agent-based market area model," Papers 0710.0459, arXiv.org.
    7. Hendrikse, George & Jiang, Tao, 2011. "An Incomplete Contracting Model of Dual Distribution in Franchising," Journal of Retailing, Elsevier, vol. 87(3), pages 332-344.
    8. Yung Hyeock Lee & In Hyeock (Ian) Lee, 2022. "A regional analysis of crime heterogeneity and small- and medium-sized enterprise (SME) location choices: recent evidence from South Korea," Asian Business & Management, Palgrave Macmillan, vol. 21(4), pages 569-597, September.
    9. Brian T. McCann & Jeffrey J. Reuer & Nandini Lahiri, 2016. "Agglomeration and the choice between acquisitions and alliances: An information economics perspective," Strategic Management Journal, Wiley Blackwell, vol. 37(6), pages 1085-1106, June.
    10. Haase, Knut & Hoppe, Mirko, 2008. "Standortplanung unter Wettbewerb - Teil 1: Grundlagen," Discussion Papers 2/2008, Technische Universität Dresden, "Friedrich List" Faculty of Transport and Traffic Sciences, Institute of Transport and Economics.
    11. Kretinin, Andrey & Anokhin, Sergey & Wincent, Joakim, 2020. "Exploring the antecedents of franchise internationalization," Journal of Business Research, Elsevier, vol. 112(C), pages 422-430.
    12. Antonio Tesoriere, 2021. "Drastic innovation reduces firms’ incentives to create divisions," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 38(3), pages 971-994, October.
    13. Itai Ater, 2015. "Vertical Foreclosure Using Exclusivity Clauses: Evidence from Shopping Malls," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 24(3), pages 620-642, September.
    14. Xin Wang & Michael K. Lim & Yanfeng Ouyang, 2017. "A Continuum Approximation Approach to the Dynamic Facility Location Problem in a Growing Market," Transportation Science, INFORMS, vol. 51(1), pages 343-357, February.
    15. Ansari, Sina & Başdere, Mehmet & Li, Xiaopeng & Ouyang, Yanfeng & Smilowitz, Karen, 2018. "Advancements in continuous approximation models for logistics and transportation systems: 1996–2016," Transportation Research Part B: Methodological, Elsevier, vol. 107(C), pages 229-252.
    16. Ana Moreno-Monroy, 2012. "Critical Commentary. Informality in Space: Understanding Agglomeration Economies during Economic Development," Urban Studies, Urban Studies Journal Limited, vol. 49(10), pages 2019-2030, August.
    17. Junichi Suzuki, 2013. "Land Use Regulation As A Barrier To Entry: Evidence From The Texas Lodging Industry," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 54(2), pages 495-523, May.
    18. Hans Löfsten & Anders Isaksson & Heikki Rannikko, 2023. "Entrepreneurial networks, geographical proximity, and their relationship to firm growth: a study of 241 small high-tech firms," The Journal of Technology Transfer, Springer, vol. 48(6), pages 2280-2306, December.
    19. Chabowski, Brian R. & Hult, G. Tomas M. & Mena, Jeannette A., 2011. "The Retailing Literature as a Basis for Franchising Research: Using Intellectual Structure to Advance Theory," Journal of Retailing, Elsevier, vol. 87(3), pages 269-284.
    20. Ganesh Pillai, Rajani & Bindroo, Vishal, 2020. "Supplier cluster characteristics and innovation outcomes," Journal of Business Research, Elsevier, vol. 112(C), pages 576-583.

    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.