An Analysis of Industry Forces, Strategic Implementation, and Performance: Evidence from State-owned Hotels in China

This study explores the influence of industry forces, strategic implementation, and business performance of state-owned hotels in China. The findings show that industry forces of competitors, customers, and new hotel entrants have a crucial influence on the strategic development of state-owned hotels whereas substitutes and suppliers have less impact. The hotels under study applied differentiation to position themselves by implementing strategies of branding, human resources, advanced information technology, and cost efficiency. Differentiation enables state-owned hotels to achieve desirable performance. Hoteliers in China should monitor the effect of industry forces to sustain strengths, grasp opportunities, avoid threats, and overcome weaknesses.