Evaluation of the Resort Industry in the Province of Siquijor: An Analysis of the Porter’s Five Forces Strategic Approach

Abstract

This study evaluates the Resort Industry in Siquijor province by assessing critical gaps and effective strategies using forces that shape industry competition. Using Porter’s Five Forces Strategic Approach, the study explores five forces mainly: threat of new entrants, bargaining power of suppliers, bargaining power of customers, threat of substitute products and services and rivalry among existing competitors. The researcher used a quantitative approach, integrating pilot testing descriptive statistics and path analysis to evaluate the resort owner’s assessment on the resort industry current status. The research instrument indicates a good reliability with a Cronbach’s alpha (0.8152). Relations among variables were tested using path analysis, through coefficient of determination (R²) to evaluate the intensity of influence. Results show unequal distribution channel and restrictive government regulations are the strongest threats to entry making the supply of economies of scale under prioritized by most firms in the industry. In supplier bargaining power, size of suppliers appeared as an effective influence to resort operators compared to the number of suppliers denoted as non-critical. Product Differentiation proved to have the strongest influence in the competitive landscape, whereas price sensitivity factor showing a less impact. In customer bargaining power, switching cost reveals as the primary driver to customers behaviour rather than buyer propensity to substitute. Industry growth rate exhibits both the strongest and weakest point of resort industry confirming strong potential but weak progress to industry players. The study concludes that these factors need to be prioritized, recommending resort key players to focus on the factors mentioned.