Bali is placed at Hybrid in the strategy clock for obvious reasons. According to Band. J, Bali is one of the cheapest regions to visit in South-East Asia. By offering low prices and providing high perceived value for the goods and services , it place Bali as one of the most competitive tourism destinations against its competitors.
Bali focus solely on the island for both tourism activities and also services such as accommodations and food & beverages. The focus on a geographical area and also product, which according to Wankhede. K, is local handicrafts which makes Bali a strong competitor in its region. By doing so, not only can Bali maximize profit, it can also gain more popularity as a tourism destination which will lead to an increase in arrival of tourists to the island in the near future.
The small island of Bali is one of the most desired vacation destination in the world, let alone in its region of South East Asia. There are plenty of other tropical island around the region but why is Bali so well-known among international tourists? This is where product differentiation play its role as the whole tourism industry of Bali will attempt to create differences between their products such as tourism agencies offering distinctive activities and hotels and restaurant utilize Artificial Intelligence (AI) to improve their service which makes it different and competitive in the whole industry.
Bali as a tourism destination have made its name worldwide and recognized by travellers around the world as the ultimate vacation destination. The fact that Bali can be recognized worldwide as one of the best holiday destinations despite being a small island in Indonesia is fascinating. According to Forbes (2023), Bali was ranked first in the top 50 places in the world for travelling. Bali’s rich culture and natural beauty make it a strong competitor in the global tourism market. On the other hand, one of Bali’s weakness is the over-reliance on tourism which makes it vulnerable to global events that may affect tourism such as pandemics.
Bali proves that they are one of the best at hosting tourists over and over again. They have successfully build a brand around the island and it was not a fluke which can be seen from their effort to offer low prices and provide high perceived value goods and services. Other than that, the way they execute their plan to focus on a specific market and manage product differentiation with a success should be praised.