A Strategic model for service-oriented enterprises based on online reviews: the research of budget hotel chains in China

Abstract

In a complex competitive market environment, service enterprises should focus on the dynamics of consumer needs, integrate resources, and adjust their strategies to adapt to market changes. SWOT analysis is a tool that supports strategic planning and decision-making, it relies on the insight and analysis of managers. Therefore, it suffers from subjectivity and a lack of reliable inputs from the customers’ perspective. In addition, Strengths, weaknesses, opportunities and threats (SWOT) analysis cannot track the factors affecting enterprise development in real time and quantitatively determine the degree of influence of these factors. Therefore, managers are unable to make timely strategic adjustments. Online reviews that reflect consumer needs provide a new basis for dynamically formulating strategies to compensate for the shortcomings of traditional SWOT model. Therefore, this study proposes a SWOT model based on online reviews, which takes feature extraction, revised importance-performance analysis (IPA), and SWOT analysis as the framework. Through text mining and sentiment analysis methods, we construct satisfaction and importance indicators, and determine the priority of feature improvement based on opportunity algorithms, the framework can also perform dynamic SWOT analysis. The case studies of the 7Days Inn and Home Inn show that the analysis model can integrate consumer opinions, conduct a fine-grained quantitative analysis of features, and provide a basis for dynamic adjustments to corporate strategies based on horizontal and vertical comparisons between enterprises. The model is realistic and operational.