Read the Case Study below and Answer the Case$-$study Discussion Questions

Scandic Hotel Chain in the Baltic: A case of Strategic International Marketing.

Tourism is one of the most important sections in the World Economy and it is now considered

as an efficient tool for promoting economic growth $($Jimenez and Ortuno, $2005).$ In this respect,

the experience of Spanish, Greek, Thailand, Caribbean nations is well known. Against this

background, there is consensus regarding the role of Tourism in general and Hospitality

industry in particular in enhancing the industrialization process of nations and that foreign

currencies receipts from Tourism contribute to Finance the expansion of manufacturing by

financing the imports of capital goods $($Tisdell$,2001).$ Thus, the vital role of hospitality

industry cannot be overemphasized. It is understandable that in the era of globalization,

marketing of services internationally has become a popular topic for discussion by

Governments, Private institutions, Academics, Business Leaders and Individuals alike.

Services have come to play a pivotal role in the value chain for both specialized service

multinational firms and multinational firms that produce services. New forms of competition

and structural modifications of exchange processes have led to the emergence of the

relationship paradigm by creating long term relationships among customers and suppliers. A

company$$s main task is thus to identify customer groups at each stage of customer

development and to select a suitable relationship strategy. The main objective of this case is to

describe the critical success story of a major hotel chain by highlighting its road to becoming

the leading hotel chain in the Baltic region.

Source: Emerald Publishing.

$1.$ Discuss the $2$ forces that facilitate the growth of services in international marketing with

reference to the case. $(10$ Marks$)$