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Abstract

The motorhome industry in the Irish economy has grown and transformed over the last 20 years with a rise in the number of motorhome companies and campsites around Ireland. This is a small competitive industry that has faced numerous economic challenges, in particular since the economic downturn in 2008. The failure of many firms’ strategy can arise from the firm’s inability to gain a competitive advantage (Porter, 2008). This study provides an analysis of how a small Irish motorhome company can achieve a competitive advantage to increase its business profitability, growth and performance. The motorhome industry in Ireland has received little attention in the business literature. Therefore, the methodology of this study involved the collection of primary data from interviews held with a motorhome manufacturer and a motorhome company. Customer surveys were also randomly distributed to obtain information regarding the motorhome industry and motorhome company in question. This qualitative analysis is accompanied with Porter’s Five Forces (1980) framework to analyse how a small business positions itself in the market to gain a competitive advantage. Since the 2008 economic downturn, a complex and highly competitive marketplace confront many small businesses in Ireland. There is an increase in the intensity of rivalry as the motorhome industry is relatively small in Ireland with each dealer striving to increase its customer base. In 2012, the government introduced policies such as an introduction in Vehicle Registration Tax (VRT) on all new motorhomes purchased and a Value Added Tax (VAT) Margin Scheme which inhibited positive growth and performance in the motorhome industry. These constraints heighten the importance of a company to diversify its strategy. In the motorhome industry, the rental service provides the opportunity of increasing a company’s profitability, customer base and business profile. A larger motorhome market exits in the UK which could potentially increase the performance of a company, however uncertainty is exposed in the British market due to Brexit. The aim of the study is to provide context on the Irish motorhome industry, identify the position of a small motorhome company within the industry and provide suggestions to the company for future development.

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