What is Outrigger Hotels and Resorts’ strategic position? What are the firm’s Critical Success Factors (CSF)?
A supplier with strong bargaining power has the advantage of charging their price higher or selling low quality of the product to them.
Rosewood’s management is on the right track to increasing brand awareness among its customers by pursuing the corporate branding strategy. Implementation of the corporate branding strategy not only increases the number of repeat visitors to the hotels, but also increases the gross profits made by the company by $2,599,000. Corporate branding has a positive impact on the customer lifetime value as well. Rosewood Hotels & Resorts is a privately owned hotel management company that is known for its unique properties like The Carlyle and the Mansion on Turtle Creek that differentiates the company from other luxury hotel competitors.
Hollister offers wide range of consumer shopping goods related to the Clothing line. They offer different product with different versions to Dudes and bettys include graphic and “crew and tee shirts”, polo’s, Henley’s, cardigans, shirts, pullovers, outerwear, rinse or wash slim jeans, flip-flops, shoes, perfume and boxers.
In the startup phase of Lululemon Athletica they had a high bargaining power. This was due to a desire to work with leading fabric suppliers and increased investments. A majority of their apparel production was in Asia however they are willing to use Canada as well as the United States for production facilities as they are required. There are many suppliers competing for retailer’s business. Common materials used in apparel making such as rubber and cotton are readily available. This gives Lululemon a lot of choice in picking who they want to buy supplies from. In this situation, the suppliers have a low level of bargaining power.
In order to determine cost of capital, first we need to find out cost of equity and cost of debt. For determining the cost of equity we need to determine the beta for the target leverage ratio. According to the information provided by exhibit 3 equity beta is estimated at 0.97 when equity-to-total capital ratio is 0.59. Therefore we need to find unlevered beta value so that we can find firm’s equity beta at the desired leverage ratio as mentioned in Table A. Tax bracket of 44% is used based on ratio of income taxes to income before income taxes (175.9/398.9) in Exhibit 1.
-This school emphasis on analysis and calculation can be a very strong support to the strategy development process
Although Marriott International has a competitive advantage of being the largest hotel company in the world, experiencing years of remarkable growth with the acquisition of Starwood Hotels, and ranking at number 163 on this year’s Fortune 500, it operates in a highly competitive market. The recent success of Airbnb, for example, has had major effects on the hotel industry as it has quickly become a threat. Airbnb, founded in 2008, is an online hospitality service that provides short-term lodging and unique travel accommodations around the world with more than 3,000,000 lodging listings in 65,000 cities and 191 countries. Having a value of over $10 billion, Airbnb “exceeds that of well-established global hotel chains like Hyatt” (Hospitality Net). This proves that this online service is significantly surpassing these stable hotel chains that have been competing in the industry for over 60 years. Along with this, a recent report by HVS Consulting & Valuation found that “hotels lose approximately $450 million in direct revenues per year to AirBnb” (Orourke). Although Marriott International has been performing with a 45% increase in revenues from 2012 to 2016, Airbnb has definitely had an impact on the consumer perspective of traditional hotel rooms. In addition to this, hotels also lose over $108 million of food and beverage revenues as a result of guests not spending their money at the hotel’s restaurant. The use of other services, like the
Holiday Inn is a world wide chain and its international functional strategies will always yield profitable returns. The potential customers are from all over the world. It has been noted that the holiday inn company has given the market such as Europe, Asia, America with regards to their social-cultural needs. Holiday Inn, like all other hotels has established a good system in determining the needs of the market. The company uses the concept of product, personality, behaviour of the customer and purchasing to its advantage.
Intercontinental Hotels is using the market differentiation strategy in segmenting its market into appropriate market divisions based on characteristics of the varying needs and characteristics of the target markets. The company has more than 3500 hotels in over 100 countries with around 535000 guest rooms. It has established a substantial customer base with over 120million customers whose preferences vary based on price and quality expectations. The Intercontinental group is made up of many brands such as the Intercontinental Hotels and Resorts, Holiday Inn Garden Court, Crown Plaza Hotels & Resorts, SunSpree, Holiday Inn, Staybridge Suites, Holiday Inn Family Suites Resort, Holiday Inn Express, Holiday Inn Select, Holiday Inn, and Candlewood
InterContinental Hotel Group (IHG) is among the largest hotel of the world and comprises of hotel seven hotel brands. Such as Holiday Inn, InterContinental, Hotel Indigo, Candlewood, Crowne Plaza, Staybridge Suites, and Holiday Inn Express. IHG also has to face the problem of credit crunch due to which their performance and growth has been impacted adversely. This hotel enjoys strong presence in the era of economic uncertainty such as credit crunch and fears of recession because of its famous brand Holiday Inn. However, in these years of crisis the share of the group dropped by about 50% because of presence of credit crunch. This resulted in huge loss for the IHG group due to which the organisation announced fall of about 40% in the first
Philip Kotler(2015) defines marketing as “the science and art of exploring, creating, and delivering value to satisfy the needs of a target market at a profit”. According to Hollensen (2003), a strategy is a fundamental pattern of present and planned objectives…” Therefore a marketing strategy is a tool that is used to determine what the customer wants and use the resources available in the organization to meet that need.
Competitive strategy is a suit of methods and action sequence deliberately planned and put into place by companies in the face of market competition. This seems to be a clear way of keeping their market shares, expanding sales and managing the product lines to deliver desired results.
Nobody imagined technology would be incorporated in the business world and slowly replace the traditional set platform. Digital marketing strategies are the future of the marketing sector. Business owners are desperate to stand out from their competitors. The dental industry is crowded with numerous clinics. As a result, dermal fillers clinic owners should go an extra mile if they would like their brands to stand out. There is a trend where dermal filler clinics are reaching out to computer marketing companies to assist them with their marketing strategies. There are numerous reasons why people incorporate digital strategies in their campaigns. Here are some of them: