The threat of substitution is relatively high, especially from the Luxury Villa Market, which grew by over US$7 billion globally from 2015 -16 (Forbes, 2015). This is because they offer luxury products with increased privacy at a similar cost. The bargaining power of suppliers is quite low as there are a large number of F&B suppliers, large numbers of suppliers of hotel hardware such as furniture, bedding, fixtures and fittings and weak trade unions (CRS Asia, 2015). Overall the intensity of competitive rivalry is moderate to high in the boutique luxury sub-industry in Thailand as buyer power is very strong due to availability of full information (Porter,
Furthermore, BBB had advantages in communication mix as well because they promoted their sales everywhere. ABC Carpet has an advantage in location and store design. They are located on a busy corner block, which can be easily spotted and having such a big store; their store layout was exceptional and spacious. Meanwhile BBB’s building has two other stores in it as well and their merchandise takes up every square foot possible. However, BBB’s customer service outperforms ABC Carpet’s greatly.
Taking into account that most of their revenues come from the Bloomberg Terminal, they need to be up to date with their competitors and make sure that their product is the best product out there and that their product stands out from the rest. If their competitors increase their technology and marketing strategy, this can ultimately lead to a downfall in Bloomberg’s sales. That is unlikely to happen anytime soon due to the technology being used behind it, but they should always try to advance their product. I would recommend to also decrease their prices to somewhat match their competitors. That would diminish their competition to some extent because if customers have to choose one or the other for a similar if not equal price, they would go with the one that has a better reputation and more functionality.
These suppliers are concentrated in Jakarta and can be purchased from for just-in-time procurement. The number of suppliers of this input is high as these materials can be procured from foreign suppliers as well. The cost of switching to another supplier is low and therefore, suppliers of this degree have little bargaining power. However, businesses in the mattress industry compete on technological superiority. Once an organization does not have the technical capability to serve the market of a certain technology, then this production process needs to be outsourced.
Two entrepreneurs, who decided to rent out their apartment during a conference in San Francisco in order to be able to pay the rent they could no longer afford, founded AirBnb in 2008. Today, AirBnb offers more than 500,000 rooms, apartments, and houses in over 200 countries around the world (James). The Fast Company, a company that creates a list of leaders who are inventing the future of business, lists AirBnb as the most innovative company in travel. Therefore, AirBnb is becoming more and more of a threat to the major hotel chains but also to boutique hotel owners. According to a Barclays research report, AirBnb has already overtaken major hotel companies in terms of its valuation by investors, and its growth could outpace them in actual
Size: The larger the hotel the more will be its room tariff as the construction, modern technology, more staff and cost aplied will be more. c. Duration: another main consideration will be length of stay of the guest arrived. A long staying guest on itemized bill will be a long one. d. Marketing Consideration: When the guest is on full baord plan (meals Inclusion) and suppose does not want it; then he should expect a reduction in the final bill of his (which is usually not given). This often encourage guests to take advantage of the the wider choice because they feel free to choose and thus help to increse restaurant sales in
While the concept of dominance is very useful from the perspective of customers selecting the products they like, what is interesting to manufacturers is whether their products are popular with customers compared to their competitors’ products. Consider you are a manager of hotel company. You want to know the business position of a local hotel b in the current market with regard to your preference, i.e., price and distance to the beach, by checking how many other hotels are better/worse than b. For the sample hotels shown in Fig. 1, you can deduct the conclusion that hotel b is better than 2 other hotels but worse than another 2 hotels with regard to your preference.
The effect of the financial depression on the hotel sector has been highlighted by results from a world's leading operators the late crisis have in reality invigorated a profound enthusiasm for the investigation of the related reasons, outcomes, and conceivable cures for such scenes. In perspective of these occasions, Hotels around the globe are battling for clients over the worldwide economic depression in connection to this spending on Tourism and Hotel is firmly identified with the financial cycle. Moreover, clearly spending on leisure exercises, for example, occasions and outings has a tendency to be one of the important things that customers cut back in times of financial hardship. It is noted that recently the chains were generally hopeful about prospects, trusting the impact of credit's crunch had largely been restricted to the budgetary segment. On the other hand, in recent past interest for lodging settlement was hit and this is liable to begin to appear through to their profitability.
Lancaster : According to Justin, hospitality firms big and small are looking at ways to keep costs low and to become more efficient just to stay afloat in this very challenging economy. Cutting costs in labour has been a popular topic in all industries during times of economic downturn. This is a particularly slippery slope in the hospitality industry where service may be compromised through cutting costs. Quality service is scrutinized by the customer in hospitality more than ever due to the fact that customers are fewer and are spending less. In areas of resort saturation like Las Vegas, the customer has so many options; they simply will not tolerate poor service like they may have in the past.