Hilton International Asia Pacific Pte Ltd was established in 1998. It is one of the largest companies in the hotel industry. The company is based in Singapore and the company focuses on enhancing the overall market share in the competitive market. The aim of the company is to attract more customers towards the services offered by the Hotel. In this paper the focus will be given on the overall analysis of the company in the competitive market. Pestle analysis, competitor analysis and also external factors will be taken into consideration which will help to evaluate the overall factors prevailing in the market.
In context to the competitor analysis, it can be analyzed that scope of the industry is wide. The company can easily focus on market expansion just because of the goodwill in the competitive market.
The three competitors prevailing in the market are Marriott, Mandarin Oriental and Hyatt. One of the competitors is Marriott in the market and it can be seen that the company offers advantages of having good balance sheet and also good industry leadership. It can be seen that the main focus of the company is on innovation. The process of company mainly emphasizes on the commitment and innovation which can also maintain the total value for money (Nieves & Diaz-Meneses, 2016).
Mandarin oriental is one of the hotels which are situated in more than 27 countries. The company gives tough competition in the market as the focus is on creating unique design and strong presence on the global platform.
The third competitor is Hyatt in which it can be evaluated that there are 36000 workers who assist the company to reach the top hospitality brand on the global platform. The company manages its activities in various formats related with hotels, resorts, ownership and also residences. The main focus of the company is on technology which should be upgraded from time to time so that growth can be attained. It has been seen that these are the companies which can be the substitutes of the company. The competition level is high in the market as there are many substitutes in the market available for the customers at low price. These companies can also be considered threat for the company in the market. It is important for the company the overall level of competition as it can help in achieving goals (Bhasin, 2018).
But it can be seen that services which are offered by the company are highly different as they emphasize on enhancing the customer satisfaction in the competitive market. The competitive business strategy considered by the company is related to service differentiation. The company has differentiated its services on the basis of quality and it also maintains the high level standards at the time of offering services to the customers. The competition strategy which is considered by the company is related to digital hospitality. The company emphasizes on digitalization efforts concerned with the booking channels and also mobile services. The proper integration of the digitalization points generates additional synergetic affect for the organization. Guest experience and privacy is also one of the important strategies which are considered by the company and it has been seen that through this it can be easy for the company to attain the competitive advantage. Through this the competition level prevailing in the market can be minimized. Also, it can help the company to attain the large market share in the highly competitive market (Dudovskiy ,2016).
The next competitive strategy pursuit by the company is related with loyalty and data drive personalization which can help to enhance the overall market share of the company and also it can assist in achieving the goodwill in the market (Dudovskiy ,2016).
Source: Dudovskiy, 2016
At the time of positioning, the company emphasizes on proper international strategy through which the company has to commit to emphasize on substantial financial investments on the continuous basis. The main aim of the company is to emphasize on international expansion as it can help the company to attain the large market share in the competitive market (Yang, 2015).
The economic features related to the company are concerned with the market share in which it has been seen that the market share is large of the company. The company has 4275 hotels on which can be considered as the large market share of the company on the global platform (Tracey, 2015).
In the life cycle stage of the industry and also the overall growth rate it has been seen that there are various aspects which are taken into consideration.
The first factor in relation to the life cycle stage of the hotel industry is related with introduction stage. In this it can be seen that hotel industry focuses on advertising the services in the competitive market. In this the company emphasizes on providing various services related to the type of rooms like simple rooms, suites, apartments and bungalows (Wang, Madhok & Xiao Li, 2014). On this stage the hotel does not have any sales point but to introduce the service in the market enhances. Also, the hotel will not be able to generate the revenue to cover the overall cost of development related to labor cost and building taxes. On this stage the hotel is ready to accept the guests to offer the services. So, the company is not on this as it was established many years ago and also the customers are well known about the services which are given in the competitive market (Arikan & Stulz, 2016).
The next step is related with growth stage in which it has been seen that the hotels emphasize on the new packages on the holiday program and also it begins to advertise the services in the market. In context to the company, it has been seen that company offers various services in the market and also the low cost strategy is used which enhances the overall market share of the company. The hotels on this stage also focus on investing into the market share which can be less costly. In this stage, the company focuses on promotion of the services as it can help to attain the large market share in the competitive market. The company focuses on giving advertisement so that the market share can be attained and also the people can know about the services which are offered to them in the market (Nagle & Müller, 2017).
Maturity is the stage in which the services offered by the company are fully developed and also they have a good market share. But on this stage sometimes the sales also reduces and the growth is also paused. Also, this can take place as the products of the hotels are managed and also accepted by the targeted market. The overall level of profit of the company also reduces as there are more resources which are needs for marketing and advertisement as it can help to secure the overall level of competition of the products in the market. So, the company is focusing on advertisements which can help to attain the large market share and can also increase the profits of the company (Tavassoli, 2015).
Decline is also the step in the life cycle of the industry. On this stage it can be seen that life cycle of the services declines and also the overall sales reduces of the company in the competitive market. In the hotel industry, the example can be related to the product which will be hotel and also it has lost the attractiveness towards the guests. At this stage the company emphasizes on managing the product with care. This is not the stage which is favorable by the company in the competitive market. It has been seen that the company is not on this platform as the company focuses on the maintaining the overall activities of the company. It has been seen that the company emphasizes on promoting the services so that it can be easy to attain the large market share in the competitive market (Arikan & Stulz, 2016).
Source: Diversifying market, 2014
It has can be stated that economies of scale has an important role in marketing and advertising. Without this it is not possible to achieve growth in the competitive market. The company focuses on advertising and marketing budget over a large output and also buys the inputs in bulk on the negotiated discounted rates if there is proper negotiation power in the overall market. The company focuses on giving discounts to the customers so that it can be easy to achieve the large market share in the competitive market (Hilton & Begel, 2018).
In the large economies of scale it can be seen that large manufacturer can employ the specialists so that proper supervision can take place in the production system and also it helps to manage the overall marketing system. In reference to the overall production process, the company emphasizes on bulk orders as it can help to maintain the goodwill in the competitive market. The company also emphasizes on the overall purchasing, advertising and distribution process by considering the overall economy. By giving emphasis on these factors it can be easy to attain the large market share and it will also maintain the overall goodwill of the company in the competitive market (Akbar & Tracogna, 2018).
It can be stated that in the hotel industry there are various segments which are related to it. It can be seen that food and beverages is one of the important segment which is taken into consideration by the company as it can impact the overall strategies and competition level. It is stated that if proper food and beverages sector is not there in this industry, then it can negatively impact the overall operations of the company. The customers will not be satisfied and the competitors who are present in the market can take the advantage. Due to this, it can be seen that affect can be on the overall profits of the company. The company will not be able to attain more profits in the competitive market which can affect the goodwill also which is prevailing in the market.
The next segment is related with travel and tourism. It can be seen that if hotel industry does not provide good services related to travel and tourism then customers will be least interested in the overall operations of the company. It is necessary for the company to focus on the segment related to travel and tourism as it can help to compete in the highly competitive market (Gajjar & Okumus, 2018).
This factor can be considered as threat to the company. It can be seen that there are various legal aspects which are necessary for the company to emphasize on. If proper legal framework is not considered then it can be difficult to achieve success. In Singapore, the company has to follow the hotel Act in which there are various sub categories related to hotels licensing board and related with registration of premises as the hotel. If this framework in Singapore is not followed then it can negatively impact the overall operations of the company (Strickland, 2017).
This can be the opportunity for the company as it is important to focus on the needs of the customers so that it can be easy to enhance the satisfaction level of the customers. If the services offered by the company are according to the demand and preference of the customers then it can help in accomplishing goals and objectives. It is necessary for the company to focus on the demand so that it can be easy to manage the overall activities.
This is also one of the threats to the company as it can be seen that change in the policies can impact the overall operations. In Singapore the factors that can affect the overall growth of the company is related to corruption and instable government which can hinder the organizational activities and also growth in the market (Viglia, Mauri & Carricano, 2016).
This factor can also be considered as the threat as the competition level is high in the market. There are many competitors present in the market. The competitors which are present in the market are Ritz Carlton and Hyatt. So, to reduce the competition level it is important for the company to focus on maintaining the industry segment related to travel and tourism and food and Beverages (Cusumano, Kahl & Suarez, 2015).
It can also be high and it is one of the opportunities for the company. In this it can be seen that the buyers or the customers will be the teenagers who love travelling. So, it can be high, so it is important to maintain as it can help in accomplishing the desired goals and objectives.
It can be seen that bargaining power of suppliers is high. The company has the opportunity to enhance the market share which can lead to the overall growth in the market. It is one of the opportunities which should be considered by the company as it can help in maintaining the goodwill in the market (Pakes, 2017).
The key success factors for the company are many. It can be stated the issues can be related with lack of training and development, proper human resource management and also good quality food. These factors can easily influence the overall success and profitability of the company. The key success factors are not constant if focus is given on the overall segments of the company. It is necessary to manage the activities as it can help in accomplishing goals and objectives. Also the KPF can vary in the overall process of life cycle. Without this it cannot be possible to remain on the growth stage as it is one of the platform through which profits can be earned (Grant, 2016).
The strength of the company is related with the good image in the market. It can be seen that due to the good image in the market the company is able to achieve large market share in the competitive market.
One of the threats is related with the high competition level prevailing in the market. It can be seen that the competitors in the market are Mandarin oriental and Hyatt. The next threat is also related with terrorism and political unrest and the last threat is change in the taxes and regulations.
There are many opportunities which exist in the market. It can be seen that the company has various innovative ideas to maintain the quality and to enhance the satisfaction level. So, it is necessary to focus on maintaining the quality of the services so that it can be simple to achieve success. The next opportunity focuses on the change in the climate and the last is higher demand on the quality.
It has been seen that there is high dependency on the tourists. If tourists are not there then it can be difficult to achieve the desired targets. It can also been seen that the manpower is important which is not sufficient in the company. So, it is necessary to focus on managing overall manpower as it can help in accomplishing goals and objectives in the market.
Conclusion
So, it has been concluded that company should focus on the overall activities as it can help in achieving the desired goals and objectives in the competitive market. It will also help to maintain the relation with the competitors prevailing in the market.
References
Akbar, Y. H., & Tracogna, A. (2018). The sharing economy and the future of the hotel industry: Transaction cost theory and platform economics. International Journal of Hospitality Management, 71(8), 91-101.
Arikan, A. M., & Stulz, R. M. (2016). Corporate acquisitions, diversification, and the firm’s life cycle. The Journal of Finance, 71(1), 139-194.
Bhasin., H. (2018). Top Hilton Competitors across the world. Retrieved from : https://www.marketing91.com/top-hilton-competitors-across-the-world/
Cusumano, M. A., Kahl, S. J., & Suarez, F. F. (2015). Services, industry evolution, and the competitive strategies of product firms. Strategic management journal, 36(4), 559-575.
Diversifying market. (2014). Product life cycle. Retrieved from : https://demystifyingmarketing.blogspot.com/2014/08/product-life-cycle.html
Dudovskiy., J. (2016). Hilton Hotels Business Strategy and Competitive Advantage. Retrieved from : https://research-methodology.net/hilton-hotels-business-strategy-and-competitive-advantage/
Gajjar, T., & Okumus, F. (2018). Diversity management: What are the leading hospitality and tourism companies reporting?. Journal of Hospitality Marketing & Management, 1-21.
Grant, R. M. (2016). Contemporary strategy analysis: Text and cases edition. John Wiley & Sons.
Hilton, M., & Begel, A. (2018, May). A study of the organizational dynamics of software teams. In Proceedings of the 40th International Conference on Software Engineering: Software Engineering in Practice (pp. 191-200). ACM.
Nagle, T. T., & Müller, G. (2017). The strategy and tactics of pricing: A guide to growing more profitably. Routledge.
Nieves, J., & Diaz-Meneses, G. (2016). Antecedents and outcomes of marketing innovation: An empirical analysis in the hotel industry. International Journal of Contemporary Hospitality Management, 28(8), 1554-1576.
Nieves, J., & Segarra-Ciprés, M. (2015). Management innovation in the hotel industry. Tourism Management, 46(6), 51-58.
Pakes, A. (2017). Empirical tools and competition analysis: Past progress and current problems. International Journal of Industrial Organization, 539(6), 241-266.
Strickland, P. (2017). The first space hotel employees: Human resources challenges in a post-terrestrial paradigm. Journal of Human Resources in Hospitality & Tourism, 16(4), 445-458.
Tavassoli, S. (2015). Innovation determinants over industry life cycle. Technological Forecasting and Social Change, 91(8), 18-32.
Tracey, J. B. (2015). Hospitality HR and Big Data: Highlights from the 2015 Roundtable.
Viglia, G., Mauri, A., & Carricano, M. (2016). The exploration of hotel reference prices under dynamic pricing scenarios and different forms of competition. International Journal of Hospitality Management, 52(8), 46-55.
Wang, L., Madhok, A., & Xiao Li, S. (2014). Agglomeration and clustering over the industry life cycle: Toward a dynamic model of geographic concentration. Strategic Management Journal, 35(7), 995-1012.
Yang, J. T. (2015). Effect of internal marketing on knowledge sharing and organisational effectiveness in the hotel industry. Total Quality Management & Business Excellence, 26(1-2), 76-92.
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