Discuss about the Competitive Strategies Influencing Performance of Dick’s Hotel in Balmain Sydney, Australia.
The research proposal brief addresses the competition facing DiCK hotel industry business. Dick’s hotel established in the year 1872 by John Dick, the business has continued to offer foods and drinks to residents and visitors of Balmain, Sydney. The hospitality and tourism industry have grown tremendously in Australia. The key parties in the industry have been providing hospitable goods and services for both domestic and overseas consumers. The major units in the industry include: restaurants, bars, catering, meetings, conferences, and tour operations services. Several businesses have emerged in hospitality and tourism in Australia covering the different major units of the industry (Fraj, E. Matute, J. Melero, I. 2015, 35). .
The importance of the hotel and other’s major units in Australia economy cannot be estimated. Direct tourism and hospitality industry contributed over $33.9 billion of Australia’s GDP in 2014/2015 financial year. The profitability and performance in the industry has led to market entry of other’s investors and business persons. In 2009 there were 77,087 businesses operating in hospitality and tourism industry since then it has grown to over 186, 940 businesses offering accommodations and food services (Hoque, K. 2013, 9). Currently businesses like Dick’s hotel are facing competition from other business offering innovation and competitive services to its customers (West, D. Ford, J. Ibrahim, E., 2015, 45). It has prompted the management of Dick’s hotel identify suitable strategies to maintain and grow its market share.
The bigger problem facing hospitality and tourism firms like Dick hotel is increased competition within the industry. Business persons in the industry are employing innovative and competitive strategies to maintain and attract more customers. Increased domestic and international tourism has led to emergence of more business investors in major hospitality units. The growth in tourism industry is brought about by attractive cultures, geographical features and stable economy. Hospitality sector is depended on the kind of service offered to its customers. Several dynamics have contributed to increased competition in the industry. Trends in consumer characteristics and demographic changes make hotel owners to take a more strategic outlook to planning competitive. Dick hotel has been drastically losing its client base over the years due to competition from other players despite growth in hospitality industry. That makes the hotel owners to establish suitable strategies to remain competitive. The purpose of the study will be to identify competitive strategies influencing DiCK hotel performance.
The study will be guided by the following research objective:
To identify competitive strategies influencing performance of DiCK’s hotel in Blamain Sydney.
To understand the research objective variables a review of the concept of competitive strategy is done. The author’s point of view is clearly to understand the variable of study competitive strategy. Competitive strategies define different ways that hotel owners employ to make their products distinctive and attractive from other players offering the same products and services (Hill, C. Jones, G. Schilling, M. 2014, 45). Hotels across Asia apply strategic pricing strategies this is because consumers are not motivated if any hotel cuts it’s pricing to attract more customers. Pricing strategies for the hotel is done based on the type of service required and type of consumers. The empirical finding across countries especially in Australia shows that when demand of rooms is high, rooms can be available for those paying higher prices and vice versa. DiCK hotel have different price differentials for its service provision. There are prices for normal class and those for the corporate class that is dominantly manifested in its drinks price differentials. Consumer segmentation is another strategic component of hospitality industry dominant in Australia. Studies show that hotels segment customers differently either corporate, family, domestic, international and leisure customers (Phillips, P. Moutinho, L. 2014, 101). Each segment has different needs and expectations they are then served accordingly. For example in Singapore the hotels have special packages for families during weekends. Hotel owners will to charge differently for the services offered to each segments.
The researcher points out the role of technology in competitive strategy. The technology changes have made hotels to employ competitive strategies (Kong, E. Lien, C. 2016, 980). Hotels are using Meta service engines, online travel agents, hotel booking agents, and travel review websites would offer customers a wider choices and accessibility to hotel products. DiCK hotel is employing an integrative information technology system to manage its communication needs. The system allows bookings, payment functions and revenue management. Other hotels in US are employing a self-management system that enables customer’s book, serve them and pay for the services (McManus, L. 2013, 142). The use of technology strategies makes hospitality industry players to be competitive. Findings show that in hotel industry the service offered is based on certain quality aspects (intangibility, heterogeneity). Consumers evaluate a service offered based on total quality characteristics if positive it brings loyalty and satisfaction in the long run. Service quality is the most important factor influencing customer perceptions in the hotel industry (Espino-Rodríguez, T. Lai, P. 2014, 18). Hotel owners continue employing innovative service strategies to attract new and maintain loyal customers.
A cross sectional survey in different countries show that it is the same challenges and factors are facing hotels across countries. The majorly factors are changes in food prices, instability in countries, technology changes, demographic dynamism, currency stability, competition, and changes in labor market (Jones, P. Jones, P. Hillier, D. Hillier, D. Comfort, D. 2016, 47). In Australia, some of factors influencing hotel operations are changes in fuel prices, and national policy frameworks. Both have influenced hospitality industry positively over the last two years. Other factors that influence hotels include changes in consumer demographics, and strength of Australian dollar (Melissen, F. Cavagnaro, E. Damen, M. Düweke, A. 2016, 236). Consumer research teams identify aging population, changing family structures and customer preferences to be challenges facing hotel owners. In order to manage the challenges the hotel owners need to formulate suitable competitive strategies. To be able to understand the operationalization of the topic the conceptual framework is used in figure1.The conceptual framework is a diagrammatic relationship of the variables in the study. Figure1 shows the conceptual framework.
Figure 1 conceptual framework: Source: Author 2017
Figure 1 explains the relationship between competitive strategies and performance of hotels. It defines the dependent and independent variable relationships. Challenges can affect the different competitive strategies employed affecting performance in the long run.
The research will employ a mixed methods approach which uses both quantitative and qualitative research to find best suitable answers to research questions (Hill, C. Jones, G. Schilling, M. 2014, 45). The methodology provides a comprehensive explanation of research objectives being investigated. The approach is to obtained information of the study through primary data sources. The research will obtained qualitative data by using interview schedules issued to the target population.
Research technique
The study will employ a survey research design (Kothari, C. 2014, 35). The survey research technique involves obtaining responses through questions from a sampled population. The design will describe systematically how competitive strategies and its influence performance of the DiCK hotel. This is by seeking responses from the target population.
The population
The study will be conducted in DiCK hotel covering its top management employees. The sampling frame will include: 5 managers, 14 assistant managers, and 1 director. The sampling frame of the study will be represented by 20 employees as per the company human resource records of 2017. The top management employees were chosen because they are the only ones engaged in strategy formulatio
Sampling design
Non-probability sampling technique (purposive) will be used because all samples are expected to provide information relevant to the study. The top management will be chosen purposively because they are the only one who has information for the study. Non probability is sampling technique that does not give respondents equal chance of being selected (Kothari, C. 2014, 65).
Implementation plan
The study will be conducted using a cross-sectional type of study because it involves a short period status study. The entire study is expected to be carried out in less than 3 months. The study is conducted to understand how competitive strategies influence performance of DiCK hotel. Primary data will be obtained from primary sources through interviews. The study will require a budget of AUS $500 to carry out various study elements. Logistics will include: printing, photocopies, stationery, data analysis fees, fare and meals. Before collection of data authorization will be sought, and appointments made with respondents. The interview will be scheduled to take 10 working days with each session having a maximum of 30 minutes. The qualitative data collected will be arranged, coded and ready for analysis.
Suggested interview questions and topics
To provide answers to study objective, structured interview will be used. Respondents will be asked to provide answers to questions provided. An interview is chosen because it provides respondents a wider opening to answer the questions (Kothari, C. 2014, 34). The interview will only cover the topic of the study and confidentiality will be maintained. The topics covered will be on strategies: applications, challenges and remedies. List of interview structured questions the following are sample of questions for the interview:
Project schedule
Reference lists
Espino,Rodriguez TF., and Lai, P.C 2014, Outsourcing and competitive strategy in hotel industry, International Journal of Hospitality Management, 42, pp.9-19.
Fraj, E., Matute, J and Melero, I 2015, Environmental strategies and organizational competitiveness in the hotel industry: Role of learning and innovation as determinants of environmental success. Journal of Tourism Management, 46, pp.30-42
Hill, W., Jones, G. and Schilling, M 2014, Strategic management theory: integrated approach, Cengage Learning.
Hoque, K 2013, Hotel industry human resource management: strategy, innovation and performance. Routledge.
Jones, P., Hillier, D., and Comfort, D 2016, Sustainability in the hospitality industry: some personal reflections on corporate challenges and research agendas, International Journal of Contemporary Hospitality Management, 28(1), pp.36-67.
Kong, E. and Lien, C.Y 2016, Social media impact in service innovations: An empirical study on the Australian hotel industry. Social Media and Networking: Concepts, Methodologies, Tools, and Applications (pp. 978-993). IGI Global
Kothari, C.R., 2014. Research methodology: methods and techniques. New Age press
McManus, L 2013, Accounting and marketing performance measures in the hotel industry: Evidence from Australia, international Journal of Hospitality Management, 33, pp.140-152.
Melissen, F., Cavagnaro, E., Damen, M and Düweke, A 2016, Is the hotel industry prepared to face the challenge of sustainable development? Journal of Vacation Marketing, 22(3), pp.227-238.
Mok, C., Sparks, B. and Kadampully, J., 2013. Service quality management in hospitality, tourism, and leisure. Routledge.
Phillips, P. and Moutinho, L., 2014. Critical review of strategic planning research in hospitality and tourism. Annals of Tourism Research, 48, pp.96-120.
West, D.C., Ford, J. and Ibrahim, E., 2015. Strategic marketing: creating competitive advantage. Oxford University Press
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