Industry and competitive analysis
model year competing forces
of potential competitors:
The potential competitor is the competitor with the possibility to entry. Hotel business experts rated as one of the business to be successful and bring the highest incomes. Therefore, it has always been an industry more interested investors jump into the market competing with other companies in the industry.
However, to join in an industry that has been dominated by many large companies , with the fame, prominence in business, as well as what they have built with our customers is a very difficult job.
The main barriers to entry:
- Brand Loyalty : The company operates in the field of hotel business, from inception to date have been trying to build the image of your company create loyalty for their brands to customers. They did not stop advertising on image corporate hotel chain, enhance staff training, branch expansion, facility to provide opportunities, as well as the convenience of customers easier access Access to the company's products. The company also constantly improve the quality of the accompanying services such as providing meals, .. and the arrival of the guest-dimensional software, online ordering system, ... as well as ways to increase Customer satisfaction for the companies in the sector, thereby creating customer loyalty.
- absolute cost advantage: In the industry has a lot of corporate existence with a system of modern hotel , reputation. On the other hand, the hotel is constantly improved, investment in building infrastructure, fully equipped, modern; enhance recruitment, coaching staff with good service skills as well as improve the quality of the service comes to their hotel from which to create the footprint for customers in terms of quality of rooms, not time, and quality service. So tough with companies that want to entry: large capital expenses for building infrastructure, training of professional staff, loyal to the company.
- Switching costs: the cost of moving Change of customers when changing service providers themselves are relatively small.
Therefore, barriers to entry are relatively large. However, at present there are still many potential competitors are attacking the industry.
Competition among industry players:
Rated as one of the industry "smokeless easily bring success and highest income ", the sector has attracted many companies involved in the sector. The major companies in the sector are very high profit margin.
- Competitive Structure: In the industry today, there are many companies involved in the industry, with many companies with large-scale business in many countries but the company also offers small business only within one country. These companies, large corporations may include: Accor, Hilton, Marriott, .. The companies, corporations coexist, compete with each other, but in no company dominates the activities of The remaining businesses, so the industry is considered dispersed branches.
These companies, corporations want to survive and succeed have built their strategies to create a comparative advantage compared to other companies industry based on its core values.
- The conditions demand: In this day and age, the demand for products and services increased, while travel services. So that's a factor contributing to high demand for accommodation in hotels, This is a great opportunity for companies in growth of revenue.
- Barriers to leave the industry: Companies in the industry are not continuously improve the customer system, hotel facilities increasingly more modern, expanded scale and enhance quality. Join the industry requires large capital investments for building infrastructure, equipped with the equipment, this needs some significant capital. This makes the entry barriers in the industry is increasing. On the other hand by investing more in infrastructure, the barriers to leave the sector of companies in the sector is also relatively high.
The capacity of the buyer to negotiate
the company's buyers might be the end consumer customers with its products but they also are the companies that distribute its products to end customers. With Marriott, last customer of the company is the enterprise audience, the senior Guests ... They are willing to pay more for services incurred (cost-plus, and gratuities). In the hotel sector that Marriott is business, this is a dispersed sector and the buyer there is a significant number and wide. Along with that, the demand for personal pleasure, and a single count when choosing a hotel to stay, along with the high quality service chain of Marriott object towards senior high income makes for more active Marriott for Buyers. With the prestige and quality of such, the price of the Marriott in the high level of services and not much change is also demonstrating its premium brand.
➔ Therefore, the capacity of buyers to Marriott is low. (Objects Enterprise and Premium Guests often do not pay much attention to the price and they are also less expense, that they are interested above all quality service they enjoy)
negotiating capacity of suppliers.
Marriott brand is a great brand and reputation in the field of business and management Hotels Hotels. This is a large corporation with unique features and can only feel at the Marriott where not all. With characteristics of a global brand, Marriott has to compete fiercely and vigorously with hotel groups such as Hilton, ... Therefore, the quality and peculiarities will be the main competitive weapon of Marriott.
Criteria taken customer satisfaction and the company went into Quality. Marriott constantly researching and developing the service package "Live" its premium, therefore the supplier will be selected carefully and vigorously, but it is the strict and sole of the suppliers that their bargaining power for Marriott becomes high. Simply because the product which the supplier must create really Marriott quality and irreplaceable to avoid copying and simulation formula, operations. On the other hand the individual products, the quality difference is made that can cause costly for companies to migrate from provider to another provider. Marriott specializes in Business and Management in the hotel so the creation of products to cater for the company is also problematic (no this is not the main areas of the company)
➔ bargaining capacity supplier of high
replacement products.
Marriott guide to the types of services and activities hotel resorts and high quality instruction to high-end customers, high living standards and class, and the product high quality services of Marriott so often studied, considered and always developed on the basis of technology and thorough market research. Should Marriott's products and services have few close substitutes. (Or substitute products compete against weak this type). Therefore, Marriott tend to increase profits from the service fees incurred in addition to high-quality services.
The strategy group in
Sector Business Hotels and Hotel Management today is quite interesting leading companies are doing business but may indeed not easy to join any branch. The company is currently competing in the disciplines of competition is equally fierce. The company in the world in the high group strategy to create a mobile barrier prevents a business without including past and present can move up this group of high strategy.
The company in an industry that creates the difference with other companies according to factors such as the distribution channel they use, the market segments they serve, quality products and lead the way in technology, customer service , pricing policy, advertising policy and promotion. In the hotel sector strategy group formation can clearly see
the pattern in the distribution strategy group has a lot of criteria to take into consideration but for the scope hotel industry geographic and Quality 2 important criteria in the review of the model.
Here is a map of strategic groups: In terms of quality of service, the Marriott, Hilton, Accor .. as hotel groups can be named immediately. With a high industry barriers, along with the base system of investment property is robust with quality standards at a high level standards. Here, with the financial force
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