...SUBJECT: Case Study: Hilton Hotels – Brand Differentiation Through Customer Relationship Management List of Key Issues or Problems in the Case * Hilton’s strategy to maintain its leadership position in the US as well as in the international lodging market * Hilton’s focus on profitability and Return on Investment * Personalized customer service and development of Customers Really Matter initiative (CRM) * Implementation of a new enterprise system OnQ and the associated costs * Maintaining competition with other hotel brands Discussion questions 1. What is Hilton’s core business? The case presented in the book describes the evolution of Hilton Hotels Corporation, nowadays known as Hilton Worldwide. It is a public company founded in 1919 by Conrad Hilton. Hilton is one of the leading hospitality companies comprised of over four thousand hotels in ninety-one countries. Hilton’s web site states the following: “Ten brands, more than 4,100 hotels, and more than 300,000 Team Members across corporate offices and owned, managed and franchised properties make us the world’s leading hospitality company.” Hilton’s core business is to provide outstanding customer care of their guests, ensure their one of a kind experience while staying at the hotel. The acquisition of Promus Hotel Corporation in the year of 2000 added additional 1700 hotels to Hilton Worldwide. The company also invests heavily in the new hotel development, franchising and affiliating with real...
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...Evaluatie case volgens mij. Structuur: 1. Bottom-line evaluatie 2. Evaluatiecriteria 3. Argumentatie 4. Actieplan Vragen: * Callcenters daadwerkelijk efficiënter en kostenbesparend? Merk differentiatie t.o.v. concurrenten opgeleverd? * Groei: gestandaardiseerde of targeted aanpak? * Evalueer het Customers Really Matters initiatief van Hilton Hotels. Hoe succesvol is dit project? * Hoe zou u het management van Hilton adviseren ten aanzien van verdere investeringen in Customer Relationship Management (CRM)? Is het noodzakelijk om verdere investeringen te doen of is het simpelweg voldoende om de status quo te handhaven? Welke aspecten van Hiltons CRM toepassing zou u willen verbeteren, en hoe zou u dat doen? Diversificatie, groei, verschil in klantenwaardering; maar toch dezelfde treatment. Wat ze goed doen is aansluiten bij de strategie. CRM systeem is geen doel op zich, maar een hulpmiddel. ‘relentless focus on measurement, executive championship, employee training and empowerment’ is de aanpak geweest om CRM in het Hilton DNA te krijgen. Doelen voor de best guests waren: 1. Recognition, 2. Personalisation, 3. Service recovery, 4. Customer analytics. Daarvan afgeleid: speed up reservation process, increase service quality en enable cross selling. Probleem is dat rigide wordt als company groeit. Voorbeeld: 50% gasten met pre-assignment kost flexibiliteit. Daarnaast is een probleem met pre-assignments dat reguliere gast-voorkeuren niet persé te allen...
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... 4.0 Micro Environment 10 4.1 Customer 10 4.2 Competitors 10 4.2.1 Hilton 10 4.2.2 Marriott 11 4.2.3 7 Days 11 5.0 Product Analysis 12 5.1 Product category 12 5.2 Type of product 12 5.3 Three levels of product 12 5.3.1 Core product 12 5.3.2 Actual product 13 5.3.3 Augmented product 13 5.4 Branding and strategies 14 5.4.1 Brand positioning 14 5.4.2 Brand name selection 14 5.4.3 Brand sponsorship 14 5.4.4 Brand development 14 5.5 Packaging 15 5.6 Labelling 15 6.0 Target Market Analysis 15 6.1 Market segmentations 15 6.1.1 Psychographic segmentation 15 6.1.2Demographic segmentation 16 6.1.3 Geographic segmentation 16 6.2 Characteristics 17 6.3 Specific target segment 18 6.3.1 Motivation 18 6.3.2 Needs & wants 18 6.3.3 Relationship level 18 7.0 Analysis of current product 19 8.0 Conclusion 20 9.0 RECOMMENDATION 21 9.1 Quantity improvement & Type adjustment 21 9.2 Promotion Strategies Development 21 9.3 Service development 21 Reference list 22 List of figure Figure 1 8 Figure 2 9 Figure 3 10 Figure 4 11 Figure 5 11 Figure 6 11 Figure 7 12 Figure 8 13 Figure 9 14 Figure 10 14 Figure 11 16 Figure 12 19 List of table Table 1 17 Executive summary This report mainly focus on the current market situation of Shangri-la Hotel Company, providing evaluations and recommendations for marketers of the company to get more involved in the hotels in the Chinese market. A brief introduction...
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...IT and Internet’s Impact on Tourism and Hospitality Industry: Implementations of technologies for Hilton Hotels Group. Demonstrate critical and evaluative interpretation and application of theoretical IT/ e-business concepts to a current tourism and hospitality market situation in order to build sustainable competitive advantage. I Introduction Accompanying the technological revolution of the 1990s there are many new opportunities and challenges for the tourism and hospitality industries. Since tourism, global industry information is its life-blood and technology has become fundamental to the ability of the industry to operate effectively and competitively. Poon (1993) suggests that the whole system of information technologies is being rapidly diffused throughout the tourism industry and no player will escape information technologies impacts. The report below gives an insight into the importance of application of information technologies and the use of Internet in tourism and hospitality industries. Two given strategic frameworks provide the analysis of the Internet and its impact on these sectors. This paper also aims to show how technological innovations and information systems can be beneficial for the hotel companies, by using the example of Hilton Hotels Group. II IMPORTANCE OF TECHNOLOGY IN TOURISM AND HOSPITALITY SECTORS Market wisdom today suggests that hospitality companies must embrace technology to compete against traditional competitors, as well as entrants...
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...Table of Content PAGE NO. 1. Introduction ------------------------------------------------------------------------------ 1 2. Overview of Shangri-La Hotels & Resorts ----------------------------------------- 1 3. Board environment analysis -------------------------------------------------------- 2-3 4. Organizational resources of Shangri-La ----------------------------------------- 4-5 5. Hotels’ Strategies -------------------------------------------------------------------------6 6. Key issues confronting the Shangri-La --------------------------------------------7-8 7. Recommendations and Justifications --------------------------------------------9-10 8. Conclusion -------------------------------------------------------------------------------10 9. References 10. Appendices [A] Awards of Shangri-La Hotel Group, “Global recognition of excellence” [B] Details timeline of Shangri-La’s external context [C] TABLE 1 – Popular social networking sites (adapted from Luebke, 2010) [D] TABLE 2 – Broad Environment Analysis to Shangri-La hotels’ strategies development [E] Financial Statement 2009-2010 (Sources: 2010 Sustainability Report of Shangri-La Asia Limited, p.9) [F] Commitment of Social Responsibility (CSR) structure & focus areas (Shangri-La) [G] Context of Shangri-La Academy Courses & Work-life balance [H] Employee profile & turnover...
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...A COMPREHENSIVE ANALYSIS OF HYATT HOTELS CORPORATION AND HOW IT RELATES TO COMPETITION WITHIN THE HOTEL INDUSTRY Table of Contents EXECUTIVE SUMMARY 1 EXTERNAL ENVIRONMENT ANALYSIS 3 General Environment 3 Demographic Segment 3 Technology Segment 7 Economic Segment 11 Political / Legal Segment 14 Socio-cultural Segment 16 Nature Segment 18 Global Segment 19 Industry Environment 21 Intensity of rivalry 21 Supplier power 22 Buyer Power 22 Threat of substitutes 22 Threat of new entrants 23 Competitor Environment 23 Introduction 24 Future objective 25 Current strategy 26 Capability 28 Assumption 30 Driving Forces 31 Economic growth 31 Globalization 31 Technology 32 Room Service Remodeling 33 Go green 33 Key Success Factors 34 Multiskilled and flexible workforce 34 Franchising 34 Quickly adopt new technology 35 Strategic Group Map 35 INTERNAL ENVIRONMENT ANALYSIS 39 Resources 39 Tangible resources 39 Intangible resources 41 Capabilities 44 Core Competencies 45 Brand Development: 45 Golden Passport Membership 47 Making Meeting Easy 47 Distinctive Competencies / Four Criteria Test 48 Supply Chain 50 Inbound Logistics 50 Operations 52 Outbound Logistics 54 Marketing and Sales 56 After-Sales Service 58 Weighted Competitive Strength Assessment 59 Financial Report 63 Profitability Ratios 64 Liquidity Ratios 67 Leverage ratios 69 Efficiency Ratios 71 Revenue Per Available...
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...1. A(n) ________ market share of exactly 100 percent means that a company is tied for the market lead. A rise in relative market share means the company is gaining on its leading competitor. • potential • relative • served • overall 2. The typical risks of a cost leadership strategy include___________. • loss of customer loyalty • excessive differentiation to the point where the customer base is too small • the inability to balance high differentiation and low price • production and distribution processes becoming obsolete 3. The likelihood of entry of new competitors is affected by and ___________. • the power of existing suppliers; buyers • the profitability of the industry; the market share of its leading firm • barriers to entry; expected retaliation of current industry organizations • the demand for the product; the profitability of the competitors Complete STR 581 week 2 capstone final examination answers here STR 581 Week 2 Capstone Final Examination 4. In general, compared with firms which compete in only one market, among firms which face one another in multiple markets there is__________. • similar competitive rivalry • more competitive rivalry • less competitive rivalry • no competitive rivalry 5. The three parts of the external environment which affect a firm's strategic actions are__________. • economic, political, and legal • industry, business, and product • local, national, and global • general, industry, and competitor 6...
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...CHAPTER 8 Market Segmentation, Targeting, and Positioning CHAPTER OVERVIEW Chapter 8 shows different approaches that companies can take to a market in order to best serve customer and company needs. It begins with a brief overview of three marketing approaches that companies can take: mass marketing, product-variety marketing, and target marketing. A fuller discussion details the three steps of target marketing, beginning with market segmentation: dividing a market into groups that is measurable, accessible, substantial, and actionable. This can be done in different ways by using geographic, demographic, psychographic, behavioral, or other variables. Next, the process of market targeting and the different approaches a company can take are discussed. These include undifferentiated, differentiated, and concentrated marketing. The chapter concludes by covering market positioning strategy and how companies can position their products for the best competitive advantage. CHAPTER OBJECTIVES Students should be able to: 1. Explain market segmentation, and identify several possible bases for segmenting consumer markets, business markets, and international markets. 2. List and distinguish among the requirements for effective segmentation: measurability, accessibility, substantiality, and actionability. 3. Outline the process of evaluating market segments, and suggests some methods for selecting market segments. 4. Illustrate the concept of...
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...CHAPTER 8 Market Segmentation, Targeting, and Positioning CHAPTER OVERVIEW Chapter 8 shows different approaches that companies can take to a market in order to best serve customer and company needs. It begins with a brief overview of three marketing approaches that companies can take: mass marketing, product-variety marketing, and target marketing. A fuller discussion details the three steps of target marketing, beginning with market segmentation: dividing a market into groups that is measurable, accessible, substantial, and actionable. This can be done in different ways by using geographic, demographic, psychographic, behavioral, or other variables. Next, the process of market targeting and the different approaches a company can take are discussed. These include undifferentiated, differentiated, and concentrated marketing. The chapter concludes by covering market positioning strategy and how companies can position their products for the best competitive advantage. CHAPTER OBJECTIVES Students should be able to: 1. Explain market segmentation, and identify several possible bases for segmenting consumer markets, business markets, and international markets. 2. List and distinguish among the requirements for effective segmentation: measurability, accessibility, substantiality, and actionability. 3. Outline the process of evaluating market segments, and suggests some methods for selecting market segments. 4. Illustrate the concept of positioning...
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...Abstract This article presents findings of growth and challenges that hospitality industry might fact in the year ahead respectively through globalization. Globalization is becoming increasing important these years in international hotel industry. When hotels flag their properties in a new country, they must localize their products and service in order to adapt the culture traditions of that country strategy. Differentiation strategy is also useful or hotel companies to become competitive in the global environment. Top issues that will influence the global hospitality industry in the year ahead include sustainable development calls for green hospitality, labor cost, multicultural issues and higher education. Challenges that facing hospitality include will include operating issues, such as labor shortages; marketing issues and economic issues. Introduction Hospitality industry has booming like never before. After Second World War, the practice of Hospitality became professional and wide spread, therefore it will acquire a knowledge base so that can improve its operation and develop the manager of the future (Ingram, 1999). The rise in the global travel, market and environmental trends led to the internationalization of the hospitality industry. The globalization of business and lifestyles is characterized by communicating over vast distances in foreign languages, frequent travel to overseas countries, dealing in many currencies, and coping with a variety of political...
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...Global Hotel Industry I. Porter’s Five Forces analysis Threat of rivalry is high because: • The most part of the market is controlled by few companies with the same or similar strategy, size and capacity. Big companies around the world such as Hilton Hotels, Four Seasons, etc. have absorbed the little companies and few have remained. (For ex. Multibrand Strategy has been adopted by most of the companies, and this has strengthen the companies who were already strong and weakened the weak ones, at the point that some of them had to exit the market) • Customers don’t have a really defined preference, so as soon as one hotel stops satisfying their needs or another company offers them a better service or product they’ll switch. • Companies have to invest in R&D in order to satisfy customer’s needs and to create loyalty. • The high rivalry in the market has caused an overrated expansion on the capacity and strength of the leaders. Supplier Power is low because: • There are different categories of suppliers of products and services in the hotel market supply market so they are segmented and don’t have much power by themselves. • However they have a strong and good relationship with the hotels (ex. Ritz Carlton alliance with Bulgari) and this helps the Hotels to gain Competitive Advantage. But as suppliers have greater benefits with the hotels than by themselves, they stay with them and are loyal. Hotels may find the way to keep having CA without agreements with luxury suppliers...
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...PRESS Tourism Management 26 (2005) 549–560 The relationship between brand equity and firms’ performance in luxury hotels and chain restaurants$ Hong-bumm Kima,1, Woo Gon Kimb,* b a College of Hospitality & Tourism, Sejong University, Kwang-jin Gu, Gun-ja Dong 98, Seoul 143-747, Republic of Korea School of Hotel and Restaurant Administration, Oklahoma State University, 210 HESW, Stillwater, OK 74078-6173, USA Received 27 February 2004; accepted 4 March 2004 Abstract There is a growing emphasis on building and managing brand equity as the primary drivers of a hospitality firm’s success. Success in brand management results from understanding brand equity correctly and managing them to produce solid financial performance. This study examines the underlying dimensions of brand equity and how they affect firms’ performance in the hospitality industry—in particular, luxury hotels and chain restaurants. The results of this empirical study indicate that brand loyalty, perceived quality, and brand image are important components of customer-based brand equity. A positive relationship was found to exist between the components of customer-based brand equity and the firms’ performance in luxury hotels and chain restaurants. A somewhat different scenario was delineated from the relationship between the components of customer-based brand equity and firms’ performance in luxury hotels and chain restaurants. r 2004 Elsevier Ltd. All rights reserved. Keywords: Customer-based brand equity; Firms’...
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...1. IT and Internet’s Impact on Tourism and Hospitality Industry: Implementations of technologies for Hilton Hotels Group. Demonstrate critical and evaluative interpretation and application of theoretical IT/ e-business concepts to a current tourism and hospitality market situation in order to build sustainable competitive advantage. I Introduction Accompanying the technological revolution of the 1990s there are many new opportunities and challenges for the tourism and hospitality industries. Since tourism, global industry information is its life-blood and technology has become fundamental to the ability of the industry to operate effectively and competitively. Poon (1993) suggests that the whole system of information technologies is being rapidly diffused throughout the tourism industry and no player will escape information technologies impacts. The report below gives an insight into the importance of application of information technologies and the use of Internet in tourism and hospitality industries. Two given strategic frameworks provide the analysis of the Internet and its impact on these sectors. This paper also aims to show how technological innovations and information systems can be beneficial for the hotel companies, by using the example of Hilton Hotels Group. II IMPORTANCE OF TECHNOLOGY IN TOURISM AND HOSPITALITY SECTORS Market wisdom today suggests that hospitality companies must embrace technology to compete against traditional competitors, as well as...
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...1. What is MIS? Definition: Development and use of computer-based information systems that help businesses achieve their goals and objectives. Development: Information systems are built for business professionals (you) to use. You need to take an active role in specifying system requirements and in managing development projects to ensure that the system meets your needs and the organization’s needs. Use: You need to learn how to use to accomplish your goals. You have responsibilities for protecting security of system and data. You have responsibilities for backing up data. You will help in recover systems and data. • What is a System? Definition: A system is a group of components that interact to acheive some purpose (human body/ car) System Thinking: look to all the components and try to find the best solution. One-Dimension Thinking: not all the components are taken into consideration; we end up taking the wrong decision. Example: Morocco, government has decided to make the legislation about the traffic tougher. But we still have many accidents. It was not the best decisions. They should have had adopted a system thinking by increasing the policemen salaries, improving infrastructures, making sure that people who get their driving license deserve it, basing the fines on the income of the drivers like they did in Finland. • What is IS? Definition: an assembly of hardware, software, data, procedures, and people that interact to produce...
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...3 Industry Analysis: The Fundamentals When a management with a reputation for brilliance tackles a business with a reputation for poor fundamental economics, it is the reputation of the business that remains intact. —Warren Buffett, Chairman, Berkshire Hathaway The reinsurance business has the defect of being too attractive-looking to new entrants for its own good and will therefore always tend to be the opposite of, say, the old business of gathering and rendering dead horses that always tended to contain few and prosperous participants. —Charles T. Munger, Chairman, Wesco Financial Corp. OUTLINE n n n n n INTRODUCTION AND OBJECTIVES FROM ENVIRONMENTAL ANALYSIS TO INDUSTRY ANALYSIS THE DETERMINANTS OF INDUSTRY PROFIT: DEMAND AND COMPETITION ANALYZING INDUSTRY ATTRACTIVENESS Porter’s Five Forces of Competition Framework Competition from Substitutes Threat of Entry Rivalry Between Established Competitors Bargaining Power of Buyers Bargaining Power of Suppliers APPLYING INDUSTRY ANALYSIS Describing Industry Structure Forecasting Industry Profitability Strategies to Alter Industry Structure 66 INTRODUCTION AND OBJECTIVES 67 n n n n DEFINING INDUSTRIES: WHERE TO DRAW THE BOUNDARIES Industries and Markets Defining Markets: Substitution in Demand and Supply FROM INDUSTRY ATTRACTIVENESS TO COMPETITIVE ADVANTAGE: IDENTIFYING KEY SUCCESS FACTORS SUMMARY NOTES INTRODUCTION AND OBJECTIVES In this chapter and the next we explore the external environment of...
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