Outrigger Hotels and Resorts: A Case Study
Overview:
Outrigger hotel and resorts is a midsize, privately owned hospitality firm. This firm expanded through construction and acquisition in the first two decades thanks to the centralized management strategy. In the following years Outrigger adopted geographical diversification strategy and grew internationally through various entity forms as well as product portfolio. Outrigger also develops its IT infrastructure and IS as competencies to deal with challenges.
Key challenges and major issues: a) Airlines can be a problem since their top fares and unavailable at times when thy need them. b) Major brands own great reputation and high marketing share, which are great competitors to Outrigger. c) It’s hard to manage the price of off-beach properties because of the location. d) Outrigger has to compete with the small local companies to convince individual owners to join the pool of condo operations. e) Internationalization makes harder for the firm to keep centralized structure. f) It’s difficult for Outrigger to pick the right partner and avoid costly failures. g) It’s hard to justify a frequent guest program. h) Powerful online agencies are creating important opportunities and threats. And it may diminish the customers’ loyalty towards Outrigger.
Lessons Learned a) Businesses can adopt diversification strategy. Thanks to the geographical this risk-spreading strategy, Outrigger reduced damages caused by hurricane. b) Outrigger developed and updated Stellex, which makes great contributions to integrating international business. Updating technology, trying to find new IS systems constantly and re-evaluation IS can make entity progress and keep up with the pace of time. c) People is an important part in IS. They can bring new idea to a business and loyalty is also significant.