Question

Create a business-level strategy for a firm in the hotel industry Create a strategy for entering that industry using one of the five potential business-level strategies listed here *cost leadership,*differentation, *focused cost leadership, *focused differentation, or *integrated cost leadership/differentation.

Answer 1

Create a business-level strategy for a firm in the hotel industry Create a strategy for entering that industry using one of the five potential business-level strategies listed here *cost leadership,*differentiation, *focused cost leadership, *focused differentiation, or *integrated cost leadership/differentiation.

Introduction:

Hotels are the most competitive businesses in the present world. There are so many top, middle and low class hotels which provides different facilities based on their cost, luxury, location etc. Hotels are service based industries where service is considered as one of the major factor and at the same time providing proper facilities and addressing customer in a proper way to improve the business, needs to be more attentive to the needs of the guest. Understanding specific and desires of global travellers by providing world class services to the customer.

To build a hotel in this competitive market needs to apply various business level strategies for the better development and to provide quality based services to the global customers.

Cost leadership:

Cost leadership strategy is considers the cost which includes all its cost to maintain and deliver services to the customers. Cost leadership is something which offers best price to the global customers in order to survive in the global market. Cost plays an important role at every business because cost maintain and cost consume and cost assign is a crucial step for every business strategy. Based on its cost most of the customers will attract and show interest towards specific hotels. Cost is a significant factor in selling to customers. Cost needs to analyse at every stage to provide specific needs of the business at the same type make the business towards it growth.

Differentiation:

When a business hotel is not the least expensive in the market needs to find a way to differentiate. Identify the unique feature of the hotel and what services that they can provide are differentiate from their competitors. And assume what extra features and services needs to be developed to generate money from unique strategies fro run a success hotel. Customers choose that hotels which provides best in their cost.

Focussed Cost Leadership:

A focused cost leadership is defined as how the cost is to me made by assuming all the costs that require to maintain a hotel and provide best low cost compared with competitors. Always cost plays a crucial role and defines how its business activities decide its future. Future estimation of any business is important to survive that business and estimate its long run.

Focussed differentiation or Integrated cost Leadership:

The focussed differentiation or integrated cost leadership defines as a differentiation in providing cost based services at every stage. Because cost leadership through differentiation is always helps to organize the hotels for their better improvement and better negation of price. This is consider as an important and most result oriented strategy for most of its businesses. It is consider as one of the successfully strategy for large corporations.