Generic Competitive Strategy Model
I choose the Hospitality Industry in the line of Accommodation. As we all know, there are many rivals in this industry line, and many of them are the large companies that have many chains along the line. Therefore, I would like to focus on one big company, and categorize its chains in each competitive strategy, Marriott.
‘Marriott’ is a worldwide operator and franchisor of a broad portfolio of hotels and related lodging facilities. It has more than 3,000 lodging properties located in the United States and 67 other countries and territories. Each of them has its own strategy to run the business as they have different positioning and target different types of customers. I decide to select some of the hotel in Marriott Group as the examples to classify in the generic competitive strategy model as follow: * Overall Low-Cost Provider Strategy: Residence Inn by Marriott * Broad Differentiation Strategy: Marriott Hotels & Resorts * Best-Cost Provider Strategy: TownPlace Suites, Courtyard by Marriott * Focused Low-Cost Strategy: Marriot Conference Centers, Fairfield Inn * Focused Differentiation Strategy: Renaissance Hotel & Resorts, Autograph Collection, Ritz-Carlton Hotel
Best-Cost Provider Strategy
TownPlace Suites, Courtyard by Marriott
Focused Differentiation Strategy
Renaissance Hotel & Resorts
Focused Low-Cost Strategy
Marriot Conference Centers
A Narrow Buyer Segment (or Market Niche)
Broad Differentiation Strategy
Marriott Hotels & Resorts
Overall Low-Cost Provider Strategy
Residence Inn by Marriott
Type of Competitive Advantage Being Pursued
A Broad Cross-Section of Buyers
Overall Low-Cost Provider Strategy – appealing to a broad spectrum of customers based on being the overall low-cost provide of a product or service as there’s a pursuing cost reduction in a manner that sabotages the attractiveness of the company’s product offering turns buyers off.
I decide to place ‘Residence Inn by Marriott’ in this position because it competes in the upper moderate to low upscale segment along with its rivals, InterContinental's Staybridge Suites, Hyatt's Summerfield Suites, and Homewood Suites by Hilton, in the competitive price to attract more customers. It designed to provide travelers with everything they need to thrive on long stays with lower rate than others, and use this strategy to capture the demand of the customers who would like to stay in a high quality hotel at lower rates.
Broad Differentiation Strategy – seeking to differentiate the company’s product offering from rivals in ways that will appeal to a broad spectrum of buyers.
‘Marriott Hotels & Resorts’ is Marriott International's flagship brand of full service hotels and resorts, which Provides consistent, dependable, and genuinely caring experiences to guests on their terms. I categorize it in the Broad Differentiation Strategy because it differentiates its services to serve the customer at a bit higher price with higher quality and its own unique styles in providing its customers’ satisfaction which is difficult to duplicate or copy by its competitors. With these features, it can capture the customers worldwide to choose Marriott Hotels & Resorts to stay in their vacations.
Best-Cost Provider strategy – giving customers more value for the money by incorporating good-to-excellent product attributes at a lower cost than rivals with comparable upscale attributes
For the best-cost strategy, I think ‘TownPlace Suites’ fit this position as it was founded to provide an affordable place to stay for moderate-tier travelers on extended-stay trips. It is designed for the do-it-yourselfer who is...
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