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Case Study: Threat Of Substitute Products

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Case Study: Threat Of Substitute Products
Threat of Substitute Products (High Pressure)
Although creating its own resort city, IOI Resort City still unable to secure any advantage and the threat of substitute remain high. In terms of food and beverage selection, IOI Resort City only have IOI City Mall as the main point for food selection which offer limit choices same goes to fashion and purchase of daily products. YTL Hotels with J.W Marriot hotels and Ritz Carlton offer not only 5 Stars cuisine but with walking distance comes the anchor of YTL property, Starhill which hold one of the famous culinary center, Feast Village which offer wide range of cuisine selection from western, Lebanese, Mediterranean, Chinese and more. If customers are looking for comfort food and more local food
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Being in such harsh competition against other competitors and unable to secure than market will cause major financial impact against rank and file employee in IOI Resort City. Without consistency flow of business, service charge point for workers will be inconsistency and result in moving towards better paid company to earn a living and those who is seeking career advancement will also leave for better career path. Management team shall fall under manning stress and would end up leaving the company when manning situation couldn’t resolve. This problem troubled IOI Resort City as experience worker leave the resort this eventually effect the customer service quality that can be offer to the guest which could lead to even worse guest experience and business impact. The departure of good quality management Prices for the goods in the hospitality industry has been getting higher and higher within Malaysia and with the coming of GST (Good Service Tax) price has been marking up high as there is not much of choice of suppliers for IOI Resort City to …show more content…
There are included IOI Resort City, Putrajaya Marriott Hotel & Spa, Palm Garden Hotel, Palm Garden Golf Club, Putrajaya and IOI Palm Villa Golf & Country Resort. It usually situated in high residential place and tourists destination which at Johor Bahru and Putrajaya (Anon., 2015). For examples, IOI Palms Villa Golf & Country Resort located near the Senai International Airport and 1km distance to IOI shopping mall. It has bring a lot of convenience for guests that come from airport and for those customer would like to visit shopping

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