Guest-Tek Interactive Entertainment Ltd.
Guest-Tek Interactive Entertainment Ltd (Guest-Tek) provides broadband technology solutions principally to the hospitality industry. Guest-Tek installed Internet solution in more than 404 properties and over 80,700 rooms worldwide, which includes 9 hotel brands and 87 independent boutique hotels. Its voice solution integrates IPT solution with hospitality grade Voice Over IP and IP telephony services, along with ITSP services combined with POPs, in North America. Guest-Tek is a certified supplier for major hotel chains, namely, Accor, Carlson Companies, Hilton, Hyatt, Marriott, and Starwood. The company is headquartered in Calgary (Alberta), Canada, and virtually all of its activities were run from there with a staff of fewer than 150. Considering that the North American market was reaching saturation, the CEO of Guest-Tek has to seek for new ways of reaching revenue growth. He should decide quickly whether to go overseas like many competitors are, or if he should keep the company were it is now, but broadening the services offered. Going overseas is a big decision, therefore a lot of factors should be considered like the choice of country, market competition, market entry and so on. One of GlobalSuite’s advantages was that their technology was reliable and easy to use regardless of laptop settings and technical challenges. More than that, they offered technical support in a variety of languages. They also had highly skilled operations and development teams, which were being deployed to the customers directly from the headquarter. Installation work required only a few days and typically took place within four to six weeks of a contract being signed. Besides good service, Guest-Tek targeted big hotel chains, therefore creating a stable and strong clientele, giving them competitive advantage. Speaking of competition, in North America, Guest-Tek’s main rivals are Wayport, STSN, GoldenTree and StayOnline, but management didn’t consider them direct competitors due to their strength in key elements like comprehensive solutions, ease of deployment, wireless capability, security, connectivity rates and end-user support. Besides this, Guest-Tek is reasonably priced, while other providers were premium.
Guest-Tek made both direct and indirect sales, direct being those in North America and indirect being the channels in other geographical regions. Sale representatives from the headquarters conducted direct sales, while indirect sales were pursued through partnerships and alliances or through independent agents. Nevertheless the main segment of the company was the North American market, leaving the company’s international experience and knowledge at a very low level. The only activity that Guest-Tek actually took within its indirect sales was to manage their relationship with the reseller. GlobalSuite has very good and fast growth, but at some point, ignoring the competition and being in every hotel available can lead to market saturation, and ways for further high growth should be found, and the international market was the most promising option. More than that, the hotels the Guest-Tek worked with, want to have same services provided in all of their hotels, all over the world, meaning that they want to deal with global players. Ignoring this preference can lead to loss of clientele.
Following the fast growth of Guest-Tek in North America, and keeping in mind that they can soon reach market saturation, it would be a wise decision to go internationally. There are several reasons why I consider this to be a good move. First of all, the existing clientele will see the company as a global player, making it more attractive and perspective to work with. Not doing so, might lead to change of service provider by the big hotel channels. By going internationally, not only will...