Pan Pacific Hotel

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Business level strategies

Porter’s competitive business level strategies
A business-level strategy is an integrated set of commitments and actions the firm uses to gain a competitive advantage by exploiting core competencies in specific product market. There are five business-levels strategies which included cost leadership, differentiation, focused cost leadership, focus differentiation and integrated cost leadership/differentiation (Hanson. D. et al., 2011). The Pan Pacific hotel was positioned as a five-star hotel. The ability to afford a luxury hotel, like Pan Pacific, is directly proportionate to people’s income. As a result, the higher positioned price determined that the organization has targeted a particular buyer group. Since it gives up advantages on price, the enterprise was seeking a competitive advantage with its unconventional. In order to differentiate with its competitors, the Pan Pacific hotel is improving its quality of services, and especially developing unique facilities. According to a report (2012) and the Pan Pacific official website (2012), “the Pan Pacific Singapore injected 80 million for its the biggest renovation in history. Among the highlights expected after its renovation is the spectacular 360O view Pacific Club on Level 38, the topmost level of the hotel.” Visitors may be attracted by this unique facility, and it may possibly become a Pan Pacific symbol facility that distinguished from competitors. In short, the Pan Pacific hotel implemented a focused differentiation strategy, which offering services that different to competitors’ offering in a niche market. Ansoff’s product/market business level strategies

There are 4 types of strategies in Ansoff’s product/market business level strategies, which are market penetration, market development, product development and diversification. The Pan Pacific hotel was implementing a product development strategy. As Johnson (2008) indicated, A product development strategy involves...
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