1. Some of the strategic reasons for HiBrow Hotels to move their regional headquarters from Sydney to Singapore
Strategic Planning for International Markets
After HiBrow Hotel Group has done on their periodic evaluation on the international market environments, they found out that Singapore has the most suitable resources located for their business. Their driving forces behind this relocation to Singapore were into threefold;
First, the company senior management felt that operating costs could be lowered in the long-term if it were to relocate to Singapore because of our close physical and cultural proximity to Asian markets.
Secondly Singapore government incentives were offered to too many multinationals to entice them. That is also one of the causes that made them hard not to locate to the Island city.
Finally, Singapore was further advanced technologically country compare to other potential location in Asia for ‘The Group” to set straight to their relocation plan.
The Next Alternative Location
I would think that country China is the next best destination for Hibrow Hotel Group to consider on its expanding and next possibility place for their relocation over the years ahead. Even though during 1980’s, it has already open a five-star hotel located centrally in the district of modern city of Beijing, China.
As we all know, due to the current rapid development over the past two decades, the Chinese government has initiated fundamental reforms in the domestic hotel industry due to them lagging behind of internationally managed hospitality operations in terms of management efficiency. Doing business in the country now will be more interesting then before.
The country China, In terms of the country size, foreign businesses have rooms to expand their company size, the operational cost of maintaining the company is also much lower when comparing with other countries. And of course to maintain a lodge business the population of its local people and tourists plays a major role too. And that’s where China also edge above the rest.
I guess these are some of the strategic reason why some “Major company” relocated their headquarters from their native country to China.
But to becomes the leader in this hospitality business in the country. HiBrow Group will have to be more focus on the major daily operation and controls in the mainland. The company should also not forget the traditional strategic marketing plans in order to succeed. 2. Investment Planning on Injected Capital
Marketing Services Overseas
Heritage Hotels located in the Asian has been seen as under-developed. To assist Heritage Hotels to profit in the current economic growth conditions in the region. HiBrow Group has approved an $800 million capital injection for Heritage Hotels in the Asia-Pacific region for their redevelopment and upgrade of some of the existing Heritage Hotels in Asia.
In order to put the funds into good use Peter Wagstaff should strategically invest this sum of money by following closely to some of the proven strategic marketing formula in the market and consider the strategy before investing the dollar as accordingly. Starting off with:
The Marketing Services in International Market Place is the issues to be considered: -
Internationalization in general – influenced by hollowing out effect
Government regulation had decreased – WTO
Social Changes – rising expectation and greater affluence
Business trends – spread of franchising and international standards for services
Advanced in technology – rationalization of services activities on a global basis
The 7 Ps – Services Paradigm (Process, Personnel, Product, Promotion, Price, Place and Physical facilities)
Price – A product prices should not just be an addition of development cost, marketing cost and profit margins. The perception of price is critical to the perception of the brand, as the customers tend to...
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