“The Novotel Value Chain”
Novotel gains its competitive advantage by ensuring customer expectations are met with personal warmth and consistent service standards are delivered. Their multi-skilling approach allows staff to work as a team to perform tasks and duties flexibly. This will reduce core staff levels and it creates a more resourceful workforce. They have standardized procedures that are delivered to all locations worldwide.
The use of the value chain analysis can provide a number of benefits to the management of Novotel by identifying linkages between value activities within the organization. A system was set up to monitor standard procedures which became a template for learning and every staff was given a booklet with all the procedures. Standards were monitored by mystery shoppers.
Novotel’s capabilities are valuable due to its hospitality concept being customer responsive welcoming their customers. They have the capabilities to attract and retain their customers by targeted approach to sales and marketing and this will win over their competitors.
Novotel’s resources and capabilities are not rare although Novotel is a well-known hotel. It would not be hard to imitate them on the basic level since hotel industries have similar marketing and promotion schemes as well as partnership programs. But it would be extremely hard to imitate them in terms of size, the number of hotels they already have worldwide and name brand image.
The organization is strong and stable as they have been established for a long time and they managed to change system in order to maintain universal quality standards. They can exploit new areas fairly quickly and easily, largely due to the fact that they have management control.
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