The Hotel business is a very competitive market with new brands coming up every day. With such development, the competition in the market is stiff as the many companies try to woe as many clients to them. In addition to that, the organizations have to find a means to maintain the dynamic nature of the market. The modern world changes a lot in a minimal period. It makes it essential for the hotels to find a means to incorporate the change into their services. To accomplish their goals, the organizations have to find a proper strategy that is applicable depending on the type of business, the popularity, the capital that the entrepreneurs have among other factors. This paper is an analysis of the best level business strategy that is best applicable for Hilton Hotel.
The primary force that influences the hotel industry is the competition that exists with the numerous enterprises. The supply of hotel services is high compared to the demand that the market has made it essential for the suppliers to find means to be unique and still make profits. Most of the people appreciate development in the way that they are treated. It makes it possible for them to feel appreciated. In addition to that, the political factors affect the hotel industry to a great extent. In a place where there is political instability, the business is not likely to thrive.
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The best strategy for Hilton Hotel would be the differentiation strategy. It is a plan that involves making the products that the hotel offers unique and distinguish them from the others in the market. Basing on the fact that the Hilton Hotel is renown all over, there is little chance that it would lose clients if it raised the price by a small percentage and offered the services more uniquely and pleasingly. The rise in price for their goods and services is used to maintain the profit margin for the business. The strategy is likely to bring about more customers as they are made to feel special, unlike the other hotels.
Part 2
As stated above, the differentiation strategy is the best for the Hilton Hotel. The target customer for this plan are the clients who rent rooms in the chains of hotels, those who dine in the hotels and those who buy other products such as mineral water that is packed by the hotel. The threats associated with the strategy is that some of the clients may not afford to raise the prices as the differentiation strategy needs some prices to rise. The critical resource for the plan is initial capital. To make the services and products unique, the organization would require a lot of initial capital. Later if the project worked, they would find a way to recover the money.
