Overview of the hospitality organization
You are required to select a Hospitality Organisation of your choice and undertake a critical and reflective evaluation of its Business Strategy.
The paper presents a brief overview of the hospitality organization. The Pan Pacific hotel has been selected for the report. It explains the business positioning strategy of the organization. It explains the core competencies, values, and culture of the Pan Pacific group limited. It explains the growth strategy of the company. In addition, the paper explains the future development and growth strategies and plans of the Pan Pacific group limited in Singapore. It tells that how SWOT analysis and marketing mix are important for the hospitality organization to evaluate and analyze the competitor's plans and strategies.
The Pan Pacific Singapore is a hotel located in Marina center Singapore. It is developed by the Pan Pacific resorts and hotels. It is one of the biggest hotels in Singapore with 38 floors. The Pan Pacific hotel has 790 rooms. The hotel was renovated and modernized in 2005. The hotel has total 8 lifts in which 4 on the outside and 4 on the inside. The interior of the hotel is excellent and effective. The hotel provides various facilities such as main reception, the atrium, pacific ballrooms, concierge and pacific marketplace (Law et al, 2015). Apart from this, swimming pool, outdoor tennis court, Japanese restaurants, and Fitness center are available in the hotels. The rooms of the hotels are attractive and excellent. The hotel is hosting various programs and seminar in its meeting room. The pan pacific group limited is managing 5-star luxury hotel management and Operation of the organization. The hotel is located in good location. It is situated near to esplanade where tourism may come one occasion and festivals. It is one of the largest hotels in Singapore. Further, there is a restaurant located at the top level of the hotel. In this way, it is attracting tourists in Singapore. The hotel provides delicious and tasty Japanese food, Italian food, and Chinese food. It conducts various types of events and function for the tourists and guests. It is leading and popular brand in Asia (Li, Law, Vu, Rong & Zhao, 2015).
Business positioning strategy differentiates the food products and services from its competitor’s products in the market. The positioning strategy is a significant component of a marketing plan. The growth and success of the hotel industry depend on the business positioning strategy. The areas of positioning strategy include the attribute positioning, use positioning, benefits positioning, competitors positioning, user positioning, price positioning and product category positioning. Therefore, business positioning strategy plays a vital role in the hotel industry (Xiao, O'Neill & Mattila, 2012).
Business positioning strategy and its importance
The hotel wants to provide excellent customer services to its customers across the world. Thus, it offers various excellent and effective hospitality and hotel services to the guests and tourists. The aim of the organization is to maintain high-quality standards, norms, food, rooms, suites and other services within the organization. It increases the brand awareness in the hotel industry. Further, the Pan Pacific group limited is developing and enhancing the marketing strategies, approaches, and plans in order to meet long-term goals and objectives. The hotel provides excellent hospitality and hotel services to the tourists and guest in a specific and attractive location at reasonable prices. It increases the role and significance of tourism to develop and build the culture of the country. The hotel provides various kinds of services to tourists and guests in Singapore. The firm offers various types of food menus and it provides some other facilities also. It provides Gym facility and playing card rooms to guests and tourists. Apart from this, it provides some complementary services such as Wi-Fi services and free breakfast etc (Agyapong & Boamah, 2013).
Mainly, the pan pacific group limited focuses on the tourists and guests in across the world. The firm makes an effective marketing plan to attract the more tourists in the country. Various factors such as demographic, behavioral, psychographic and geographic factors affect the business activities and operations of the organization. The firm is targeting the various tourists who are traveling in Singapore city. It offers luxury and five-star hotel services to the tourists. Further, it provides accommodation services to guests and tourists (Nicolau & Santa-María, 2013).
Market segmentation is the process of dividing and distributes a market in potential and excellent customers into segments and group on the basis of different characteristics and attributes. It focuses and monitors on the demographic, behavioral, psychographic and geographic characteristics and attributes of the customers. It is creating and generating the set of different customers with similar characteristics to assist the organization for promoting the services worldwide. Psychographic characteristics, behavioral characteristics and demographic characteristics play a vital role in targeting the potential customers in the market (Leonidou, Leonidou, Fotiadis & Zeriti, 2013).
The marketing strategy of the organization is very effective and excellent. The marketing strategy of Pan Pacific group limited assists the organization in order to maintain growth and success of the firm. The firm is adopting unique and effective strategies and approaches to promote its services among the population across the world. It provides services to its customer’s domestic as well as international customers. In the marketing plan, the organization is using the marketing mix to maintain a good image in the world (Sigala, Christou & Gretzel, 2012).
Marketing mix of Pan Pacific Group Limited
The marketing mix of Pan Pacific group limited has been discussed below.
Product/services: The Pan Pacific is a hospitality industry and it provides various hotels and resorts services to tourists and guests in Singapore. In hotel services, the organization offers a variety of services such as effective and excellent accommodation, rooms, and food services to guests and tourists. Now it is assumed that hospitality organization provides excellent hotel services to its clients across the world. It will help to overcome on its competitors in the market (McManus, 2013).
Price: Price plays a vital role in hospitality organization and it is helpful to make a marketing plan. The hotel provides numerous services to guests and tourists. The hotel should not charge the high prices for its services. It should maintain reasonable prices to attract medium category people in the market. It should provide a discount to tourists and guests to attract and retain them (Kong, Cheung & Song, 2012).
Place: The growth and success of the hospitality organization depend on the place and location of the hotel. It is very famous in the world for its attractive location. The organization has an effective and qualified team to serve the services in the hotel. It provides high standard and quality of services to guests and tourists to enhance and increase the revenue and profit of the company (Pike & Page, 2014).
Promotion strategy plays a vital role in a hospitality organization. The sources of promotion are such as TV, internet, online and social media channels, newspapers, public transports. Along with this, the organization uses promotional strategies to promote the services of the hotel industry. By using promotional strategy, the firm is able to conduct various events and seminars to promote their services in Singapore. Further, the firm is engaging in promotional and marketing campaigns across the world (Sarker, Aimin & Begum, 2012).
The sales techniques play a vital role to increase the sales and revenue of the company. By using the sales techniques, hospitality organization can easily achieve goals and objectives. Merchandising techniques helps to increase the revenue and profit of the company. By using the merchandising technique, the company is attracting more customers in the market. Further, the organization uses the retailing techniques expand its business globally. The company provides training to its employees to promote and encourage the services of the organization. Various offers and discounts are given by the hospitality organization to its clients to maintain a good position and image in the market. In this way, the firm can overcome on its competitors and it can gain various competitive advantages in the market. By using the merchandising technique the firm can take benefits of more bookings. The employees can easily understand the travel shoppers with the help of merchandising technique (Al Muala & Al Qurneh, 2012).
Culture and core values of the organization
The Pan Pacific is group limited is world largest hotel brand in the world. The culture of the organization is very excellent and effective. Through effective culture, the hotel maintains a great and effective relationship with tourists and guests. Culture, value systems, experience, opinion, and skills are the core values of the hospitality organization. The hospitality organization provides excellent and equal employment opportunities and rewards to qualified and potential employees. The manpower plays a vital role in Pan Pacific group limited to provide excellent and effective services to its clients across the world. The firm cannot build a strong and effective position in the world without effective human resources (Okumus, 2013). It maintains sustainability within the organization. Further, the organization is gaining the competitive advantages in Singapore with the help of its effective and excellent marketing strategies. The organization uses the cost leadership, focus, and differentiation strategy to gain the competitive benefits in the market. The cost leadership is a strategy developed by the Michael Porter to utilize the business strategy. By using this strategy, hospitality organization gains various competitors advantages. Through cost leadership, the firm maintains lower cost in the industry. Cost leadership strategy is used by the various companies across the world in order to meet long-term goals and objectives. Further, the company uses the focus strategy to attract more tourists and guests in the country. It is one of the three generic strategies. This strategy focuses on the various resources expand its business activities and operations in the market. This strategy focuses on a niche market to build a strong competitive advantage. The main aims of this strategy to provide satisfaction to its clients, guests, and tourists across the world. In addition, the company uses differentiation strategy to gain various benefits in the market. Through this strategy, the firm creates campaigns and programs to attract more tourists. In this way, the company is taking various advantages with its effective strategies and approaches. Through these strategies, the firm is reducing the operational cost and improving the guest services (Raub & Robert, 2013).
The SWOT analysis is essential to analyze and evaluate the competitors in the market. It is an important method to analyze and evaluate the micro and macro factors of an organization. The strengths, weaknesses, opportunities, and threats of the organization that have been discussed below (Mutindi, Namusonge & Obwogi, 2013).
- It increases its profits and revenue in the market and it reduces labor cost.
- Qualified and skilled labors are the important strength of the company. It provides monetary assistance.
- It is one the biggest players in the hotel
- It maintains strong social media and internet sites (Tavitiyaman, Weerakit & Ryan, 2014).
- Highly competition exists in the market.
- The Pan Pacific group limited only focuses on limited and domestic market in the country.
- Lack of lifestyle is another weakness of the Pan Pacific group limited.
- It creates brand awareness in various countries other than Singapore.
- It is expanding its business day by day and it increases the level of income.
- High potential is emerging in the markets.
- The organization is implementing new innovative and attractive technology to provide better customer’s services to tourist in the country (Ng, Leung, Johnston & Cowling, 2013).
- Technology and prices change problems and issues are rising in the industry.
- Risk and barriers exist in the external market.
- It increases labor cost and various international hotel brands are entering the market.
- Economic, social and political instability.
Therefore, the company industry evaluates and measures the SWOT analysis to gain the competitive advantages in the market (Grigoroudis, Orfanoudaki & Zopounidis, 2012).
Cost leadership, focus, and differentiation strategy
The Pan Pacific group limited uses the various kinds of development and growth strategy to expand its business globally and to increase the sales of the company. There are various opportunities available in Pan Pacific hospitality organization (Leigh, Webster & Ivanov, 2012).
It is one of the biggest growth strategies to improve the services of the hotel in the hospitality industry. The company is providing various services such as rooms, healthcare services for guests, effective accommodation and other services. The company is improving its hotel services to provide excellent customer services to guests and tourists (Mok, Sparks & Kadampully, 2013).
Pan Pacific group limited is a well known group and brand across the world. Therefore, the market penetration does not affect the brand position and image of the hotel industry. By using this strategy, the firm looks after the political and legal risk which is existed in the market. It will help to reduce the key challenges and obstacles within the organization (Law, Buhalis & Cobanoglu, 2014).
The market development is unique strategy to attract more guests and tourists in the market. By using market development, the hospitality organization is increasing its revenue and sales. Market development strategy helps to gain the competitive advantages in the market (Phillips & Moutinho, 2014).
The Pan Pacific hospitality was entered a conditional joint venture agreement on 26 October 2013 with joint venture association in Myanmar. Joint venture with city square and shwe Taung Junction City will obtain, develop and construct 348 hotel rooms which were managed by this company. The hotel is established in the Junction City near the primary city center of Yangon. The company in Myanmar is an important corporation in infrastructure development and real estate to develop and build the first pan-Pacific hotel in Myanmar. This hotel would be known as the Pan Pacific Yangon. The joint venture agreement will be on 20:20:60 shareholding basis in which Shwe Taung group managing, and controlling a 60% interest and pan pacific hotel group limited holding and maintaining an interest of 20%. Further, City square Pte Ltd maintains 20% of interest in the market (del Mar Benavides-Espinosa & Ribeiro-Soriano, 2014). Along with this regulatory approvals were taken. The partnership was organized with the signing ceremonial in Myanmar on October 26, 2013. Further, the hotel manages the 348 hotel rooms. The representatives of Singapore are called as the brand ambassador for both the companies. The Shwe Taung develops and builds business portfolio retail mall management, energy, infrastructure development, property development and construction of products and services. The Pan Pacific group limited would be a part of the combined use development which also involves the service apartments, and office and retail spaces. It will also become a major market for tourist, guests and local customers. The Pan Pacific Yangon maintains 348 beautiful and well-furnished room and a wide range of luxurious and comfortable guest facilities that includes the spa, gym, meeting room, swimming pool and dining restaurants. The hotel will also provide iconic destinations like Yangon river, Yangon downtown, and Anglican trinity church. In this way, the Pan Pacific group limited has become an ideal partner for Myanmar to promote the development and success and growth of the city. Along with this, Pan Pacific Yangon group has signed two operations and management agreement for park royal resorts, hotels in Asia. Through joint venture agreement, Pan Pacific group limited manages approx 30 hotels and resorts with around 10000 rooms. It is the leading brand in Asia (Ivanova & Ivanov, 2014).
The single ownership is maintaining by the Pan Pacific group limited thus, various operations and business activities are managed by this hotel. It is managing 30 hotels in across North America, Asia, and Australia. The group includes two brands such as Pan Pacific and PARK ROYAL. The Pan Pacific offers and delivers effective and excellent services and hotel accommodation, while PARK ROYAL provides comfortable relaxation, resorts and business hotels in cities around the Asia Pacific. It is providing communication solutions and global trade collaboration. Along with this, it is providing websites, networking and communication services to guests and tourists across the world. In this way, it is maintaining single ownership in the market. Further, various operation and management decisions are taken by this group in order to meet growth and success in the market (Ivanova & Ivanov, 2015).
Although Pan Pacific group limited is increasing its revenue day by day still some recommendations have been given to such organization for future development and growth which have been discussed below.
- Guests and tourists play a vital role in the hotel industry to increase the revenue and income of such hotel. Thus, Pan Pacific group limited must provide unique and innovative services to them. The employees should collect feedback from tourists and guests for improving the services of the hotel. In this way, the guest review is becoming powerful since last few years. The employees can take also take online review and feedback. The organization must increase the standard of services to attract more tourists in the country.
- The firm should implement and use new ideas and concepts to improve the services of the hotel. It should use new and innovative technology for future development and growth in the hotel The organization should appoint a qualified and skilled person to serve the better services to guests and clients. Training should be provided by the organization. The managers and top managers should analyze and review the activities of the employees. In this way, the firm has chances to increase revenue and profit in the future. The firm should improve the operation and management of the hotel industry and it should provide services at minimum prices so the guests and tourists can enjoy the trip. In this way, the firm can gain growth and success in near future (Hodari & Sturman, 2014).
The report is based on the hospitality organization. It explains the business level strategy and future development and growth strategy of Pan Pacific group limited. On the above discussion, it has been concluded that pan-Pacific is one of the biggest brands in Singapore. It is providing unique and excellent services to tourists and guests across the world. The firm must improve the growth strategies and business level strategies to maintain the good position in near future. It should improve the services and technology for future development and growth. Further, the paper explains the marketing strategies of Pan Pacific. Therefore, the firm should adopt effective and innovative marketing strategies to beat the competitors in the market. In this way, the hotel can reach its maximum success and growth and it can achieve its goals and objectives. In addition, the organization should improve its complementary services to attract more clients, guests, and tourists.
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