As Jerry met with his executives to discuss the situation, the general manager, Tracy Lee, provided more information. She described the hotel as mainly targeting the upscale and luxury business market segments (75 percent), while also attracting the upscale and luxury leisure market segments (25 percent). The hotel’s main competitors are Four Seasons, J.W. Marriott, Shangri La, Mandarin Oriental, Landmark Hotel, and Conrad Hotel, which are all located within a two-mile radius. There is fierce competition among the hotels in this market segment, and firms have resorted to price-cutting tactics during economic downturns before. The products and services of the Great Eastern Hotel have been unique and of high quality. Guests have been particularly satisfied with the ambience of the hotel given that it has focused only on its core market segments for business. The rooms have been designed and appointed to satisfy its market segments. In fact, there has been a coherence among product (tangible aspects) and service quality (intangible aspects). However, the economic downturn has raised questions about how the hotel would maintain its market. 4. What is the current business strategy of the hotel? Is this well defined, and is a change necessary? Explain why and do a pros and cons analysis.

Principles Of Marketing

17th Edition

ISBN:9780134492513

Author:Kotler, Philip, Armstrong, Gary (gary M.)

Publisher:Kotler, Philip, Armstrong, Gary (gary M.)

Chapter1: Marketing: Creating Customer Value And Engagement

Section: Chapter Questions

Problem 1.1DQ

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Question

As Jerry met with his executives to discuss the situation, the general manager, Tracy Lee, provided more information. She described the hotel as mainly targeting the upscale and luxury business market segments (75 percent), while also attracting the upscale and luxury leisure market segments (25 percent). The hotel’s main competitors are Four Seasons, J.W. Marriott, Shangri La, Mandarin Oriental, Landmark Hotel, and Conrad Hotel, which are all located within a two-mile radius. There is fierce competition among the hotels in this market segment, and firms have resorted to price-cutting tactics during economic downturns before. The products and services of the Great Eastern Hotel have been unique and of high quality. Guests have been particularly satisfied with the ambience of the hotel given that it has focused only on its core market segments for business. The rooms have been designed and appointed to satisfy its market segments. In fact, there has been a coherence among product (tangible aspects) and service quality (intangible aspects). However, the economic downturn has raised questions about how the hotel would maintain its market. 4. What is the current business strategy of the hotel? Is this well defined, and is a change necessary? Explain why and do a pros and cons analysis.

Expert Solution

Step 1

The current business strategy of the hotel: The Great Eastern Hotel is using a differentiation strategy. The hotel is using a differentiation strategy because it has a goal of offering customers some distinctive products and services in comparison to the competition.

Hospitality companies all over the world have adopted a differentiation approach. Luxury products and services offered by the Great Eastern Hotel can set themselves apart from their competitors.