Competitive Strategy Questions竞争战略问题
InUK the hotel industry is in the mature growth phase of its life cycle (IBISWorld (2014) - H4401 Hotels and Resorts inUK Industry Report_IBISWorld July 2014). In this part you are required to study theUKn Hotel industry and then develop and justify an alternative viable blue ocean strategy approach(s) for Astor Lodges if it were to set up business in UK. To successfully complete this component you must be able to demonstrate at least a clear understanding of the application of Blue Ocean principles and methods to the Astor lodge context. To achieve higher grades you must be able demonstrate a realistic and viable (both logically and financially) Blue Ocean opportunity which is consistent with the theory.
The marketing competition has become increasingly forceful in UK Hotel Industry during several decades because this region posses a blessed geographic location with beautiful scene which attract a lot of tourists. Hence, the suitable of marketing strategy for the hotel is important.
This essay is mainly discuss a hypothetical competitive marketing strategy of Astor Lodges & Suites, Inc. Before that, the current situation for UK hotel industry will be introduced, and also the briefly presenting for core conception of Business Ocean Strategy is going to be included in this part. As well known, the hotel industry life cycle inUK is in the phase of mature growth. I will suggest and demonstrate an available blue ocean strategy method for Astor Lodges & Suites, Inc. once it projected to prepare arranging business inUK. There are some analysis and creative perception will be shown at case resolution.
Blue Ocean Strategy Synopsis
Blue Ocean Strategy is the international advanced exercise in innovation strategy. It releases previous business styles from the severely competitive actions to make untapped demands and profitable emergent. (BERG Consulting, 2014) A key conception from Blue Ocean Strategy is to innovate a jump in value for both the organizations and its purchasers by redesigned the distinctions or less expense business and to reconsider the real value of commodities and profit propositions. From Kim and Mauborgne (1999) stated the Blue Ocean Strategy has hundreds year historic with the result of a long-term study of one hundred and fifty strategic moves spanning more than 30 industries.
The Blue Ocean Strategy is well-recognized in modern marketing. In opposite to common supposes that organization’s is less necessary for predicting to make breakthrough growth. Many outstanding creations have been invented from inside prevailing, forceful free-enterprise industries, and a majority of them are derived from the core profession. Breakthrough growth is not ought to be considered substantial asset investments in response of innovated strategies. It is highly possible to link with conception evolutionary and version changing towards organizations and industries.(BERG Consulting, 2014)
The other creation in Blue Ocean Strategy is the strategy canvas perspective. It handles present organization’s activities in marketing. This emphasis on the challenging of investing direction, available products and services. There are two axis tablet that can on behalf of strategy canvas, the horizontal line indicates commodities features, it is likely to be cost, period or added value. Vertical line representative the supplying level of these features. For instance, in case of replay value, a high offering value would indicate a higher replay value. (BERG Consulting, 2014)
If the company want to succeed in the future, it should stop competing with each other and stop making effort to struggle against inside the current scopes. Two famous marketing universe formed by two ocean theory: red oceans and blue oceans. Red oceans often indicates entire industries in being today that has been known as current market space. Blue oceans contribute all of the industries not in existence today with unknown future market field.
Figure 4: The Profit and Growth Consequences of Creating Blue Oceans
(Kim & Mauborgne, 2005)
Kim and Mauborgne (2005) took a investigation in 108 companies, the study has found 86% theses corporation’s incremental competed to existing industry offerings within red oceans while only 14% were targeted creating new markets. While line expansion in red oceans accounted for 62% among total earnings, they only consigned 39% of whole revenues with a shocking 61% from all profits. The business contained the entire amount investments to drive for creating red and blue oceans. From Figure 4, it can be seen the achievement of business in creating blue oceans are obviously.
The present business relinquishment has forced pushing out a increased proposal to create blue oceans. Hastened technological progressing have considerable changed the productivity of emergency industrial and permitted suppliers to manufacture an exceptional array of commodities and serving. (Robynne, 2014) The movement toward globalization intensify of the situation, because business limitations between countries and regions are demolished. Moreover, it is also able to make information on commodity and prices turn directly available all over the world, hence the monopoly enterprises would eventually continuing to died out. The Blue Ocean Strategy can speed up the revolution of manufacture’s style that reflect from throwing extracted price competition and expanding profit margins.(责任编辑：anne)