Hospitality Industry Management Essay Example | Topics and Well Written Essays - 500 words

Hospitality Industry Management - Essay Example In their analysis, (Elliot et al 2012, 94) agree that Ku-De-Ta Hotels should assess the consequences of total customers in relation to other substitute products offered by rival hotels. It means they should introduce incentives for retaining loyalty program. This will limit the buyer alternatives enjoyed by most customers. Another significant implication involves expansions of economies of scale because of rigid government policy. Australia has complicated legislations of conducting business that often affect industry profitability. Consequently, (Gordon, 2012, 125) believes Ku-De-Ta Hotel deserve to invest in product differentiation to establish a strong brand and customer loyalty. In brand loyalty, threats should be averted by accessing equal distribution of products and services in the new market. It should also invest in modern modes of advertising such as the use of Facebook, Twitter, or blogs to establishing lasting rapport with middle-class clients frequently using technology (Knight, 2013, 114). However, this is only possible by having adequate capital requirements to sustain industry profitability that usually balances the absolute costs of conducting business. Accordingly, (Morrison 2002, 123) assert that capital requirements could be solicited through loans or savings. The entry of new entrants will lead to low threats because of setbacks such as expected competition and low cost benefits. Ku-De-Ta Hotel also has an edge over others because of its feasible location proves it difficult for new entrants (Knight, 2013, 124). In switching costs, Ku-De-Ta Hotel is faced with the threat of their rivals who offer substitute products and, thus, interfere with customer loyalty. This suggests that customers are susceptible to alternatives such as identifying hotels that have warm water instead of cold water. It, thus, is upon Ku-De-Ta Hotel

Case Analysis on Ryan Air Study Example | Topics and Well Written Essays - 2750 words

Analysis on Ryan Air - Case Study Example Thus, in 2004, the company's short-term market orientation involved segmenting by lifestyle and by income bracket in the European marketplace in order to appeal to a broader target consumer audience. The key stakeholders in the firm include all staff members responsible for carrying out strategic objectives, the communities in which Ryanair thrives, as well as the customers who frequent Ryanair as their low-cost carrier of choice. Satisfying the stakeholder appears to be the firm's long-term mission in Europe in lieu of having no established, formalised mission or vision statement. Lack of such a mission or vision may be involved in the rationale for why Ryanair experienced sales declines in 2004, however this will be discussed in further detail in this case analysis report. This report will highlight factors in both the internal and external business environment which are plaguing Ryanair in terms of maintaining a strategic orientation that is completely congruent with sales goals and growth initiatives. A micro- and macro-level analysis of the firm in 2004 is proposed in this report. PEST analysis is an acronym for political, economic, social an... Each of the aforementioned forces are categorised by a particular macro-level external influence, each of which directly impacts strategic direction at Ryanair. The external political environment is one of significant advantage to Ryanair, as the majority of its operations are contained within Europe. It is relatively common knowledge that this region maintains political stability, thus Ryanair does not experience issues with governmental instability in Europe as a concern regarding passenger volumes or flight destinations. However, outside of the European marketplace, the firm maintains significant economic difficulties posed by political forces such as OPEC, the organisation responsible for oil production in the Middle East. As the majority of international revenues in the Mid-East regions stem from oil and oil production/distribution, the current methodology of global supply chain (in relation to where oil is delivered based on price and overall demand) incurs large-scale costs to Ryanair who, like other business entities, is unable to secure low-cost fuel due to political forces which drive oil distribution. This assessment of the external political environment is well-supported by Ryanair documentation highlighting 2004 as a year of challenges stemming largely from the cost of oil which continued to escalate in this particular period (Annual Report, 2004). The economic environment in which Ryanair thrives in 2004 is relatively stable in terms of maintaining operations successfully and contributing to the financial well-being of European nations in the process. The European Union, consisting of a large quantity of developed countries in Europe, maintains a high value for its integrated currencies, suggesting that this region is