Competitive Advantage in Service Organizations - Example

Competitive Advantage in Service Organizations Name Institution Course Date Competitive Advantage in Service Organizations Today, competition in the hospitality sector is growing rapidly. To remain relevant in the market, many hospitality organizations are developing their brands and launching new and innovative products and services that satisfy the needs of the consumers (Salman et al., 2017). Most of hotel management activities are aligned towards improving and developing additional services through differentiation. Differentiation strategy offers an opportunity for service organization to develop and offer unique and innovative experiences that are valued by consumers which ultimately boosts competitive advantage (Hoffman and Bateson, 2011). Although the main duty of any hotel and hospitality company is to offer the consumers with accommodation, the quality and innovativeness of services provided often play a fundamental role when consumers decides a place to stay (Nasution and Mavondo, 2008). Therefore, it is very essential for these companies to differentiate themselves from the competitors in today’s competitive environment. This essay will discuss two service strategies; process and people, as opportunities to create unique opportunities. The paper will also give examples of how hospitality companies are creating innovative experiences to boost competitive advantage. The experience economy offers an opportunity for companies to implement differentiation strategies and create unique experiences that customers can appreciate (Hoffman and Bateson, 2011). The marketing strategy of selling a product is different from marketing a service. The marketing mix of a service involves three main strategies including people, process and physical evidence. This essay is based on the analysis of process and people as the main strategies used to enhance competitiveness. The people component of the marketing mix is describe as the staff and all the employees involved in service delivery and who interact with consumers once they are enrolled in the company (Salman et al., 2017). The people component is an important part in service provision. And as such, recruiting and training the right employees is paramount in boosting competitive advantage. According to Casanueva, Gallego and Revilla (2015), consumers often make judgement of the services produced by hospitality organizations based on the people representing the business. This is attributed to the fact that people are important elements of the service provision and delivery and are the once who interact and see the customers (Hoffman and Bateson, 2011). Employees in hospitality companies provide weighty input to the delivery of services which influence customer perception of service quality. Many organizations have differentiated themselves from the competitors by hiring the right people and training them to be of high customer service standards (Nieves, Quintana and Osorio, 2014). For instance, the praise and admiration received by Hilton chain of hotels from their customers demonstrates the powerful influence people have during service delivery. As a result of effective customer service the Hilton Hotel has enhanced its customer loyalty and increased its market share. Salman et al (2017) argue that employees need to be equipped with interpersonal skills, appropriate competencies as well as service knowledge in order to offer unique experiences that customer’s value. Many hospitality companies in Australia and the United Kingdom have utilized “Investors in People” certification as a way of demonstrating that they invest in training their staff to meet the expected standards and best practices (Hoffman and Bateson, 2011). Furthermore, many global hospitality brands are investing in their staff since they acknowledge their role in enhancing the engagement process. Another important element of creating unique experiences in hospitality companies is the process component. This component of the experience economy entails the system utilizes to deliver hotel and hospitality services (Salman at al., 2017). In any company, there is a process that is used to enable employees deliver efficient service delivery to the customers. According to Nievesm, Quinana and Osorio (2014), the process component looks at the way a service is delivered to the end user. The process component is linked to engagement, procurement as well as delivery of services. Hospitality companies may thrive on their quick service and how they conduct their delivery processes. The demand of hospitality services is high which necessitates optimal delivery in order to prevent a loss in quality (Melissen et al., 2014). As such, the process involved in the delivery of a service is of extreme important. In addition, the process component is a crucial element in the service blueprint since before establishing the service, an organization requires to define the processes to be used in delivering service to the end customers. Enz and Siguaw (2003) argue that all services in the hospitality industry should be defined by well-established and efficient process. With such processes in place, companies will avoid mistakes and enhance a consistent service. Processes ensure that everybody in an organization knows what to do and how to do it (Hoffman and Bateson, 2011). Hospitality companies today are developing and offering new and innovative experiences by modifying their service strategies. There are numerous ways companies alter their people and process components to boosts competitive advantage. For instance, many global hospitality companies are using celebrity endorsements on social media channels to create brand awareness and boosts profits margins (Gehrels and De Looij, 2011). The celebrity and media personality become the people element and take part in creating a good perception of services offered by businesses. Another way hospitality companies are becoming innovating is through offering digitally personalized experiences by allowing staff to engage with the customers through online platforms. The recent hospitality revolution occurred in the digital age which has enabled consumers to compare offers and process of different hotels and destinations through the internet (Niebes, Quintana and Osorio, 2014). To respond to these changes, hospitality companies have invested in online booking tools and social media platforms that support direct communication between the staff and the employees. These efforts ensure companies retain their brand’s reputation by offering new accommodation experiences and unpredictable customer service quality (Hoffman and Bateson, 2011). In addition, in order to respond quickly to the needs of the customers and deliver high quality services, hospitality companies today have extended their delivery processes by maximizing their digital presence (Hoffman and Bateson, 2011). The period has gone where having salient restaurants and accommodations will be enough to attack consumers. Today, success of delivery process needs to incorporate social media and high quality website especially online booing systems. Many companies have utilized hotel review sites like Trip Advisor to get real insight into what guests think about their services and what they can improve (Nusution and Mavondo, 2008). The service delivery processes has also been enhanced through the use of Facebook and Twitter to promote new products and services and highlight any special offers. Hospitality companies have also strengthened their loyalty programs as a way of retaining their customers and have developed recording data to have a clear understanding of their customers. For instance, many hotels and restaurants collect personal details and preferences of their customers in order to personalise their offer and establish customised experiences (Casanueva, Galleogo and Revilla, 2015). This innovative idea allows companies to gain relevant insights that can assist in providing unique service experiences to customers which ultimately enhances competitive advantage. Furthermore, mobile technology is a significant innovation used by many hospitality companies today that has simplified service delivery process (Hoffman and Bateson, 2011). Many customers have adapted mobile application as a technology of choice. For instance, Marriott group of hotels has developed a mobile application which has been beneficial throughout the customer’s stay. The technology has a keyless check-ins to allow customers to skip physical check-in using their smartphones to unlock their hotel doors (Enz and Siguaw, 2003). The mobile applications have also simplified room bookings and payments. Customers can now use this mobile application to customize their rooms according to their tastes and preferences. Moreover, such technology accommodates mobile messaging application that allows customers to communicate to staff anytime, anywhere (Gehrels and De Looij, 2011). The employees are able to fulfil their requests quickly and minimize the occurrence of problems associated with misinterpretation of customer preferences and needs. In conclusion, the hospitality industry is faced with intense competition. In order to service in such an environment, hotel and hospitality companies have created innovative and new experiences that are valued by the customers. The two main service strategies used to create unique experiences are process and people. The people component entails the staff and employees of a company who interact with the customers. The people component is an important part in service provision since consumers often make judgement of the services offered based on the staff. On the other hand, the process component looks at the way a service is delivered to the end user. There are numerous ways hospitality companies have boosted their competitive advantage by using these service strategies. The people component has been enhanced through the use of online platforms to offer immediate feedback to consumers. Social media has also been utilized to facilitate quick response to guest’s needs and preferences. In additional, the mobile application has been widely used by numerous companies to create innovative experiences to guests. Such modifications have assisted in boosting the competitive advantage of hospitality companies. References Casanueva, C., Gallego, A. & Revilla, M 2015, Access and mobilization of network resources and competitive advantage in hotels. International Journal of Contemporary Hospitality Management, vol. 27, no. 6, pp. 1279-1300. Enz, C & Siguaw, J 2003, Revisiting the Best of the Best: Innovations in Hotel Practice. Cornell Hotel and Restaurant Administration Quarterly, 44(5), PP. 121-132. Gehrels, S. A & De Looij, J 2011, Employer Branding: A New Approach for the Hospitality Industry. Research in Hospitality Management, vol. 1, no. 1, pp. 43-52. Hoffman, K & Bateson, J 2011, Services Marketing: Concepts, Strategies, & Cases, Mason, Ohio: South-Western Cengage Learning. Melissen, F., Rest, J. v., Josephi, S., & Blomme, R 2014, Hospitality Experience: An Introduction to Hospitality Management, Groningen, Noordhoff Publishers BV. Nasution, H.N. & Mavondo. T.F 2008, Customer value in the hotel industry: What managers believe they deliver and what customer experience. International Journal of Hospitality Management, 27, pp. 204-213. Nieves, J., Quintana, A. & Osorio, J. 2014, Knowledge-based resources and innovation in the hotel industry. International Journal of Hospitality Management, 38, pp. 65-73. Salman, D., Tawfik, Y., Samy, M. & Artal-Tur, A 2017, A new marketing mix model to rescue the hospitality industry: Evidence from Egypt after the Arab Spring. Future Business Journal, 3(1), pp. 47-69 Read More