Assessment of Westin Hotels - Case Study Example

Assessment of Westin Hotels Student’s Name Institution Date Assessment of Westin Hotels Summary The demands of customers keep changing day by day and therefore the players ought to develop mechanisms that will lay ground for operations that are in tandem with those demands. As such, this paper looks at the unique strategies that have been employed by Westin to beat off competition and withstand other challenges. The strategies addressed are in two stages; the entry stage and the operational (marketing stage). Further, the study identifies and addresses the weaknesses evident in the strategies while acknowledging the strengths. Ultimately, the paper recommends an alternative strategy that can be applicable in both cases. Background The Westin Group of Hotels has experienced tremendous growth since its inception in 1930.Originally known as the Western Hotels; the firm would later change to Western International in the subsequent years. As Westin International, the company mainly relied on its American market base but then ventured into the Canadian market. Upon its acquisition by Starwood Group, Westin Hotels evolved into a global brand with presence in over 40 countries across the continents. Westin Hotels has continued to make their presence felt worldwide through exclusive packages that are based on unique brands and a vast variety of goods and services. The dynamics of the Hospitality industry have rapidly changed over the years, and it will take more than the basics to withstand the wave of competition (Sigala., et al 2012). Entry Strategies One of the most challenging aspects of hospitality business is developing an entry strategy that comprehensively accommodates all the ideas and resources that point to success. The plan serves as the starting point for any business. Even after take-off, the plan continues to be an important point of reference and scheme upon which the performance of the business can be evaluated. The Westin Hotels entry plan exhibits unique strategies that make the brand stand above her competitors. Recently, the Westin Hotels opened their doors to Doha, Qatar. Their entry into the Middle East market was informed by the vibrant growth of the town and the entire region. The company also intends to open its doors to Oman, Jordan and UAE in a span of 3 years. The entry strategies of Westin Group of Hotels are based on various factors: Spotting opportunities-Since inception, the Westin Group has always concentrated on spotting unique opportunities in the hospitality market and evaluating the viability of the mooted entry. As such, the Westin Doha Hotel and Spa were opened as a result of the unique position of the city coupled with rapid growth. The City is the capital of Qatar, a country that is located in the heart of the region. Over the past two decades, the region has experienced immense growth that has resulted in the world turning their attention there. The region has become a hub of business and tourism thus creating a favorable environment for the hospitality business. Partnerships-The Westin Group has developed a reputable brand by partnering with other respectable brands to enable it to stand the challenges of the business. Partnerships are essential in building rapports that make your products and services attractive and hard to turn down. As a result, Westin partnered with Ghanem Al Thani Holdings-a well-established entity in the hospitality sector. This partnership is expected to help the new venture gain a grip on the target market as a consequence of direct association with the bigger brand. Diversification-The Westin brand offers more than just food, luxury, and accommodation. Right from its launch, the Westin Doha Hotel comes with a complete package of services that extend beyond the obvious. The hotel offers an array of services like a man-made wave pool, squash courts, Luxe lounge and fitness studio. This collection of unique products and services helps boost chances of rapid take-off. Marketing Strategies The marketing plan of the Westin Hotels is based on the conventional requirements with a blend of unique features and products that make the entire experience extraordinary (Wearne & Morrison 2013).With the increased competition, the hospitality industry has experienced drastic changes that in turn call for companies to come up with exceptional strategies that will propel them towards profitability. As a result, the Westin brand marketing strategy is designed to exhibit uniqueness. Franchising-The Westin Group of Hotels has embarked on a sustainable franchising program that will allow the owner company to play a third party role. This move is expected to give the company management more room to venture into other expansion programs while growing her grip on the market. Special items-As a result of the increased competition, the company has prioritized innovation to enable it come up with products and services that have never been seen before. For instance, in 1991 the company became the first one to offer personal voicemail service to her guests. Additionally, their launch in Qatar was accompanied by the first man-made wave pool. Emotional connection-The Company is committed to creating a special attachment to the customers by offering them personalized service. The Westin motto is based on wellness of the customer through the provision of services that make the clients leave in a better state than they came. Through a vibrant and round the clock care and attendance, the priority given to customer service breeds emotional affiliation that gives the customers a reason to return. Integrated Customer database-The Starwood Group and her franchise, Westin Hotels and Resorts offer an array of products and services. Consequently, the marketing strategies of the latter involve compiling a database of all the customers and using the records to market other products that are not found within the precincts of the hotels and resorts. This strategy is beneficial to the expansion of their market and ultimate profitability. Optimization-The group also owns a variety of other assets that double up with the hotel and resort business to increase revenue volumes. By drawing income from other facilities in possession such as real estate and parking lots, the company is better placed to experience further growth of brand awareness, market share and profitability. Aggressive advertising-The success of Westin is dependent on how well and fast the company makes itself known among the millions of customers worldwide. The marketing strategy is therefore based on continuous advertising especially on the internet and social media platforms. The company has an annual budgetary allocation for advertisement to ensure that the exercise plays a vital role in the achievement of its financial goals. Strengths and Weaknesses The marketing and entry plan for Westin can be evaluated through comparison with the principles of the International Hospitality Management Theory (Clarke & Chen 2009). The theory is based on three major ideologies-Unique selling elements, new media and company culture. The theory argues that no business can survive in ignorance of the three factors. These doctrines determine the success of failure of a hospitality business. As such, both the entry and marketing plans of Westin conform to this criterion. This strength drawn from this concept sees the company edge closer to achieving her goals. However, the strategies are not devoid of weaknesses. The continued franchise and partnership programs endanger the company’s grip on her values and culture. The third party management approach means that the mother company has reduced say and influence on key activities and decisions that affect the business directly or indirectly. Franchisees also may create a scenario where there are conflicting interests within a single business unit. Although the franchising agreement is founded on an elaborate harmonization of the divergent interests and goals to form a common target, along there are evident deviations. An Alternative approach Although much of the decisions made by the key decision makers at Westin Hotels have been helpful, there is room for a different approach to further improve the business. If I were the decision maker, I would constitute entry and marketing strategies that are totally reliant on the size and reputation of Westin rather than franchises. I deem it be beneficial for Westin to rely on its vibrant growth and presence in bigger nations to independently establish and operate new entities as the case in Qatar. This approach is also essential in upholding the traditions of Westin and portray it an entity with the unique ability to stand on their own without endangering their reputation and presence. Conclusion Success in any business depends on the uniqueness of the products and services a company offers. Uniqueness begins right from the entry stage and recurs throughout the existence of the business. Especially in this era of increased competition, it will take more than the ordinary marketing strategies to survive. Westin Hotels are a good example of what unique entry and marketing strategies can achieve. References Clarke, A., & Chen, W. (2009).International Hospitality Management.Routledge. Sigala, M., Christou, E., &Gretzel, U. (Eds.). (2012). Social media in travel, tourism and hospitality: Theory, practice and cases. Ashgate Publishing, Ltd.. Wearne, N., & Morrison, A. (2013).Hospitality marketing.Routledge. Read More