The Kimpton Hotel and Restaurant Group - Case Study Example

Be in one of the most highly rated industries for stability and success, the Kimpton Hotel offers a high-quality service to everyone who wants an excellent rest. It is an advantage is that the Kimpton Hotel can meet the requirement of a wide audience. High-quality services are the main success factor. The core strategy is to maintain a friendly, fair, and creative environment, which respects the customers. However, more than ever, people need cozy places to spend a vacation, including the rich and famous or simple people who simply need to look their best in their favorite outfit.

Another factor is the demand for hotel rooms which increased from 3.1% in 1997-1998. Also, the workability of business is explained by tourism popularity and the increasing number of people traveling around the world. The Kimpton Boutique Hotels are oriented on a specific customer target: "people who do like generic activities and Starbucks" (Case study). Kimpton Hotels do not reduce costs as it can worsen the quality of their services. Thus the core strategy is to deliver customer satisfaction and gaining customer loyalty; to maintain a friendly, fair, and creative environment, which respects the customers.

The Kimpton Boutique Hotels decided to expand geographically and looked for property in Seattle, Tacoma, Chicago, the Eastern Coast, etc. Kimpton is a market leader which 67% of the market share. The Kimpton has a successful mix of tangible res. The Kimpton heavily invests in old fashioned hotels redesigning their services and interior. Non-price competition and "mongoose strategy" help the Kimpton to sustain market position and create long-term relations with the consumers. The effective operation of the business is dependent on the maintenance of tangible and intangible resources (buildings, services, etc).

Indeed, company welfare or personnel practice is designed partly as a maintenance activity, e.g. training and retraining to maintain the availability of appropriate skills, facilities to maintain human capacity (McDonald and Christopher 45).The main competencies involve technological competence that accumulates not only in the heads of people, but also in the technical/physical systems that people build over time: databases, machinery, software, and so on. The accumulation of employee knowledge is guided and monitored by the company's system of education, rewards, and incentives.

These systems are often called management systems, and they create the channels by which knowledge is accessed and flows-and barriers to the same. Core competencies allow the company to achieve strong leadership and compete on the market. They involve unique brand image and proposition, direct marketing skills and minimization of working capital. Distinctive competencies allow Kimpton to sustain competitive advantage and compete with such giant as Hilton Group. The main distinctive competencies are excellent customer support and low cost.

The Kimpton target is on average as dependent on reliable information technology as any other business. They care more about reliable service and confidence than about the lowest price.