Paper Example on Exploring Hyatt Hotels Geneva Strategy

Paper Type:  Presentation
Pages:  6
Wordcount:  1627 Words
Date:  2022-07-08

Introduction

The hospitality industry is a significant income generating business that is dominated by many competing hotels. This analysis seeks to assess the strategic choices of the Hyatt Hotel Geneva as well as the organization strategic position from an international hospitality industry point of view. Hyatt Hotel Geneva is part of the Hyatt Hotels Corporation which is a multinational hospitality organization with hotels in different cities across the world with the emphasis on luxury and modern lifestyle in its products (Bhasin, 2018). In Geneva, Hyatt Hotel offers different services and scenarios with Hyatt Lodge in Oak Brook having a more popular in terms of the scenic view followed by Hyatt Regency in Naperville and the least is the Hyatt Regency in Schaumburg. The aspects of environment and recreation are emphasized in the Hyatt Hotel in Geneva with the hotels offering very competitive prices and premium products (Geneva Hyatt Hotels Hotels n.d.). This paper will use Hyatt Hotels in Geneva macro environment, industry and capability analysis to assess the organization strategic position. Key strategic issues will be assessed and different theories will be used to assess the reasons behind Hyatt Hotels Geneva strategic choices and position (Geneva Hyatt Hotels Hotels n.d.). The effectiveness of the strategic decisions and future strategic options will be assessed to create a comprehensive assessment of the Hyatt Hotel Geneva strategic choices and strategic options in the future.

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Strategic Position

Creating a good strategic position in the hospitality industry requires an organization to be able to understand the industry well and can play a significant role towards helping an organization attain a return on investment (Bhasin, 2018). Achieving a strategic position also requires an organization to set realistic goals for the organization return on investment. Understanding the external and internal environment of the organization can significantly help understand Hyatt Hotel Geneva strategic position and strategic choices.

Hyatt hotel in Geneva uses its strategic location in the business district and a variety of products to create the organization strategic position. Hyatt Hotel in Geneva has been able to use its strategic position to continue making sustainable sales by attracting business people and modern leisure travelers who seek a modern touch in hospitality products (About Hyatt. n.d.). The hospitality industry has remained competitive and dynamic which defines every strategic decision and approach that Hyatt Hotel Geneva uses to remain competitive. In the macro environment, the Hyatt Hotel Geneva has established its strategic position through competitive pricing, market segmentation, and budget products used to create product awareness.

The hospitality industry attractiveness has remained the same with significant emphasis on quality, technology, and environment focused hospitality which seeks to package the environment as a primary product factor. Business attractiveness in the urban areas has remained high due to the high business growth and globalization which has increased the ability of hospitality organizations to be able to attract diverse customers across the year. The hospitality industry will continue to grow especially in Geneva and different hotel organizations have created different strategies to overcome competition with most organizations targeting technology savvy consumers (Geneva Hyatt Hotels Hotels n.d.). Internet of things continues to shape how hospitality organizations use information and data to carry out market research to identify the needs of the consumers (About Hyatt. n.d.). Attracting the retail urban dwellers and travelers and corporate organizations for conferences who are the main targeted clientele for the organization has helped promote business sustainability in the organization (Bhasin, 2018). Being able to target the consumer needs has played a significant role towards ensuring successful operations and sales sustainability.

Hyatt Hotel Geneva strategic position is very capable towards helping the organization remain profitable and sustainable in the long-term. Hyatt Hotel Geneva strategic position has played a significant role towards attaining sales by attracting corporate and retail clients (Bhasin, 2018). The organization strategic positioning has helped the hotel to sustain its sales and remain competitive.

Marriott Hotel Strategic Position

Based on the organization vision and mission the Marriott Hotel has positioned the organization as a luxury, leisure, and business-oriented brand. The Marriott Hotel blends luxurious products with fair prices which have helped the hotel to continue attracting business customers (Richard, 2017). In addition, Marriott Hotel has matched its product positioning and price with quality assurance by ensuring that every customer gets the best experience in the hotel by providing the employees with the best working conditions to ensure that they provide the best service to promote consumer loyalty and has helped the organization to attain high returns to the franchisees and owners (Richard, 2017).

Table 1: Marriott and Hyatt Hotels Strategic Positioning Comparison (Richard, 2017).

Strategic Choices

Competitive Pricing

Pricing plays a significant role towards ensuring that an organization is able to attain a competitive advantage and still remain competitive. Hyatt Hotel Geneva uses product pricing as its strategic positioning approach which ensures that the hotel is able to attract more budget customers in Geneva (Geneva Hyatt Hotels Hotels n.d.). Hyatt Hotel Geneva pricing has been responsive towards the changing economic environment which has helped the hotel to retain loyal customers. Through the organization competitive pricing strategy it has been able to sustain its sales using business clients in a locality that lucks attraction and domestic tourism is low.

Marketing Segmentation

The segmentation of the Hyatt Hotel Geneva market has helped the organization to attain a strategic position by ensuring that the organization marketing efforts are focused on specific clientele. As a result, Hyatt Hotel Geneva has been able to bring down the cost of marketing by using local inexpensive media to advertise the hotel products (Bhasin, 2018). The hotel also uses the internet to create market awareness and help business-oriented customers to view its products and prices. This marketing approach has significantly contributed to the organization return on investment by reducing the cost of marketing.

Budget Products

Hyatt Hotel Geneva targets the retail and the corporate customer segments through budget products which provide price flexibility and a variety of product options for the customers (Bhasin, 2018). Through product diversity, Hyatt Hotel Geneva has been able to retain a significant market share amidst declining hospitality market due to the growing cost of living in the world.

Porter's Strategic Theory

The Porter's model is founded on focus, differentiation and cost leadership which are sources of strategic position for any organization (Tavitiyaman, Qu, and Zhang, 2011). The Hyatt Hotel Geneva strategic position is in line with Porter's model in that the hotel seeks differentiation by targeting a particular clientele and also cost leadership by using competitive pricing which necessitates the hotel to create cost-efficiency measures. The primary focus is towards attracting and retaining high sales and customer loyalty in the Hyatt Hotel Geneva.

Evaluation of Effectiveness

The evaluation of effectiveness seeks to assess seeks to establish the difference between the organization current performance and strategies and the organization strategic position. GAP Analysis will be used to assess the difference between the actual result and the desired organization performance.

Gap Analysis

There is a significant gap between the existing performance in Hyatt Hotel and the desired performance due to poor strategic position elements implementation. A significant gap exists in the organization market share as well as the return on investment due to the low priced products and low sales. There is a significant gap between the desired organization sales, return customers, employee engagement, and market share which play a significant role in determining the success of an organization strategic positioning success. Compared to Marriott Hotels, Hyatt Hotel Geneva is performing poorly due to poor implementation and pairing of its strategic choices (Richard, 2017).

Table 2: GAP Analysis

Future Strategic Options

Market Pioneering and Investment in Employees

Unlike the Marriot Hotel, Hyatt Hotel Geneva does not use market pioneering through innovation but instead rely on product and services differentiation which has not been able to increase the organization market leadership. Market pioneering through innovation can help Hyatt Hotel Geneva to increase its market share and leadership by establishing creative products and services that other hotels are not offering. On the other hand, investing in employees will ensure that the Hyatt Hotel Geneva improves its products and services value by increasing employee engagement.

Strategic Alliances

Strategic alliances are a strategic positioning approach through which an organization establishes relationships with its clientele which can help to increase sales through customer-based marketing. Hyatt Hotel Geneva should adopt Marriott Hotel strategic alliance approach to help increase return customers and also customer loyalty (Richard, 2017).

Customer-Centered Services and Products

Customer-centered products are products and services that are designed to be responsive to the needs of the consumers. Products that resonates with the needs of the consumers have a high value and can help increase sales and customer satisfaction. Adopting customer-centered products strategic positioning can help Hyatt Hotel Geneva to increase sales. Besides, high customer satisfaction due to customer-centered products will increase the number of customers and the overall return on investment for the organization.

Benchmarking

Lastly, the Hyatt Hotel Geneva can use benchmarking for its strategic positioning by choosing the strategies that have been implemented by other organizations that are successful in the hospitality industry to inform the organizational strategies. Benchmarking will ensure that Hyatt Hotel Geneva is able to identify successful strategies instead of the trial and error approach which wastes the investor's capital.

Bibliography

About Hyatt. (n.d.). Retrieved from https://about.hyatt.com/en.html

Bhasin, H., (2018, May 06). Marketing Strategy of Hyatt - Hyatt Marketing Analysis. Retrieved from https://www.marketing91.com/marketing-strategy-of-hyatt/

Geneva Hyatt Hotels Hotels (n.d.). Geneva Hotel Guide. Retrieved from https://www.expedia.co.in/Geneva-Hotels-Hyatt-Hotels.0-0-d55721--bHyattHotels.Travel-Guide-Filter-Hotels

Richard, B., 2017. Hotel chains: survival strategies for a dynamic future. Journal of Tourism Futures, 3(1), pp.56-65.

Tavitiyaman, P., Qu, H. and Zhang, H.Q., 2011. The impact of industry force factors on resource c...

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Paper Example on Exploring Hyatt Hotels Geneva Strategy. (2022, Jul 08). Retrieved from https://proessays.net/essays/paper-example-on-exploring-hyatt-hotels-geneva-strategy

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