Market and Competitor Analysis of Hotel Industry

Market and Competitor Analysis of Hotel IndustryMarket Analysis Industry and Competition administrator SUMMARYBusinesses fail to define satisfaction in the same way that customers do. Customer relationship satisfaction is measured by repeat business and recommendation of the store to others (Thompson 2004, p. 104). While customers can agree to these behaviours only 60% of customers who named a business they were loyal to, said they would in addition shop at the contention ( take overogh 2000, p. 1). How consumers compass a corporation or yield depends upon varying factors different for each individualistic (Whelan 2004). It is part of the job of the e- market analyst to disseminate how their client will meet market sh be and competitive advantage through marketing schemes. With regard to the tourism industry and creating customer relations, it is important to remain unique and as individual as every customer. How does single do this with limited time and funding? Customizat ion of a meshing site is signalise to advantage but besides creating a unique experience on the web site and at the destination is part of niche marketing and a main cornerstone to any tactic. normal OVERVIEWIt is of utmost importance to carry out an abbreviation of the industry per business operations and define the competition. As part of this presentation, a market analyst should fete in mind different models in which to decipher the current state of the market and where to gauge an geological formations advantage. For the purpose of this presentation and empathizeing the tourism industry, four models elect for this analysis be (1) SWOT analysis, (2) PESTEL analysis, (3) Michael Porters Five Forces and (4) capital of Massachusetts hyaloplasm. By comparing and contrasting the Althorn web site with the competition of other solemn English homes, one can better assess the marketing plan and continue to make appropriate changes. The web sites chosen for review with Althopr.c om are as follows (1) Balmoralcastle.com and (2) Muscottmillfarm.co.uk.MARKET INDUSTRY ANALYSIS SWOT AnalysisThe Historic Monument Travel IndustryStrengths and Weaknesses are considered internal factors while Opportunities and Threats are external to company (SWOT Analysis 2005). It is important to note the analysis using this tool is very subjective in spirit. When it comes to niche conk, Englands stately homes, castles and historic monuments flux into a very distinctive category that surprisingly appeals to umpteen travellers sense of history. What makes the online presence special is being roughly to capture history while maintaining a certain level of current events, even celebrity about staying somewhere unique.(S)trengths Places analogous Althorp and Balmoral film the essence of royalty engrained into the look-alike and experience. These places have been avouch to infamous times in history and famous people as wellhead.(W)eaknesses Historical travel destinations may also have an air of affluence about them, which could limit their target audience potential. This feeling of being beyond reproach may send mixed signals to the common man.(O)pportunities Because places like Althorp and Balmoral are well known to the public because of their relationships to royalty, this propels them into the spotlight more than other less known sites like Muscott Mill. These places like Balmoral have history but also many opportunities that a smaller place cannot take advantage of. Places like Balmoral and Althorp also have a following where product sales with vaneing haves key to continued image and public awareness. This allows them more interaction and further investment into different shipway to capture the audience such as private rentals and amusement events like golf and concerts.(T)hreats Consumers may be afraid to travel because of the war in Iraq and threats of terrorism, incr eternal sleepd security being time consuming. as well as times are tight f or a lot of people due to increasing energy costs and lack increased spending power. some people have chosen to stay home or vacation close to home. Places like Althorp need focus on local tourism.ALTHORP.COM CURRENT AND POTENTIAL MARKETSPESTEL AnalysisThis strategy analysis takes into account external forces, which may have influence on the organisations success (PESTEL Analysis 2005).(P)olitical The political force that may influence Althorp is its relationships with the surrounding local community. Many do not want to see their neighbourhood tarnished or changed by the tourist traffic or see Althorp take advantage of their royal status. environmental This is a very trendy topic, the notion of going green but needless to say something to consider adopting as part of the new image tactic. Also Althorp should consider the fuel demands of travellers and maybe run a promotion with a local hotel or petrol station.(S)ocial Social forces at work externally could be a fear of flying or t ravel. Also in times of trouble, people band together, become impendent within their communities. Althorp should consider looking closer to home and cultivating a relationship with locals. They should use the Internet as a tool to focus globally.(T)echnological Obviously the web site is classy and reflects the overall image of Althorp as a stately home with beautiful grounds. The web site should using appropriate e-tools to continue consumer interaction. These e-tools vary from pod casting to blogging but also create a more intimate interaction with the public, which also reflects another image of Althorp being a special place for Princess Dianna. Continued evolution of the web site can bring a feeling of closeness to the site it lacks currently. This may involve further investment to update software and hire a Web master or graphic designer.(E)cological forces at work for Althorp include once again the price of fuel or energy source and its extend use at the site, the affect it h as on the environment. Has Althorp considered what affect it may have on the global warming? It would environmentally sound for the company to research ways to conserve and protect the environment maybe through a conservation project in conjunction with another site.(L)egal forces or changes in the laws that govern travel are constantly in issue. Also Althorp must keep in mind a lot of times people are not culturally aware of differing laws that apply when travelling. It is important that not only the house watch for the risk legal issues cause but also look out for its employees tolerant the correct information to customers.THE COMPETITION BALMORAL AND MUSCOTT MILL FARMBALMORALCASTLE.COMPORTERS FIVE FORCESCustomer Bargaining Power HighTodays Internet savvy consumer is educated when it comes to their travel plans. This gives the consumer power over places like Balmoral to match their need for a web site that will understand their intelligence. They know what they want and at what price they want it. They may chose a different destination if they dont like the web site.Threat of backlog Products and Services acclivitousThis is where diversification of services at Balmoral becomes important and an asset. The future of these places depends on presentation of different formats and product specialty to keep the customers attention. These niche locations like Balmorals will meet consumer demand of specific needs.Supplier Bargaining PowerMediumThe bargaining power of Balmoral is relatively medium because of the nature of the product. Balmoral must remain at above industry standard while maintaining the sense of class found and that level of services.Threat of New Entrants EmergingNew entries into the market, one would think should be low because of the designation of this being a niche destination as diachronic but the truth is places like Balmoral must compete outside their niche for capture of customers. They compete with theme parks and adventure vacations of the like. Many tourists because the information from the Internet is so great are looking for something beyond the regular vacation.The Overall Level of Rivalry ModerateThere is a perception that the more densely populated the force field becomes the higher the competition with the company struggling for market participation. This is an incorrect assumption because most of niche travel locations are operating online mainly suppliers to manufacturers or to the public. This results in less advertising and an environment where the competitive spirit is unvoiced.MUSCOTTMILLFARM.CO.UKBoston Matrix AnalysisThere are four areas that divide the matrix so that a place like Muscott Mill Farm can be differentiated from other stately English homes or working historic monuments. The place travel into one of these areas. The four areas are as follows (1) Stars, (2) Cash Cows, (3) headland label and (4) Dogs (Boston Matrix 2005).Stars are tourist sites like Balmoral or Althorp that have a strong presence in the market and they are able to keep up, even be ahead of the competition. Balmoral, while stoically regal also maintains a global image because of it being the Queens summer residence. Cash Cows are smaller places of interest like Muscott Mill that are not in the spotlight and may be hidden from the average tourists mind (Boston Matrix 2005). Many smaller historical sites are becoming cash cows because of operating cost increases but also the aftermath of 9/11 remains. People are not as eager to travel and the price of airfare keeps people closer to home. Muscott Mill would be better off focusing on local markets for shorter weekend holidays. Question Marks are companies that have potential to make money if they are run properly (Boston Matrix 2005). A good example of a Question Mark in the industry would be smaller BB type places but not at the level of Muscott Mill. They are constantly facing challenges with their operations focussing and particularly labour disputes. Dogs are companies that are just terrible, have no potential and should be out of business but continue to struggle (Boston Matrix 2005). Euro Disney is the prominent example. It has never lived up to the hype. Muscott Mill Farm remains at the bottom of the chain of advantage because it is not well known by the public as a destination. Its web site is quaint at best and not at all interactive but yet one can see the purpose it serves to at least introduction someone to its existence.EVALUATION OF MARKETING COMMUNICATION AND CRMA companys marketing and acknowledgement begins with its name. Because the business of tourism is greatly service oriented, it is of utmost importance that the companys name has integrity. With time, as the organisation further establishes itself, the two will become interchangeable. The organisation has a reputation to uphold where market share remains wide-open and competitive advantage strong. Recently the houses name and dexterous property in t he forms of trademarks and brand has been at the forefront, in constant view thanks to e-business.John M.T. Balmer surmises that untold of the problem with establishing a marketing framework for organisations is built on the concept that the notion of identity is vague to the corporation and therefore the consumer. Defining identity and therefore CRM becomes a challenge now especially as business practices change and shift to encompass all areas of focus and strategy. Balmers (2001) research writes of, identity was a pressing issue for many institutions and that the question of identity, or of what the organisation is or stands for, cuts across and unifies many different organisational goals and concerns (p. 250). Hence the confusion and challenge of figuring out exactly what identity is for a particular organisation because it is different for each.CONCLUSIONThe purpose of this presentation was to demonstrate different market strategy models that allow one to analyse not only the particular industry but also the competition. The niche travel destination market has its strengths and weaknesses but also these are areas that Althorp can use to make its marketing scheme better. The competition for the United Kingdom is vast but Althorp has many elements on its side as a special location for travellers. The main focus of any marketing scheme should be to know how to capture the mindset of the individual to reach a higher state of competitive advantage and this begins and ends with conveying the correct brand image.REFERENCESAllen, G 1999, Introduction to Marketing, Mountain View College, Mountain View, California.Althorp, Althorp.com, viewed 5 Aug. 2008, http//www.althorp.com.Balmer, J M T, Fukukawa, K Gray E R 2001, The Nature and Management of honorable Corporate Identity Discussion Paper on Corporate Identity, Corporate Social Responsibility and Ethics, Bradford School of Management, England.Balmer, J M T 2001, Corporate identity, corporeal branding and cor porate marketing seeing through the fog, European Journal of Marketing vol. 35, 3/4, p. 248-291.Balmoral Castle, Balmoralcastle.com, viewed 7 Aug. 2008, http//www.balmoralcastle.com..Boston Matrix or Boston Consulting Group Box BCG Box, viewed 5 Aug. 2008, http//www.tutor2u.net/busines/strategy/bcg_box.htm..Donogh, J 2008, Customer LoyaltyFrom the Customers Perspective, viewed 3 Aug. 2008 www.refresher.com/loyalty2.html.Kotler P, 1999, Kotler on Marketing, Free Press, New York.PESTEL Analysis, viewed 5 Aug. 2008, http//www.businesslink.gov.uk/bdotg/action/detail?type=RESOURCESitemid=1074451452Peters, T 2003, Helping Small Firms Put the e in Trade, worldwide Trade Forum,1 July.Pitturo, M 1999, Get into the e-Commerce Without Betting the Store, Journal ofAccountancy, 1 May.Porter, M E 1999, Strategy and the Internet, Harvard University Press, Cambridge.Porter, M E 1985, Competitive wages Creating and Sustaining Superior Performance. The Free Press, New York.SWOT Analysis, viewed 5 A ug 2008, http//www.quickmba.com/strategy/swot/..Thompson, H 2004, What They Want Ten Myths About Your Customers, Prentice-Hall, Clifford Falls, New Jersey, p. 103-112.Whelan, D 2004, physical body It and They Will Come, Forbes, 27 Dec 2004.APPENDICESAPPENDIX ASAMPLE POSSIBLE QUESTIONNAIRE1. How do you rate Althorps web site overall ease of use? (1=very easy 5=very difficult)2. Having Althorps picture of the web sites you visited (1 strongly agree 5=strongly disagree 6=no opinion)a. Reflects how you think about the web.b. Gives you more confidence in exploring the web.c. Slows down the computer too much.d. Helps you feel more adventurous.e. Lets you know where you are in the web.f. Takes too much time to use.g. Helps you move around in the web.h. Makes me feel like Im travelling throughout the web.i. Takes up too much space on the screen.j. Makes web organisation clearer.3. Please rate how you think Althorp would be for the following functions (very useful, useful, not useful, dontk now)a. Pure Entertainment (games, chat, humor)b. Personal uses (hobbies, health, recipes, travel)c. Business (buy and sell, product info, banking)d. Academic (exchange data and results, communicate with colleagues, grad info).4. I feel that looking for information on the World Wide Web using Althorp.com is (Strongly Agree, Agree, Neutral,Disagree, Strongly disagree, Dont Know)Easy entertaining confusing complicated intimidating hard boring straightforward simple frustrating.