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OLIVAREZ COLLEGE

Dr. A. Santos Avenue, San Dionisio, Parañaque City


COLLEGE OF TOURISM AND HOSPITALITY MANAGEMENT

Reeds Exhibition’s Strategic Goal:


Customer Focus While Focusing on
Face-to-Face Format
OLIVAREZ COLLEGE
Dr. A. Santos Avenue, San Dionisio, Parañaque City
COLLEGE OF TOURISM AND HOSPITALITY MANAGEMENT

I. EXECUTIVE SUMMARY

Reed Exhibitions is a branch of Reed Elsevier plc, which claims to be the world's
largest publisher. 'World's largest event organizer,' yet this claim is impossible to prove
in such a broad and segmented sector. Without a doubt, it is the organizer of a very
major event and the market leader in its primary category. Reed Exhibitions dates back
to 1966, when IPC, a British publishing business, bought a part in Cahners Publishing,
a US company that also staged exhibitions. Reed International bought IPC in 1970,
and over the next 15 years, Reed and Cahners grew their exhibition business in the
United States, Asia, and Europe through acquisitions and mergers, eventually
becoming Reed Exhibition Companies in 1986.

The declared strategic goal of Reed Exhibitions is to "understand and respond to


its clients' growing requirements and aspirations better than the competition through
extensive knowledge of its customers and the industries they serve." Reed Exhibitions'
activities are mostly focused on business-to-business (B2B) events, however, it also
hosts a small number of consumer events, hence the company is not well-known
among consumers.

As a result, when assessing its approach, Reed Exhibitions must evaluate a


variety of factors. These include how the organization may construct and grow
successful exhibition propositions in response to client wants and market situations,
which development methodologies to use, and which markets to target.
Simultaneously, the organization must be driven by successfully deploying its
resources in a highly competitive, fragmented, and cost-sensitive industry, providing
cost-effective operational delivery with sufficient quality assurance.

II. TIME CONTEXT

The problems were started encountered in the year 2013 when global research
reveals that businesses around the world could be missing out on nearly a quarter (24
OLIVAREZ COLLEGE
Dr. A. Santos Avenue, San Dionisio, Parañaque City
COLLEGE OF TOURISM AND HOSPITALITY MANAGEMENT

percent) of additional revenue because they are not investing enough time in face-to-
face contact.

III. VIEWPOINT

The case study depicts Reed Exhibitions' evolution of strategic goals, which
include a greater focus on customer value and the need for continual product
evaluation and enhancements in the travel industry, as well as other industries.
Enhancing the face-to-face format, increasing value through technology, and
expanding community reach are all possibilities for improving the offering.

IV. PROBLEM STATEMENT

Reed Exhibition’s strategic goal is to establish a good revenue while offering a


customized experience and the arrangement of pre-scheduled meetings of exhibitors
and buyers whereby both parties identify who they want to meet. Reed Exhibitions
needs to focus on a number of aspects. These include: how the company can build
and develop successful exhibition propositions, respond to customer needs and
market conditions; which methods of development should be utilized; and which
markets should be targeted.

V. STATEMENT OF OBJECTIVES

Reed Exhibition’s set the following objectives:

* To build and develop successful exhibition propositions.


OLIVAREZ COLLEGE
Dr. A. Santos Avenue, San Dionisio, Parañaque City
COLLEGE OF TOURISM AND HOSPITALITY MANAGEMENT

* Responding to customer needs and market conditions; which methods of


development should be utilized; and which markets should be targeted.

* To deliver a platform for industry communities to conduct business

* To network and to learn through a range of market-leading events in growth sectors,


especially in higher growth geographies,

* Enabling exhibitors to target and reach new customers quickly and cost-effectively

* Enhancing the face-to-face format, adding value through technology, and extending
community reach.

* Being large, well-established, and having a record of product innovation

* Developing, maintaining, and updating a series of dedicated websites, industry blogs,


Twitter feeds, and Facebook pages.

* Enhancing brand awareness, directly meeting relevant trade colleagues, education,


media exposure, networking, and competitor monitoring.

* To respond to investors’ demands relating to growth and delivering attractive rates of


return.

* Enhancing the face-to-face format, adding value through technology, and extending
community reach.

VI. AREAS OF CONSIDERATION

A. Internal Forces Strengths Weaknesses

• Reed Exhibitions became the world’s /


largest exhibition organizer.
• Events have excellent cash flow /
characteristics, withstand space deposits
often paid a year in advance
. /
• There is also a high degree of revenue
OLIVAREZ COLLEGE
Dr. A. Santos Avenue, San Dionisio, Parañaque City
COLLEGE OF TOURISM AND HOSPITALITY MANAGEMENT

• Reed and Cahners continued to grow their /


exhibition business in the US, Asia and,d
Europe through acquisitions and mergers
• The organizers which have developed /
digital platforms stress the quality,
networking opportunities, and the business
facilitation
• Reed Exhibitions is the global market leader /
in a fragmented industry, holding less than
a 10 percent global market share.
• Reed Exhibitions operates in many /
countries and y sectors
• The industry has significant ‘multiplier’ /
effects in that it helps generate billions of
dollars of business activity
• Reed exhibition facilitates entry into new /
markets and boosts the local economies
where the events are hosted.
• Reed Exhibitions which has about 3,400 /
employees had revenues for the year ended
31 December 2013 of £862m.
• Reed specializes in particular industry /
sectors where it can leverage its market
knowledge, experience, marketing
expertise, established networks and,,
financial strength.
• The company has built up some strong B2B /
exhibition brands in certain sectors
• Reed works hard on constant product /
evaluation and enhancements to its
offerings.
• Innovation at large exhibitions had an /
arrangement of pre-scheduled meetings of
exhibitors and buyers whereby both parties
identify who they want to meet.
• The exhibitions market remains fragmented /
and still offers considerable opportunities
for consolidation.
OLIVAREZ COLLEGE
Dr. A. Santos Avenue, San Dionisio, Parañaque City
COLLEGE OF TOURISM AND HOSPITALITY MANAGEMENT

B. External Forces Opportunities Threats

• The industry is highly susceptible to


changes in the local economy
/

• Several of targeted acquisitions were /


completed during the3

• Reed Exhibitions also entered into a /


partnership with Thebe Exhibitions

• Reed has developed a nuseveralding brand /


which increasingly is ‘cloning’ and
replicating the formats.
• The global brand strength has been utilized /
to produce regionally focused events in
strong emerging regional markets.
• Increasingly active steps are taken to /
extend the ‘footprint’ of events using social
media, digital channels, TV, and print
media.
• A global research report found that /
companies could increase revenue by
investing in more face-to-face events.
• Extra cost in the company /

• The global exhibitions market saw robust /


growth in 2012

• There has been a strategic shift in emphasis /
towards the growth markets of China, Latin
America, Russia, and the Middle East
• Reed Exhibitions often works in /
collaboration to stimulate foreign
investment and promote regional and
national enterprise.

VII. ALTERNATIVE COURSES OF ACTION


OLIVAREZ COLLEGE
Dr. A. Santos Avenue, San Dionisio, Parañaque City
COLLEGE OF TOURISM AND HOSPITALITY MANAGEMENT

Alternative Course Advantage Disadvantage


of Action

Investing in more • It will bring customers • Business


face-to-face events propositions
to increase revenue. • Will lead to market expansion were not
properly handled
• Companies could increase revenue
in face-to-face
• It builds long-term trust and ensures events because
they need online
strong client relationships. tools.

• Contract negotiate properly in a face to • It will be


expensive to
face. invest in face-to-
face events.
• The risk of the
face-to-face
events and
unpredictable
dilemma

Built-up some • Will be able to know the customer’s • Methods that
strong B2B ideal preference that would benefit the might affect the
exhibition brands by company’s
entering into a airline as a whole with its strategic
economic state.
partnership with process. • Local
different brands • Transparent relationship between the knowledge,
expertise, and
Ryanair and the customer, themselves.
contacts are
• Will be able to collect ideas and may hard to acquire.
serve the needs and wants of the • May involve
looser
customers.
arrangements
• Be able to be aware of the points that such as
need improvement contractual
agreements with
• Will be able to assess the effectiveness
local
of their newly launched plans. organizations
• Customer’s ideal
preference might
be out of reach.
OLIVAREZ COLLEGE
Dr. A. Santos Avenue, San Dionisio, Parañaque City
COLLEGE OF TOURISM AND HOSPITALITY MANAGEMENT

Building and • Connections to be made; partnerships • Building a


maintaining the and alliances to be formed.
technology
platform
platforms to ensure • A deeper understanding of products to brings
the rapid be gained. higher risk.
deployment of
• Price and product comparisons to be • Higher cost
innovation and best
practices. made. • Slower time
• Avoiding the costs and logistical effort to market
of organizing a physical exhibition • The price tag
• Adjunct to the exhibition and related for leading-
events
edge
technology.
• Legacy
equipment
data may be
locked in
proprietary
platforms.

VIII. DECISION MATRIX

Likert Scale

5 – Most Likely

4 – More Likely

3 – Likely

2 – Less Likely

1 – Unlikely

CRITERIA ACA #1 ACA #2 ACA #3


OLIVAREZ COLLEGE
Dr. A. Santos Avenue, San Dionisio, Parañaque City
COLLEGE OF TOURISM AND HOSPITALITY MANAGEMENT

Effectiveness 5 5 5

Timeliness 4 4 5

Profitability 5 5 5

Ease of 4 4 4
Implementation

Implementation 5 4 4
Cost

Total 23 22 23

A. Effectiveness

All ACA got the same weight of 5 interpreted as most likely. This means that these
three courses of action are effective to solve the company's problem and deliver quality
service to customers.

B. Timeliness

ACA 3 got a weight of 5 with a verbal interpretation of most likely. This means that
building and maintaining the technology platforms to ensure the rapid deployment of
innovation and best practices is the timeliest action to consider by the company. ACA
1 and ACA 2 obtained a weight of 4 interpreted as more likely and these actions should
be the second priority.

C. Profitability

All ACA got the same weight of 5 interpreted as most likely. This implies that they
are viewed as the courses of action that will help the Reed exhibition to have revenue
growth and partnership brands. These three courses of action will help the company
to grow its customers and remain in its position as the world’s largest event organizer.

D. Ease of Implementation

All ACA got the same weight of 4 interpreted as more likely. This means that these
three courses of action are easier to implement and will also be a great help to the
company to achieve its strategic goal which is to understand and respond to its
customers’ evolving needs and objectives better than its competition through deep
knowledge of its customers and the markets they serve.
OLIVAREZ COLLEGE
Dr. A. Santos Avenue, San Dionisio, Parañaque City
COLLEGE OF TOURISM AND HOSPITALITY MANAGEMENT

E. Implementation Cost

ACA 1 and got a weight of 5 interpreted as most likely. It clearly shows that the
physical exhibition or face-to-face format is expensive and needs logistical efforts. On
the other hand, ACA 2 and 3 obtained the same weight of 4 interpreted as more likely,
this means that if ACA 2 will be implemented it will incur lesser cost compared to ACA
1 and ACA 3.

PLAN OF ACTIONS

Corporate Vision

Our vision is to be the Center of Excellence with a uniquely branded culture,


engaged talent, and leading technology.

Corporate Mission

Our mission is to help customers gain insights and achieve results in faster,
more effective ways. We support our business partners with services that deliver
innovative solutions, superior outcomes, and exceptional customer experience.

Corporate Objectives

* To deliver a platform for industry communities to conduct business

* To network and to learn through a range of market-leading events in growth sectors,


especially in higher growth geographies,

* To respond to investors’ demands relating to growth and delivering attractive rates of


return.* Enhancing the face-to-face format, adding value through technology, and
extending community reach.

* To build and develop successful exhibition propositions.

Strategies

1. Enabling exhibitors to target and reach new customers quickly and cost-effectively

2. Enhancing the face-to-face format, adding value through technology, and extending
community reach.
OLIVAREZ COLLEGE
Dr. A. Santos Avenue, San Dionisio, Parañaque City
COLLEGE OF TOURISM AND HOSPITALITY MANAGEMENT

3. Responding to customer needs and market conditions; which methods of


development should be utilized; and which markets should be targeted.

4. Developing, maintaining, and updating a series of dedicated websites, industry


blogs, Twitter feeds, and Facebook pages.

5. Enhancing brand awareness, directly meeting relevant trade colleagues, education,


media exposure, networking, and competitor monitoring.

6. To respond to investors’ demands relating to growth and delivering attractive rates


of return.

POLICIES

1. General provisions

The provisions of these Rules (the “Rules”) shall apply to any individual or legal entity
(such as exhibitors, sponsors, visitors, speakers, journalists, advertisers, and service
providers) (the “Participants”), who requests admission or is invited to the professional
events organized by RX France, a French joint-stock company with a capital of
90,000,000 euros, having its registered offices at 52 Quai Dion Bouton 92800 Puteaux,
France, registered with the Nanterre Companies Registry under n°410 219 364 (the
“Organiser”).

These Rules shall also apply to any other parties who contract with the Organiser.
Where applicable, the goods and services proposed by the Participants at the event
(the “Event”) shall be offered only to meet the requirements of any individual or legal
entity whose business activities are directly related to the sector promoted by the
Event, as defined in the participation contract. The Organiser reserves the right to
refuse to contract with any person whose business is not directly related to the sector
promoted by the Event or on any other reasonable grounds, such as a dispute, etc.

In these Rules, the following words have the following meaning:

Contract means the Rules and the special terms and conditions, i.e. the participation
contract
OLIVAREZ COLLEGE
Dr. A. Santos Avenue, San Dionisio, Parañaque City
COLLEGE OF TOURISM AND HOSPITALITY MANAGEMENT

Event means the event organized by the Organiser, purpose of the Contract, which
may be held physically and/or online.

Physical Event means the Event that provides Physical services (as defined in the
specific conditions)

Online Event means the Event that provides Online services

Online services mean services provided by the Organiser to the Participant through
a digital solution

Event Management Platform (EMP) means the online tool proposed by the
Organiser to the Participants to plan 1-to-1 meetings between them.

Event Venue: means the venue where the Event takes place as indicated in the
participation contract or such other venue as the Organiser shall decide.

Exhibitor: means any Participant who rents a pod, demo-kiosk, a Modular Stand, or
a stand and/or an assigned location at the Event, the Stand.

Modular Stand Exhibitor: means any Exhibitor who rents, by the participation
contract, a Modular Stand at the Event, the Modular Stand.

Rides: means an Exhibitor amusement ride and/or mechanical, an electrical device


that is exhibited and can be tested during the Event, including but not limited to
trampoline, escalade wall, playground, inflatables, VR, escape game, Ifly, fitness, laser
game, arcade/simulations, children's games, bowling, golf, funfair facilities.

2. Acceptance of Contract Documents

Signature of any participation contracts and/or any admission to the Event shall be
deemed the Participant’s total and complete agreement with and acceptance of the
provisions of these Rules, the relevant participation contracts, RX website Terms, the
specifications of the operator of the Event Venue and, in the case of Exhibitors, the
Exhibitors' Technical Manual and the insurance policies that the Organiser takes out
on behalf of the Exhibitors, and the Safety Guidelines available on
reedmidem.com (hereinafter, collectively, the “Contract Documents”), all of which may
be downloaded directly from the Event’s website. Accordingly, the Participant
OLIVAREZ COLLEGE
Dr. A. Santos Avenue, San Dionisio, Parañaque City
COLLEGE OF TOURISM AND HOSPITALITY MANAGEMENT

undertakes to comply with the Contract Documents, as well as with any health and
safety measures which may be imposed by the relevant public authorities, the operator
of the exhibition space, and/or the Organiser, and to cause its employees and service
providers to comply therewith. No amendments or reservations may be made by the
Participant to the Contract Documents in any manner whatsoever.

3. Amendments to and priority of these Rules

The Organiser reserves the right to decide on all matters not covered by these Rules
and to add new, immediately applicable provisions to cover such matters and any
matters not otherwise dealt with by the general regulations governing commercial
events which are posted on the www.unimev.fr website. The Organiser shall notify the
Participants thereof as necessary. These Rules shall prevail over any other terms that
Participants may seek to impose or incorporate, or which are implied by trade, custom,
practice, or course of dealing. In the event of a discrepancy between the French and
any other translated versions of the Regulations, the French version shall prevail.

4. Postponement, cancellation, or interruption of Events

4.1 Postponement of the Event

In terms of the dates that the event will be held, provided reasonable prior notification
has been given, except in situations of urgency, the Organiser may postpone the Event
within the limit of (i) 6 months following the period initially scheduled, for annual Events,
or (ii) 12 months, for biannual Events. In this case, the Participant’s participation
contract will be automatically and entirely transferred to the new dates of the Event.
The Organiser will retain the deposits paid by the Participant and the Participant shall
remain obligated to pay the remaining amounts due for their participation in the Event,
by the modified payment schedule.

In the event of postponement of the Event beyond the above-mentioned limits, the
Participant shall have the option of either requesting the refund of the deposits paid to
the Organiser or requesting the transfer of its participation to the new dates of the event
as per the above-mentioned conditions.

4.2 Cancellation of the Event


OLIVAREZ COLLEGE
Dr. A. Santos Avenue, San Dionisio, Parañaque City
COLLEGE OF TOURISM AND HOSPITALITY MANAGEMENT

The following terms and conditions shall apply in the event of cancellation of the Event.
If the Organiser observes that the Event cannot take place within the conditions
foreseen owing to exceptional circumstances, whether or not these constitute a case
of force majeure as per article 1218 of the French Civil Code and, in particular, whether
or not these are entirely unpredictable (hereafter “exceptional circumstances”) the
Organiser may notify the cancellation of the Event.

Shall be qualified as exceptional circumstances the following events: ( fire, flood,


storm, destruction or unavailability of the venue(s) or location(s) where the Event is to
be held, accident, incidental case, strike action at the local or national level, riots, risk
of safety, terrorist threat, administrative ban or closure, health situation, potential
consequences of the Covid-19 epidemic, cancellation of the participation of a
significant proportion of the Participants, restriction of movements of Participants or
visitors, etc.,
In those cases, the Participant’s participation contract will be canceled and any
amounts paid to the organizer that are still available after the Direct Costs incurred by
the Organiser as at the date of notification of the cancellation, will be divided among
the Participants, on a pro-rata basis according to the amounts paid by each of them.

Direct Costs shall be defined as the costs and expenses - including any non-
recoverable VAT or any other equivalent tax on sales - properly attributable to the hire
of the Venue, the management, promotion - including all publicity campaigns - and
operation of the Event.

Should the Organiser be obliged to cancel the event if it observes an important


modification of the Event organization that should be damaging for both Parties such
as the insufficient amount of registrations, and unless this cancellation is the result of
circumstances laid down in the paragraph above, the Participant will be reimbursed
the amounts paid to the Organiser?

This paragraph applies notwithstanding article 1218 of the French Civil Code, which it
expressly derogates from as necessary.

4.3 Interruption of Events


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The Participant entrusts the Organiser with the task of determining whether or not the
Event must be interrupted or evacuated in the event of a threat to public safety and
agrees not to institute proceedings against the organizer after the fact.

If the Event is interrupted in case of exceptional circumstances, participation fees


already paid shall be refunded in proportion to the duration of the Event’s interruption
less Direct Costs.

4.4 As a result of the terms provided above, in the event of modification,


postponement, interruption, or cancellation of the event, the Parties agree that there
shall be no recourse to the application of the legal provisions relative to a breach of
contract (articles 1219 and 1220 of the French Civil Code).

In the event of modification, postponement, interruption, or cancellation of the Event


irrespective of their circumstances or motivations, the Participant may not claim any
form of compensation from the organizer, except in the event of gross misconduct by
the organizer.

5. Admission requirements

Persons under the age of 18 may not be admitted to the Event, except with the
Organiser’s prior written authorization.

The Organiser reserves the right to refuse entry to or to have expelled, temporarily or
permanently, any Participant whose presence, conduct, or behavior threatens the
image, peace, or safety of the Event and/or of the other Participants and/or of the
Organiser and/or the integrity of the site. In such case, the Participant shall be
reimbursed the participation fee already paid to the Organiser on a pro-rata basis
according to the remaining period of the Event.

To gain admission to the Event Participants must show an admission pass, which the
Organiser shall issue free of charge or for consideration by its procedures. The
distribution, reproduction, or sale of admission passes for any person other than the
Participant to derive a profit therefrom is strictly forbidden and may be liable to
prosecution. Due to the international nature of the Event, Participants shall:
OLIVAREZ COLLEGE
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COLLEGE OF TOURISM AND HOSPITALITY MANAGEMENT

• Ensure that their participation is neutral in terms of political, ideological, or religious


expression;

• Not create disturbances (visual, audial, olfactory, or of any other nature) to the
organization of the event, the other Participants, whether or not in neighboring stands,
or the public, either at their stand, in the advertising space assigned to them within the
venue or in the vicinity of the Event. Otherwise, the Organiser reserves the right to
impose penalties, including refusing admission to the Event.

6. Accreditation of Participants’ employees

Participants may accredit only their full-time employees from a single establishment,
in a single country. The Organiser may at any time request documentary evidence
thereof. In the event a Participant accredits any person who does not meet the
foregoing requirements, they shall be required to pay the participation fee applicable
to visitors, as specified in the participation contract.

IMPLEMENTATION OF THE PLAN OF ACTIONS

FUNCTIONAL STRATEGIES/ PERSON TIMEFRAM BUDGET


E
ACTIVITIES

A. Customer 1. Plan for Customer Relations Annually 2, 000$


Service improvements of the Head
service(s) being
offered by the
company.
2. To understand and
respond to its customers’
evolving needs and
objectives.
3. Acquired, developed,
and grew several strong
market-leading brands in
its chosen B2B
segments.
B. Marketing 1. Connect with different Marketing Twice a 630$
Strategies brands and establish Department Head year
good revenue.
2. Create branded
concepts that can be
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replicated in various
parts of the world.
3. Developed and grown
several strong market-
leading brands in its
chosen B2B segments.
C. Utilization of 1. Offer visitors and IT Department Head Quarterly 800$
Digital Tool exhibitors the
opportunity to interact
before and after the
event through the use of
online tools.
2. Have some shift towards
electronic revenue
generation
3. Allowing Smartphone
apps and online tools to
build up their
personalized schedules
and to interact with
exhibitors, event
organizers, and the
D. Product/ 1. Conduct a planning General Annually 1,000$
Operation session to improve and
Manager/
Modification develop the exhibition
and generate good Ope
revenue. rations Manager
2. Stay in organic growth
through investing in a
face-to-face format.
3. Train the personnel on
any new or additional
service that the
company intends to
provide.
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COLLEGE OF TOURISM MANAGEMENT

Ryanair’s Evolution of Competitive


Strategy: Attain Customer Satisfaction
Through Addressing Customer’s Need
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COLLEGE OF TOURISM MANAGEMENT

I. EXECUTIVE SUMMARY

Ryanair operates the first of all founded low-cost scheduled passenger airlines in
Europe. Starting in 1985 Ryanair followed the example of Southwest Airlines,
introduced the low-cost concept in Europe, and became a market leader in the low-
cost airline market by consequently saving costs. However, in the early year's
problems were encountered in delivering their commitment to low-fare air travel and
making air travel affordable for people in Ireland and the UK. Ryanair re-launched as
the first of a new breed of 'low fares/no frills' airlines, the management was adapting
the formula so successfully pioneered by Southwest Airlines in the U.S. Ryanair then
had issues with a profit warning, and the following month the airline announced that it
would. 'Michael O'Leary, the fast-talking, outspoken boss of Ryanair, has had his wings
clipped, claimed that the airline must become more responsive to customer needs and
learn from its mistakes, through:

• an easier to use Ryanair.com website (17 to 5 clicks to book);

• twenty-four-hour grace periods (for minor booking errors);

• a free small 2nd carry-on bag;

• 'My Ryanair' customer registration service;

• accepting group and corporate bookings;

• Allocated seats on all flights.

The is an implication of their evolution of the company's competitive strategy to its early
years up to the year 2013-2014. The goal is to better understand the services that they
want to offer, assess their advantages among their competitors and identify their target
market to take a hold on their power to be able to engage their interest and
commitment.

II. TIME CONTEXT


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COLLEGE OF TOURISM MANAGEMENT

The problems were started to encounter in its early years. Since Ryanair is firmly
established as Europe's largest low-fare airline and has begun its operations in 1985,
the company has committed to deliver its service through launching a daily flight on a
15-seater turboprop aircraft between Waterford Airport in the South East of Ireland and
London Gatwick, which they have failed to deliver.

III. VIEWPOINT

The case analysis is a representation of Ryanair's Evolution of competitive


strategy. Its major change from its early development to status on the year 2013 -
2014. This needs to enhance firm and effective actions to better establish their target
market, their major edge among other competitors, strategies to offer, and as well as
their main purpose as a Company.

IV. PROBLEM STATEMENT

Ryanair's evolution to competitive strategy from its early development to the


coming years. Be able to successfully commit to delivering their low-fare air travel and
making air travel affordable for people in Ireland and the UK.

V. STATEMENT OF OBJECTIVES

* To firmly establish itself as Europe's leading low-fare scheduled passenger airline


through continued improvements and expanded offerings of its low-fare service

* To be more responsive to customer needs and complaints

* To focus on giving standard service to customers and excellent airline's operation

* Checking the accuracy of its online websites will lead to easier use of the
Ryanair.com website

* Improving its booking system through giving twenty-four-hour grace periods (for
minor booking errors)

* Focusing on the growth of the markets that are being targeted

* Enhancing the results of operations through the ancillary services

* To continue having a strong brand reputation and generate a higher amount of


productivity
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* Provide an accurate booking system that will enable an efficient number of high
potential booking (group and corporate booking)

* Improving its management and continuing to be a number one airline in Europe

VI. AREAS OF CONSIDERATION

A. Internal Forces Strengths Weaknesses

• Offer low fares on short-haul intra-European /


routes
• Low-fare air travel and making air travel /
affordable
• Costs were not controlled and the company /
continued to rack up losses.

• Recorded its fourth continuous year of /


profitability
• Consumers had become more /
sophisticated
• Employing over 500 people, carrying over /
1.5 million passengers per annum
• First low fares airline to offer scheduled /
services from the UK to Continental Europe
and vice versa
• Average airfares were lowered and traffic /
continued to grow strongly
• Lose £20m in just four years /

• More customer’s complaints coming /

• Inability to change ticket details once they /


have been booked
• Continuing growth of passengers /

• Carried more international passengers than /


any other airline
• Had an aggressive direct sales approach /

• Charging for every conceivable additional /


extra
• Lack of focus on service standards /
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• Lack of clarity in the advertising messages /


Ryanair used
• Poor company website, online booking /
system and registration system

B. External Forces Opportunities Threats

• Ryanair expanded, rapidly opening many /


new routes between Ireland and the UK

• Increasing the fleet by adding jets, and /


additional turboprop aircraft

• Ryanair broke the high-fare cartel


• Problem encounter during delivering /
services
• New competitors came into the market /

• The airline was free for the first time to open /


up new routes to Continental Europe

• Rapid growth of passengers yearly /

• Adverse publicity and a complicated /


website
• New operating bases /

• Extra cost in company /

• Next major investment program with a huge /


US$2 billion order for up to 45 new Boeing
737-800 series aircraft
• Growing number of customer complaints /
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VII. ALTERNATIVE COURSES OF ACTION

Alternative Course Advantage Disadvantage


of Action

Utilize technology • It will bring customers


to improve • Will lead to market expansion • It will be
company’s service • Eased the company’s transaction and expensive to
through developing boosting customer base create big
company websites • It will give more accurate and faster changes in the
and registration service to customer Ryan Airlines.
service • Make company service and operation • Unexpected
more efficient and accessible harmful internet
acts like
phishing and
fraud attacks
might be
encountered to
the websites
• Maintenance
and updates
needed for the
website, require
large amount of
money
• Creation of jobs
will reduce
• Privacy of the
company will be
affected
Conduct an • Will be able to know the customer’s ideal • Methods that
evaluation to assess preference that would benefit the airline might affect the
customer’s ideal as a whole with its strategic process. company’s
preference • Transparent relationship between the economic state.
Ryanair and the customer, themselves. • Major
• Will be able to collect ideas and may adjustments
serve the needs and wants of the need to engage
customers. into the
• Be able to be aware of the points that customer’s
needs improvement evaluation
• Will be able to assess the effectiveness result.
of their newly launched plans.
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• Will be taking
an efficient and
thorough time
to assess the
evaluation
forms.
• Improvements
might hinder
other plans or
services that
they will offer to
the customers.
• Customer’s
ideal preference
might be out of
reach.

Maximization of • Instant way to disseminate information • Since it is being


various social media and advertisements all around the world. too transparent,
platforms to a better • Will be able to assess the transparency feedback will be
marketing of the possible customers through online open all through
management. platforms. out the internet.
• Will be able to entice future and possible • Advertisement
customers. being shared
• Convenient for both the company and could not be
the clients, themselves. able to edit right
• `Influx of possible clients will be easier to away.
accommodate. • Needs ample
time to locate if
the information
given are
reliable and
true.
• Shocked with
sudden major
tourist arrival
and customers.
• This will also
open for
hackers,
phishing
attacks.
VIII. DECISION MATRIX

Likert Scale

5 – Most Likely
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4 – More Likely

3 – Likely

2 – Less Likely

1 – Unlikely

CRITERIA ACA #1 ACA #2 ACA #3

Effectiveness 5 5 5

Timeliness 4 4 5

Profitability 5 5 5

Ease of 4 4 4
Implementation

Implementation 5 4 5
Cost

Total 23 22 24

A. Effectiveness

All ACA got the same weight of 5 interpreted as most likely. This means that these
three courses of action are effective to solve the company's problem and deliver quality
service to customers.

B. Timeliness

ACA 3 got a weight of 5 with a verbal interpretation of most likely. This means that
maximizing the various social media platforms for better marketing management is the
timeliest action to consider by the company. ACA 1 and ACA 2 obtained a weight of 4
interpreted as more likely and these actions should be the second priority.

C. Profitability

All ACA got the same weight of 5 interpreted as most likely. This implies that they
are viewed as the courses of action that will help the agency to gain profit and should
be implemented. These three courses of action will help the company to grow its
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customers, improve its operation for more thousand flights to come, and remain in its
position as the number 1 airline in punctuality statistics.

D. Ease of Implementation

All ACA got the same weight of 4 interpreted as more likely. This means that these
three courses of action are easier to implement and will also be a great help to the
company to retain being a leading low-fare airline that offers standard service to
customers and excellent airline's operation.

E. Implementation Cost

ACA 1 and ACA 3 got a weight of 5 interpreted as most likely. It clearly shows that
the biggest cost to execute is improving customer service and maximizing the various
social media platforms for better marketing management. On the other hand, ACA 2
obtained the same weight of 4 interpreted as more likely, this means that if ACA 2 will
be implemented it will incur lesser cost compared to ACA 1 and ACA 3.

Plan of Actions

Corporate Vision

Ryanair is looking forward to enhance its services, reducing ticket prices, offering
suitable travel packages, and maintaining service efficiency.

Corporate Mission

Our mission is to provide a excellent service and firmly established as Europe’s


largest low-fare airline.

Corporate Objectives

* To firmly establish itself as Europe's leading low-fare scheduled passenger airline


through continued improvements and expanded offerings of its low-fare service

* To be more responsive to customer needs and complaints

* To focus on giving standard service to customers and excellent airline's operation

* To continue having a strong brand reputation and generate a higher amount of


productivity
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* To its management and continuing to be a number one airline in Europe

Strategies

1. Maximization of Social Media Platforms for Marketing

2. Annual evaluation to enhance services offered.

3. Marketing expansion that will include group and corporate booking

4. Responsive approach to customers to address its complaints

5. Determine the company’s problem through conducting an evaluation to assess


customer’s ideal preference

6. Provide a better media patterns that will enable efficient communication to the high
potential groups.

7. Continuing aggressive direct sales approach.

Policies

1. We assign personnel to manage company’s website and online booking


system (“IT Manager”) and always check its activity and responsive to some
complaints of customer.

2. We will implement safety rules to manage risks concerning all the personal
information handled in our company, such as being accessed in an
unauthorized manner, being leaked, lost, or maliciously damaged or destroyed,
and will take organizational, personnel, physical and technological measures
to prevent risks and corrective measures if a problem occurs.

3. In the case of requesting personal information, we will identify the purpose of


use thereof and obtain such information only to the extent necessary for
conducting business and through a lawful and reasonable manner and will use
and/or provide such information only within the limits of the stated purposes.

4. Access to company assets is permitted only in accordance with management’s


general or specific authorisation, and transactions must be executed only in
accordance with management’s general or specific authorisations.
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5. We do not seek competitive advantage through illegal or unethical business


practices. All employees should endeavour to deal fairly with customers,
competitors and employees. No employee should take unfair advantage of
anyone through manipulation, concealment, abuse of privileged information,
misrepresentation of material facts, or any unfair dealing practice.

6. We ensure that its accounts and records fairly represent transactions and the
use of assets in reasonable detail. All company books and records must be
true and complete. False or misleading entries are strictly prohibited, and the
company will not condone any undisclosed liabilities or unrecorded bank
accounts or assets established for any purpose.

7. We will observe laws and ordinances on protection of personal information,


governmental guidelines and other social norms, and will endeavor to
continually improve the Management System through regular review using the
Data Privacy Act as one of our legal bases.

Implementation of the Plan of Actions

FUNCTIONAL STRATEGIES/ PERSON TIMEFRAM BUDGET


E
ACTIVITIES

E. Customer 4. Plan for Customer Relations Annually 3, 140 €


Service improvements of the Head
service(s) being
offered by the
company.
5. Inform all employees and
personnel about the
concepts of customer
service.
6. Be responsive on
customer complaints like
fixing the company
websites and etc.
7. Developing ‘My Ryanair’
customer registration
service;
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F. Marketing 4. Plan for new and Marketing Twice a 630€


Strategies relevant marketing Department Head year
strategies that will
appeal to potential
clients.
5. Train all he marketing
team members for
effective marketing
relations.
6. Marketing expansion
through accepting group
and corporate booking.

G. Utilization of 4. Checking the accuracy IT Department Head Quarterly 650€


Technology of its online websites
that will lead to easier
use of the Ryanair.com
website
5. Train office staff on
technology usage
relevant to the day-today
operation of the
company.
H. Product/ 4. Conduct a planning General Annually 3, 500€
Operation session with all
Manager/
Modification department heads to
improve and develop Ope
company’s operation to rations Manager
withdraw its brand
reputation.
5. Come up with
suggestions for new or
additional service(s) that
the company can offer
based on present and
emerging trends in the
industry.
6. Train the personnel on
any new or additional
service that the
company intends to
provide.
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COLLEGE OF TOURISM MANAGEMENT

Days inn:
A Case Study in
Franchising
Hospitality Assets in China
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I. EXECUTIVE SUMMARY
Cecil B. Day created Days Inns in 1970 in the US and began franchising hotels in
1972 and within eight years had made an arrangement of over 300 lodgings in the
United States, Mexico, and Canada. In 1992 Cendant Corp. furthermore, Wyndham
Worldwide Corp. obtained the Day
Inns additionally they trade bunch RCI with other housing branches, for example,
Ramada and
Howard Johnson that whose headquarters located in New Jersey, USA yet demerged from
Cendant Corporation in July 2006 and that is was the authentic advancement of day motel
branch. Days Inns hotel provide trendy features with the touch of technology and best
facilities that offer good services and meet guest satisfaction

however In the case of a hotel franchise, a company operates a hotel under one of the
brands owned by one of the large international chains and the company benefits from the
services and expertise of the international chain. In return a franchise fee is paid (by the
franchisee) to the international hotel group (the franchisor). The fee is based on revenues
received. Operational decision making and dayto-day management control lies with the
franchisee. Hotel chains have generally preferred to use non-equity forms of organization
for international expansion and operations mainly due to cost-efficiency concerns. Non-
equity-based agreements such as franchising and management contracts are the most
common forms of organizational structure for market entry among hotel chains, partly
because of the high initial capital requirements involved in setting up a hotel.

II. TIME CONTEXT

The problem was observed during the time wherein the three Singaporean brothers,
David Tan,
Harry Tan and Ted Fang who in 2003 successfully acquired the Days Inn master
franchise for Greater China from Wyndham Worldwide Corporation and decided to
change the traditional and economy brand of Days Inn in China and upgraded the brand
image and market positioning of the hotel with a range of hotel Days Inn brands; (1)
Days Hotel & Suites, a 5-star luxury hotels and holiday resorts; (2) Days Hotel, a
Superior 4-star hotel, (3) Days Inn Business Place, a Fullservice business hotel; (4)
Days Inn, a 3-star city hotels; (5) Days Suites, a superior hotel style, service apartments.
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III. VIEWPOINT

This study was conducted in the perspective of the Wyndham Hotel Group in order to
showcase the franchising violations that the Days Inn in China have committed towards
the Days Inn franchise. This study needs to provide a strong and effective strategy in
order for the Wyndham Hotels & Resorts to reacquire the direct franchising rights for the
Days Inn Brand In China.

IV. PROBLEM STATEMENT


They have upgraded the brand image and market positioning of the hotel with a range of
hotel Days Inn brands, which they should not have done as they are not the proprietor.

V. STATEMENT OF OBJECTIVES
a.) Identify the historical development and ownership of the Days Inn Brand.
b.) Classify the Days Inn product characteristics.
c.) Identify the franchising and management contracts.
d.) Recognize the service-based products.
e.) Adding new innovative technology.
f.) To create diversification within the lodging commerce, because it gives benefits and
makes a solid use.
g.) To adopt a new updated strategy.
h.) Find out the popularity and interest of different generational groups rebuilding new
kinds of Days Inn brand for the future.
i.) To plan, develop and solve future modern problems
j.) To have modern equipment that will help to improve the service.

VI. AREAS OF CONSIDERATION

A. Internal Forces Strengths Weaknesses

Management

Days Inn China offers 24-hour


room services.
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Possible negligence towards the


implemented franchise
management contracts.

Human Resource

Highly skilled workforce through


training and learning programs.

The Management Team is


focusing on building relationships
in business.

Due to modern technology and


innovation, it is possible to do so
without hiring labor.

Marketing ( 4 P’s )

Product

Leading performer in economy


hospitality and offers free
breakfast meals.

Best advertise situating Days Inn


China Brand having 5 star Inn to
predominant lodging.

Offer multiple bars and


restaurants, and expanded
meeting and banquet facilities .

Offers 5 variations of the hotel


brand. Each variation is focused
on the different types of Market
Segment.
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Price

Seasonality affects the Days Inn


hotel rates during the northern
hemisphere spring and summer
months.

Days Inn China has upgraded the


brand image and market
positioning with a range of Hotel
Days Inn brands which can be
budget friendly for the tourist.

Place

The Inns are worked and


overseen through the wilderness
bunch of companies which are
based in Beijing and controlled by
the Singaporean Brothers.

Provides safe abode away from


home

Promotion

Fastest growing Hotel chains

Has a strong brand marketing to


stay competitive in the
marketplace.

Establishing new market strategy

Provided by trained call-centre


staff for consultation of hotel rates
to stay connected with people.

Relationship to customer are


excellent
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Creating more in social media


to promote

B. External Forces Opportunities Threats

a. Cultural/Social

New trends in
consumer behavior.

Exploring connection globally

Strong competition in the


industry

Changing customers attitude


towards the company

Emerging competitors

Develop partnership for


business growth.

b. Technological

Developments in Artificial
Intelligence to predict
consumer

demand, make better


recommendation engines and
accommodate niche
segments.
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Security advancement
through the use of technology
for guest safety.

Possible defects with the


function of technology

Malfunctioning of AI during
emergency situation

Automation will eliminate jobs.

c. Political

Growth in the international


market can help to diversify
the risk and will be less
dependent on the domestic
market for revenue.

Increasing trend toward


isolationism in America may
influence other governments
and may result in a decrease
of the number of the hotel’s
franchise.

d. Economy

E-commerce business models


can help to tie up with the
local suppliers and logistics
providers in the international
market.
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Domestic income and another


source of job opportunities for
unemployed people.

e. Natural

Damage to the environment


due to the accumulated guest
and hotel operations waste
disposal.

VII. ALTERNATIVE COURSES OF ACTION

Alternative Course of
Advantage Disadvantage
Action

Decision Making Participation and interest of Different ideas and opinions


the Individuals

Quality service Attracting customer through Intangibles Unlike they can


positive word of mouth and touch, Quality Service are
increasing the usage rates of intangle
existing customer

Marketing Plan Having a detailed plan is Not all the are successful
very easy to achieve the because they were not
vision and also the goal carefully researched and
having also the target planned to know more and
audience is advantage. identifies weaknesses in
overall business plan
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VIII. DECISION MATRIX

5- Most Likely
4-More Likely
3-Likely
2-Less Likely
1-Unlikely
ACA#1 ACA#2 ACA#3

Decision

Making 5 5 5

Customer
Satisfaction
4 5 4

Quality
service
4 5 5

Marketing 5 4 4
Plan

Work
5 5 5
Process

Total: 23 24 23
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A.Decision Making
ACA1,ACA2 and ACA3 got the same rate. They are most likely the decision Making
B.Customer Service
ACA1 and ACA3 got the same rate which is 2 more likely But the ACA 2 he rate the
Customer Service 5 which is most Likely

C.Quality Service
ACA 2 got the highest total he got he want the quality service same that he answer the
customer service. he answer 5 which is most likely
D.Marketing Plan
ACA1 he rate is 5 which is most likely but ACA2 and ACA3 they rate is more likely only
ACA1 give 5-Most likely.
E.Work Process
ACA1,ACA2 and ACA3 The answer is 5-Most Likely They all want the Working Process

Total: ACA1 and ACA3 got the same total of score.And ACA2 got the highest total of score and
i can see he focus in Customer satisfaction he want the customer to make comfortable because
he rate the customer satisfaction and Customer service is Most likely.
CORPORATE VISION:

Our vision is to apply and set the highest standards of service quality in order to justify and sustain
our reputation among guests, partners, competitors, and the larger community. We utilise and
continually introduce environmentally friendly technologies and procedures in order to maintain
the natural system while simultaneously meeting the requirements of modern society.
CORPORATE MISSION:
Days Inn's aim is to provide the best quality of hospitality services in order to meet the needs and
expectations of its guests. Our goal is to make the Hotel a meeting place, a location for business
success, a place for enjoyable meetings, and a place for grand events.
CORPORATE OBJECTIVES:
-To deliver a delightful experience for the customers.
-Establishing and maintaining a good relationship with customers.
-Provide high-quality services to customers who desire to travel for the sake of enjoyment,
comfort, and incredible experiences.
-To create and implement a project that will increase efficiency in the hotel industry.
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STRATEGY:
-Digital Presence & Social Media Promotions
-Enhancing existing relationships with customers and improving customer loyalty.
-Facilitate positive interactions
-Conduct a yearly study to improve products and services.
-Acquire new customers from innovative offerings
-Invest in Total Quality Management
-Collaborate with possible investors

POLICY:
Privacy- Days Inn uses high ethical standards and respects your privacy. Except for disclosures
required by law in any relevant jurisdiction and the disclosure of your name, email address and
your credit card details for completing your reservation with the relevant business of your choice,
we will not disclose your personal information to third parties without your consent. All partner
businesses are required contractually to maintain the privacy rights of guests and guard their
personally identifiable information with strict adherence to hospitality industry legal standards.

Data from all categories may also be used for our legitimate business interests / purposes
concerning data analysis, audits, fraud monitoring and prevention, internal quality assurance,
developing new products, enhancing our Services, helping us comply with legal requirements or
process, enforcing compliance with our Terms of Use or any product, service or program terms
and conditions, helping protect our Services, determining the effectiveness of our promotional
campaigns and operating and expanding our business activities. We may share or disclose it to
respond to requests from public and government authorities globally; to protect our operations or
those of any of our Affiliates or other third parties; to protect our rights, privacy, safety or property,
or that of our Affiliates, you or other third parties or to allow us to pursue available remedies or
limit damages we, our Affiliates or other third parties may sustain.

Damage/Theft – we reserve the right to charge Guests the cost of theft of hotel property and/or
rectifying damage caused by the deliberate, negligent or reckless act of the Guests to the Hotel’s
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property or structure. Should this theft or damage come to light after the Guest’s departure, we
reserve the right to make a charge to the Guest’s credit/debit card or send an invoice for the
amount to the registered.

Free of charge- Our service to customers who are looking to discover places to stay, venues to
dine and be entertained is free of charge. Unlike many of our competitors, we will not charge you
for our service or add any additional reservation or booking fees to the rates displayed on our site.
We will not charge your credit card, as you will pay Days Inn or 3rd Party Data Provider directly
for your stay or service. We are simply a search and booking platform for business with the simple
goal of finding the right place for your stay, dine, or be entertained at the right price.

IMPLEMENTATION OF THE PLAN OF ACTIONS:

Functional Strategies/Activities Person Time Frame Budget


Areas Responsible

A.) Usage of IT Department Quarterly


innovative
technology. Use technology to Head and CNY
promote the
Personnel/ 12,728.20
company's offerings
Programmers/
(for example, social
media platforms). Electronic

Engineers.

Use technology to
speed up guest
service with high
standards.

B.) Customer Educate all Customer Annually CNY


Service employees on the Relation Head
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fundamentals of
customer service and 9,546.15
establish a training
program in this area.

C.) General Annually CNY


Product/Ser vice Train employees on
Modification Manager/Ope
any new or expanded
services that the rations 10,818.97
organization plans to
Manager
offer.

In order to preserve
the natural system
while serving the
needs of modern
society, make a plan
for the development
of new products, as
well as things that
can still be used.
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BME2: STRATEGIC MANAGEMENT

FINALS ACTIVITY: CASE ANALYSIS


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I. EXECUTIVE SUMMARY

Hyatt Hotels Corporation, headquartered in Chicago, is a leading global

hospitality company that was founded by Jay Pritzker in 1957 when he purchased the

Hyatt House motel adjacent to Los

Angeles International Airport. Hyatt has over 500 hotels, a significantly lower number

than some of its rivals, but Mark Hoplamazian, Hyatt’s CEO, told the Financial Times

that "having a smaller 'footprint' does not impact our ability to perform. We just have to

be thoughtful, deliberate

and have a presence in key markets". But having a small number of

hotel chains among their rival is still a problem especially when it comes

to the brand name for the public.

This case analysis is written in a qualitative nature wherein different areas of

strategies are used to determine whether it will be a success or not. The basis for the

success depends on these five criteria 1. ) profitability, 2.) effectivity 3.) ease of

implementation, 4.) cost requirement, and 5.) timeliness and these are measured

through Likert scale.

The goal of this case analysis is to determine and analyze what Hyatt Hotels

Corporation should do as their next step to compete against their rival hotels around

the world in the hospitality industry. By how should they strengthen their alliances and

expand their firm to achieve their goal as the well-known hotel among the other.
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COLLEGE OF TOURISM MANAGEMENT

I. TIME CONTEXT

The problem was observed when Mark Hoplamazian was the CEO of Hyatt. In

his 20yrs of being a Hyatt veteran, Hoplamazian has been in control of the chair since

2006. The Hyatt CEO stated, the Financial Times that having a smaller “footprint” does

not impact our ability to perform. We just have to be thoughtful, deliberate and have a

presence in key markets’.

II. VIEWPOINT

Hyatt hotels want to deliver a quality performance hotel that will provide your

needs and exceed towards your expectation. Hyatt hotel has over 500 hotels and all of

them are great in performance. Hyatt hotel wants more, and they will be putting up

more Hyatt hotel in the Philippines in the future. This study needs a strong and effective

strategies to encourage Filipino citizen to visit Hyatt hotel.

III. PROBLEM STATEMENT

Hyatt operates in a limited number of hotels (500 hotels) since Mark

Hoplamazian, Hyatt’s CEO, said that it is not necessary to operate many hotels as long

as the quality of performance can be on par with their competitors. However, Hyatt is

still behind their competitors in terms of quantity in this case.

IV. STATEMENT OF OBJECTIVES

a) Increase occupancy rate industry wide.

b) Hired employees with same outlook in the company to ensure the

high quality performance


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c) To use technology to market the establishment to enable to compete with

competitors in the market

d) Reevaluate the positioning of Hyatt to create their own target

market

e) Expansion of the Hyatt hotel since 500 is significantly lower number

than its competitors.

V. AREAS OF CONSIDERATION

A. Internal Forces Strengths Weaknesses

a. Management

⚫ The company has not being able to /

tackle the challenges present by the new


entrants in the segment and has lost small
market share in the niche categories.

⚫ Company compensate hotel /

management teams based on

property performance by cost management


efforts.

b. Human Resource
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⚫ Discontent among employees based /

on salary issues due to global penetration.

⚫ Lack of work force diversity /

⚫ General managers are trained /

professionals with the average of 22 years

experience in hospitality

industry.

c. Marketing (4P’s)

Product

⚫ Need more investment in new /

technologies.

⚫ Limited success outside core business /

⚫ Reliable distribution network that can reach /


the majority of its potential market.

⚫ Executing of new projects and /

generated good returns on capital


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expenditure by building new revenue

streams.

Price

⚫ The hotel price costs a lot per stay. /

⚫ free cash flows that enable the company with /


opportunity to develop into new projects.

Place

⚫ Majorly dependent in US market /

⚫ Pursuing to expand overseas such as China, /

India and Brazil to utilize a strong balance

sheet and strong

brand recognition in large growing


markets.

Promotion

⚫ Limited market share due to tough /

competition from international and domestic


players.

⚫ Brands are not recognizably /

differentiated to public.
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⚫ Brands and tradition of innovation is /

widely recognized internationally.

B. External Forces Opportunities Threats

a. Cultural

⚫ Increases variety of tourists/guests and tourist /


expenditures by operating in a global scale.

⚫ New trends in the consumer behavior /

can open up new market for the

Hyatt Hotels.

⚫ Hyatt is becoming more accepting of different /

classes of people and are ensuring they are

better equipped to

serve the necessities.

⚫ Provides discounts and other offers to ensure /


that people are able to afford longer and more
luxurious stays
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⚫ New environment regulations under a /

different country agreement could be a threat

to certain existing

product categories.

⚫ The company is operating in /

numerous countries it is exposed to currency


fluctuations especially given

the volatile political climate in a

number of markets across the world.

b. Technological

⚫ The new technology provides an opportunity /

to Hyatt Hotels to

practices differentiated pricing strategy in the


new market

⚫ New and latest trends that Hyatt Hotel, such /

as the ‘Gold Passport’ attracts new target

markets and increases the loyalty of those old

guests
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⚫ The revenue of Hyatt hotel ($4.2B) /

can be used to purchase new and

latest technologies since their liquidity


secures their growth

⚫ Hyatt’s select serving brands are /

increasing internationally, exposing

them to new markets

⚫ The ability of guests to write reviews has also /

ensured that hotels provide

better services and no act of

discrimination takes place.

⚫ No regular supply of innovative /

products.

c. Political

⚫ Opening of new branches and /

markets because of government

agreement

⚫ Most governments have ensured /

through legal measures that no such

discrimination is allowed to take

place.
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⚫ Hyatt is strict in terms of the /

identification before allowing a guest to use

their facilities. This is considered

to be progressive keeping in mind the rise of

crime and terrorism across the

world.

⚫ Open borders and a welcoming /

political nature helps the growth of the hotel


industry.

⚫ Some markets as the competition is paying /

higher margins to the local

distributors to grow strengths of local

distributors.

⚫ Liability laws in different countries and /

company may be exposed to various liability

claims given change in

policies in those markets.

d. Economy

⚫ Hyatt has many brands and third- /

party operators that provides jobs for people.


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⚫ The higher the demand of tourists going back /

and forth to Hyatt, the higher the income of a

certain

country generates.

⚫ Hyatt Hotel has partnered with VISA /

credit-card which gives card members

exclusive benefits,

increases existing member spend.

⚫ Hyatt’s select serving brands are /

increasing internationally, exposing them to


new markets

⚫ Stable free cash flow provides /

opportunities to invest in adjacent product


segments

⚫ Negative impact in international sales /

of increasing trends toward

isolationism in the American


economy.
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VI. ALTERNATIVE COURSES OF ACTION

ALTERNATIVE ADVANTAGES DISADVANTAGES


COURSES

OF ACTION

1. Be on a look-out for a 1. A hotel built beside 1. Establishing a hotel in a

good location to a location where people different location

are gathered can help the


where you'll put another does not guarantee
local business progress,
branch. A good location that it will succeed
hence, improving the
for a because you must rely
quality of life for both
hotel is vital to a hotel's on locals, provide
the company and the
success, especially if it attractions, and offer
locality.
is near tourist
a lower price than your
destinations
competitors. You will be
2. Building hotels can
and the demographics of attract different chains in spending money for
that place is high. businesses such as food
chains, clothing and various amenities in order
entrepreneurship that
to attract customers to

your hotel.

2.It involves a large


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provides jobs for budget for construction, as

people and helps boost well as a valuable source

the economic state of the on who knows the area

place. and what kind of

tourists visit it.


3. If Hyatt hotel is built

and businesses are

around, people are most

likely to spend

beyond their limits. This

would help in

boosting Hyatt hotel's

revenue, build a

positive reputation

and secure the

finances for a better

future.
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2. Merge with a 1. More income from 1.It requires a lot of

smaller entity that offers the said budget- money in terms of

more budget- friendly hotel. budget for the

planning and
friendly stay-cation

packages and 2. The name of Hyatt construction.


will be known more to
advertise via different

social media platform. the public. 2.Unemployment,

because some companies

3. Hyatt will be known not opt to reduce manpower.

just because of their

offered best 3.Weaker

management
accommodation but
involvement or less equity
also their stay-cation stake.

promos for the middle-


class people.
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3. Expansion of the firm 1. Political advantage, 1. Some alliance

whereas Hyatt because of the legal contracts are

Corporation will create structured


restrictions to entry,
alliances with other
creating an alliance will haphazardly and fail to
businesses in order to address risk allocation
assist the Hyatt hotel in between the
attract more parties.Furthermore, if the
expanding its operations in
contractor's pay isn't
linked to his or her
tourists. By forming a foreign market.
performance, addressing
cost "blowouts" can be
strategic partnerships and
troublesome.
alliances, the role of 2. An economic
strategic alliances advantage, lowering
expenses and risk. 3.
as a source of Organizational

competitive advantage will


grow, and corporate

performance will advantage, through 2. Loss of control over


important issues such as
improve. their affiliations, Hyatt product quality, operating
costs, employees, etc.
Hotel can gain new

abilities and

competencies that can

help the hotel

improve its service.


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VII. DECISION MATRIX

Likert Scale

5 - Most Likely

4 - More likely

3 - Likely

2 - Less Likely

1 - Unlikely

Criteria ACA #1 ACA #2 ACA #3

Profitability 4 5 5

Effectivity 4 4 5

Ease of Implementation 4 4 5

Cost Requirement 4 3 5

Timeliness 4 5 5

Total 20 21 25

A. Profitability

ACA 2 and ACA 3 both had the same weight of 5, indicating

that this course of action is most likely to help the Hyatt Hotel in making a profit. ACA

1 received a weight of 4 interpreted as more likely, indicating that it is the second action

course that will help the

company in financial gain.

B. Effectivity

ACA 3 obtained significant weight of 5 interpreted as most likely, implying that

forming an alliance will be extremely beneficial in terms of expanding the business and
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it will attract more tourists, as well as a variety of other advantages such as improved

corporate performance. In contrast to that , ACA 1 and 2 received a weight of 4 , which

is viewed as more likely, implying that these two actions are also

effective in helping the company.

C. Ease of Implementation

ACA 3 received the greatest weight of 5, indicating that it is the most likely

action that will help the company in solving its problem and forming strategic alliances

with other businesses. However, ACA 1 and 2 received a weight of 4, which suggests

that implementing this action will be more challenging, but it will still be beneficial to the

organization.

D. Cost Requirement

ACA 3 had a weight of 5 interpreted as most likely and indicating that forming

alliances with other companies will require a higher cost

only to handle out the action. ACA 1 had a weight of 4, which

indicates that it is more likely, and it is lesser cost than ACA 3. ACA 2

received the lowest weight of 3, indicating that it is likely, and it is lesser

cost than ACA 1.

E. Timeliness

ACA 2 and ACA 3 were given a weight of 5, indicating that they are the most

likely and that they are the most timely actions that the company should consider.

However, ACA 1 received a weight of 5,


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indicating that it is more likely, and that this is a less timely action.

VIII. RECOMMENDATION

Aca 3 got the highest based on the matrix, we recommend that expansion of

the firm and creating strategic alliance with other companies is a good plan because

as mentioned, as of now, only 500 hotels are opened by Hyatt but compared to the

other competitors of Hyatt, 500 is a small numbers and accomplishment. And creating

strategic alliance can be a good foundation of the expansion of the firm, because the

plan to expand is not easy so having an alliance is a huge advantage

PLAN OF ACTIONS

CORPORATE VISION

To become the world’s #1 leading accommodation segment in the whole

industry of Hospitality where we provide guests, owners and associates the luxury of

experience that they will never forget.

CORPORATE MISSION

The mission of our hotel is to provide outstanding lodging facilities and services

to our guests. Our hotel focuses on individual business and leisure travel, as well as

travel associated with groups meetings. we emphasize high quality standards in our

rooms and food and beverage divisions. We provide a fair return on investment for our

owners and recognize that this cannot be done without well trained, motivated and

enthusiastic employees.
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CORPORATE OBJECTIVES

1. Increase the level of profit by producing more hotels in the market that can offer

a variety of inclusiveness

2. Increase customer loyalty and satisfaction by providing benefits that guests can

receive with or without the Hyatt card system

3. Gain access to new and innovative technologies to improve the quality of

performance Hyatt offers

4. Use the advantage of social media platforms for attracting new target markets

in every country Hyatt has taken place

5. Stretch out on an international scale to find other


business

locations and improve the financial state of Hyatt Corp

STRATEGIES

1. Expand through series of acquisitions and alliances.

2. Offering discounts, peer to peer traveller services in travel sites.

3. Investing in new technologies.

4. Offer a loyalty program to increase repeat customer.


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POLICIES

1. 100% SMOKE-FREE

⚫ Hyatt has been 100% Smoke-Free since 2008. For safety and to

assure that our facility is not exposed to items or actions that create an odor which

is unhealthy and objectionable to our guests and

staff, and that is difficult to remove from the air, carpet, walls, and furniture we do

not permit smoking tobacco, marijuana, illegal drugs, e-cigarettes, vape pens,

vaping, cartridges containing the liquid of nicotine, hookahs, incense, cooking,

cigars, candle burning, the use or diffusing of patchouli oil or other strong-smelling

plant-based essential oils or synthetic products in our facility.

⚫ Guests are encouraged to notify Front Desk staff immediately if they smell

cigarette, marijuana, or other objectionable odors. This policy is not intended to

stop people from smoking, but to regulate where they smoke and how it affects

others. A Designated Smoking Area is provided outside and away from the

building. Marijuana is

prohibited at all times.

2. CANDLE, INCENSE, ESSENTIAL OILS: Candle, incense, essential oils

(diffusing, vaporizing, etc.) are prohibited. These items and activities will

be treated as smoking, a fine accessed, and the guest may be evicted

with no refunds.

3. NO-COOKING, COOKING APPLIANCES, COMBUSTIBLES, OR


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FIREWORKS: The safety of our guests, staff, and this facility is extremely important to

us. Except for the microwave and refrigerator units that the hotel provides, preparation

of food in guest rooms by any type of cooking appliances is prohibited. A minimum fee

of $300.00 will be charged for cooking in a room, including, but not limited to coffee

makers, hot plates, toaster ovens, water heaters, rice cookers, combustible, open

flame, barbecue grill, burners, heating appliance, or any other item intended for

cooking. Open fires, flames or cooking grills, either charcoal or gas, and fireworks are

not allowed anywhere on hotel property. A microwave is available 24 hours for all

registered guests to use in our breakfast area. Coffee is also available twenty-four (24)

hours in the breakfast area.

4. GUARANTEED RESERVATIONS: All reservations must be guaranteed with a

valid major credit card. Guests must be 18 years and older. We accept Visa,

Master Card, American Express, and Discover Card. We do not charge your credit

card at the time you make your reservations. Your credit card guarantees your

reservations. Please make sure to

receive a reservation confirmation number when you make a

reservation. Reservations must be cancelled Forty-eight (48 hours), hotel time, prior to

your arrival date, in order to avoid a one (1) room night, plus tax cancellation fee.

Reservations will be held until 11:00 a.m. the morning following your scheduled arrival

date. If you have not checked in by that time, a NO-SHOW charge of one room night,

plus tax will be charged to your credit card and the balance of your

reservations will be cancelled. Hyatt is not responsible for weather conditions, personal

emergencies, or schedule changes.


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5. CHECK-IN TIME: 4:00 p.m.

6. EARLY CHECK-IN/PRE-REGISTRATION: Early check-in is offered based on

availability. If you require a guaranteed check-in for arrival prior to 4

p.m. then Pre-Registration and payment may be required. Please contact Front Desk

staff directly to make reservations and complete a credit card authorization form prior

to your arrival

7. CHECK-IN REQUIREMENTS: Guests must be at least 18 years of age to check

in at All Seasons Inn & Suites. In the interests of security and to prevent fraud,

guests are required to confirm their identity by providing their valid government

issued photo identification (State driver’s license, passport, etc.) at check-in. A

valid, signed, and pre-approved credit card in the name of the guest registration

is also required. It is your responsibility to fully understand the manner in which

your bank

processes pre-authorizations and charges to your credit/debit card.

8. QUIET HOURS: 10:00 p.m. to 9 a.m. If you


become aware of a

disruptive guest, please contact Front Desk staff immediately by room phone or in

person. Televisions, voices, or other devices must be kept at a respectful low level at

all times. Doors should be opened and closed quietly. No congregating or running in

halls.

9. VISITORS: No visitors after 10:00 p.m. Visitors must notify Front Desk upon their

arrival. Visitors must be accompanied by the registered guest at all times. Visitors
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are not allowed to use guest amenities including the hot tub, continental breakfast,

or Wi-Fi. As a registered guest, you are responsible for your visitor at all times.

10. CONTINENTAL BREAKFAST: Our Continental Breakfast is free


to

registered guests only. Visitors may not join a registered guest for a free breakfast.

Visitors may pay $6.00 per person at the Front Desk. If you desire a full hot breakfast,

Front Desk staff is happy to provide you with a discount coupon to a local restaurant.

11. CONNECTING ROOM POLICY: Connecting rooms are subject to

availability and can only be booked directly through the hotel. Please call the hotel

directly to discuss available configurations. Guests with a

pet requesting a connecting room will be assessed a pet fee for both rooms. The

following connecting combinations are available. UpstairsConnecting standard rooms

(two queen beds in each room). Downstairs-King Handicapped room to a standard

room (two queen

beds).

12. DISCOUNTS: We do not offer discounted room rates for participation

or employment in organizations such as AAA, AARP, government

employees, etc.

13. CANCELLATION: hyatt is not responsible for weather conditions, personal

emergencies, or schedule changes. Reservations must be


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cancelled forty-eight (48 hours) hotel time, prior to your arrival date, in order to avoid a

one (1) night full room cancellation fee. If reservations are cancelled less than 48 hours

before the arrival date, your credit

card may be charged the full room charge plus taxes. If you are staying more than one

(1) night, only the first night and taxes will be charged. If you cancel any reservation,

you must obtain and save the cancellation number for your records.

14. NO SHOW CHARGES: Failure to check in on the scheduled arrival date for a

reservation guaranteed with a credit card will result in a NoShow fee being

charged to your credit card. You will only be charged the first night, one (1) night’s

full room rate plus taxes and the balance of the reservation will be cancelled.

15. GROUP RESERVATIONS: Large group/Block reservations must be

cancelled eight (8) weeks prior to arrival date. Reservations cancelled after that date

may be charged one (1) full room charge plus tax for each room reserved and the

balance of their reservations cancelled.

16. HOUSE RULES: Groups, School groups, sports/ski teams, weddings, special

events, etc. Please contact hotel directly for current House Rules Schools,

sport/ski teams are directed to also review their specific school or sport

organization Code of Conduct.

17. DO-NOT DISTURB AND ACCESS TO ROOMS: To provide all of our guests with

an exceptionally clean and safe hotel experience, we provide daily housekeeping.


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Our Housekeeping Staff will honor the “IN” door hanger once during a twelve hour

period indicating that the room is occupied. The Housekeeping Staff is required

to enter the room at subsequent times to clean the room, check for safety, and

verify the condition of the room.

18. The safety and wellbeing of our guests is our top priority. In response

to COVID-19, we have introduced enhanced measures for guests’

safety and peace of mind. They include: CARING FOR YOUR

WELLBEING

⚫ In room policy: Sanitization of high-touch areas using a high-grade disinfectant;

Increased frequency of cleaning air filters; Alcohol wipes provided in your

amenities; Complimentary hand sanitizers by

calling the front desk

⚫ Check In policy: Disinfection of key cards Sanitization of counter and table

surfaces; Sanitization of pens after every guest use; Mandatory masks for our front

desk; associates Hand sanitizing gels

for guests’ use

⚫ Spa Policy: Sanitization of high-touch areas using a high-grade disinfectant; All

treatment products and tools are cleaned and sanitized under UV lamp; QR code

available for guest to view menu; Therapist wear mask at all time for all treatment;

Air filtration

devices in operation at all times

⚫ In fitness studio: Compliance of government's social-distancing guideline; Hand

sanitizer available at the entrance and fitness area ;Clean equipment between
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each guest use and High quality disinfectant wipes available; Sauna Keys are

cleaned and sanitized

under UV lamp; Overnight cleaners deep clean equipment and

surfaces Air filtration devices in operation at all times.

IMPLEMENTATION OF THE PLAN OF ACTIONS

Functional Strategies/Activ Person Time Budget


Responsible Frame
Areas ities

A. Product 1. Expand Hotel Director, Every 5 $10M


Develop CEO
ment through series of years
acquisitions and
alliances.
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B. Customer 1. Take the Customer Weekly $50,00

Service guest’s reviews Service 0.00

Area seriously when it

comes to their

stay/experienc es

in order to find

what areas Hyatt is

lacking

and what needs to


be

improved.
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C. Technolo 1. Investing in IT Department Every 2-3 $5.5M

gical new Years

Area technologies that


will help Hyatt to
maximize its
advantages, such
as developing
websites, AI
housekeeping and
etc.

D. Marketin 1. Offer Sales and Monthly $10,00


loyalty
g and Marketing 0.00
programs to
Promotio Head
increase repeat
n Area
customer.

2. Offering
discounts peer
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to peer traveller
services in travel
sites.
OLIVAREZ COLLEGE
Dr. A. Santos Avenue, San Dionisio, Parañaque City
COLLEGE OF TOURISM AND HOSPITALITY MANAGEMENT

Strategic Alliances in Airline Industry:


Case Analysis
OLIVAREZ COLLEGE
Dr. A. Santos Avenue, San Dionisio, Parañaque City
COLLEGE OF TOURISM AND HOSPITALITY MANAGEMENT

I. EXECUTIVE SUMMARY

In recent years, airlines have hurried to create alliances out of fear of being left behind.

The international airline sector has now solidified into three big alliance groupings: The

Star Alliance, Oneworld Alliance, and SkyTeam Alliance. In the 1960s and 1970s,

information technology helped international tourism by permitting mass, standardized, and

tightly packaged tourism. The US Airline Deregulation Act of 1978 opened up a new

universe of competitive dangers and possibilities for airlines operating in the United States.

The 1944 Chicago Convention created the bilateral system of air service agreements

between pairs of national governments, which has controlled international air transport

ever since.

The conditions of bilateral agreements reflected the nations’ bargaining power and

contemporary aviation policy; as a consequence, productivity was frequently low and

expenses were high. The European Union completed deregulation of international aviation

services in April 1997. Domestic service deregulation began in the United States in 1978,

followed by Canada, the United Kingdom, Australia, and New Zealand in the 1980s.

A strategic alliance is an agreement between two or more parties to work together to

achieve a set of mutually agreed-upon goals while maintaining separate entities. Below

are the purpose of strategic alliances:

• Developing new or existing routes, for instance, becomes far less risky if the partners

operating the routes have firmly entrenched marketing strengths in the two markets at

either end of the routes.

• New entrants should sink resources to acquire such information.

• Collaborate with partners which have a different set of such attributes.


OLIVAREZ COLLEGE
Dr. A. Santos Avenue, San Dionisio, Parañaque City
COLLEGE OF TOURISM AND HOSPITALITY MANAGEMENT

• Use strategic alliance as defensive ploy to reduce competition.

Specific resource, skills or competence inadequacy or imbalance can be addressed by

collaborating with partners which have a different set of such attributes and can therefore

compensate for internal deficiencies. Incumbent suppliers should have more information

on market being served and can tailor their services to specific customer needs. Give

support by risk-sharing strategic alliances and use them as an attractive mechanism.

II. TIME CONTEXT

The main problem with this study’s coverage of a long history of working in a

partnership exemplified by the International Air Transportation’s (IATA) bilateral

agreements and strategic alliance is that certain airlines have taken a different competitive

attitude. The bilateral system of air service agreements between pairs of national

governments was created by the Chicago Convention in 1944. In the 1960s and 1970s,

the US Airline Deregulation Act of 1978 allowed airlines to operate within the United

States. In the early 1990s, the emphasis was on the efficiency benefits made possible

through alliances and as a result, airlines focused more clearly on the strategic rationale

of the specific partners. Strategic alliances are employed as a defensive strategy to lessen

competition since transforming a rival into a partner is an evident benefit of strategic

alliances.

III. VIEW POINT

Strategic Alliances in the Airline Industry consist of Star Alliance, One World

Alliance and Sky team Alliance. It was associated by International Air Transport
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Dr. A. Santos Avenue, San Dionisio, Parañaque City
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Association (AITA) that ensures that no airlines should be left behind. They conduct an

annual conferences and bilateral agreements between the carriers operating routes.

IV. PROBLEM STATEMENT

Economic restructuring through the philosophy of economic disengagement by the

governments in many parts of the world has, over the last few decades, had a major impact

on airline industry structure. There are some airlines that do not agree to the alliance

because some of them do not want to leave because failures are often attributed to

unrealistic expectations, lack of commitment, cultural differences and insufficient trust.

V. STATEMENT OBJECTIVES

• To determine the strategic alliances that we commonly seen on airline industry.

• To understand how it shaped and brought improvements and changes in the industry.

• To increase the market coverage, through the strengthening of market position on

certain routes.

• Provide benefits to customers in terms of improved service.

• To make an airline industry not left behind and to make services more convenient to

the passengers.

• To know the advantages and disadvantages of forming of alliances.

• Identify the benefits and drawback of airline strategic alliances.

• Identify the economies scales, scope and learning.

• Determine the reasons behind the airline alliance success and failures.

• Maximize the strategies of alliance formation.


OLIVAREZ COLLEGE
Dr. A. Santos Avenue, San Dionisio, Parañaque City
COLLEGE OF TOURISM AND HOSPITALITY MANAGEMENT

VI. AREAS OF CONSIDERATION

A. External Drivers Strengths Weaknesses

a. Information revolution

Advanced computer reservation systems have been


1. X
under development for a long time.

Produced a powerful marketing tool by directing


2. travel agents’ booking preferences toward the first X
flights.

Through codes of conduct, bias has been eliminated,


3. X
at least in Europe and North America.

Consumers use information to compare expansion


4. X
rates.

b. Economic restructuring

Economic disengagement in many parts of the world


1. X
has had a significant impact on aviation.

Contestable Markets has argued for the removal of


2. restrictive market entry barriers in the form of X
deregulation and privatization.

Airlines in the bilateral system of air service


3. agreements charge the same fares and frequently X
share markets and income.

International airlines are either publicly owned or


4. X
have significant government stakes.

c. Global competition
OLIVAREZ COLLEGE
Dr. A. Santos Avenue, San Dionisio, Parañaque City
COLLEGE OF TOURISM AND HOSPITALITY MANAGEMENT

Due to various strategic alliances, consumers pay


1. X
more or reduced fares.

Particular airlines are sub-brands of the umbrella


2. brands, which represent themselves as ‘umbrella’ X
brands.

create standardized items that are sold through a


3. X
standardized marketing strategy.

Improvements in communication and transportation


4. X
technologies, as well as greater global travel.

External developments in important markets are a


5. X
driving force for alliance creation

B. Internal Drivers Opportunities Threats

a. Risk sharing

1. Developing new or existing routes. X

2. Seen as an attractive mechanism. X

The firm must retain flexibility, and not be over-reliant


3. X
on any one partner.

b. Economies of scale, scope, and learning

1. Possible diseconomies at the largest airlines. X

Had a big impact on passenger numbers, market


2. X
share and both airlines financial performance.
OLIVAREZ COLLEGE
Dr. A. Santos Avenue, San Dionisio, Parañaque City
COLLEGE OF TOURISM AND HOSPITALITY MANAGEMENT

3. Have strong established positions in certain markets. X

c. Access to assets, resources and competencies

1. Poor resource allocation. X

A participant must be able to protect its own


2. competencies even while interacting with the alliance X
over a continuing period of time.

3. Weak management involvement for less equity stake. X

d. Shape competition

strategic alliances can be used as an alternative to


1. X
reduce competitors.

The long standing operating alliance such an


2. X
offensive positioning.

Can hinder the abilities of competing firms to retaliate


3. X
by binding them as allies.

e. Alliance structure and scope

The foreign market entry mode viewed as critical and


1. X
control.

characterized by high capital intensity, contrary in the


2. X
service sector.

Determines risks and returns, the amount of


relational friction between buyers and sellers,
3. X
and ultimately the performance of the investment
abroad.
OLIVAREZ COLLEGE
Dr. A. Santos Avenue, San Dionisio, Parañaque City
COLLEGE OF TOURISM AND HOSPITALITY MANAGEMENT

f. Evaluation of alliance performance

the alliance added value to a participant worth more

1. to enter into an alliance than to undertake X


a venture on its own.

To protect its own competencies while interacting


2. X
with the alliance over a continuing period of time.

the firm retain flexibility and not be over reliant on


3. X
any one partner.

VII. ALTERNATIVE COURSES OF ACTION

Alternative Course of Action Advantages Disadvantages


1. Developing or protecting a The objectives are openly There is little chance of
firm’s competitive advantage shared, cultures of the future competition such
or core competence by organizations are similar as when the partners are
acquiring incremental abilities enough to enable in adjacent industries.
in a critical area can process and methods to
sometimes be enhanced with be leveraged, and
the assistance of an governance structure of
experienced partner. the alliances is
established to promote
learning at the executive,
managerial and
operational levels.

2. Creating Future Strategic Investing in an alliance Not fundamental to


Options with a distribution and achieving a business
support services objective and could
company that had
OLIVAREZ COLLEGE
Dr. A. Santos Avenue, San Dionisio, Parañaque City
COLLEGE OF TOURISM AND HOSPITALITY MANAGEMENT

incremental distribution become critical in the


capacity rather than future.
invest in expanding its
own local distribution
capabilities.

3. Conduct an online poll of To have a better It may take longer to


airlines that are not on board understanding of why determine whether the
with the alliances other airlines do not want data gathered is
to join alliances and to accurate.
assist in determining
what needs to be
adjusted.

VIII. Decision Matrix

Likert Scale

5 – Most Likely 4 – More Likely 3 – Likely


2 – Less Likely 1 – Unlikely
Criteria ACA #1 ACA #2 ACA #3

Profitability 5 5 5

Effectivity 4 5 5

Ease of Implementation 4 4 5

Cost of Requirement 5 4 4

Timeliness 4 4 5

Total 22 22 24
OLIVAREZ COLLEGE
Dr. A. Santos Avenue, San Dionisio, Parañaque City
COLLEGE OF TOURISM AND HOSPITALITY MANAGEMENT

A. Profitability

All ACA got the same weight of 5 interpreted as most likely. This implies that they are

viewed as the courses of action that will definitely help the companies to gain profit should

they be implemented.

B. Effectivity

ACA 2 and 3 got the highest weight with a verbal interpretation of most likely This means

that creating future strategic options and conducting an online poll of airlines is the most

effective action to undertake because it will help the companies to solve the problems

easily that will surely benefit from it. In comparison, ACA 1 which obtained a weight of 4

interpreted as more likely, this implies that the two other courses of actions are also

effective ways to be implemented which can also help the companies on their operations.

C. Ease of implementation

ACA 3, which obtained a weight of 5 interpreted as most likely, appeared to be the easiest

action to help the company solve its identified problem. Therefore, conducting an online

poll of airlines is the easiest action to implement. ACA 1 and 2 got the same weight of 4

with verbal interpretation more likely. This means that the two are easier to implement and

will also great help to the airline companies.

D. Cost requirement
OLIVAREZ COLLEGE
Dr. A. Santos Avenue, San Dionisio, Parañaque City
COLLEGE OF TOURISM AND HOSPITALITY MANAGEMENT

ACA 1 got a weight of 5 interpreted as most likely. It clearly shows that the biggest cost to

execute is developing or protecting a firm's competitive advantage or core competence by

acquiring incremental abilities in a critical area can sometimes be enhanced with the

assistance of an experienced partner. On the other hand, AC 2 and 3 obtained the same

weight of 4 interpreted as more likely, this means that if these two will be implemented it

will have a lesser cost compared to ACA 1.

E. Timeliness

ACA 3 got a weight of 5 with a verbal interpretation of most likely. This means that

conducting an online poll of airlines that are not on board with the alliances is the timeliest

action to consider by the airline companies. ACA 1 and ACA 2 obtained the same weight

of 4 interpreted as more likely. This means that the two ACA is considered as the second

priority of the action.

Plan of Actions

Corporate Vision
“Working together to define the future growth of an industry that links and enhances our world

with safe, secure, and sustainable air transportation”

Corporate Mission

“Execute leadership in managing a portfolio of alliance goods and services in accordance

providing Airline Partners with the option of cost-effective cargo outsourcing assistance handled

by a competent global organization”


OLIVAREZ COLLEGE
Dr. A. Santos Avenue, San Dionisio, Parañaque City
COLLEGE OF TOURISM AND HOSPITALITY MANAGEMENT

Corporate Objectives

• Ensure that no airlines should be left behind.

• Provide a system that allow airlines to be monitor, manage and control their capacity.

• Evaluate the performance of alliances given objectives.

• Enhanced choice of destinations through the marketing of alliance partner’s route

networks.

• Alliances must emerge each headed by one of the major American airlines.

Strategies

1) Airlines required corporate partners that might help them expand their network coverage.

2) Compile a list of loyalty programs.

3) Form alliances to expand your market reach at a cheaper cost and with less risk.

4) Present different sorts of partnerships.

5) Learn to collaborate in a variety of ways that range in complexity and scale.

Policies

1) We will implement safety rules and regulations which aim to protect the international and

domestic companies.

2) We will observe laws and ordinances for government involvement and the implementation

of the severe economic rules on air traffic lay in several aspects such as fear of market

failure, national prestige, safeguarding of national defense, or concern about a lack of

safety due to free competition.


OLIVAREZ COLLEGE
Dr. A. Santos Avenue, San Dionisio, Parañaque City
COLLEGE OF TOURISM AND HOSPITALITY MANAGEMENT

3) In the case of bilateral air agreements, we will observe the government memorandum to

understand the aim in arranging traffic rights between two countries in terms of routes to

be flown or frequencies to be tendered.

4) Any exclusion or limitation of responsibility imposed by Alliance must apply to and be for

the benefit of Alliance's agents and representatives, as well as any carrier and its agents

and representatives whose aircraft are used for carrying by Alliance.

5) Purchasing insurance from an insurance company can usually provide additional safety.

Any restriction of responsibility under these terms of carriage or the applicable

Conventions may not impact such insurance.

6) We will gather personal information about you in order to provide transportation

commodities and legal purposes.

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