Competitor analysis
Marketing is one aspect of the business environment that needs to be highly considered by a business to be able to become sustainable in the market. The marketing activities of business will always determine its success as it will give the potential customers the reason why they should trade with the corporate entity and not with the rival companies. Marketing involves having the best competitive strategy in the industry and the best marketing procedures that will give customers enough reason to choose your products. Sofietel Hotel, an upcoming chain in the Darling Harbor, is expected to be opened soon and operate in the competitive market. This paper aims to assess and evaluate the marketing plan and activities of the upcoming five-star hotels including its competitive analysis and competitive advantage and positioning, and how the business will become sustainable in the market.
Sofitel hotel is joining the market with various objectives in its manifesto. The mission of the hotel chain is to become the best five-star hotels in the region and offer its customers the best services and products than what the competitors are offering. The business is coming up more advanced business strategies than to competitors aiming to attract and retain customers in the market (Enz, 2010)t. The below table can best be used to describe the competitor analysis of the industry.
Marketing is one aspect in the business environment that needs to be highly considered by a business to be able to become sustainable in the market. The marketing activities of a business will always determine its success as it will give the potential customers the reason why they should trade with the business entity and not with the rival companies. Marketing involves having the best competitive strategy in the industry and the best marketing procedures that will give customers enough reason to choose your products. Sofietel hotel, an upcoming chain in the Darling Harbor, is expected to be opened soon and operate in the competitive market. This paper aims to assess and evaluate the marketing plans and activities of the upcoming five star hotels including its competitive analysis and competitive advantage and positioning, and how the business will become sustainable in the market.
Sofitel hotel is joining the market with various objectives in its manifesto. The mission of the hotel chain is to become the best five star hotels in the region and offer its customers the best services and products than what the competitors are offering. The business is coming up more advanced business strategies than to competitors aiming to attract and retain customers in the marke (Enz, 2010)t. The below table can best be used to describe the competitor analysis of the industry.
Competitive advantage and positioning statement
|
Feature |
Sofitel hotel |
Four Seasons Hotel Sydney |
Swissotel Sydney |
Mercury Sydney |
|
Age in the industry |
Being an upcoming new hotel in the industry, people might find the need to visit the hotel to witness and experience the newest services in the region. |
The hotel has been in the market for some time and has many clients in the market. However, many clients risk going for the latest business in the industry to experience new environment. |
Has as well been in the market for certain time and many clients may leave for the new hotel in town to have the latest experience of the hotel industry |
This is also not an exception as it has been to the market before Sofitel and it risks losing clients to Sofitel, the newest and latest hotel in the industry (Brokaw, 2009). |
|
Location |
The location chosen for the hotel is an added advantage considering positioning for the panoramic harbor and city views. Many clients would be interested to visit and experience the new views of the harbor and city. |
The hotel is conveniently located for sightseeing in Sydney with the town’s library and the rocks a few minutes away. It is a short distance from the railway and is easily accessible. |
The location is also well sighted and customers might have the pleasure of viewing the beautiful Sydney city and its environs at an aerial view from the rooftop. |
The location of the hotel has been well selected and it is a place attracting many customers who find the location desirable for vacations and a nice place to spend their holidays. |
|
Number of rooms |
The hotel is designed to have many rooms giving it an advantage of hosting as many clients in the market as possible and no congestion cases would be witnessed in the process. |
Four Seasons Hotel also has many rooms in its facility and stands a chance to remain a strong competitor in the industry despite new entries in the market. |
Can still be competitive in the market as it also has many rooms that can allow the hotel to accommodate as much as its competitors in the market. |
Faces threat of losing customers to its competitors as it has the least rooms among its competitors and risks congestion in its premises that might lead to customer looking for better choices. |
|
Food and beverages |
The hotel is proposed to not only offer food and beverages, but to offers these at the rooftop lounge where there is a deck and infinity pool. |
The company has both restaurant and bar where guests can unwind of an evening with dinner and a drink. It has a variety of bars and cafes in its facility making it competitively advantageous in the industry (Cuellar,Eyler& Fanti, 2015). |
Even though the hotel also offers food and beverages in its chain, the services are not offered at a designed and well planned site compared to its rivals in the market. |
Has fair view for its restaurant and bars and may be able to retain some of its clients from moving to the upcoming five star hotels. |
One of the competitive advantages that Sofitel hotel has is in its capability. Given the fact that the hotel is adding more rooms to the hotel industry, it appears that the company will be able to accommodate many customers in the industry than its rivals and may not at any time have congestion incidences (Conrady, Buck, Viehl&Tittel, 2011).
The distinctive competency of the hotel is in its location where it is positioned for the picturesque harbor and city views. The site and the picture of the entire Sydney cities can be considered in its beautiful nature that may prompt many customers to want to have the experience. The experience may demand more visits as it might be a better view for people to relax, drive away fatigue and feel the breath of the city (Freeman, 2010).
The value creation of the hotel is that it will add value to the economy of the country as the transactions and taxations will be a revenue generating agent for the state authority. It will also be a source of employment to many people in the country also adding to the economy as many people will then pay taxes to the government (BHA, 2016).
Sofitel is expected to join the industry with a cost advantage where clients will be able to enjoy the features and experience of the hotel at fair prices than the rival businesses. The strategy is sent to allow the companies attract many clients who will then appreciate the value of the company and the features received even when the costs will be adjusted in the future.
The target audience for the firm is people who love to see the views of the city, people on business trips, vacation and people who may want to experience holiday ad a fancy place (Chen and Choi, 2008). The frame of reference for the brand is in the hotel industry where it will be giving customers the best and unique products and services aiming to satisfy people from all walks. For the people who love holidays and vacations, Sofitel will be the best destination for them. For those who love leisure and entertainment, all these can be found at Sofitel. Sofitel has been advertised in various ways using unique features and images that have been able to create a picture of an exclusive five-star hotel coming to the market making customers eager to experience the real feeling implied in the ads (Chi and Gursoy, 2009).
Conclusion
For any business, marketing is one aspect of the business environment that needs to be highly considered by a business t be able to become sustainable in the market. The hotel industry in Sydney is seen to have many competitors who have been well established in the market and have different competitive features. Following this case, Sofitel will have a tough assignment to enter the industry and fish customers to come to the hotel. However, Sofitel hotel has been strategically placed in the market and is expected to come with cost and differentiation advantages that will be the most competitive feature in the market. The hotel has a distinctive competency considering its location that has been positioned for the scenic harbor and city views.
References
BHA. (2016). The economic contribution of the UK hospitality industry. Oxford Economics.
Brokaw, L. (2009), “Does sustainability change the talent equation?”, MIT Sloan Management Review, Vol. 51 No. 1, pp. 33-34.
Chen, P.-J. and Choi, Y. (2008), “Generational differences in work values: a study of hospitality management”, International Journal of Contemporary Hospitality Management, Vol. 20, No. 6, pp. 595-615.
Chi, C. and Gursoy, D. (2009), “Employee satisfaction, customer satisfaction, and financial performance: an empirical examination”, International Journal of Hospitality Management, Vol. 28 No. 2, pp. 245-53.
Conrady, R., Buck, M., Viehl, P., &Tittel, K. (2011). Trends and issues in global tourism 2011. Heidelberg: Springer.
Cuellar, S. S., Eyler, R. C., & Fanti, R. (2015). Experiential Marketing and Long-Term Sales. Journal of Travel & Tourism Marketing, 32(5), 534-553.
Enz, C. A. (2010). Hospitality strategic management: Concepts and cases. Hoboken, N.J: John Wiley & Sons.
Freeman, R. E. (2010). Strategic management: A stakeholder approach.Cambridge : Cambridge University Press
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