Business Strategy in Hospitality Industry

This report explores the business strategy in the hospitality industry, specifically focusing on Conrad Hotels and Resorts. It analyzes the macro environment, internal capabilities, and competitive forces using frameworks like PESTEL analysis, RBV analysis, and Porter's Five Forces model. The report also evaluates the strengths, weaknesses, opportunities, and threats of the firm.

BUSINESS STRATEGY

Table of Contents
INTRODUCTION ...........................................................................................................................................3
TASK 1..........................................................................................................................................................3
Apply macro environment on given organisation ...................................................................................3
Critically analyses hospitality macro environment..................................................................................6
TASK 2 .........................................................................................................................................................6
Analyze internal environment and capabilities using appropriate framework........................................6
Critically evaluate internal environment assessing strength and weakness of firm internal capabilities,
structure..................................................................................................................................................9
TASK 3 .........................................................................................................................................................9
Applying porter’s five forces model for evaluating competitive forces of gives sector...........................9
Devise appropriate strategies to enhance competitive edge and market position based on outcomes
...............................................................................................................................................................10
TASK 4.......................................................................................................................................................11
Applying range of theories, models and concepts for devise strategic planning ..................................11
CONCLUSION.............................................................................................................................................15
REFERENCES ..............................................................................................................................................17

INTRODUCTION
Hospitality business strategies performs an essential function in hospitality sector as its
benefits hospitality business industries to create revenues as well as more profits by enhancing
their potential of working (Shulga, Busser and Bai, 2021). There are several business strategies
that could be used by company for handling with different issues along with tactics in a
systematic manner so that it they will be able to accomplish with their competitive advantage and
profits and could be able to deal with competition which is present in markets. As business
strategies that are implemented by hospitality industries service providers so that hotels will be
able to carry a constant success by having effective enhancement it in terms of accomplishing
their objectives which are planned through strategies. This report is based on business strategy of
hospitality business in Conrad Hotels and resorts which is an international company of Highly
effective luxury hotels along with having resorts that is operated and carried up by Hilton. This
report includes analysis of influence and impact of macro environment in company along with its
strategies, analysis of internal surroundings and potentials with different frameworks, porter's
five forces models with the evaluation of competitive forces, range of theories and models along
with interpretation of strategic planning along with its conclusion.
TASK 1
Apply macro environment on given organisation
Macro environmental aspects are considered to be different factors that have a direct impact
on performance of hospitality service in terms of their profit along with we get influenced from
their working culture also (Childs and et. al., 2021). As in terms of Conrad hotels and resorts
various external environment analysis that are explained through different frameworks are as
follows:
PESTEL analysis:
It is basically said to be external analysis that could impact along with influence productivity
of Cornad hotels that are explained as follows:
 Political factors: There is political stability in country that becomes an important factor
as hotels reach to cope up with different political situation in various countries which

they are carrying out the business (Lin and Ottenbacher, 2020). As Cornad hotels
performs their business practices in various countries which are exposed to different
political risks. It carries strength of high amount of political stability in countries that
could be beneficial for hotel to carry out their business practices. Along with weakness of
different political risk that are present according to countries government regulations. Economic factors: As factor creates and impact on hotel and health factors in different
ways as these aspects are under in control of business along with their effects revenues of
hotel business. There is opportunity to grow in markets by carrying out business
practices. Along with there is a weakness of various factors in terms of rates that are
interest rate, inflation rate that could affect business practices of hotel in a particular
country. Social factors: As Cornad hotels and resorts are generally known for their international
customer’s visitors company. As its finances is affected through various social factors
such as lifestyle population and other (Crespí-Cladera, Martín-Oliver and Pascual-Fuster,
2021). This factor helps in building a diverse portfolio of carrying out international
business practices in hotel industry. Along with it becomes difficult for Cornad hotel to
identify customer’s requirements along with different growth rates so that their
demographics could be affected. Technological factors: There is a regular improvement in technology which is available
in competitive business practices of Cornad hotel and resource that should be upgraded
by them for improving their value proposition towards customers. There is strength of
various technological advancement which could be used by hotel to improve their
services. Legal factors: As there are different laws along with regulations of various countries that
could affect hotel practices of Cornad hotels. As there are complex employee laws along
with different legal frameworks which could be used by hotel to attract interventions of
government and its business practices. it carries a strength for following various legal
rules and regulations under their terms.
 Environmental factors: As these aspects of Cornad hotels are basically sophisticated in
terms of prevention of environment and its surroundings. It has a strength of having a
regular check on particular waste management of as a business practice. Along with

weakness of becoming a point of criticism for polluting their surroundings by using
different technological tools.
Critically analyses hospitality macro environment
It has been critically analyses that hospitality macro surroundings are to be necessarily to be
determined for carrying out strategic management decisions in terms of having business analysis
that could help hotel in carrying out their business practices through different strategies in order
to deal with competition. With benchmarking that is used to have a standardized result so that
hotel could be able to achieve their targets.
TASK 2
Analyze internal environment and capabilities using appropriate framework
Resource based view (RBV)
It refers to a strategic managerial framework that is used to examine various strategic
resources that an organisation uses to attain sustainable outcome in competitive marketplace
(Guzzo, Abbott and Madera, 2020). These are mainly concerned two types of resources such as
tangible (that can see, touch, feel) and intangible resources (these are mainly services which are
offered by companies to attract customers). Therefore, Conrad Hotels and Resorts are highly
emphasis on both types of resources to attract and gain competitive advantage. It demonstrated
resources which are used by Conrad Hotels and Resorts that are physical, intangible, financial,
operational resources as they are valuable, rare, imitate and organized to hospitality firm. Key
resources that are rare and valued for Conrad Hotels and Resorts are presented below:
 Physical resources- In case of Physical resources, Conrad hotels and Resorts have
number of outlet in all over the globe having attractive interior, building etc. which
attracts customer attention toward hotel. Due to this firm will enjoy competitive
advantage within rival industry. Hence, it represent valuable for hotel because it generate
high returns and profits that support hotel long term survival. It served their presence in
around 39 locations in several countries within globe.
 Operational resources- It denotes to tools, machines, workers, and vendors etc. who
perform activities to attain projects. In case of Conrad hotels and resorts, operational

resources that are associated are worldwide online booking system, managing large
visitors program along with operating procedures.
 Financial resources- It is highly essential resources for every types of organisation. In
case of hospitality firm it is essential to provide services to customers and enhances
presence in worldwide business industry (Eller, Peters and Pantovic, 2020). These are
those that help hotels to raise funds from several sources to finance investments, current
activities and capital. In terms of Conrad Hotels and Resorts, financial resources are
mainly includes payments from guest, strong balance sheet, capital market along with
strength profitability record.
 Intangible resources- In case of Conrad Hotels and Resorts intangible resources are high
brand equity, intellectual property rights, processes etc. that helps in gaining competitive
advantage within marketplace.
VRIO Analysis
It defines an effective model that represents resources and capabilities of Conrad Hotels
and Resorts to attain targets on time. Several resources and capabilities which are quite effective
for hotel groups are presented below:
Resource/
capabilities
Valuable Rare Difficult to
imitate
Is it organised
Hospitality
services
valuable
Yes - - -
Physical
resources
Yes Yes - -
Brand image Yes Yes Yes -
Financial
resources
Yes Yes Yes Yes
 Valuable- It represents as strength of Conrad Hotels and Resorts as their hospitality
services are highly valuable because it helps in get over the market threat along with
attracting more customer. The physical resources are also very valuable because of
number of outlet on global environment generates values in competitors eyes and attain
in profitable results. In this financial resources are also very crucial to reach the better

advantage in terms of high sales. Due to best brand image in marketplace it also creates
value to hotel because it helps in gaining competitive advantage within marketplace.
 Rare- The physical resources of Conrad Hotels and Resorts are rare because of global
existence that helps in attracting number of customers to gain competitive advantage.
Brand image of hotel group is also rare because it creates trust and loyalty in guest mind
(Guillet, 2020). It is done because employees provide attractive services to customers due
to whom they cannot find any mistakes and attract to visit again at hotel. As their
financial resources are also very rare due to this target are completed on set deadline and
in efficient and effective manner.
 Imitate- The Conrad Hotels and Resorts brand image is highly imitable that does not
copied by other competitors. Due to effective and attractive services offered to customers
hotel brand image is show their presence in imitable manner that is not creeping by other
organisation. Therefore, financial resource of this concerned hotel is also imitable
because it is increased by regular efforts in positive direction to attract customers due to
which their overall financial resources are enhances and it is difficult to rivals to copy it.
 Organized- Mainly the financial resources of Conrad Hotels and Groups are more
organized in natures as it is produced or developed by making more contribution on
persistent manner.
Hence, from above information it is analyses tat financial resources are very crucial for
Conrad Hotels and Resorts in terms of maintain sustainability and equilibrium within selling
and attracted customer perspective.
SWOT Analysis
This analysis helps in examine the internal and external strength and weakness along with
external threats and opportunities so that best strategies are developed to overcome with this
threats and weaknesses. In case of Conrad Hotels and Resorts, SWOT analysis is presented
below:
STRENGTHS WEAKNESSES
Respectable brand image for offering Highly impacted by economic slowdown

remarkable services to customers.
High technical innovation enhances visitors
experiences
Charge high prices for room and reflects high
cost to operate and maintain high standards.
OPPORTUNITIES THREATS
Direct booking customer is major opportunity
for hotel due to which customer feel that they
pay less price while booking directly from
official website.
High usage of technology advancement attracts
customers to enjoy remarkable services.
Major threat is competitors who are present in
marketplace such as Accor, Ritz Carlton etc.
Major changes done in market because of
major fluctuation affects profitability
(Carvalho and de Sousa Paiva, 2020).
Critically evaluate internal environment assessing strength and weakness of firm internal
capabilities, structure
By assessing above information it is critically evaluated that to strength the internal
capabilities and structure Conrad Hotels and Resorts take the use of SWOT, RBV and VRIO
analysis. All these are highly beneficial to gain knowledge about concerned hotel resources,
capabilities, strength, weaknesses, threats and opportunities as per the current market position.
All these frameworks offer valuable information regarding hotel so that high competitive results
are attained effectively. But it is also examined that using these framework contain more cost and
time because of these Conrad Hotel and Resorts cannot focus on other essential decisions that are
useful for generating sustainable results.
TASK 3
Applying porter’s five forces model for evaluating competitive forces of gives sector
Porter’s five forces model
It refers to a competitive model that is used by Conrad Hotels and Groups to make
several strategies for gaining rival benefits in competitive market and sustain for a longer time
period of time (Porter's five force analysis. 2019). The porter five forces model are presented
below:
 Threats of substitute- In hospitality industry, threat of substitute is considered the
competitors present in marketplace who offers services to customers at own price.
Therefore, threat of substitute is moderate in hospitality sector that is faced Conrad
Hotels and Resorts. Due to several organisation present in market customers has
numerous options to choose best one according to affordability of services that hotel

offers (Hamutoglu and Basarmak, 2020). To overcome with this concerned hotel is
mainly focus on price by offering quality services so that high profitable results are
enjoyed. For example- in this Airbnb is major substitute of Conrad Hotels in hospitality
sector as they offer best rental place to customers using online platform that attracts
visitors as compare to hotels. To overcome this issue hotels offer services at best price
that are easily affordable to people.
 Bargaining power of customers- In terms of Hospitality sector bargaining power of
buyers are high because customers have number of options due to which they switch to
competitors. In this Conrad Hotels and resorts creating a brand image by retaining loyal
customers to offer quality services at best price option. To gain the customer attraction so
that they cannot switch to another brand Hotel adopts inelastic pricing method in which
they offer quality services so that buyers adopt services of hotels on priority basis.
 Bargaining power of suppliers- In terms of hospitality sector bargaining power of
suppliers is less due to which Conrad Hotels and Resorts enjoys the remarkable profit of
several assimilation that are linked with them for the many past years.
 Threat of new entrant- In case of hospitality sector threat of new entrant is low because
in these industries new entrant needed more capital and resources to sustain (Lemos and
et. al., 2021). This is beneficial for Conrad Hotels and Resorts because it is very difficult
for new entity to get entry effectively by matching the Conrad hotel services.
 Rivalry among competitive firms- Hence this framework is high ranked in hospitality
industry that affects business operation of hotel. In this Conrad Hotels and Groups faced
major competition in market and due to this they mainly focus on fierce the marketplace
for this they reduce the cost by involving cost cutting program. This also helps in
targeting the large base of customers.
Hence, this model helps in setting strategic direction so that overall objectives of the firm
will attained on time. This helps in gaining productivity and profitability of hotel where manager
focus on keep on maximizing.

Devise appropriate strategies to enhance competitive edge and market position based on
outcomes
As per the above information it is evaluated that for Conrad Hotels and Resorts porter’s
five forces model is best strategic model because it helps in gaining competitive edge and
maintain high market position. This model helps in selecting the best strategy so that high
sustainability results are attained by organisation. In this porter’s five forces model helps in
removing threat of substitute and competition among rival firm by attracting more customers
who are retain with the firm.
TASK 4
Applying range of theories, models and concepts for devise strategic planning
In case of Conrad Hotel and Resorts, manager highly emphasis on developing SWOT and
PESTLE analysis that helps in developing best strategy in favor of hotel proficiency and
sustainability. Therefore, manager also evaluates the resources and capabilities using VRIO and
RBV analysis due to which firm understand their resources and capabilities strengths (Bendtsen,
Clausen and Hansen, 2021). After this they frame a porter’s five forces model due to which they
gain competitive advantage that helps in developing objective plan, making competitive
strategies, focus strategy so that best profitable results are enjoyed.
Objectives of plan
In context of Conrad Hotels and Resorts, the main objectives of developing a plan is to
maximize the market share and position of concerned hotel along with increasing customer base
for generating profitable results in competitive marketplace.
Conrad Hotels and Resorts objectives based on developing customer base by 10% by
offering modifying services and increment in revenues of 5%. Therefore to attain this objective
organisation provide training facilities to employees where they adopts key performance
indicator to evaluate performance of employees and shows set results within set time frame that
is 12 months.
Strategic directions

Mission To become a best luxury hospitality company within global region by
developing heartfelt experiences for customers, effective opportunities
for team members, create high value to owners and communities.
Vision The main vision of Conrad Hotels and Resorts is to become a remarkable
place for delighting visitors with customised and intuitive services along
with food and beverages.
Value Conrad Hotels and Resorts values are based on that they are highly
passionate about delivering extraordinary visitor experiences (Welcome,
TO HILTON, 2021).
Strategic priorities Conrad Hotels and Resorts strategic priorities is mainly product
development as they are capable of utilise their core competencies that is
effective to target the number of customers where they also get support of
community and shareholders as they offer eco-friendly quality services to
their guest.
To set strategic direction manager of Conrad Hotels and Resorts focus on use of
Bowmen’s strategy clock that helps in taking decision effectively.
Bowmen’s strategy
 Low Price, Low value- This strategy is not useful for Conrad Hotels and Resorts as they
cannot offer their services that contain low value because it highly impacted on brand
image.
 Low price- As it is useful for Conrad Hotels and resorts where they focus on offering
their services at reasonable cost to attract high base of customers.
 Hybrid- In this concerned hotel group of Hilton provides services to customers in
intuitive manner at low pricing strategy that enhances profits and sales in marketplace
(Sapapthai and et. al., 2020).
 Differentiation- In case of Conrad Hotels and resorts manager highly focus on offering
modified and intuitive services to customers so that profitability of hotel is enhanced.
 Focused differentiation- Conrad Hotels and Resorts uses this by maintaining the focus
to offer the numerous services by which visitors are highly attracted so that hotel can
attained more profitable results.
 Risky high margin- In this Conrad Hotel and Resorts focus on continuous development
by emphasis on creativeness and innovation.

 Monopoly pricing- In this strategy only one firm will lead the market by managing
pricing of different services that are followed by other firms. It is not possible for Conrad
Hotels and Resorts because there are number of rival firms are presented in market.
 Loss of market share- It represents negativity on performance of Conrad Hotels and
Resorts and because of this hotel share prices are also impacted negatively due to which
hotel will not sustain in marketplace.
Competitive strategies
Porter’s generic model- It is a strategy that is used by Conrad Hotels and Resorts to
recognize the several factors that highly contribute in success and developments of hotels.
Porter’s generic model is presented below:
 Cost leadership- It defines that strategy in which firm offered their services and products
at low price within marketplace to their guest. In case of cost leadership strategy, Conrad
Hotels and Resorts give discounts, offers to customers so that objectives of attracting
large base of customers along with maximizing sales and profits are attained. If this
strategy is adopted by hotel than price sensitive customers are easily get attracted due to
this more loyal and potential customers are visited hotel to enjoy remarkable services at
best price. Hence, they select the cost as per competitive hotel pricing strategy so that
buyers are influence towards hotel services.
 Differentiation- In this strategy Conrad Hotels and Resorts differentiate their services to
the rival firms by doing product development (Wellner and Lakotta, 2020). Within this
they offer services like variation such as business meeting, adventure trip, family trip,
couple package by using ambience according to selected package. This will attracts
number of customers and enhance the profitability in marketplace.
 Focus- In this strategy both strategy are into consideration that is focus differentiation
and focus cost. In this manager of Conrad Hotels and Resorts adopt this strategy then
they provide modified offerings to customers at best price so that high market share is
enjoyed by company in long term survival.
Focus strategy

Ansoff model- It is a focus strategy matrix that is mainly implemented by manager of Conrad
Hotels and Resorts to measure the impact of market on the organisation sustainability and
profitability. It is to be shown below:
 Product development- In this strategy Hotel mainly focuses on gaining competitive
advantage at marketplace in all over the globe where hotel have their physical presence.
In this they emphasis on launching new services like doctors on call service because of
COVID 19 situation, using upgraded technology on check in and check out so that people
are not force to face to face contact. All these services help in attracting more new
customers due to which sales of hotel are also increased.
 Market development- In this Conrad Hotel and Resorts mainly focus on developing
market with their existing services that they offer to customers in new market (Ansoff
matrix. 2020). This helps in enhancing market size of hospitality industry.
 Market penetration- In this hotel, penetrate the prices of their services that helps in
gaining short term tactics and maximize customer base to develop revenues.
 Diversification-Within this strategy, Conrad Hotels and Resorts focus on diversify they
market along with offering new services to gain high profitable results. It is highly risky
for company as the company research well on new place customers then they gain high
profitable results and if they cannot scrutinize effectively than it reduces profitability in
marketplace.
By analyzing above strategies such as Bowmen’s strategy, porter’s generic strategy and
Ansoff strategy Conrad Hotels and Resorts focus on adopting product development strategy
where they offers modified services to customers by using cost leadership style in terms of
providing discounts and offers so that objectives of hotel is to be attained successfully. This also
helps in gaining competitive advantage along with developing market share within short period
of time.
Recommend strategic direction
Strategic
objectives
KPI TARGET ACTION PLAN

Financial It mainly indicates the measurable value
that represents company financial results
and performance. In terms of Adopting
product development strategy Conrad
Hotels and Resorts measure their profits,
sales and cash flow to attain goals and
objectives prominently.
To achieve this target
company need to focus on
hiring a best experienced
finance team who prepares a
budget so that financials
goals are attained
proficiently that are
increment in 5% in revenues.
In this action plan
manager of
Conrad Hotels
and Resorts
forecast balance
sheet, find break
even point in
financial data so
that targets are
attained
effectively.
Customer To examine the customer key performance
indicator Conrad Hotels and Resorts
emphasis on customer satisfaction score
based on offering services.
In terms of target strategy
Conrad Hotels and Resorts
targets the middle and high
class people in which mainly
targets family group, couples
and professionals who attend
business meeting.
In customer
action plan
Conrad Hotels
and Resorts focus
on maintaining
quality of services
that is delivered
to customers by
taking regular
follow-ups to
guest.
Internal
process
To examine the internal process manager of
Conrad Hotel and Resorts adopts balance
scorecard as KPI tool so that overall
operating efficiency are examined to
attained profitable results.
The main internal process
target is to attain the goals
and objectives productively
and proficiently so that long
term sustainability is enjoyed
by firm in competitive
marketplace.
To attain this
target Conrad
Hotels and
Resorts survey
the market so that
they understand
trends which are
useful to gain
profitable results.
People It is a type of measurable form that
demonstrates the monitor and controlling
technique so that high profitable results are
experienced by organisation in their long
term survival (Wellner and Lakotta, 2020).
Conrad Hotels and Resorts
generally target those people
who have strong
interpersonal skill like
communication skill,
managing skill so that they
easily handle customers.
In this Conrad
Hotels and
Resorts attain
target to offer
regular training
and development
session to
customers.
CONCLUSION
From the above report it is concluded that hospitality business involves several strategy
within their operation so that profitable outcome is to be attained in specified time frame. This

report inculcates internal and external factors that directly impact the working criteria of business
and also affects the working criteria of hotel. This helps in gaining profitable results to business
in terms of attracting competitive advantage by using stakeholder’s analysis, porter’s five forces
model, VRIO, SWOT, Ansoff and various theory that are very useful to develop strategic
planning proficiently and effectively.

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