Business Positioning Strategy of Ritz-Carlton: An Analysis

1. Introduction

1.1. Company Background
The Ritz-Carlton Hotel Company, L.L.C., of Chevy Chase, Md., operates over eighty – five
hotels currently, in Africa, America, Asia, the Caribbean, and the Middle East. There are over
thirty hotels and residential projects under development around the world. It is located at
prime destinations around the world, offering luxury hotels where it sets high standards along
with superior service for the hospitality industry. The model of Ritz Carlton is divided into three
main areas: service, product and location. They are well- known for their service which is the
“ladies and gentlemen serving ladies and gentlemen”. Buildings and rooms are ensured to
look perfect, starting from decorations to private baths, which costs them around $500,000 or
more. Lewis (2014) mentioned that they find the best possible locations to satisfy customers
with luxury demands. The Mariott International (2015) has stated that the purpose of Ritz
Carlton is to promote the publicizing quality strategies that are successful quality awareness,
and the quality of companies’ achievements.
The Ritz Carlton (2018) has mentioned that they have expanded to Singapore in 1996 and
named their branch in Singapore as “The Ritz – Carlton, Millenia Singapore (RCMS). It was
owned by the Pontiac Land Group and was managed by the Kwee brother, where there is a
32 floor high – rise luxury and leisure hotel. It has a total of 608 guest rooms and suites along
with 2 panoramic view of Marina Bay and Kallang.
1.2. Methodology
In this portfolio, the research will be based on both primary and secondary methods. The
secondary method is used to research the company background, in order to have a better
understanding about them. It is also used to do a research on the existing business
positioning strategy and the future development plans of the hotel. A primary research has
been done on the business operation and the services of the hotel.
2. Business Positioning Strategy

2.1. Target Market
Target market is where each of the market segments are being evaluated on their
attractiveness, and will the selected segments will enter. Ritz Carlton starts off by
targeting the four main segmentations, which includes personal travels like luxury and
spas, weddings, special celebrations, business professionals, and residences and
club. What consumers look for in hospitality are based from these four categories. To
promote the products Ritz-Carlton has to offer, consumers are directed to a specific
page depending on the groups available at the top of the website. It also gives
information regarding the benefits of each of the amenities when a guest chooses to
stay at Ritz-Carlton. In terms of marketing, Lewis (2014) has mentioned that the Ritz –
Carlton uses several outlets and social media to connect with the customers for each
segment.
2.2. Competitor Analysis
Among the most significant competitors of the Ritz Carlton company such as Hyatt,
Hilton, Accor Hotel is on the top. The Accor Hotels is the only hotel groups recently that
is present in all the market segments. This group fulfills all the special treatment,
comfort, leisure and services that the customers need. The annual revenue the group
earns by serving in the hotel industry is $ 3.9B and almost 250,000 employees work
over here. Sebastien Bazin is he chairman and CEO of the company. The group is so
popular that it has more than 62.9 K followers on Facebook and Twitter. The group is
adopting sustainable development initiatives such as child protection, engaging in local
development, advocate fight against epidemics, promote balanced nutrition for the
workers of the company, the host communities and the customers. The group is also
stepping towards spreading environmental awareness, AIDS and malaria protection
awareness which makes them unique from the other hotel companies in the industry
(Accorhotels.group, 2018).
2.3. SWOT Analysis

2.3.1. Strength
The Ritz – Carlton(2018) has mentioned that they have a lot of strengths that
includes brand image, gold standards, outstanding service and passionate
employees. Their brand image is a major factor on their success, and its brand
image was recognized around the world as the top luxury hotel chain that has
amenities and high quality room offered, has an unbeatable customer service and
superior locations. Both guests and employees are benefited from this service, as
employees are more passionate and feel empowered when doing their jobs. This
will make the experiences of the guests to be unforgettable.
2.3.2. Weaknesses
Lewis (2014) stated that although the brand image of Ritz – Carlton is the major
factor for them to be successful, it also disadvantages them by the costs for
maintaining their brand image and it could discourage potential consumers. Arias
(2016) has mentioned that since the Ritz – Carlton is a luxury hotel, spending the
night there will cost starting from $500 to $10, 000 per night, which costs more
expensive than they should be. Therefore, Lewis (2014) mentioned that the Ritz –
Carlton needs to continue setting high standards on their brand and create more
values for the guests, for them to stay being competitive. Other than that,
employees need to have high-standards when hired. Therefore, Arias (2016)
mentioned that it can be stressful as most employees might not match with their
standards.
2.3.3. Opportunities
Arias (2016) stated that the opportunities of Ritz – Carlton involves in attracting new
guests through adding the spa facility to existing and to new locations, through
promoting and improving of the hotel security, by enhancing and expanding their
corporate social responsibility, opening of new hotels in undeveloped countries and
through sponsoring of events.
2.3.4. Threats