Strategic Alliance in Hospitality Sector

Running Head: STRATEGIC ALLIANCE
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Strategic Alliance
Strategic Alliance in Hospitality Sector
(Student details :)
3/30/2019

Understanding Science 1
Contents
Case Study Analysis: Strategies in Globalised Hospitality........................................................2
Introduction................................................................................................................................2
Case Study Analysis...................................................................................................................2
Introduction to chosen strategic alliance................................................................................2
Country Entry and Entry Modes............................................................................................3
Importance of Strategic Alliance...........................................................................................3
Advantages of Strategic Alliance...........................................................................................4
Disadvantages of Strategic Alliance and chosen partnership................................................5
Conclusion..................................................................................................................................6
References..................................................................................................................................6

Understanding Science 2
Case Study Analysis: Strategies in Globalised Hospitality
Introduction
This report is based on a case study analysis focused on entry strategy and strategic alliances
in international business. Strategic alliance is the international business strategy which has
introduced for competing within the global marketplace. Out of all kinds of the global
alliances this paper will discuss about strategic alliances within tourism and hospitality
management sector. In this context, strategic alliance is the international business strategy
where 2 or more firms share resources as well as business activities.
The report has identified an international hospitality strategic alliance as Hilton with Playa
hotels and resorts. With the help of country entry modes, importance of strategic alliance,
advantages as well as disadvantages of Strategic Alliance and the selected case study
partnership will be covered within this case study analysis. In this way, this paper is going to
discuss how the strategic partnership has helped them creating better brand recognition over
different continents (Weaver, 2017).
Case Study Analysis
Introduction to chosen strategic alliance
In order to be strategic within the international business market in globalised hospitality
sector, Hilton has been strategically allied with the Playa hotels and resorts to create a
landmark expansion of the hospitality company’s resort portfolio. On 17th September, 2018
an announcement by the Hilton marked expansion within the all-inclusive space for globe’s
leading hospitality company (Business Wire, 2018). In this context, Hilton and Playa are
having combined initial plans of opening 8 additional all-inclusive resorts by the year 2025.
Hence, the new relation with Hilton considerably expanded Playa’s entire addressable
business market as well as allowed Playa to hugely increase the total number of resorts it can
operate within each continent’s market. Thus, this strategic alliance within hospitality
industry is enhancing both organizations’ capability to potentially grab additional
management contracts as well as business transactions (Enz, 2009).