The Ascott Limited: Role and Strategies in Achieving Business Goals

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This essay examines the role and strategies employed by The Ascott Limited, a prominent Singapore-based lodging company, in achieving its business objectives within the competitive global hospitality industry. The analysis begins with an overview of The Ascott Limited, highlighting its extensive portfolio of serviced apartments and global presence across numerous countries. The essay then outlines the company's objectives, including becoming a leading global enterprise and providing high-quality real estate services. A SWOT analysis is conducted to identify the company's strengths, weaknesses, opportunities, and threats, followed by an evaluation of the 4Ps of the marketing mix (Product, Place, Price, and Promotion). The study further explores the strategies used by the company, such as market expansion, acquisitions, and diversification, alongside its target audience and competitive landscape. The essay concludes by summarizing the key findings and demonstrating the strategies used by the firm, which is a global franchising model to achieve its goals.
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Name: Ryan Lee
Module: Hospitality Business Development
Date of submission: 17 January 2020
Matriculation no: 40447486
Lecturer: Catherine Anne Feenev
Tutor: Clive Mark Fernandez
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Introduction
Hospitality is recognized to be one of the major industries in Singapore and accounts for
a large share of revenues generated in the country. In the age of rapid globalization, the
organizations operating in the hospitality industry are resorting to strategizing efficient
means that will assist them in maximizing their productivity and profitability. This
requires the organizations to diversify their services made available to the customers in
order to meet their requirements and demands and obtain an optimized level of
customer satisfaction. The Ascott Limited is recognized to be one of the major lodging
companies based in Singapore and conducting their operations globally. However, the
company faces high competition from several other organizations in the hospitality
industry of the country. In order to obtain and maintain a competitive advantage in the
market, the organization is required to strategies that will help in the growth and
development of the business activities and operations. The essay aims to determine the
role and strategies used by The Ascott Limited in achieving its business goals and
targets.
Overview of The Ascott Limited
The Ascott Limited is regarded as a Singapore based firm which is determined to be the
largest global lodging owner-operators. Its portfolios possess more than 180 cities in 30
countries in USA, Africa, Middle East, Europe, Central Asia and the Asia Pacific. It
offers serviced apartments along with living spaces (Net, 2019). The international
lodging company of The Ascott Limited is owned by CapitaLand, and includes several
other brands under its purview, inclusive of Citadines, Ascott, Citadines Connect, The
Crest Collection, Préférence, Harris, Vertu, POP, Yello, Fox and Quest
(Ascottmea.com, 2020). The company has more than 67,000 units of operation and
more than 720 properties across the globe. The mission of the company is to become
the leading international providers of accommodation in Turkey, Middle East and Africa,
through the provision of impeccable customer services in order to make them
experience a feeling of being at home away from home (The-ascott.com, 2020). The
vision of the company is to become a leading global enterprise which enriches
communities and people with the help of its high quality of real estate services and
products. The company enjoys a positive brand image and identity and has been
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recognized for its high standards of quality in terms of customer services. The company
has additionally received several accolades including the award for ‘Leading Serviced
Apartment Brand’ in Europe, Middle East and Asia by Word Travel Awards in the year
2019; ‘Best Serviced Residence Brand’ by the Business Traveler Asia-Pacific Awards
and DestinAsian Readers’ Choice Awards in the year 2019 and ‘Best Serviced
Residence Operator in China’ by the TTG China Travel Awards in the year 2019 (The-
ascott.com, 2020).
Objectives of the firm
The evaluation of the objectives of a business organization is essential as it helps in
aligning it business activities and functions accordingly. The organization aims to meet
its objectives with the help of the skills and expertise of the employees and staff at the
serviced residence. Annual training programs are organized by the company for the
improvement of the performance quality of the staff. The training of the employees is
further aimed at building the technical and service quality of the company along with the
personal and professional development of the employees in order to maximize the
employee satisfaction rate (The-ascott.com, 2020). The company also aims to build a
culture that is not only diverse but also inclusive, catering to the interests of the
employees and staff by conducting regular systems of feedbacks and reviews. The
objectives of the firm are as follows:
To become a valuable partner in the group’s success in development and
learning
To become a leading global enterprise and enrich communities and people
To provide high-quality real estate services and products to customers
SWOT Analysis
SWOT analysis presents a strategic framework that helps in the determination of the
strengths, weaknesses, opportunities and threats that may be faced by a business
organization (Gürel & Tat, 2017). Using this framework, the organization may assess
the viability of its business plans on the basis of the evaluation of several internal and
external factors. As per SWOT research, the strengths of the organization is its global
presence and strong financial growth in ASEAN market Moreover, its weaknesses are
weak market performance and fluctuations in occupancy rate. On conducting a SWOT
analysis on the company The Ascott Limited, the following results can be obtained:
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Strengths – The strengths of the company include its global presence and
positive brand identity among the customers. Furthermore, the company also has
a strong financial growth in the ASEAN market. The growth strategies adopted by
the organization in terms of the expansion of its operating units also acts as a
strength.
Weaknesses – The weaknesses of the company include the stagnancy in
occupancy rates and high debts of long-term capital. Furthermore, the company
also has a weak stock market performance at present.
Opportunities – The opportunities available to the company include expansion
into several other countries like Russia, India and Brazil, and diversify the range
of services provided by them to the customers.
Threats – The threats faced by the company include a steady increase of
competition in the hospitality industry from online hospitality providers as well as
other well established organizations in the industry such as Marriot International.
4Ps
For 4ps it categorized into a different part such as product, price, promotion and place.
It is analyzed to enhance its product strategy the firm provides authentic hospitality and
luxurious services to customers. The 4Ps model provides for the different marketing
options available to a business organization through the evaluation of the products and
services made available to the customers at different places and prices, using specific
promotional tactics (Londhe, 2014). An evaluation of the 4Ps of marketing mix of The
Ascott Limited can thus be made in order to enhance its business operations:
Product – The product offered by The Ascott Limited to its customers is the
hospitality and lodging services along with serviced apartments and other living
spaces.
Place – The services of the company are available in more than 180 cities in over
30 countries including USA, Middle East, Africa, Central Asia, Europe and the
Asia Pacific.
Price – The services provided by the company are moderately priced and can be
afforded by the customers belonging from middle and high income groups. The
company also provides offers and frequent discounts on their services so as to
make them accessible to a larger target market. The premium services of the
company are high priced and caters to the requirements of individuals and
families from high income groups.
Promotion – The Company promotes its services through online mediums such
as their official website and various social media platforms.
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The strategy used by the company
One of the most important aspects of conducting profitable and productive business
activities is to strategize effective means for the growth of the business organization. A
business organization can utilize several kinds of growth strategies that may include
market penetration, market expansion, product expansion, diversification and mergers
or acquisitions (Rothaermel, 2016). In the given case, it can be observed that The
Ascott Limited has adopted a combination of market expansion, acquisitions and
diversification strategies in order to ensure the growth of its business activities and
operations.
The market expansion strategy of the company can be recognized from the expansion
of its activities in different regions of the world. The company is still resorting to further
expand the scope of its business by introducing new operational units in several other
regions of the world (Lam, Ho & Law, 2015). Even though the company is based in
Singapore, it has already expanded the scope of its business in 30 other countries thus
delivering its high quality lodging services in USA, Middle East, Europe, Africa, Asia
Pacific and Central Asia.
The company has also adopted the strategy of acquisitions for the purpose of growing
the scope of its business activities and operations. This growth strategy includes the
formation of business alliances and securing of management contracts (The-
ascott.com, 2020). The strategy of diversification has been utilized by the company by
expanding the scope of its business activities through the provision of several types of
services to its customers in accordance with the tastes, preferences and demands. The
marketing and promotional strategies of The Ascott Limited has enabled them to widen
its reach towards the global customers and make them aware about the diverse
services offered by the company in the different locations of their operations in the
different countries (Hirsh, 2015).
The Ascott Limited is determined to be a company that commits towards achieving
mutually-beneficial and long-term relationship for gaining sustainable growth and
healthy financial returns. It has implemented a strategy of adopting a pioneering
franchising model to focus on like-minded companies or individuals with new or existing
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hospitality assets. The company offers the opportunity to make efficient use of their
wide-ranging resources, proven expertise, extensive research along with integrated
capabilities by maintaining their independence in regular operations.
Target audience
Customer segmentation can be defined as the process of dividing the targeted audience
of a particular business organization on a demographic, behavioral, psychographic and
geographical basis (Andaleeb, 2016). The process of customer segmentation or
determination of the target audience of the organization is essential as it helps them to
strategize efficient means of marketing the products and services to the customers as
well as diversify the products and services to meet the requirements of these
customers.
The major target audience of the company is frequent independent business travellers
and corporate accounts from different geographical locations (Nieves & Quintana,
2018). It makes efficient use of identity and data management platform to track and
target its key audience across devices appropriately. The target audience of the
company can therefore, be identified to be individuals belonging from middle and high
income groups, having a preference for high quality of customer services. From a
behavioral perspective the customers of The Ascott Limited can be identified to be high
profile having a taste for luxurious services offered by the company in different locations
across the world. From a geographical perspective, the customers of the company
include individuals from all the 30 countries and regions in which the company conducts
its operations.
Competitors
The highly competitive environment of the hospitality industry requires the business
organizations operating within it to strategize efficient means in order to maximize
customer satisfaction. In order to do this the organizations must first identify its target
market and provide its services at prices that suit the preferences and demands of
these customers (Bayraktar et al. 2017). The Ascott Limited faces high competition from
major players in the global hospitality industry. However, the company has recognized
certain means that may help it to obtain and maintain a competitive advantage in the
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market. One of such methods is the maximization of customer satisfaction in order to
build a positive brand identity and image, thereby attracting more customers globally
and significantly increasing its share in the market.
The innovation team of the company drives the global competitive advantage of the
firm. Recognizing and adopting best practices within the industry helped the company to
focus upon its cross-functional projects and enhance its guest’s experience (Hassanien
& Dale, 2019). Therefore, to achieve the goal of becoming a leading Serviced
Residence owner-operator, the strategic planning team of the firm evaluates market
trends and competitors. On comparing with the four points Sheraton, the Ascott limited
hotel is considered to have more services like the cutting edge technology and the hotel
is engaged in satisfying the customer’s as per their needs. Ascott focuses towards using
premium pricing strategy to attract high profile consumers by distributing products
through franchise system in different countries.
Conclusion
The essay plan helped in determining the goals of The Ascott Limited by demonstrating
the strategy used by the firm. It is seen that the firm adopts a global franchising model
to achieve its goals and gain a competitive advantage in the world. Therefore, it can be
mentioned that the strategies of enhancing the quality if services provided to the
customers and adopting a premium pricing strategy for the customers belonging from
high income groups, has helped the organization to establish a competitive advantage
in the hospitality industry.
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References
Andaleeb, S. S. (2016). Market segmentation, targeting, and positioning. Strategic
Marketing Management in Asia, 179-207.
Ascottmea.com. (2020). About Us | Ascott MEA | Ascott. Retrieved 25 January 2020,
from https://www.ascottmea.com/about-us
Bayraktar, C. A., Hancerliogullari, G., Cetinguc, B., & Calisir, F. (2017). Competitive
strategies, innovation, and firm performance: an empirical study in a developing
economy environment. Technology Analysis & Strategic Management, 29(1), 38-
52.
Gürel, E., & Tat, M. (2017). SWOT analysis: a theoretical review. Journal of
International Social Research, 10(51).
Hirsh, M. (2015). The shifting demographics of the serviced apartment industry in South
East Asia. South East Asia Research, 23(2), 187-204.
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Lam, C., Ho, G. K., & Law, R. (2015). How can Asian hotel companies remain
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Londhe, B. R. (2014). Marketing mix for next generation marketing. Procedia
Economics and Finance, 11(1964), 335-40.
Net, H. (2019). The Ascott Limited – Hospitality Net. Hospitality Net. Retrieved from
Nieves, J., & Quintana, A. (2018). Human resource practices and innovation in the hotel
Rothaermel, F. T. (2016). Strategic management: concepts (Vol. 2). McGraw-Hill
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Singapore Business Review. (2019). Ascott reveals key target markets and 40,000
apartment goal by 2015. Retrieved from
https://sbr.com.sg/residential-property/news/ascott-reveals-key-target-markets-and-
40000-apartment-goal-2015
The-ascott.com. (2020). Retrieved 25 January 2020, from
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The-ascott.com. (2020). Retrieved 25 January 2020, from
https://www.the-ascott.com/en/ascottlimited/about-us.html
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https://www.the-ascott.com/en/about-us.html
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https://www.the-ascott.com/en/ascottlimited/excellence/ace_whatwedo.html
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