University: Business Strategy Analysis of Pan Pacific Singapore Hotel

This report analyzes the business strategy of the Pan Pacific Singapore hotel, examining its market positioning, marketing and promotion strategies, service quality, pricing, place, promotion, physical evidence, people, process, and sales techniques. The report delves into the hotel's existing capabilities, competitive advantages, and current competition within the hospitality industry. It explores the hotel's growth strategy, operating model, and provides recommendations for future development directions. The analysis covers various aspects such as the target market, financial performance, customer base, and the use of digital marketing and sales techniques. The report also highlights the importance of employee training, teamwork, and the use of technology to enhance the guest experience. The study underscores the hotel's focus on quality, premium pricing, and its ability to adapt to market trends. The research also provides an overview of the competitive landscape and financial performance of the Singaporean hospitality industry.

Running head: HOSPITALITY BUSINESS DEVELOPMENT
HOSPITALITY BUSINESS DEVELOPMENT
Name of the Student:
Name of the University:
Author’s Note:

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Table of Contents
Introduction...................................................................................................................3
Business positioning strategy.......................................................................................4
Existing market..........................................................................................................4
Marketing and promotion strategy............................................................................6
Service...................................................................................................................6
Price.......................................................................................................................7
Place......................................................................................................................7
Promotion..............................................................................................................8
Physical Evidence.................................................................................................8
People...................................................................................................................9
Process..................................................................................................................9
Sales techniques.....................................................................................................10
Existing capabilities.................................................................................................10
Basis of existing competitive advantage.................................................................11
Existing competition................................................................................................11
Existing and future development strategy..................................................................12
Existing growth strategy..........................................................................................12
Existing operating model.........................................................................................14
Recommendations regarding future development directions.................................15
References.................................................................................................................17

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Introduction
As opined by Jones, Hillier and Comfort (2016), the hospitality industry over
the years had emerged as one of the most important industries of the world on the
score of the contribution that it makes towards the economy, environment and the
society of the different nations. González-Rodríguez et al. (2018) are of the viewpoint
that the hospitality industry had become an important cog of the economic wheel of
the different nations of the world and as a matter of fact the net revenue generated
by the hospitality industry on a global basis in 2017 was more than $7.61 trillion.
However, it is seen that the different firms associated with the concerned industry
need to take into account different aspects like the operations management process
by it, the geographical area in which it is operational, the customer base or target
market that it is focusing on, the nature of services that it offers to the guests and
others (Martinez-Martinez et al., 2018). In this paper, I have selected the hotel “Pan
Pacific Singapore” for the purpose of the analysis of the business strategy used by
the firms associated with the hospitality industry.
Pan Pacific Singapore, operational under the name of “Pan Pacific Hotels and
Resorts” and located in Marina Centre, Singapore is one of the largest and most
famous hotels of the nation of Singapore (Panpacific.com, 2019). As a matter of fact,
the concerned hotel is one of the very few modernist hotels in Singapore which had
been designed taking into account the precepts of modern architecture and boasts of
35 floors, a modern atrium, around 790 rooms or suites and others (Panpacific.com,
2019). More importantly, in order to offer effective hospitality services to the guests,
the concerned hotel over the years have evolved a unique operations management
wherein the different backspace and onstage activities have synchronised to offer
the best quality services to the guests (Davey et al., 2017). In addition to this, it is

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seen that the hotel takes the help of different kinds of innovative technologies like
internet of things, electronic key and others to enhance the experience of the guests.
The hotel primarily focuses on the customers from the working-class background
who normally take the help of hospitality services while they are on tour for business
and leisure purposes (Jackson, 2016). The resultant effect of this is that the
concerned hotel follows a premium pricing policy. More importantly, along with the
lodging services, the concerned hotel also offers different other services like food
and beverage, spa, entertainment services, social and business events and others to
enhance the experience of the guests (Sing, 2018). Thus, I would say that it is the
effective synchronisation of all these aspects that had enabled the hotel to gain a
significant amount of success over the years and become one of the most well-
known hotels of Singapore.
Business positioning strategy
Existing market
The net revenue generated by the hospitality industry of Singapore for the
year 2019 was US$421m and out of this more than $16.4m was contributed by the
Pan Pacific Singapore (Statista.com, 2019). The below given figure offers an
overview of the financial performance of the Singaporean hospitality industry-

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Figure 1: Financial performance of the hospitality industry of Singapore
Source: Statista.com, 2019
In this regard, it needs to be said that the concerned hotel holds more than
11% of the market share of the concerned industry (Hospitalitynet.org, 2019).
Furthermore, the concerned hotel located in the Marina Centre, Singapore is one of
the tallest hotels of the nation of Singapore with 38 floors and in the recent times
taking the help of the recent developments in the field of architecture had
significantly remodelled the entire structure. As a matter of fact, it had been seen that
the concerned hotel had been remodelled twice, once in 2005 and 2012 so as to
include atrium, modern designs within the hotels in order to create the kind of
ambience which would be appreciated by the guests or the customers (Zámborský &
Kruesi, 2018). The customer base or the target market on which the Pan Pacific
Singapore focuses on is being outlined by the below given figure-

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Figure 2: Customer base of Pan Pacific Singapore
Source: Statista.com, 2019
I believe that the primary reason why the Pan Pacific Singapore is laying
major focus on the working-class individuals related to the age bracket of 25-34 age
is because of the fact that the individuals related to this particular age bracket are the
ones who generally like to opt for the hospitality services for business and leisure. In
addition to this, it is seen that the concerned hotel also focuses on the customers or
the guests related to other age brackets and to accommodate the requirements or
the expectations of the guests it had significantly broadened the scope of the
services offered by it (Jackson, 2016).
Marketing and promotion strategy
Service
Pan Pacific Singapore along with the lodging services offers other additional
services to the guests like spa, business and other social events, entertainment
services and others (Sing, 2018). More importantly, I found that special emphasis is

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placed on the aspect of quality because of the premium pricing policy followed by the
hotel and this in turn had enabled the hotel to earn the satisfaction as well as the
loyalty of the guests over the years. Furthermore, in the present times it is seen that
the concerned hotel had formed collaboration with the different entertainment
services providers, raw material suppliers and others to improve the quality of the
services offered by it (Davey et al., 2017). Moreover, the positive brand image that
the hotel enjoys because of its past history and also on the score of the high-quality
services offered by it had also contributed significantly towards the success attained
by the firm and the high market penetration that it had been able to attain over the
years.
Price
Pan Pacific Singapore takes the help of the premium pricing policy for the
pricing of the hospitality services that it offers to the guests or the customers
(Hospitalitynet.org, 2019). I personally believe that this pricing policy had been
adopted by the concerned hotel because of its extensive focus on the aspect of
quality and also on the nature or the kind of services that are being offered to the
guests. As a matter of fact, it is seen that the concerned hotel charges more than
$276 per night however the hotel in the present times had entered into collaboration
with different travel agencies and thus the guests are given various kinds of
discounts or allowances on the services offered by the hotel (Panpacific.com, 2019).
More importantly, the premium pricing policy followed by the hotel also becomes
important from the fact that the hotel follows the product differentiation so as to offer
the best quality hospitality services to the guests.

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Place
Pan Pacific Singapore in order to reduce the bargaining power of the
suppliers over the years had evolved its own supplier as well as distribution system
so as to procure the raw materials in a timely manner (Jackson, 2016). More
importantly, I also found that the hotel actively takes the help of different kinds of
innovative strategies like e-procurement, automation, time-based competition and
others for the purpose of the improvement of the supply chain network used by it.
Furthermore, in order to enhance its customer base, the concerned hotel is presently
taking the help of various channels or intermediaries like travel agencies and others.
Promotion
Pan Pacific Singapore takes the help of different kinds of digital marketing
strategies like social media marketing, SEO, content marketing and others for the
promotion or the marketing of the hospitality services offered by it (Aydin, 2019).
However, I found out that the major emphasis is being placed on social media
marketing because of its cost benefits and also the fact that the hotel is being able to
reach out to a much larger customer base through the effective usage of the social
media platforms. More importantly, the reviews left by the guests at the social media
pages of the hotel had also significantly influenced the potential customers or guests
to opt for the services offered by the hotel (Ho & Tan, 2018).
Physical Evidence
Pan Pacific Singapore is one of the most modern hotels of the nation of
Singapore and this modernity of the hotel becomes apparent when the interior
design of the concerned hotel is being taken into account (Hospitalitynet.org, 2019).
As a matter of fact, I found that the hotel under discussion here is one of the very few
boasts of modern atrium, ‘state of the art’ modern design, congenial ambience within

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the hotel and others. The hotel takes the help of different kinds of innovative
technologies like electronic room keys, free wifi, use of internet of things and others
for delivering high quality services to the guests.
People
The staff of the hotel are being recruited through a rigorous selection process
and they are required to have hospitality degrees from the Ivy League colleges or
universities (Zámborský & Kruesi, 2018). In addition to this, I found that the
concerned hotel offers regular training programs and also conducts workshops to
enhance the hard skills as well as the soft skills of the staff members (Chon, 2019).
More importantly, in order to effective motivate the employees, different kinds of
perks, rewards, recognition, holiday packages and others are being offered to them
(Cheah, Ho & Li, 2018). Furthermore, the focus is on teamwork and thereby the
different employees of the hotel are required to work in a collective or collaborative
manner to address the service needs of the customers while displaying traits like
emotional intelligence, cultural intelligence, effective communication, critical decision
making and others (Kim, Vogt & Knutson, 2015). Moreover, the hotel staff are
required to wear profession attire at all times while they are on duty.
Process
Pan Pacific Singapore follows a simple process wherein the different
backstage and onstage activities of the operations are being effectively coordinated
so as to avoid confusion and thereby to offer high quality services to the guests
(Bowie et al., 2016). More importantly, I found that smaller teams are being created
which are headed by a team-leader so as to effectively manage the work of the
hotel. Furthermore, it is seen that each of these teams deals with a specific aspect of

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either the backstage or the onstage job role and in turn report to the operations
manager and the general manager of the hotel.
Sales techniques
Pan Pacific Singapore takes the help of different kinds of sales techniques to
enhance the sale of the services offered by it like direct booking, booking through its
partners, guest reward booking and others (Sing, 2018). For example, because of
the direct booking sales technique followed by the hotel the guests have the option
to visit the hotel and book the rooms (Mandal & Vong, 2016). On the other hand, the
guests can also book the rooms of the concerned hotel through the usage of the
partners or the travel agencies with which the hotel is in collaboration with
(Kandampully, Zhang & Bilgihan, 2015). More importantly, because of the guest
reward strategy followed by the hotel, the loyal customers get discounts and rewards
for directly booking the services offered by the hotel (Bruns-Smith et al., 2015).
Furthermore, the hotel also takes the help of the process of merchandising to
encourage the customers or the guests to spend more at the concerned hotel and
thereby enhance their sales volume (Kim, Vogt & Knutson, 2015). I personally
believe that the effective manner in which the concerned hotel had used these sales
strategies over the years had helped it not only enhance its customer base but also
the revenue earned by it as well.
Existing capabilities
Some of the most important resources of the hotel under discussion here are
being outlined by the below given table-
Physical Modern architecture, effective design, ambience and others
Human Highly qualified and trained staff, dress code and others

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Financial Low bank loan, adequate number of investors or sponsors, good
market performance
Intellectual Effective hard and soft skills of the employees, effective
organisational culture, positive market reputation and others
I personal believe that the effective utilisation of the above-mentioned
resources and competencies of the hotel by its staff had enabled the hotel to deliver
high quality hospitality services to the guests which as a matter of fact is the unique
selling proposition of the concerned hotel. This in turn had enabled the hotel to
realise its brand promise of offering the best quality hospitality services to the guests
and thereby offer them value for the high price that they paying for the services
offered by the hotel.
Basis of existing competitive advantage
I personally believe that the effective usage of the differentiation strategy
which is being followed by the concerned hotel is one of the major reasons which
had enabled it to gain competitive advantage. For example, the effective usage of
this strategy had enabled the firm to offer superior quality hospitality services to the
customers or guests in comparison to the other hotels of Singapore and this
accounts for the premium pricing policy followed by the hotel. This in turn had
enabled the concerned hotel to earn a higher amount of profitability and also
competitive advantage within the Singaporean hospitality industry.
Existing competition
Strength  One of the most important strength points of the hotel and
the one that had enabled it to gain competitive advantage is

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the effective usage of the differentiation strategy to offer high
quality hospitality services to the customers.
 Carlton Hotel Singapore, Swissotel The Stamford, Singapore
and others are following cost leadership strategy and this in
turn had significantly reduced the quality of services offered
by them (Hospitalitynet.org, 2019). However, Pan Pacific
Singapore had been able to gain competitive advantage
through the effective usage of the premium pricing policy and
thereby focus effectively on quality.
Weakness The premium pricing policy followed by the hotel deters many
customers from opting for the hospitality services offered by the
hotel and this in turn had significantly affected the competitive
position of the hotel. This in turn acts as one of the major
weaknesses of the hotel under discussion here.
Opportunity One of most important opportunities that the hotel has to gain
competitive advantage within the Singaporean hospitality industry is
the usage of the product differentiation strategy. This will help the
hotel to offer diverse services as per the needs or the requirements
of the different customers and thereby attain competitive
advantage.
Threat The high competition which exists within the hospitality industry of
Singapore is one of the threats that the hotel faces for the
attainment of competitive advantage within the concerned industry.