Singing Valley Resort: Five Forces, Strategy, and Information Systems

This report provides a comprehensive analysis of the Singing Valley Resort, examining its market position through Porter's Five Forces. It assesses the bargaining power of customers and suppliers, the threat of substitution and new entrants, and the level of rivalry within the market. The report then outlines the resort's current competitive strategy, emphasizing the importance of superior service and accommodation, along with the need to understand customer needs and preferences. The core problem identified is the lack of an organized and complete information system, leading to issues with customer relationship management. The report proposes two innovative ideas for improving the information system, including a customer survey system and a free activity program, along with their respective information system requirements and advantages. The report concludes by highlighting the benefits of these improvements in enhancing customer experience and driving revenue growth. The report includes the references Kandampully, J., & Suhartanto, D. (2000) and Pizam, A., & Ellis, T. (1999).

A. The five forces of the Singing Valley Market are listed below:
1.) Bargaining power of the customer- The superior offering and quality of Singing
Valley Resort is seen to be best and have high quality. With superior quality of
services, the bargaining power of the customers is seen to be low.
2.) Threat of substitution- Due to high quality and its location, the Resort has attained
a lead there is no danger of being replaced. The Resort always experiences full
occupancy and another goal is to attain increased revenue. Therefore the threat of
substitution is low.
3.) Bargaining power of the suppliers- There is a chance of increased cost due to the
clientele being staying away from the Resort. There are chances of increment in
the food and wine prices. The current suppliers can be given a counter for
presenting cheaper prices from other available suppliers therefore resulting in
bargaining.
4.) Threat of new entrants- Only the resort with same area can boast of providing
superior quality along with superior services including various other activities.
Therefore the threat of new entrants is low as well.
5.) Rivalry- Due to superior quality, the Singing Valley Resort exceeds its
competitors with its high-class service, superior accommodations, delicious
means etc. The location helps the Resort to attain highest position among the
rivals.
B. Statement of Competitive Strategy
The Singing Valley Resort has to provide superior services along with high quality
accommodation for maintaining their current revenues. The needs and wants of the

customers have to be determined clearly and efforts must be placed on providing them
with best facilities.Singing Valley resort has to increase their revenue for creating their
own services which will offer activities. Further, a new information system has to be
implemented for keeping a record of all the repeating customers. The repeating customers
will be sent electronic surveys and will be attached in a file. An activity schedule has to
be presented every time the customer requests to make a reservation before or after their
arrival. This way the Resort management would be able to differentiate among the needs
of their repeating customers. Singing Valley Resort would be able to cater to the wants
and necessities of clients by analyzing what their clients wants (Kandampully, J., &
Suhartanto, D., 2000).
C. Statement of Problem
The Singing Valley Resort does not have an organized and complete information
system. This was a prime reason that their auto email system failed and made various
information mistakes. This automated email system was seen to send faulty email
congratulating their clients for their stay to those who had not visited from past two
three years. The Resort therefore failed to keep up the track of their regular and
current guests and were not able to recall their preferences on their return visit.
Therefore the Singing Valley Resort needs to rebuild their information collection
system along with Timely Information update system for ensuring that the
information of every single customer is accurate and up to date. This information
system will help in recording the personal preferences of their customers so as to help
in maintain a good relationship on their return. Furthermore, this information system
must be enabled towards keeping a track on personal characteristics of the customers

so as to greet them in a friendly manner on their next visit along with ensuring their
preferences as per their wish.
D. Two scenarios of low cost rentals along with high service rentals have to be
considered for undertaking major activities like determining the needs of the
clients, greeting their customers, rent the room and return room and pay. This will
help in ascertaining the customers’ mood. Secondly, there is a need to determine
the wants and needs of the customers to identify his desires and expectations from
the resort. Lastly, the needs can be identified on the basis of low tariff and high
tariff rooms along with providing comfort while their stay in the Resort. The
customer’s then checkout after paying their bills. The Resort can perform the
given below activities as per their requirements.

E. The two innovative ideas along with the information on the information systems
are mentioned below:
Idea A. One innovative idea for adding to their marketing strategy is to ask the customers
to fill out a survey and this survey must be kept in a file. A repeating customer has to fill
out an additional questionnaire upon his arrival and all these attachments will be
complied. This will help the organization to identify with the needs of their repeating
customers and to market accurate activities to correct type of customer.
In this project idea the information system would be a computer software program
allowing the entry of the customers and automatically updating their information this
program will also have the ability of allowing the Singing Valley Resort to keep a check
on the activities enjoyed by the clients and the ones they would like in the near future.
Excel, a simple program would be able to perform the function but the Resort must seek
towards an advanced program which can easily track their customers (Pizam, A., & Ellis,

T., 1999).For example, ensuring vegetarian meal for the vegetarians, and non-veg meal
for others, mountain trekking for mountain lovers etc.
Idea 2. The Resort can include a free activity while the stay of the clients. This will help
the clients to enjoy something they did not want in the first place enabling them to enjoy
the experience even more. This will help the Resorts to call back their customers. On the
completion of the activity, a survey will be asked to fill out on completion of the trip and
similar future activities would be askedto them. This will be beneficial in providing
recommendations in the future.
This information system will be less complex than the previous one. It would require a
note from the already existing information noting that the customers have utilized the free
activity given to them. This program will also hold on to the results of the survey when
the activity is over. Thereby it will help the customers to get suggestions on the future
activities.

F. The first information system is highly complex as compared to the second one.
The first information system might create confusion. Due to high complexity, the
staff will take time to understand the process and get accustomed to it.
Additionally, the information system will add to the cost of the Resort.
Additionally, second information system has a higher probability of increasing the
interests of the customers.

References
1. Kandampully, J., & Suhartanto, D. (2000). Customer loyalty in the hotel
industry: the role of customer satisfaction and image. International journal of
contemporary hospitality management, 12(6), 346-351.
2. Pizam, A., & Ellis, T. (1999). Customer satisfaction and its measurement in
hospitality enterprises. International journal of contemporary hospitality
management, 11(7), 326-339.