– The Kimpton Hotel and Restaurant Group 1. The stand out strategy-shaping economic characteristics of the U. S. Hotel industry are: . Price Segmentation.
Customer Segmentation. Global Presence. Brand Management The key success factors for competing in the “boutique hotel Niche” are to separate yourself from your competitors. There has to be a reason that people want to go and stay that the hotel. The non-hotel like food is clearly a key factor in this niche because the specific people that are being targeted are not the type of people who go for the ordinary restaurant. The people that come to this hotel are not the generic people and expect something not expected from a hotel chain.
Service is key point as well The Kimpton Group makes sure that it gets back to the guest by the end of the day with any complaints or questions. This is very satisfying to the customers. 2. Kimpton’s Business level approach to competing in the industry is: . Low-cost purchase land and buildings. Greater latitude in product / service offerings at comparable profit margins…
Customer Service. Effective Utilization of technology. Brand Loyalty. Employee training and development. Complementary services. Revenue management systems.
Clean and comfortable Lodging. Strategic alliances. Conveniences in making reservations. Access to growth capital. Value-added services. These allow the Kimpton Group to keep ahead of its competitors with better numbers than the hotels it competes with.
The Essay on Hotel Services
The Hotel Hydra Styles of service can be described as a Buffet Service for Breakfast. Equipment identified as appropriate would be: Bain Marie to keep foods warm, hot plates, cereal dispensers, juice jugs, bread and basket displays, toasters, tea and coffee jugs, utentils and dressing and condiments. Because the Hotel has 100 bedrooms it is appropriate to have a leisure centre and conference ...
The Companies strategy is adequately aligned with the industry and competitive conditions. The Kimpton Group competes with hotel chains that are more expensive and bigger than they are yet they are. Kimpton Group maintained a 67 percent share of the market in San Francisco and the closest hotel in their niche was sharing only a 20 percent share in the market. The Kimpton Group has managed to create a 5 star atmosphere in a 4 star hotel. They offer a warmer feeling that that of most of the other hotel. 3.
The Kimpton Hotel and Restaurant Group organizational structure and approach to decision making does aid in the successful implementation of its strategy. The general managers of the individual hotels are encouraged to set them selves apart from the other properties. Each manager gives the property they oversee a different touch that makes each of the properties different so that when you go to one hotel owned by the Kimpton group it is not exactly like any one that you have visited before. Each of the properties seem to take on its own personality and that is projected to the guest which gives them a different look every time they visit a new property. Kimpton Group also follows a strategy that is call the mongoose strategy.
The Kimpton Group has successfully used this strategy to effectively buy properties that fit their niche. Implementation of this strategy has allowed the group to financially benefit from their acquisitions by paying a dramatically low price for a piece of property that is worth much more. 4. The Kimpton Group has utilized its financial assets by effectively by not building from scratch every hotel it looks to build. The Kimpton Group decided that it will look for a specific type of hotel that fits its niche and then it will go after that hotel or building. One of their criteria is for certain aspects of the building that they purchase to be in relatively good order, and they usually will make the face of the hotel over.
There strategy when looking for opportunities to expand is to look for the undervalued assets so that they can turn this in to a boutique hotel. When the Kimpton Group places a location on its radar as a potential place for a new hotel it keeps that on its radar. Keeping places on its radar has paid off in the past for the Kimpton Group. They originally bid $10 million on a property on were out bid by $5 million, but they waited 7 years and were eventually able to pick up the property for $5 million dollars. The Kimpton Group also supports its restaurants, which are considered a separate operation from the hotels.
The Business plan on The Lego Group: Building Strategy
The Lego Group has been making toys successfully for 80 years and has grown to having close to 3.16 B USD in sales for the 2010 year. They specialize in toy building sets, a sector of the market that has seen 13% growth in 2010 and is forecasted to grow further. However, the Lego Group is at a cross-road in their business plan and requires a strategic plan going forward. Currently, the company ...
These restaurants are specifically designed not to give the people that go to the restaurants a feel of a hotel restaurant. The restaurants are kept separate from the hotel, which leaves some value chains unconnected. This is not the best use of their finances, they could connect the value chains and still have the restaurant managed and operated separate from the hotel. Kimpton Group has successfully managed its finances to build a hotel chain that is respected and valued.
5. The Kimpton Group should start to expand out in to the south or the east where they do not currently have a presence. This successful hotel would do well in major cities where people strive to look for a four star hotel with a five star feeling to it. I think that its further expansion into other parts of the country will not impact is strategy at all. I believe that the Kimpton Group can maintain its strategy that it was founded on while still expanding in to other parts of the country. There are many old rundown hotels all over the country that would fit its strategy..
