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Posted on October 1st, 2012, by

The development of hospitality industry stimulates the wide introduction of innovations, including not only new technologies but also new products. Today, companies operating in the hospitality industry to improve its position in international markets. At the same time, the current marketing strategy of the company aiming at the international market expansion confronts serious obstacles, including the competition and the necessity to adapt the corporate standards to the specific local cultural environment in different parts of the world.

One of the major problems companies operating in the hotel industry face is the problem of high entering barriers since the international market is saturated and leading hospitality companies attempt to protect and secure their leading position in the market by means of raising entering barriers. In such a way, they naturally prevent other companies from the possibility to enter markets they control.

At the present moment, leisure related industries are developing rapidly and it is a natural result of investors’ reaction to the market demand. For there is a permanent demand in this segment of the market, naturally, numerous companies attempt to satisfy it and they invest money in leisure. As a result, there is a growing competition between companies. Consequently it is more and more difficult for new companies to enter the market (Berno, 119). The best way out for them is investment in new industries, creation of new businesses, probably in areas where they have never existed before. In other words leisure industries at large tend to diversity that is a problem itself because it demands from investors not simply to be different from their competitors but to be better.

As a rule, this means that, in order to overtake competitors, companies working in the hospitality industry have to suggest better conditions for consumers. It is not a simple task, as it might seem to be. The diversity and the tendency to be better than a competitor force companies to create better infrastructure, build five stars hotels even in places where they have never existed before, cater and provide equity of provision of leisure opportunities.

In such a situation, the introduction of a new product can be particularly prospective. In this respect, it is possible to introduce such a product as beer. In fact, beer has become an extremely popular product which is currently spread worldwide, while its popularity is particularly popular in such countries as Canada or the USA. This means that the consumption of beer steadily increases and customers develop habits of beer consumption that increases benefits from the introduction of the new product in a hospitality industry.

At the same time, it is necessary to clearly define what beer should be introduced to maximize customers’ satisfaction and, therefore, benefits of companies operating in the hospitality industry and offering beer to its customers. At this point, it is important to take into consideration what a company introduces beer as a new product. In this respect, it is necessary to distinguish large corporations and small family business. Obviously the beer introduced by a large corporation operation at the national or international level will be different from the beer introduced by a family business.

The difference in the choice of the beer is defined by the scope of business of a company operating in the hospitality industry. Large corporations are focused on mass customers, while family business is mainly oriented on a small number of customers. In such a situation, it would be more logical for a large corporation to use beer produced by a renowned company, which brand is well-known nationwide as well as internationally. For instance, it is possible to recommend Budweiser beer, which is very popular in North America and is renowned in other countries of the world. As a result, the introduction of such a beer by a hospitality company operating in North America and other parts of the world will be quite logical since customers drinking beer know this brand and are confident in its quality. Therefore, the company operating in a hospitality industry can rely on this beer.

Small, family business can apply a different strategy to the introduction of beer. In this respect, it should be said that there are a lot of sorts of beer that can be sold by a small company operating in hospitality industry. In fact, the use of a popular brand is not essential and what is more, the use of a popular beer of a famous company can hardly give a strategic advantage to a small company since it will hardly be able to compete with large corporations which offer the same or similar beer. Instead, it is possible to introduce original beer, which should be exclusive and stress the uniqueness of the family business and its difference from other companies. Basically, the use of original, exclusive beer can be quite expensive but, on the other hand, such beer has a unique taste and customers would enjoy it. In addition, if a small companies offer a truly exclusive beer, customers would be interested to use service of this company again. In such a way, a small company can develop customers’ loyalty due to its unique product exclusive beer. Potentially, it is even possible to develop a small brewery to ensure the high quality and original taste of beer offered to customers.

Another serious problem is the problem of adaptation of the companies’ standards to local culture because both employees and customers get used to a different cultural norms and companies’ standards can be unacceptable for employees working at the company in different parts of the world. Often this leads to the situation when management style used by managers of the company transferred from Europe, for instance, to a developing country, differs from traditional management style local employees have already get used to. As a result the effectiveness and productivity of work of the personnel and the entire company decreases.

However, the problem of adaptation to the cultural environment is the problem typical to large corporations. At the same time, this problem can be partially solved by introduction of beer, which is renowned worldwide, such as Budweiser since customers in different parts of the world would readily accept it. As for small companies, they will not face such a problem at all. Instead, the original beer will be the specialty of the company.

Thus, the introduction of beer by companies operating in the hospitality industry can contribute to the improvement of their competitive position and formation of customers’ loyalty.

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