- June 25, 2020
Business-Level and Corporate-Level Strategies
BUSINESS & CORPORATE LEVEL 8
Customer satisfaction and maximization ofprofits is usually the primary objective of most enterprises.Arguably, most organizations aim at this since they know when theyachieve this business stand a better chance to prosper. However,achievement of customer satisfaction and maximization of profitstakes some time since some other components must beincluded. Business entitiesmostly apply business level and corporate level strategies to realizetheir dreams. The study of the competitive market is relativelyimportant in business success. Like many other industries, thehospitality industry also relies on the tools mentioned earlier whichcompanies apply in customer satisfaction and business prosperity ingeneral. AffiniaHotel Collection is situated in New York,America and operates under the hospitality industry. The group ofhotels makes good use of the business level and corporate levelstrategies as well as the competitive environment. Under thecorporatelevel strategy, the entity makes use of utilization of the humanresource, development of unique advantages, and identification of themarket niches. Application of these is one of the reasons why thegroup of hotels has remained on top of the food chain in the Americanhospitality industry. The company also identifies its potentialcompetitors such as Baymont Inn and Suites and learns from theirmistakes so as to overshadow them. Thepaper is to highlight AffiniaHotel Collection’s application of business level, corporate levelas well as competitive market so as to ensure the prosperity of theentity under the hospitality industry.
The Business Level Strategies used by Affinia Hotel Collection
Businesslevel strategies define the plans and methods used by enterprises toimprove their quality of services as well maximize profits. AffiniaHotel Collection applies three main strategies as discussed below.
Differentiation is the first approach used by the Affinia HotelCollection under the business level strategy. As noted before,competition is stiff in the American hospitality industry, and thisis the reason why a business entity must be innovative and providedistinct services and goods(Hill & Schilling, 2016). Soas to attract more customers who seek accommodation while in NewYork, Affinia Hotels Collection has a taxi service which picks theclients and drops them at their destination for a reduced fee. Thealmost free transportation services which the hotel provides attractmany customers since they prefer using specialized transport service.Still, under differentiation, Affinia Hotel has massage services forall the clientswho spend nights at their hotel.
Secondly,utilization of the human resource is another important strategy usedby the entity in the achievement of success. Since the company aimsat maximization of profits and bettering of the customer’sexperience, the company had employed enough junior staff to ensurethat the services are faster and efficient(Hitt, 2012). For example,customers usually like it when their orders aredelivered quickly.
Thirdly, the group of hotels ensures thatthey identify the market niches. Identification of the market niche entails studying what thecustomers like and offering them exactly that. Moreover, this callsfor an understanding of the industries trends so that the companyremains competitive.
Despite theapplication of all these strategies under the business levelstrategy, the most recommendable approach is the useof differentiation and innovation. The business world is competitiveand only those who are innovative manage to remain relevant. Today,technology has led to the change of trends on a daily basis, and thecustomers prefer different services in different times. When theorganization sticks to innovation, they will be able to remainrelevant for an extended period ofevery other time since they will have something different to offer.Since hospitality services are standard in every other hotel, thevisitors typically look for accommodation where they think they willget distinct services but at a reasonable cost.
The Corporate Level Strategies Used by Affinia Hotel Collections
Profitsrecord improvisation is one of the key objectives of Affinia HotelCollections. So as to realize this, the group of hotels makes gooduse of the corporate level strategies. Corporate level strategiesencompass the strategic decisions made by a company, and which affectthe whole company.
Creation of avalue is the first approach applied by the hotels under theircorporate level strategies. Creation of value frequently entailsmaking better services and goods so that they can sell to thecustomers at a higher price. However, the customers will only acceptto pay for a service or a good at a higher rate if it possesses thequalities (Campbell,2014). In Affinia HotelsCollections, the realization of adding value isachieved through differentiationof the services. For example, instead of letting the customers seekexternal transport services, they have a program where the customerscan ring and the responsible personnel will pick them and drop themat the hotel. Such unique services make the customers’ embrace theentity, and this increases the market value of the hotel. Even thoughthe customers who attracted to luxury might be few because sufficientdisposable income, the business will still make profits since theywill pay more.
Secondly,Affinia Hotels engage in value-neutral strategy under the corporatelevel strategy. Value neutral is a situation where the organizationis not concerned with reaching the greater heights of the industry,but securing their current level. So as to achieve this, the businessentity will not reduce or increase their prices. They will not alteranything in their organization so that they neither lose nor gaincustomers.
Two corporatestrategies used by Affinia Hotels Collections have beenhighlighted in the discussionabove. Nevertheless, the best strategy applied by the entity is valuecreation. Value creation is the most preferred and long-lastingstrategy since the organization will remain competent for a long(Furrer, 2016). When the value iscreated, and they become one ofthe most embraced hotels in the industry, they will manage tomaintain that position since the customers will focus on them for along time. Moreover, since the primary objective of the hotels is toenjoy the huge market share, this will assist them in achieving thissince their services will be highly valued.
Affinia Hotels Collection Competitive Market
Competitivemarket refers to all the external factors which compete with eitherthe services or the goods offered by an entity. The study of thesefactors is ideal since it ensures that the organization overcomes allthe barriers and realizes their objectives. Relatively, AffiniaHotels Collection faces the following competitive markets.
Firstly,there is the regulatory element. The government is the key playerwhen it comes to regulatory elements. Despite a business struggle toperfect and impress the customers, the government regulatoryinitiations might affect its performance. For example, the governmentcan decide to regulate the number of cars which use a certain routewhere the business islocated. Such regulation willalter the performance of the entity since the customers will notmanage to access the hotels. Moreover, the hospitality industryentails accommodation and nutrition services. When the governmentdecides to alter production of certain foodstuffs, the hotel will notmanage to fulfillthe desire of the customers. Over time this will affect theperformance of the organization just the same way the competitors doaffect.
A directcompetitor is a yet another element of competitive market affectingthe operations of Affinia Hotels. Direct competitors refer to theother organization which are in the same industry and deal with thesame goods as the teamin the discussion. Just like the regulatory element, directcompetitors are equally dangerous when it comes to bettering theentity’s performance. In most occasions, the direct competitorsovershadow the business when they have better strategies. Theyattract a huge portion of the customers, and this affects theperformance of the company. In the American hospitality industry,Baymont Inn & Suites is an example of direct competitors.
When it comes to business level strategy,Baymont Inn & Suites make use of utilization of the humanresource while Affinia Hotels Collection uses differentiation andinnovation strategy. Even though both of these strategies arecompetent, the one applied by Affinia is the best and will ensuresuccess in the long term. To justify this, utilization of the humanresource will decline over time since even if Baymont hires manyjuniorstaff, they might lose interest. Contrary, Affinia application ofinnovation will ensure success in the long-term since technology iswhat drives business today and innovation is the key to success.Moreover, both companies make use of corporate level strategies. AtAffinia Hotels Collection, value-creation strategy isimplemented while Baymont Inn &Suites use value-neutral approach. Baymont will not be as successfulas Affinia in the long-term since the performance remains constantunder the value-neutral strategy. Unlike them, Affinia’s approachis the road to success in the long time since they will manage toacquire a huge market share.
In conclusion, business success depends on thelaid down strategies by the entity. Great ideas in policy initiationwill ensure that the firm achieves its dreams, while the lack ofsound policies leads to the fall of the business entity. Thehospitality industry in the United States also depends on businesslevel and corporate level strategies. Affinia Hotels Collection is anexample of a company that operates in the American hospitalityindustry. Focusing on nutrition and accommodation, Affinia isdetermined to improve the quality of services they provide as well asbetter their profits. So as to achieve this, the company applies somestrategies under the business level strategy. Here, they involve theuse of differentiation and innovation. Through innovation, thecompany stands a chance of realizing long-term success sincetechnology is what defines business in the current world. To fulfillthe organization’sobjectives, they also make use of value-creating strategy. Valuecreation is critical to achieving long-term success since they willearn a huge share of the market. Market share is important becausesome customers focus on that before settling on the best serviceprovider.
Campbell, A. (2014).Strategyfor the Corporate Level: Where to Invest, What to Cut Back and How toGrow Organisations with Multiple Divisions.New York: John Wiley & Sons.
Furrer, O. (2016). CorporateLevel Strategy: Theory and Applications.New York: Routledge.
Hill, C. W., &Schilling, M. A. (2016). StrategicManagement: Theory: An Integrated Approach.Chicago: Cengage Learning.
Hitt, M. A. (2012).UnderstandingBusiness Strategy Concepts Plus.Chicago: Cengage Learning.