Hotel Sims is a four star hotel established with the aim of providing quality services to customers. The hotel management has divided its market into various segments to ensure that they cater for customers from all social classes. For instance, there are facilities aimed at attracting leisure customers. These are customers who are out on vacations hence they are ready to spend a lot of cash in leisure activities (Martin and Fellenw 2010, p. 73). The hotel is under new management that is working extremely hard to improve service delivery. A SWOT analysis was conducted on the hotel to find out its strengths, weaknesses, opportunities and threats.
Some strengths of the Hotel Sims are availability of funds. For instance, managers are able to install facilities that are required immediately without problems. This means that the organisation is financially healthy. A second strength of Hotel Sims is that it is able to lower prices during low seasons without incurring loses. This gives the hotel an advantage over its competitors who may face challenges in adjusting prices during low seasons.
There are various weaknesses in the hotel which are slowing down their intended development. For instance, the management does not have money to do everything at the same time. Instead, they have just enough money to install what is necessary. If they had a lot of money, they could refurbish the entire Hotel at once and start all its principal operations (Ireland, Hoskisson and Hitt 2009, p. 54).
There are a lot of opportunities for the company. For instance, there is a potential market for casinos and spas. Since the Hotel Sims is targeting leisure customers, a casino and spar can be particularly ideal. In fact, their main target can spend a lot of money gambling hence bringing a lot of revenue to the business. There are also abundant opportunities due to the presence of tourists’ attraction sites in its environs. This means that the company can tap opportunities by creating facilities that are ideal for tourists.
There are several threats in the market posing a danger to the hotel. For instance, there is stiff competition from other players in the hospitality industry. This forces the company to work hard in order to retain its customers and maintain its sales (De Wit and Meyer 2010, p. 87). Customer trends keep on depreciating with seasons hence making it hard for the mangers to plan their expenditures. For instance, there are times when customers are many calling for urgent measures to be taken to cater for the large numbers.
The hotel managers have come up with a strategy of installing facilities slowly depending on their urgency. This is important since the organisation will be able to utilize resources that are available and achieve its goals (Romer and Wolfers 2009, p. 65). In addition, they have decided to spend quite a lot of money in marketing communication. This is critical because customers need to be informed about the hotel and its services.
Customer feedback system is used in the hotel to help managers understand customers’ reaction to their services. This helps the management to come up with products and services that meet customer requirements.
The company has to invest in proper advertisements to caution its customers from competitors. Managers should come up with various ways of promoting their services in order to build customer loyalty (Wheelen and Hunger 2006, p. 64). For instance, they may develop free gifts to give to their customers. Managers should also device ways of giving discounts to customers as a way of enticing them. The company should come up with perfect pricing strategy to ensure that they set up prices that are appealing to their customers.
References
De Wit, B & Meyer, and R 2010, Strategy synthesis: resolving strategy paradoxes to create competitive advantage, 3rd edn, Thomson, London.
Ireland, R. D., Hoskisson, R. E. & Hitt, M. A. 2009. Strategic Management Competitiveness & Globalization 9th ed. Nelson Education Ltd, Canada.
Martin, J. and Fellenw, M. 2010. Organizational Behaviour & Management, Cengage, New York.
Romer, D. H. and Wolfers, J. 2009. Brookings Papers on Economic Activity: Spring 2009, Brookings Institution Press, Washington.
Wheelen, T. L. & Hunger, J. D. 2006. Concept in Strategic Management and Business Policy 10th ed. Prentice Hall, United State of America.