To succeed and remain sustainable in the hospitality industry, an organization should be able to attract a diverse range of clients who may have different income levels. Overall, this necessity is particularly important at the time when various countries struggle with the effects of economic depression. Moreover, businesses should remember that the purchasing power of clients may remain at the same level. Therefore, an organization can decrease the cost of its services because, in this way, they attract a larger number of clients.
Such a strategy is beneficial if the company works in developing markets such as China or India. This is one of the approaches that can be adopted by business administrators. To some degree, this method can benefit such a company as MGM Resorts International. To achieve this goal, the management should pay attention to the efficiency of operations and decrease labor costs. This is one of the points that can be made.
Finally, the business can lay stress on the yield management, which enables a hospitality organization to adjust to the changes in demand. For example, this approach can assist hotels in minimizing their losses when the number of clients declines. In turn, this method enables businesses to maximize their revenues at the time when the demand for their services increases.
On the whole, yield management is based primarily on variable pricing, which makes an organization much more flexible (Bardi, 2011). In addition to that, a company should be responsive to the needs of clients, especially if these people continuously use the services of a hospitality organization. This approach can also benefit a company like MGM Resorts International.
Some businesses attempt to move to those countries in which liability laws are lax. One can discuss several cases illustrating this strategy. The most eloquent examples can be derived from the pharmaceutical industry since many companies attempt to India, Eastern Europe, or Africa, because in these regions, there are not many safeguards that can protect patients.
This is one of the reasons why many clinical trials are no longer carried out in advanced countries (Dukes, 2005, p. 265). Certainly, such a practice gives rise to various forms of criticism, but it has become very widespread.
Additionally, in many cases, companies manufacture products that can give rise to injuries during testing. Such organizations also prefer to work in developing countries. These are the main details that can be singled out.
It is vital to understand the intent lying behind the strategic alliance and the causes that underlie the competition between companies. In this way, one can better understand the major goals that these businesses try to attain. Additionally, this knowledge can help a manager predict possible responses to new products or new threats. It should be mentioned that strategic alliances can serve different purposes such as sharing of resources or technologies (Hitt, 2008, p. 247).
This approach enables businesses to increase their effectiveness. In turn, potential competitors of the newly created organization should be aware of this risk. One should keep in mind that in some cases, businesses that are usually viewed as competitors can form a strategic alliance. As a rule, such an action can be explained by the willingness of management to change the long-term policies of a business. So, this information should not be disregarded by managers because, in this way, they can make their companies more response.
Reference List
Bardi, J. (2011). Hotel Front Office Management. New York, NY: John Wiley and Sons.
Dukes, M. (2005). The Law and Ethics of the Pharmaceutical Industry, New York: Elsevier.
Hitt, M. (2008). Strategic Management: Competitiveness and Globalization, Concepts. New York, NY: Cengage Learning, 2008. Print.