Competition in the hospitality industry becomes stiffer every year. In order to stay competitive, organizations resolve to improving their services by means of introduction of new products and innovations. Those are meant to attract new clients and get in touch with the current ones. Introduction of new products and innovations is a responsible task which requires a training plan for new products to integrate smoothly into the current system.
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New Product for the New Company Division
Marriot Hotel is known for its high quality products in the hospitality industry. The sales and marketing team is proposing an introduction of a new product that will offer tourists in different regions a better experience when they are in foreign countries. This firm will introduce GPS-enabled phones to its clients in different cities to be sold to foreigners who book rooms in its hotels.
The phones will enable the clients to know their exact locations whenever they are outside the hotel. They will also get the option to access other social amenities in these cities without necessarily asking for help from the locals. The phone will also indicate parts of the cities that are not safe, especially at night. This way, cases such as mugging or other ugly experiences can be eliminated. This new product will fall under a new division within the customer care unit.
New Division, Company Needs and Competitive Advantage
This new product addresses company needs and helps it to achieve competitive edge over its market rivals. The product itself will generate income to this firm and as such, it will add value to the shareholders’ wealth. However, it also seeks to offer unique experience to the customers who visit these hotels. The product will make them understand the landscape of the city. This also means that the customers will be empowered to manage their own security. Such a move will make the clients to believe that this firm is concerned about their safety. Through the strategy, the Marriot Hotel will gain competitive advantage over its market rivals.
Vision and Business Model for the New Division
According to Holly (2006), when coming up with a new business model, it is very important to define the vision and business model in very clear terms in order to have a defined program on how the implementation should take place. The vision offers insights into what the new division seeks to achieve in the future. The strategies are always designed to help in achieving the set vision. The following is the vision statement of this new division.
To enhance clients safety and security through unique product offering
Also important is the business model on how the set strategy to be achieved. Having a customer-focused innovative model is critical (Mullins & Komisar, 2009). The figure below shows the business model that will be appropriate for this department.
As shown in the figure, the business model is based on seven systematic innovative areas. These areas include value proposition, market segmentation, value chain structure, revenue model, competitive strategy, and growth strategies. These seven systematic innovative areas work as a single system geared towards protecting the revenues of the firm while still ensuring that customers are offered superior value at friendly prices.
Alignment of the New Division with the Company’s Mission and Vision
As shown in the above statements, the vision, mission, and values of this new division are focused on increasing the company’s revenues in a way that offers clients additional value when using other products of this hotel. The Marriot Hotel’s visitors will buy a gadget that gives them control over their actions within the city. This is an added value to the customers even though it comes at an extra cost.
The cost of buying this gadget is not comparable to the cost of paid guides within the cities. For this reason, it is expected that the clients will find it to be of high value. On the other hand, this firm will be earning extra income. This demonstrates how the vision, mission and values of this new division are aligned with the company’s mission and vision.
Summary of How the Vision, Mission and Values Guide Division’s Strategic Direction
The vision of this new department is to enhance security and safety of the clients by offering them unique products. Its mission is to have additional sources of revenue that also offers superior value to the clients. The values of this new division can be summarized as integrity, customer satisfaction, and superior value offering.
Guiding Principles and Values for the Division
The principles and values of this new division will be based on the current culture and ethics of Marriot Hotel. The guiding principle will be to provide products that will offer clients high value for their money. Ethically, the Marriot Hotel has been keen on avoiding products that give inferior value to the clients. The new division will commit to participating in corporate social responsibility in an effort to reduce environmental pollution.
Holly, P. (2006). Conceptualizing a new path. Upper Saddle River: John Wiley & Sons.
Mullins, J. W., & Komisar, R. (2009). Getting to plan B: Breaking through to a better business model. Harvard: Harvard Business Press.