When expanding to the global market, Starwood should adopt an integrated brand management/ market entry strategy; when using the plan, the company will concentrate on using brand extension strategy and adoption of a global brand.
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When using brand extension strategy, the management will be dwelling on the strength of its current brand; the same brands should be tested with some minor adjustments in Dubai, Doha, and Jordan. The marketing team should also understand that its captures the demands of the market; this will happen through developing new products and service delivery strategies.
When expanding to the global market, the Starwood Hotels has the option of using local partnership strategies or direct investments. Looking at the nature and current trends in the global hospitality industry, it would be advisable for the company to use local partners’ method.
The main advantage of using the method is that they will get into partnership with companies that are already established in the markets; such companies will offer the management quality advises and recommendations on how they can improve their sales. Existing companies understand the market situations, thus when using them for expansion, the management will not incur much on ground breaking costs.
When engaging in domestic or international partnership or joint venture business, there are always some challenges that organizations must cover.
The main challenge that the business styles have is how to manage their diverse nature; people from different areas have different understanding of issues; for instance Starwood Hotels have their management styles that it must fit with its partner company. Some areas that might be challenging to rhyme yet they are important in the management of the company involve organizational culture, and human resources management policies.
When a company has developed new products, the initial stage involves aggressive marketing, sales and promotions. The target or the main focus is on ensuring that consumers get to learn of the existence of the products. With that notion, the management should first not expand the new unique products; focus should first be on creating awareness. With the limited expansion, the management can use different channeling methods.
To be competitive, organizations are required to differentiate their products from those offered by competitors; with the realization, the company has to devise mechanisms that will make their products outstand in the market. One of the most effective methods that Starwood Hotels should embark is innovating and inventing of new consumer focused products.
With products that address the needs of either global or domestic consumers, the company will be outstanding. Some of the best methods of differentiation that can be adopted by a hospitality industry company include improving service deliver, ensuring that products offered are of high quality and they have different and outstanding tastes than those offered by other companies.
The Starwood Preferred Guest Program should be expanded with the company; it an innovative move by the company thus it is likely to offer satisfactory results in global and international market. The uniqueness of the product is likely to assist the company attract much business in the domestic and international markets.
When diversifying to international markets, organizations need to adopt effective management policies that address international issues. Some of the main areas that company should look into include supply chain management, international human resources, value creation, and cost minimization strategies.