The Contemporary Hospitality Industry Assignment

The Contemporary Hospitality Industry - Assignment Example As illustrated by Table 1, the industry is comprised of a widely assorted variety of sectors, each with its own business model and obligation for service delivery. The hospitality industry is very competitive, with many new market entrants entering worldwide and domestic markets regularly, which provide risks to maintaining a positive image with very diverse consumer segments. The only significant competitive advantage that a hospitality business maintains in the face of rising competition is developing a unique differentiation that can be sustainable. Competitors in this industry can often replicate existing service and product delivery models, therefore a business requires having a solid and differentiated brand in order to gain consumer loyalty and sustain competitive advantage. Marketers agree that building a differentiated brand image is of high strategic importance in this industry as it makes competing companies less vulnerable to recurring marketing competitiveness which is s o dominant in this industry structure (Gounaris and Vlasis 2004). To successfully compete in an environment where switching costs for consumers, according to Michael Porter (1998) is a competitive risk, it is necessary for organisations operating in this industry to outperform rivals with innovative service delivery models and technologies. Businesses operating competitively in this industry must also be considerate of pricing structures, as some environments and sectors work regularly with price-sensitive consumers. For example, conducting strategic-level environmental analyses of other businesses in the region (such as restaurants and hotels) is necessary to establish competitive pricing structures. With the aforementioned ability of companies to replicate existing food offerings, hotel amenities, and other service-related models, pricing might be one of the most competitive strategies facing businesses with high levels of competition. Price is often the most priority method by which consumers judge the quality of service and is one of the most prevalent methods by which companies promote their businesses (Dawes 2004).