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Pan Pacific Hotel Essay

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A business-level strategy is an integrated set of commitments and actions the firm uses to gain a competitive advantage by exploiting core competencies in specific product market. There are five business-levels strategies which included cost leadership, differentiation, focused cost leadership, focus differentiation and integrated cost leadership/differentiation (Hanson. D. et al. , 2011). The Pan Pacific hotel was positioned as a five-star hotel. The ability to afford a luxury hotel, like Pan Pacific, is directly proportionate to people’s income.

As a result, the higher positioned price determined that the organization has targeted a particular buyer group. Since it gives up advantages on price, the enterprise was seeking a competitive advantage with its unconventional. In order to differentiate with its competitors, the Pan Pacific hotel is improving its quality of services, and especially developing unique facilities. According to a report (2012) and the Pan Pacific official website (2012), “the Pan Pacific Singapore injected 80 million for its the biggest renovation in history.

Among the highlights expected after its renovation is the spectacular 360O view Pacific Club on Level 38, the topmost level of the hotel. ” Visitors may be attracted by this unique facility, and it may possibly become a Pan Pacific symbol facility that distinguished from competitors. In short, the Pan Pacific hotel implemented a focused differentiation strategy, which offering services that different to competitors’ offering in a niche market. Ansoff’s product/market business level strategies

There are 4 types of strategies in Ansoff’s product/market business level strategies, which are market penetration, market development, product development and diversification. The Pan Pacific hotel was implementing a product development strategy. As Johnson (2008) indicated, A product development strategy involves modifying or creating new products (could be tangible or intangible), targeted at existing markets in which the firm operates. The product development strategy is moderate risk among the 4 types of strategies in Ansoff’s product/market business level strategies.

In order to meet the needs of increasing number of new visitors, the Pan Pacific hotel introduced a brand new all-day dining restaurant in under its renovation program (official website, 2012). This new kind of service could increase the capacity of the hotel, as well as attracted visitors with its variable services. Miles and Snow’s adaptive strategies Miles and Snow’s adaptive strategies included prospector strategy, analyser strategy, defender strategy and reactor strategy. The Pan Pacific hotel more likely implemented defender strategy. The defender strategy is between analyser strategy and reactor strategy.

The definitive strategic objective was stable profit growth. The group was tight control by manager, and has efficient operations. The key features of strategy included limited product offering focused on niche market; defend niche vigorously; and focus on high quality and competitive pricing to create barriers to entry. International strategy: International strategy was an important strategy for an organization, firstly, to increase market size; secondly, to create the opportunity to earn a return on large investment; thirdly, economics of scale and learning, and finally to earn advantages of location.

As professor Tan (2005) summarized, firms choose to use one or both two types of international strategies, which are business-level international strategy and corporate-level international strategy. The corporate-level international strategy included multi-domestic, global and transnational. As shown in the figure (Hanson. D. et al. , 2011), global strategy focus on meeting a higher need for global integration. In contrast, the multi-domestic strategy focus on meeting a higher need for local responsiveness. A transnational strategy seeks both higher global integration and local responsiveness.

Figure: International corporate level strategy (Hanson. D. et al. , 2011) The Pan Pacific hotel was developing a multi-domestic strategy. According to its Company Profile Report( ), the Pan Pacific group has join the oversea luxury hotel market for years. In order to integrate into the local specific needs and situations, the management of Pan Pacific had empowered local managers; including change its services style to meet local culture needs. Because of the variety of cultures in Asian hotel industry, a multi-domestic strategy is necessary for the Pan Pacific hotel.

Summery The Pan Pacific hotel was implemented focused differentiation strategy due to offering services that different to competitors’ offering in a niche market. With the renovation, including building on new restaurant, the Pan Pacific hotel was seeking product development strategy. Moreover, in Miles and Snow’s adaptive strategies, the Pan Pacific group focuses on defender strategy due to pursue a stable profit growth. Finally, in order to meet needs of variety of cultures in Asian, The Pan Pacific hotel was developing a multi-domestic strategy