Question

Analysis using Blue ocean strategy : strategy canvas & (ERRC) of new luxury hotel. And giving example.

Answer 1

Analysis using Blue ocean strategy:

Strategy canvas of new luxury hotel: here for any luxury hotel and hospitality organization, they compete on various factors and they also do invest considering all such factors, further, these factors are considered to bring value to customers and other stakeholders, strategic canvas of new luxury hotel business create graph between competing factors and offering level, competing factors for luxury hotel industries come with various benefits allocation like Interior design of Hotel rooms and other areas, amenities within the hotel space, other facilities like dining area, green area, parking facilities, event arrangement, swimming pool, customer relationship management, etc, considering all such factors where, various competitor do investment to improve the service level and quality level of their hotel organization, for example: Hotel X can put more investment towards Green plantation and event management, where as other Hotels can keep least or limited investment towards green plantation and event management, as target audience of such hotels could be different, if one hotel has target audience like visitors come for entertainment and marriage or other gathering purpose, then, such hotel will put more investment towards event management, however, other hotels could more invest towards improving service level of people stay, as visitors come here for stay purpose,

ERRC create action framework for this new luxury hotel:

ERRC stands for Eliminate, reduce, Raise and Create actions as, hotel organization needs to eliminate and reduce various non value added tasks, here, they need to raise and create more value added actions those are highly or moderately required for their customers and other stakeholders, as every hotel needs to improve service level and quality level by keeping improved customer relationship management, for example: new hotel needs to eliminate any factors that can bring more hassle to their customer, such factors like searching for their location could be much hassle for their customer, that can be eliminated by introducing free or compulsory pickup and drop from airport and railway station.

Further, few factors need to be reduced by new luxury hotel as they are least or less value adding to customers, for example: hotel needs to reduce customer grievance and complaints by offering superior level of service and understanding the needs of each customers,

Hotel needs to raise service level by introducing anytime support from their customer support team, so if any customer faces any query, they can ask their customer support team, here, they can provide toll free number for dialing purpose.

Hotel needs to create more innovative environment that will welcome more visitors and raise their satisfaction level, for example, hotel can create green environment, and they can introduce gym and swimming pool facilities that can attract more visitors,