The Ritz-Carlton Hotel is one of the very most luxury hotels on earth, and it has stored its luxury and luxury for decades. The Ritz has turned into a name to connote glamour, luxury and luxury. The brand Ritz-Carlton Hotel has been the indication for the luxury and luxury of life. Presently, the firm has hotels and resorts with 74 properties located in major places and resorts in 23 countries worldwide. The Ritz-Carlton hotel offers unrivaled and unexpected experience for every traveler from all around the globe.
For the extension of the Ritz-Carlton all over the world, the firm selects big metropolitan areas and gold location for the access of business hotels, while famous resorts for holiday break accommodations. In this article, the extension of the Ritz-Carlton Hotel has been analyzed by giving an example of its admittance in China, the largest developing country on the planet.
Marketing Environment of China
As for the marketplaces got into, while China is a producing country not as rich as America and the most Europe, but the Ritz-Carlton Hotel didn't lower its standard in China. It thought we would track down its new hotel in the top five places: Beijing, Shanghai and Guangzhou, Shenzhen, a city near Hong Kong, and also a special financial area, and Sanya, who attained its trustworthiness of the golfing, beach, sun, getting visitors all around the globe. You will discover enough customers who can experience the luxury on the Ritz-Carlton, and also looking forward to it.
PEST framework is utilized to analyze the micro-environment of the luxury hotel industry in China. It stands for political, economic, cultural and technological conditions that might affect the companies. For the political part, signing up for WTO offered China a great opportunity of globalization, the government offer remarkable opportunities for business travel by positioning 2008 Beijing Olympic Video games, 2010 Shanghai World Expo and 2011 Guangzhou Asian Games, which will increase tourism and so lead to great needs of hotel rooms. For the financial part, with the booming of China's market and increase of people's living standardizations, the luxury brand like The Ritz-Carlton become affordable for some people, it is straightforward for the organization to find its customers both domestic and in foreign countries. For the sociable part, the increase of economical increasing usually demonstrates on people's cultural activities, people tend to happen to be different places to see different culture; lastly, for the technical part, the development of technology increase the transport to and also disperse the info like hotel advertisements faster. Though more folks will get to learn this traditional western brand and also have the possibility to enjoy it.
Thus, for days gone by ten years, The Ritz-Carlton has chosen a best time and energy to enter Chinese language market. According to the website in the Ritz-Carlton, the firm is likely to start new hotels in Macro and Hong Kong in the near future, which also display that the procedure in China is successful.
Entry China Market and Strategies Adopted
Ritz's entrance to Chinese market followed the method of releasing management agreements. Such method, as Ekeledo and Sivakumar (1998) and Hill, Hwang, and Kim (1990) put, can help the company keep its talents in the new environment as well as its structural and tactical characteristics, these advantages could be thought as especially ideal for Ritz's enlargement in Chinese market, because a firm with strong competitive advantages in intangible aspects, such as services, will be improbable to affiliate with another brand or chain, so the string owned or operated, unaffiliated strategy suit the business who gets the intangible advantage the most, since it helps the firm to regulate more of the hotel's marketing and operations functions, directed by Dev, Dark brown and Zhou (2007).
However, as what being submit by Osmond Vitez, such method can also bring some negatives for multinationals. These cons could be summarized as following: 1. Ambiguity may be aroused since the deals cannot address all the issues, 2. because the business contract has recently made some decision for the business enterprise, it may be not that versatile to follow the change of business world, 3. By starting management contract, it might be hard to improve problems for customer, thus furthering the negative goodwill between customers and the company.
What's more, when enjoying such access method accompanied by Ritz from some other sides, such as operation, marketing and the forth, Dev, Erramilli and Agarwal (2010) pointed out that the technique of management contract can bring irreproducible advantages of the efficiency improvement of firms' functions, because the center advantage of this hotel is the remarkable service dished up by ladies and gentlemen, just like the motto of this firm: we have been females and gentlemen serving girls and gentlemen. This main edge is hard to replicate by the other organizations or organizations, it is irreproducible. While the firm also has the other advantages like the luxury design and adornment, good location, and so forth, these aspects are easy to copy and conducted. In this admiration, owning the best degree of control is very important for the company to keep carefully the remarkable performance. Thus when the Ritz-Carlton Hotel got into Chinese market, it used management contract, which largely maintain its excellence.
The Ritz-Carlton culture is excatly why the firm retains excellent service. While getting into Chinese market, where in fact the culture is very different from traditional western culture, the Ritz-Carlton also does a great strategy in keeping its culture while adjust to the surroundings of China.
Kent (1990), by experience the Ritz-Carlton Hotel in Pentagon City a week prior to its beginning, made a summary that the Ritz-Carlton opens a fresh hotel with the emphasis on instilling its culture in the personnel. It includes using substantial amounts of time teaching new employees about the Ritz-Carlton incomprehensible and credo. In China, we've an extremely different work area culture than hotels in the United States or European countries, but through encouragement, the Ritz-Carlton will keep its culture (Cooper, 2000). The hotel encourage the right habits through popularity, and the hotel strengthen the activities it wants through the type of stories it tells and the type of actions it writes thank-you credit cards. If a worker does something for a guest that is very personal - for example, she leaves work for a while to have a guest's lovely toy to someone she understands can fix it, then brings it back in time for the guest's journey - the company recognize that. Even in the surroundings of China, a country with five thousand years of brilliant but solid background, the Ritz-Carlton will keep its own cultural and traditions of empowerment. By posting good and moving stories from employees from branches all over the world and the flexible legislation of empowerment, the organization constantly reminds folks of the sort of actions it needs to see.
The key of the company's service school of thought: we are women and gentlemen serving girls and gentlemen. It is not hard said than done, especially in China, a country influenced by five-thousand-year of demanding class classification. The company keeps its traditions that the motto is imprinted in a card carried by every staff all the time. Along with the employees could review the steps of services as they need: 1, a warm and sincere greeting; 2, anticipation of and conformity with guests needs, and 3, a fond farewell. Both the motto and three steps of services encourage employees to construct good relationship with customers, and surpass the standards which are written in the legislation.
The Ritz-Carlton also takes a strict line on recruiting the right people. They would like to recruit folks who fit in with the strong service culture, not only those who may have lots of related experience. "We select talent and show staff the technological part of their job, we seek people who look after and value our guests and each other. Those who have a high work ethic are detail oriented and relationships motivated will be the types of characteristics we seek in people, " says Grippo.
Based on the aforementioned, though trying hard to fit the Chinese culture, the Ritz-Carlton maintain steadily its excellent by keeping its core culture and management style.
The Standardization and Version of Ritz's Marketing Strategies
In order to put together the standardization and adaptation of Ritz's marketing strategies, this section will first of all expose the strategies being followed by Ritz in Chinese language market. Then, the standardization and adaptation of such strategies will be analyzed critically.
The strategies considered by the firm in Chinese language market are customer oriented, rather than competition oriented. It continues its standard of services but also adapt to Chinese language environment, especially in detail aspects. A profound analysis will be done by using Marketing Blend.
The components of Marketing Mixture are price, place, product, and campaign, also called the Four P's. It really is essentially the most famous marketing term. They will be the factors which can help the managers to control in order to best fulfill customers in the target market.
The Ritz-Carlton Hotel offers accommodation, getting together with, airport grab and many other services all over the world. As rooms will be the core product of the business, both standardization and version are applied in the Chinese language market. Firstly, the look is a combination of Chinese and american culture. The rooms are embellished by Chinese language traditional pictures, the carpet, the tea equipment, or the painting handing on the wall structure are displaying that the hotel is within China, while the standard bed, the arrangement of pillows, the facilities in the washroom, and adaptors offered, etc. these show that it is an international hotel. For the restaurant, the hotel offers both Chinese language traditional dishes (local food sometimes) and european food to meet up with the need of various services.
There is also a small depth. In China, we think the quantity four, fourteen represent loss of life, because the pronunciation is similar to "death"in Chinese. Thus the volumes outlined in the elevator, there is absolutely no four and fourteen, as it pertains compared to that floor, number four is represented by quantity five, while actually it is number 4. From this case, we can easily find that The Ritz-Carlton Hotel do modify and respect Chinese culture.
The Ritz-Carlton Hotel did not lower its standard in China. The purchase price is greater than the state-owned five-star hotels in China, so that high as other luxury hotels such as Shangri-La. There's always some special discounts for meals, but relatively exceptional for the rooms.
There is also version of placing price. In traditional western countries, the price provided by the hotel for group customers are always being fix, or with little space for bargaining. However in China, the environment is different. We choose bargaining and the rules are negotiable, the group can always get lower price aftering negotiating with sales consultant. Thus in the Ritz-Carlton, its sales reps also perform this way.
The promotion with the Ritz-Carlton Hotel in China is focusing on the combo of east and western culture. Since six out of seven branches now in China are business hotels, the adverts are always about business enters Chinese market which encounters in The Ritz-Carlton Hotel.
As a european hotel entered Chinese language market, it is very important to construct good romantic relationship with Chinese administration. Since China is currently in the process from planned current economic climate to market current economic climate, the state-owned hotel still looks forward to the great advantages of getting more deals from the federal government. Maybe in traditional western culture, organizations can get benefit from the nice quality of products, but in the surroundings of Chinese market, the federal government plays an important role in the introduction of the company. Facing this situation, the firm is wanting hard in public relations looking to earn much more support from the government.
Beside a host protection program settled by the firm because of its branches all over the world, another program was set for Guangzhou.
In 2008, the Ritz-Carlton Hotel establish a service training curriculum for taxi motorists in Guangzhou, for supporting Asian Olympic. This open public promotion is outstanding for three reasons. First of all, the firm successfully send the meaning to the general public that the service of the hotel is remarkable and excellent; second of all, the taxi drivers are essential for they can influence the decisions of some customers arriving at Guangzhou, the training program could help them to better understand this hotel and its core value; finally, by conducting this method, it is much simpler to earn support and reputation from the federal government. The general manager, Francois J. Cnockaert also gets awards from the government.
As reviewed before, the firm chooses big cities and fantastic location to express its luxury and style. The positioning is near the subway and bus train station as well. By biding to obtain the station named on the Ritz-Carlton, it is also Chinese way to recognise some place, somewhat than using the name of the road.
Based on the dialogue above, the Chinese market is a good market for the coming into on the Ritz-Carlton Hotel. The firm is now effectively expanding in Chinese language market by keeping the best control of the firm to keep its remarkable services, while adapting to the east culture in a few extent.
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