Hotel and Hospitality Management : Matching and Surpassing

Describe about the Hotel and Hospitality Management for Matching and Surpassing.

Introduction

Competitive advantage of any company deals with the matching and surpassing what their competitors do, and also discovering the demand of the customers as well as satisfying the expectations of the customers (Thompson et al., 2013). One of the strategic tools to measure the basic importance of the values of the customers is the value chain analysis. Value chain analysis helps to determine the basic strategic advantages as well as disadvantages of the activities and also the processes that creates values in the marketplace. A very effective distribution channel can be a very source of the strategic advantage for any company. The initial stage includes the overview of various distribution channels. In order to remain competitive each and every outlet needs to follow their own strategy so that they can secure what they get their return on both profitability and investment. The identification of the competition in a market actually helps to determine whether the business idea is whether feasible or not. The information, which are gathered during the process of competitive assessment and it also directs how any product can be positioned in the market (Ronit & Jensen, 2014). Some questions are to be answered in order to conduct a complete competitive analysis. They are as follows:

1. From where do the customers shop from in order to get similar kind of products?
2. What kind of availability is there for the products in the market?
3. What kind of competitive advantage does the product has?
4. What is reason that the products are to be positioned in the market?

A complete competitive analysis has brought forward the answers to these questions.

From where do the customers shop from in order to get similar kind of products?

A very vital issue is to understand that from where the customers shop that will determine the product with which there will be a competition. Customers get access to the local as well as regional stores, global merchandise, along with internet and global distributers. It can also be done, that many small and value-added starting will focus mainly on the marketing with the local markets, which will narrow the direct competition to all the products, which are available in the local market.

What kind of availability is there for the products in the market?

After identifying from where the customers shop, it is very much essential to determine whether there is any availability for the management to compete directly with the market. For doing that the first thing to be done is to identify all the existing competing products. The sophistication of the process may also vary depending upon from where the customers shop from ( Roslow & Nicholls, 2015).  

In order to determine how the products are compared to the competition process one must analyze both the strengths and weaknesses of the competitors.

What kind of competitive advantage does the product has?

Various gaps in the competition mainly identifies the areas where small value added companies can develop the process of competitive advantage. The basic goal is to exploit in order to set a person apart from the field of competition. As long as the competitive advantage exists there is no need of the size, color, taste, and variety of the product.

How should the product be positioned within the market?

Competition and the exploitation of the competitive advantage is basically based on the product positioning. When a company allows to create a competitive advantage and also position it makes their product more and more attractive. An example will prove all these answers. It can be said that there is no difference in the drinking waters of all variations (Galbraith?Emami & Lobstein, 2013). Nevertheless, there are differences in respect to the strategy of distribution, the perceived value as well as the quality, and the images in some cases. In view to the Beverage Marketing Corporation, it has been said that Aquafina, a well known packaged drinking water has around 11.3% market share. As a result of which it basically separates itself from all the competition by the advertisement as an “eco-friendly” kind of bottle upscale, which has a premium kind of image that has been targeted to only those people who are living in the higher social hierarchy. (Kelly et al.,2015)

Competitive nature of Sydney food and beverage industry and the relationship with value chain analysis

In order to discuss the nature of food and beverage industry of Sydney, it is necessary to understand the consumer demand for health purpose as well as also depend upon the price of the food products. In this study, the competitive nature of Platinum group has been discussed as it will highlight the competitive nature of the Sydney food and beverage industry. In addition, to understand the competitive nature, firstly, it is important to identify the behavior of the producer, distributors, the consumers and the merchants etc (Thompson et al., 2013). These all are the steps of a successful value chain analysis, which are important to gain the competitive advantage of Platinum Restaurant Group.  

1. The Producers,
2. The Packaging,
3. The Distributors,
4. The Merchant, and
5. The Consumers.

The Producers

The producers of Platinum restaurant group have been aimed to the production of multi cuisine foods items. In this, the restaurant has the competitive advantage. Therefore, the producers are concerned regarding the raw materials of the foods, which are going to be served.  Roberts et al. (2014) opined that to maintain the business position within the industry, the producers of the Platinum restaurant group also require to supervise the overall manufacturing procedure.  

The Packaging

Australia has a good reputation for the supply of clean as well as natural products that contains very low residues of chemicals. The basic idea is to maintain quality and safety of standards which has been regulated and also enforced with the supply of chain. It can be said that packaging plays an important role in keeping the supply of food safety. Packaging mainly maintains the quality of the beverages after the processing is completed. Another aspect that plays a great role in influencing the aesthetic appeal is the design as well as the construction of packaging.

There are certain traditional materials that are used in the packaging material. They includes metals, glass, paper and also paperboards and plastics. However, nowadays it can be seen that a wide variety of plastics are now being used. Keeping the idea of the recent consciousness regarding the environment as well as the strict regulations on both disposal of solid and liquid waste along with the pollutants, many of the companies are now turning towards more options on biodegradable that has a minimum impact on the face of environment.

The Distributors

In order to discuss the role of the distributors of the Platinum restaurant group, they require to aim to the getting of foods from the manufactures to the customers. In addition, the distributors also require to concern about the delivery as well as the distribution of the food items (Walker, 2016). The food distributors of the organization also require to play an important role in case of the marketing of the products. Therefore, the opportunity of the holding of the business position of Platinum Restaurant group in the market has been maintained. In this connection, it can be stated that the distributors of the mentioned food and Beverage Company have been played their role optimally as stated by (Basile, Cassano & Rastogi, 2015).

The Merchant

The merchant of the Platinum group is also important for the gaining of competitive advantage in the market. In this purpose, the merchant of Platinum Restaurant group requires to control the transaction process of the organization. This seems to be very beneficial to utilize the uses of credit within the business. Moreover, the merchant of the restaurant group can be seriously hampered or can be enhanced at the time of making payment. Therefore, the merchant can control the overall situation technically as suggested by (Kelly et al., 2013). In addition, the merchants of a business also require to allow the discount rate and the transaction fee at the time of the making of bills. In case of online bill payment, the merchants need to review as well as verify the address, which would effectively reduce the risk of the transaction.

The Consumers

The aim of this section is to identify the consumer behaviour, which can effectively enhance the business performance and can gain the competitive advantage within the food and beverage industry. In this context, Platinum restaurant group mainly focus to the development of the relationship between the restaurant attributes and the willingness of the customers. More specifically, Rothwell et al., (2016) mentioned that the consumers are very much looking for the quality of the food and the price of the food. In addition, the consumers are also very interested about the service quality, which is provided by the Platinum restaurant group and the ambience of the restaurant. As Platinum restaurant group is familiar as the family restaurant, therefore, the people are highly willing about the service of that mentioned organization. As stated by Basile, Cassano & Rastogi (2015) the taste and preferences of the consumers, the organization requires to take the decisions regarding the services.

In this connection, the willingness of the customers as well as the elasticity of pay also depends upon the service of the restaurant, which they have received. More importantly, the consumers are highly concerned about the quality of the foods. If Platinum restaurant group provides greater quality of food items, the customers also want to maintain a long term relationship with the restaurant and will visit to the food and beverage outlets further.

Detail examples of the bars and the up market restaurants, which follow the competitive nature

In order to discuss the service of bars and the up markets of a particular bar of Sydney, this study is helpful to identify and understand the overall environment of the service in Sydney. As per the statement of (Basile, Cassano & Rastogi, 2015), from the review of the culture of the bars and the up markets it can be observed that the per capita rates of the consumption of beer has been increasing over time. In this connection, it can be stated that since 20^th century, the business of Australian bars have been growing steadily. On the other hand, Bhandari et al., (2013) argued that as per the liquor licensing policies, Sydney has been restricted the sale of alcohol after 6 p.m in the Australian states. In addition,  it can be mentioned that the entering age into the bars is also restricted in Sydney.

More specifically, in order to understand the service of the bars and the up markets, this study has discussed the example of a renowned bar of Sydney such as Sydney Harbour Bar has been considered. It maintains its service and the environment within the bar. The food quality is also very good. The ethical principles has also been maintained by this bar and up market (Shahidi, 2015). Moreover, sometimes, it gives offers as well as coupons to the consumers and accept credit cards.

Menu engineering:

Menu engineering is a strategy, which can improve the profitability statement of a restaurant and the popularity of the menu items. This study has been considered an eminent restaurant group of Australia such as the Platinum restaurant group. Theses above mentioned two factors could make an impact to enhance the profitability per client. In this case, it can be mentioned that menu engineering not only applicable for the traditional paper menus of the restaurant group. As mentioned by Basile, Cassano & Rastogi (2015) it is also available on the online-posted menus and drinks.

Profitability impact by the adapted technique of menu engineering:

A well implemented menu engineering effect can improves the profitability statement of by 10% to 15%. The estimated tools, which can influence the menu engineering, has been depend upon the knowledge of the proprietor of the Platinum restaurant group regarding the menus. The menu engineering procedure can be achieved with the help of the four steps. These four steps are cost structure of the menus; differentiate the menu items as per the profitability and the popularity levels, design the menu of platinum restaurant group, and test the newly updated design (Bhandari et al., 2013).

Cost structure of the menus of the mentioned group refers the procedure of breaking down of menu to the individual ingredients and can evaluate the appropriate cost of each of the items of menus. In this connection, it is necessary to recruit the right person, who is eligible to perform the menu costing ideally, as that person is seemed to highly efficient regarding the cost of the foods of each of the items as stated by (Kelly et al., 2015). Therefore, it can be stated that the efficient person can develop the costing performance procedure of Platinum restaurant group. In addition, as per the second factors, the category demonstrated the process of breaking the restaurant’s menu in the broadest level. On the other hand, as per the third level, it is necessary to construct or frame the menu of the restaurant.

In this occasion, it can be suggested that, in the menu card the prices of the items are not needed to be highlighted compared to the name of the foods items (Roberts et al., 2014). This may has a negative impact on the consumers. In addition, the menu card configuration is also required to consider. There are one panel, two panel, three panel book style and the many panel of menu style configuration. This is come under the menu design. The management of the restaurant is required to advertise the food items in the one menu card instead of printing in the several menu cards. Therefore, it can be assumed that in order to enhance the profitability statement of the restaurants, these processes of menu engineering are helpful to consider as proposed by Shahidi (2015).

Instead of this, it can be mentioned that the profitability statement of a restaurant is based upon the position of the restaurant group. In this purpose, it can be stated that, the restaurants, which are situated in the over populated places, the sales can be increased. In addition, the restaurants, which are developed in the market place of Sydney, it can be assumed that the sale of that restaurants are higher compared to the others (Sookram et al., 2015).

On the other hand, this study is also helpful to understand the value chain analysis, which is supposed to be beneficial to gain competitive advantage compared to the competitors of Platinum restaurant group. It can be observed that Platinum Restaurant group has aimed to three major factors such as quality of the food, valuation and the service provided by the restaurant to the consumers. In this context, it can be mentioned that Platinum restaurant group is one of the renowned restaurant in the Sydney (Walker, 2016). In order to maintain its position and the good will, the organization tried to serve the best quality of foods to the visitors that they again want to take the services of the definite restaurants. More specifically, the consumers want to maintain a long-term relationship with Platinum group. In addition, the service provided by this restaurant is highly appreciable (PRG-PRG,. 2016). In this regard, it can be stated that greater welcome and the greater ambience of the restaurant, also enhance the visiting of the consumers to the restaurant. In addition, Platinum restaurant group has the specialization in the multi cuisine items. Therefore, it can be stated that in this restaurants, all the consumers can get different items of foods and can taste as per their requirements. They do not need to go to other restaurant for tasting of any special type of cuisine. In this point of view, the restaurant has been gaining the profits and the business become successful (Shahidi, 2015).

In this scenario, it can be mentioned that Platinum restaurant has enhanced their outlets after getting success in Sydney. It enhanced it’s business in another 12 locations in Australia. In this regard, the value chain analysis of the restaurant is needed to mention. As per the statement of Kelly et al., (2013), value chain analysis is also helpful to gain the competitive advantage. The value chain analysis for the consumers aimed to the definite actions, which can acquire the higher consumer value. Value chain analysis can also measure the several strategies to increase the value of the consumers. Therefore, this analysis allows considering higher product features, enhancing the consumer service responsiveness, and can enhance the product mix strategy. Moreover, identification of the best differentiation process is seemed to be sustainable in the long run, and it is the combination of several activities in case of the promotion of greater consumer valuation. The ideal combination will lead to the sustainable advantage of product differentiation (Kelly et al., 2015).

Conclusion

In a broader sense hotels and hospitality management, in respect to the Sydney food and beverage industry has greatly used the concept of Competitive Advantage in a very sincere manner. It has certainly used the tools like, “Competitive Advantage”, as well as “Value Chain Analysis” in a very broader perspective of the industry chosen. After the analysis of the overall study, it can be observed that in order to gain the competitive advantage in the hospitality industry by Platinum restaurant group, it requires to follow the value chain analysis, which is assumed to be important for the greater business performance. Moreover, the menu engineering concept is also helpful to make the profitability of a restaurant. Therefore, this analysis also significantly enhances the essence of the study.

References

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