Do the deeper pockets (eg, cash and other resources ) of international hotel cha

Question

Do the deeper pockets (eg, cash and other resources ) of international hotel chains give them a competitive advantage over domestic chains? Why or Why not? If an advantagr does exist, is the advantage of deep pockets a sustainable advantage ?

As the popularity of indian grows, will other and domestic chains icrease their aggressiveness, posing enhanced competitive threats ?

Why is starwood expanding with a newly created and intested brand like Aloft ? Does the brand concept work outside the US ? Why or Why not ?

Explanation / Answer

The deeper pockets of the international hotel chains surely give the competitive advantages over the domestic chains. They have the wealth which has been utilized for the development of the domestic chains of the hotel. FDI in the domestic chain would leads to the development of infrastructure, resource creation, acquiring new small size companies, etc in the domestic market. It actually increases competition by doing this process.

Yes, the advantage of the deep pockets a sustainable advantage. It would indirectly help to the domestic chains to come up with the new ideas and innovations so as to compete with them or survival of itself. It is a kind of throat neck competition. These advantages would be helpful in the long run.

The popularity of the Indian grows has attract the markets and changed the trend of the business. It actually provides a competition to the other competitors of the market. It helps the competitors to analyze their business and do the needful. As the popularity increases with the corrective strategy in the market so competitors also have the aggressiveness in construction of strategy which would enhance their business and make them to lead in the market. They can have the strategy of the launch of the new products or services packages, offering on low price services, or it can be high price high quality services to attract the target market etc.

The Starwood Hotels and Resorts company has created a brand like Aloft because it helps to extend the business internationally. When the brand is created then it has a value. It impacts the on the user mind that it enhances the quality of the services. It takes lots of struggle and process to make the releasable brand among the target Market. When the brand has been created that means it has standardize the base of the services. It depicts the image of the company too. This works outside of the country also, as it is popular among the US target market. There are various types of consumers/ customers in the market. Some looks for the new arrivals, some retain with the old brand itself and some don’t have interest at all. So, the group of the people who are interested in the new arrivals makes the way for the international market creation for the company outside the US. Once it has been created a space for itself then it would definitely recognized by the other people in the international market.

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