This study aims to apply the application of value chain to a selected organisation in a service industry. This study aims to use Hilton Hotels as the focus of this paper. The main purpose of this study is to examine how Hilton Hotels builds a relationship with its customers, how it improves the added value to retain customers and what should be improved under the context of value chain to improve the better services in order to effectively deliver customer satisfaction and exceed their expectation. The paper will start from providing brief information about Hilton Hotels and then move on to analyse and discuss the key issues.
About Hilton Hotel
Hilton Hotels is one of the leading international premium hotels in the world. The company was founded by Conrad Hilton (Hilton Hotels, n.d.). It offers full-services hotels and resorts to customers in many major cities around the world. Through different kinds of customer service programmes, it attempts to develop a good relationship with the targeted market. It also attempts to use the ‘Hilton Honors’ which is customer loyalty programme to retain existing customers (Hilton Hotels, n.d.). The programme does not only enable Hilton Hotels to assess quality premium services from the hotel and its affiliated firms, but also helps them to experience the feeling of privilege.
How effective are the organisation’s resources in delivering its service offering?
Based on the concept of value chain, it can be assumed that Hilton Hotels attempts to add value to its offerings with the use of effective support value chain activities. Hilton Hotels uses different support value chain activities to sustain the effectiveness of primary activities to exceed customer satisfaction and expectation. These can be explained below.
Primary Value Chain Activities of Hilton Hotel
Inbound Logistics
Hilton Hotels have several suppliers in each country in order to have sufficient supplies as part of a good quality service for