Shangri-La Case Study
1. What are the key elements of Shangri-La Hotel’s strategy? Which of the five generic competitive strategies described in Chapter 5 is the company employing? What is Shangri-La’s strategy for competing internationally?
Firstly, the elements involved in a company’s strategy can be separated into two categories: internal and external ones. Based on our research, we believe that the key elements that in Shangri-La’s strategy are the internal ones that include management, organisation culture, employee and service. For organisation culture and service, Shangri-La has its own service model which is called “Shangri-La Hospitality”. The company builds up its brand on service excellence with a state mission as “delight customer each and every time”, and offers customers an unforgettable experience by blending local culture, exotic arts and ambience. In order to achieve exceptional customer service Shangri-La sets up a five-level organisation design to delegate authority to its employees. In addition, it has a strong training system for its employees which will ensure the employees performing consistently in the highly personalised guest service. The Shangri-La Academy and Care Program are under the training system. Moreover, the company adopts a three-tier compensation system to show a clear career path to its employees. In this way Shangri-La builds up employees’ loyalty to the company.
Secondly, Shangri-La is using Focused Differentiation Strategy in the five generic competitive strategies described in Chapter 5. Shangri-La is securing advantage with its excellence service and style offering that is carefully designed to appeal unique preferences and needs for a narrow, well-defined group of customers. Like other top-class brands that target customers who are willing to spend much higher price to get a high quality product or more comfortable service, Shangri-La utilises focused differentiation strategy to attract its well-defined target customer group.
Finally,
Firstly, the elements involved in a company’s strategy can be separated into two categories: internal and external ones. Based on our research, we believe that the key elements that in Shangri-La’s strategy are the internal ones that include management, organisation culture, employee and service. For organisation culture and service, Shangri-La has its own service model which is called “Shangri-La Hospitality”. The company builds up its brand on service excellence with a state mission as “delight customer each and every time”, and offers customers an unforgettable experience by blending local culture, exotic arts and ambience. In order to achieve exceptional customer service Shangri-La sets up a five-level organisation design to delegate authority to its employees. In addition, it has a strong training system for its employees which will ensure the employees performing consistently in the highly personalised guest service. The Shangri-La Academy and Care Program are under the training system. Moreover, the company adopts a three-tier compensation system to show a clear career path to its employees. In this way Shangri-La builds up employees’ loyalty to the company.
Secondly, Shangri-La is using Focused Differentiation Strategy in the five generic competitive strategies described in Chapter 5. Shangri-La is securing advantage with its excellence service and style offering that is carefully designed to appeal unique preferences and needs for a narrow, well-defined group of customers. Like other top-class brands that target customers who are willing to spend much higher price to get a high quality product or more comfortable service, Shangri-La utilises focused differentiation strategy to attract its well-defined target customer group.
Finally,