Question

. Draw a value chain for a hotel you know well or have researched. Explain the implication of your study for competitive advantage.

Answer 1

ANS :

First of all it is necessary to understand about the value chain . A value chain is a business model that describes the range of activities needed to create a product/service. In the hospitality sector, value chain analysis is the process of looking at these activities that go into changing the inputs for a product or service to generate an output that is valued by the customer.

Value Chain of Mariott Hotel :

The value chain highlights the importance of the operational manager being involved in all aspects of the process, from suppliers right trough the customer

The primary value chain activities are:

1. Logistics/ Inbound:the distribution of manufacturing after the raw materials are received and warehoused.
2. Operations: the transformation process of inputs into services and finish products.
3. Logistics/ Outbound: The warehousing and distribution of the finished goods.
4. Marketing and sales: Placing the product on the market generating sales reaching the right people interested to buy it
5. Service: The tool used to offer the product on the market and the service offered after the product is sold (customer service)

This Primary Activities are supported by:

1. The infrastructure of the firm: organisational structure, control system, company culture etc.
2. Human resource management: employee recruiting, hiring, training, development and compensation.
3. Technology development: technologies to support the value chain activity
4. Procurement: purchasing input such as materials, supplies, and equipments.

These are few competitive advantages :

1. Identify competitive advantage sources

2. Identify complex inter-relationships and interdependencies

3. Improved flow of materials, information and finances

4 .Formulate effective firm-specific strategies