Question

Is Rosen Hotels & Resorts’ competitive strategy working well? What information from the case leads you

to this conclusion?

Answer 1

Answer:
Rosen Hotels & Resorts’ competitive strategy is working very well. The hotel within Rosen Hotel & Resorts competed in two sectors: of the Orlando hotel market: leisure and convention. Rosen Inn, Rosen Inn International, Rosen Inn Pointe Orlando, and Clarion Inn Lake Buena Vista all completed in the leisure segment, with the location of the three of these hotels on International Drive, putting them in close proximity to Universal Studios. International Drive had also become a destination itself, with dozens of restaurants, tourist sites, and attractions all along International Drive as well. The Clarion Inn Lake Buena Vista, the remaining leisure hotels, near Walt Disney World. The International Drive hotels competed mostly in the economy price range, while the Clarion Inn hotel competed at a slightly higher rate.
In addition, Rosen had three convention hotels: Rosen Plaza, Rosen Center, and the Rosen Shingle Creek. Both the Rosen Plaza and the Rose Center were located next to the Orange County Convention Center and competed in the meeting convention and trade show markets. The convention hotels competed in the upper-midscale to upscale price range.
The Rosen Hotels competed in the leisure and convention markets on a number of competitive factors, including location, facilities, amenities, food and beverages, price, and customer service.
Harris Rosen was generally credited with being a pioneer in yield management. Yield management was hotel room pricing that reflected supply and demand, and that kept the hotel as full as possible. When times got tough, Rosen hotels would drop their prices. Other hotels, including Disney, had also begun to practice some type of yield management. However, very few hotels could compete with Rosen Hotels on price because all of the hotel had been paid for in cash, leaving Rosen Hotels completely debt-free.
These strategies bring many benefits to their employees. For example: medical coverage and insurance; prescription coverage; family outreach center; daycare supplement; retirement planning; career training and advancement; education.
Finally, Rosen Hotels & Resorts was a private company, it considered itself a rather unusual private sector company because the company was completely debt-free. Guests at Rosen Hotel & Resorts continued to be amazed at the quality, customer service, and value at the company’s Orlando hotel.