The Resort Hotel industry is extremely competitive in Colorado. This is because it is a $5 billion industry, making each resort want to beat the competition to appeal to customers (Steiner). With “Aspen typically (hosting) around 300 meetings each year” the resorts have a lot of incentive to build up their resort (Christen, Allure). Resorts are now revamping their hotels to compete effectively with the new entrants coming into the Colorado industry. The Park Hyatt Beaver Creek Resort and Spa recently spent “$27 million in renovations and improvements,” while $7 million was spent by the Inn at Beaver Creek to update their hotel (Christen, Fall). With the baby boomers aging, the industry has to appeal to the younger generation in order to continue expansion in the industry (Steiner). In order to compete in this industry, resorts have to appeal to customers and constantly update their facilities to offer the best in Colorado.
Buyer Power High While there is a large buyer concentration, there is a larger firm concentration. Customers have a lot of different firms to choose from and are able to compare prices between many that are upscale and offer similar services. In Colorado, there is a high amount of resorts that can be viewed online giving the customer more power and a high amount of information. It is very easy for customers to compare prices, quality, and locations. Switching costs are extremely low for customers since they can easily stay at different hotels on subsequent trips with little to lose. There are plenty of substitute products that customers could choose over our hotel such as other lodges and mountain resorts. All of these factors contribute to a very high buyer power. Supplier Power LowThe high concentration of suppliers for the hotel industry creates a low supplier power. There are many firms that we can purchase everything we need for our hotel such as food, furniture, and toiletries for our hotel rooms. While there will be some contracts involved with our suppliers, generally there are no other costs of switching to a different supplier. This gives our company a lot of freedom in choosing our own supplier. Furthermore, our hotel could use many different types of substitute inputs such as different food items and towels. Threat of Substitute Products or Services High Colorado is a popular destination for luxury traveling including outdoor activities, fine shopping, and spas. There are numerous activities for customers to participate in, including hiking, skiing, camping, biking, bird watching, horseback riding, white water rafting, and more, offered through various services apart from our resort. Additionally, there are other high quality shopping areas, dining areas, and spas to compete with ours. While many are in the form of resorts similar to ours, the danger of substitute products and services lay in specialty organizations offering lower rates and more perceived expertise. However, customers may be more inclined to stay with our resort’s activities because of convenience. Threat of New Entrants High With the resort hotel industry being extremely prosperous, investors are quick to back new entrants in this industry. Combined with the low effect of switching costs, new entrants are a threat to the established resorts. Customers do not have a big incentive to continually return to the resort they had previously stayed at, showing that there are minimal switching costs to customers. They are open to visiting the newer resorts with state-of-the-art facilities. The new smaller resorts are also a threat because they can offer cheaper prices since they are not trying to offer all of the amenities that larger resorts have. Rivalry Among Existing Competitors High There is little diversity in the resort industry in Colorado. Multiple upscale resorts offer high quality products, competitive prices, and similar amenities to customers. This means that value is not added to any one resort because there are multiple resorts offering the same package to the same customers. This creates high competition to receive the business. The customers are willing to pay for the upscale resorts, but with little product differentiation, the resorts must compete constantly with their rivals. Customers could easily switch to one of your rivals due to the low switching costs that would be incurred.
Competitors use their site to attract customers, provide information about their hotel, and provide bookings for rooms, restaurants, spas, and activities on the mountains. Additionally, competitors can view our website or websites that provide reviews, to see what customers enjoyed at our hotel. With this information, competitors can benchmark and implement activities that are successful in our hotel.
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Online reservations are quick to make on the front page.Use of pictures to show hotel facilities and activitiesAccess to current weather conditionsCustomers can track their benefits from loyalty programs.
1. Poor formatting might make information hard to read and access.2. Customer service is not readily available.3. Some people are uncomfortable with technology and making online reservations.4. Might only focus on one particular season dismissing potential revenue from other seasons
The mission of Powder is to provide our customers with an enjoyable visit to Colorado through top service and quality entertainment. The goals of Powder are to provide top of the line service and customer care and to be the leading hotel resort in Colorado.
Powder is a large hotel, comprised of 400 rooms, and able to accommodate up to 1,600 people. The primary function of Powder will be to provide luxury lodging for customers with top quality dining and entertainment. Each room is equipped with two double beds, or a queen size bed. For suites or larger rooms, king size beds are available. All rooms are equipped with cable televisions, desks, phone services, room service, and free Wi-Fi. Suites have fireplaces and expanded kitchens in addition to the extra room space. Suite bathrooms have Jacuzzi bathing tubs and steam showers are available. Our main rooms accommodate up to four people and suites can accommodate up to eight people. We have standard, superior, suites, and penthouse suites available for our guests. Powder will also offer 5-star dining, a large spa and exercise facility, golf, pool, daycare, upscale shopping, and outdoor excursions.
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How could eBusiness strategy help customer service? The individualization we will be offering will only draw our customers in more and make them realize that our main focus is them: the customer. With that, we can focus things on their wants and need, as well as receive feedback. We will be able to see how the customers react to our services and this will continuously help us to improve our customer service. We can also offer surveys that visitors can fill out before and after they visit us. Lastly, customers can make profiles which allow them to contact us so we can constantly provide customer service. How could you use an eBusiness strategy to partner with suppliers? On our homepage, we have a direct link to our supplier section of the website. Suppliers are able to login and our website can personalize all of the information for each particular supplier. Each individual supplier can monitor our inventory levels of products that they provide. Additionally, they can track previous orders, view invoices, and fill new orders. This section improves our supply chain and gives suppliers our current information so that we can prevent shortages in products. Lastly, suppliers can easily contact us through this section in case they have questions or wish to share other information.
