Marketing Theory International Luxury Hotel

Question: Discuss abut the Marketing Theory for International Luxury Hotel. Answer: Adaptation The Four Seasons is an international luxury hotel, which is included in the five star categories. The hotel chain is one of the topmost luxury hotels across the world. The company has managed to adopt a wonderful competitive strategy to be at the topmost position. This presentation will describe the AAA analysis of the hotel. The three components of AAA are adaptation, aggregation and arbitrage. The first component is Adaptation (Motohashi 2015). The process of the creation of global value by the modification of one or more than one elements, which meets the local preferences or requirements, is known as adaptation (Motohashi 2015). This process is one of the widely used global strategies to penetrate the local markets of multiple countries. The Four Seasons operates in several countries of the world and it customizes its services as per the preferences of local customers. The services of the hospitality industry like type of hotels, type of beverages provided, categories and others, are formulated in such a way that it fulfills the needs of the local target market. This process is very effective for the purpose of achieving success in a new territory. The pricing strategy also needs to be customized as per the financial capabilities of the local target population. The fundamental idea of this strategy is adapting the business dimensions as per the destination market needs. Aggregation The aggregation component of the global strategy consists of the creation of the economies of scale as a measure of dealing with the differences (Ghemawat 2015). The main marketing objective of Four Seasons is to utilize the similarities between geographical boundaries rather than adaptation to the differences, which is also the central idea of the aggression component. The organization strives to identify unique ways for the introduction of economies of scale into the global model of business. The hotel strives to adopt a regional approach for the successful market penetration. There is a need to transform the investment, communication patterns, and policies of trade as per the destination country. The geographic aggregation as well as non geographic dimensions likes administrative, geographic, economic and cultural, lead to the success of the aggregation strategy. Arbitration The third strategy for achieving competitive success on a global scenario is the arbitrage strategy. The process of the exploitation of the differences of the countries rather than adaptation of the same is known as the arbitrage strategy (Ghemawat 2015). The outsourcing and the off shoring components are the strategies used by the hotel. The cultural arbitrage is a common component of the Four Seasons since ages. The institutional, political and legal differences create various opportunities for the occurrence of the administrative arbitrage. The geographical differences are overcome by the hotel, which is a result of the visible decrease in the communication and transportation costs. The costs of labour and capital and the availability of complementary products are the major ideas of the economic arbitrage. References Motohashi, K., 2015. Marketing Theory in Global Business Context. InGlobal Business Strategy(pp. 137-154). Springer Japan. Ghemawat, P., 2015. From International Business to Intranational Business. InEmerging Economies and Multinational Enterprises(pp. 5-28). Emerald Group Publishing Limited.