Good Example Of Essay On Strategic Management And Strategic Competitiveness

Type of paper: Essay

Topic: Hotels, Company, Business, Services, Customers, Internet, Information, Competition

Pages: 5

Words: 1375

Published: 2020/09/28


Hilton Worldwide is a world leader in the field of hospitality, offering accommodation from luxury hotels and resorts with a full range of service to the rooms for long stays and budget hotels. For 96 years Hilton Worldwide provides business and leisure tourists with the best accommodations and service, comfort and good prices. The company is committed to its traditions and retains of its guests very pleasant experience of visiting any hotels of its network worldwide. The network includes more than 4,200 hotels of over 690,000 rooms in 93 countries around the world. During its existence, Hilton earned the title of one of the most innovative hotel chains of the world. Among the findings, which were first used in the Hilton are Hotel Room conditioning, power door locks and booking via the Internet (Hilton Worldwide, 2015).

Effect of Globalization

A characteristic feature of modernity is high rate of change both globally and within individual companies. Under the influence of aggressive and mobile external environment companies are forced to change its structure, standards and technology management, to distinguish between primary and secondary functions (Elliott, Rundle-Thiele & Waller, 2010). Thus, globalization affected Hilton as well.
A characteristic feature of the globalization process in the hotel industry is the use of advanced information and telecommunications technologies that enhance efficiency and improve the work of the companies, improve customer service, accelerate all operational procedures, the development of new marketing techniques and distribution channels. In the hotel business the Internet, developing trade in online services, is actively used.
So, in connection with the global trends of globalization and integration the absorption of small subjects of hotel business by large companies is fairly active. For example, in 1971, Hilton acquired International Leisure Company, Las Vegas Hilton and the Flamingo Hilton. In 1999, Hilton Hotels Corporation acquired Promus, which includes the brands of Doubletree, Red Lion, Embassy Suites, Hampton Inn & Homewood Suites (Hilton Worldwide, 2015).
In addition, about 68.2% of the information on trips consumers receive over the Internet: it is, above all, information about the kinds of recreation, destinations, prices, cartographic materials and, of course, booking through the Internet. The motivation factors to use the Internet when buying a tourist product the 1st place is occupied by the convenience, the 2nd – no pressure at purchase, the 3rd – saving time and, finally – the ability to get information directly from the tour operator. In 1973 Hilton Hotels was the first in global hotel industry, which implemented information and referral system – with the help of which the client could remotely obtain information on the availability and book a room with air and railway tickets. The effectiveness of this system was higher than all expectations – it has successfully worked 26 years, and only in 1999 was replaced by a more modern – Central Reservations System.
Currently, Hilton Corporation has a great website, where travelers can get all necessary information about prices and availability of the rooms, provided services in the rooms, their locations, etc. also, the website offers full data about the company, its history, values, specified brands and so on.

Industrial Organization Model and Resource Based Model

The Industrial Organization Model provides with statement that above-average returns for any company are basically defined by factors external to the company. So, Hilton’s activities are constantly being improved by analyzing the preferences and desires of customers. Special discounts and additional services are developed. There is high level of service for each client, because its customers mostly regular with high income aged from 27 to 64. There are a lot of competitors, which are Hospitality Franchise, Holiday Inn Worldwide, Best Western International, Marriott Hotel, ITT Sheraton, Hyatt Hotels, etc. Due to hotel’s locations near the center, high quality of service, individual approach to each client, discounts, brand awareness, Hilton is successful enough. As for suppliers, there are different transport companies, tour operators, enterprises located in the territory of countries, supplying furniture, equipment form employees, products for bars and restaurants. All suppliers have earned the reputation due to long collaboration. There is strong cooperation, where each party is interested in the other. Concerning substitutes, services of apartment bureaus and agencies are characterized by lower prices and can lure customers in the discovery phase. But on the other hand, these institutions will not be able to provide such services and the level of services and technologies that are present in the hotel.
The resource-based view (RBV) means that the starting point for a competitive advantage of a company is principally in the use of the set of important funds at the company’s disposal. To convert a short-run competitive advantage into a continuous competitive advantage needs that specified funds are heterogeneous naturally and not absolutely movable. Efficiently, this transforms into important funds that are neither absolutely imitable nor substitutable without vast attempt. If mentioned situation is met, the company’s set of funds can facilitate it maintain above average returns (Boundless, 2014).
Hilton key resources should be valuable, rare, inimitable and non-substitutable. Company’s value-creating strategy is based on the high quality services and the most innovative reputation. Unfortunately, due to availability of different competitors, company’s services aren’t rare, inimitable and non-substitutable, because there are other hotels with similar assortment of services and various apartment bureaus and agencies.
Overall, Hilton hotels are like a circle of regular customers, as well as the opportunity to attract new, except this the potential resource of the hotel allows enhancing the provision of complex services and occupying a worthy place in the market of hotel services business of high quality. In addition, attracting a separate category of customers, such as, for example, business customers, the hotel contracts with large companies, professional sports teams, and gets mutually beneficial cooperation.

Vision and Mission Statements

The company’s mission is just what gives it meaning and makes employees’ work more motivated. Mainly, the mission answers the question: “What, how and for whom the company does?” it explains in simple form for what purpose the organization exists. The company’s business strategy, which allocates resources to business and captures long-term and short-term goals, is formed based on the vision. The mission and vision of the company must be tangible by every employee in the form of concrete action. Otherwise, they will be perceived by no more than a formality, and at worst cause irritation (Elliott, Rundle-Thiele & Waller, 2010).
Concerning Hilton’s vision, it is about to give the world the brightness and tenderness of hospitality. Company’s mission is to be the paramount international hospitality organization, namely the initial option of visitors, employees and proprietors alike (Hilton Worldwide, 2015). Therefore, Hilton definitely follows its mission and vision in order to provide customers with the best services and ensure its success via maintaining the identity of the city and the country in creating the hotel; the transfer of property management in the hands of good managers; daily thinking out of the hotel business to determine the number of personnel and procurement needed to meet the practical needs of customers and create profits; all that may be necessary for the client to be sold at the hotel; the use of each meter of the area of the hotel to maximize profits; self-training, which ensures the maintenance of the company’s level and its further increase; effective marketing policy of the hotel (good advertising, market promotion, PR, etc.); and creation of a single booking system.

Stakeholders and Overall Success

Company’s customers are equally women and men with high income level aged 27-64 as well as children. The more customers were attracted, the more profitable company will be in the hotel industry market.
Hilton cooperates only with reliable suppliers of the equipment and great number of the company’s staff consists of high-skilled employees undergoing continuous training. The attitude, skills and appearance of all staff need to be the first class because people buy from people that they like.


Strategic management is the management based on the employment potential as the basis for the organization. It directs production activities or services in accordance with the demand of the consumer, providing flexible and timely regulation of changes in the organization, meets the challenges of the environment and allows it to achieve a competitive advantage. Strategic management enables an organization to strengthen its position in the market due to the implementation of the goals (Elliott, Rundle-Thiele & Waller, 2010).
Being world leader in the field of hospitality, Hilton was greatly impacted by the globalization conditions, namely different acquisitions, innovative actions and information and telecommunications technologies. The analysis of its external environment identified that the company has many competitors, suppliers and substitutes. However, its customer base is aimed at people with high income and regular preferences. With the help of its staff Hilton definitely follows its mission and vision in order to provide customers with the best services.


Boundless (2014). Resource Based View, Retrieved from
Elliott, G., Rundle-Thiele, S. & Waller, D. (2010). Marketing, Milton: John Wiley & Sons Austraila.
Hilton Worldwide (2015). About us. Retrieved from

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