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MKT335 Marketing Of Services Assignments Solution
Analyzing the growth of Australian tourism and hospitality industry, it has been identified that both the macro and micro environmental factors play the significant role in terms of driving the industrial growth. By supporting this Basu (2017) stated that the marketing, sales revenue and rate of profitability can be influenced both in positive and negative manner depending on the favorable situation of micro and macro environment of an organization structure. The aim of the study is to identify the two important macro and micro environmental factors, those impacts on the business success in both the positive and negative manner. By supporting the identified forces with literature, the challenges have been mentioned. At the end of the study, it has provided the measurable recommendations to mitigate the challenges.
A brief description of chosen business:-
In this study, the hotel namely Hyatt hotel Corporation had been highlighted, which is a five star hotel and popular in the global market for its luxury facilities. In the year 1957, the Hyatt was established. In the current scenario, Hyatt has established its 777 properties in the 54 countries in all over the world (Hyatt.com, 2018). In the year 2017, the business revenue of the hotel was 4.68 billion US dollar (Hyatt.com, 2018). As it is a popular hotel chain, therefore, in different locations all over the Australia, the organization has established its business. In case of analyzing the business size, it has been identified that the hotel chain has expanded its business as Park Hyatt Sydney, Hyatt regency Sydney and other names in Sydney. Analyzing the products and service of the organization, it can be said that the organization mainly targets the upper class people as it mainly provides luxury services. There are total numbers of 9 hotels and resorts of Hyatt hotel Corporation chain in Australia. It cannot be denied that tourism and hospitality industry have higher level of contribution in Australian GDP rate. Therefore, with increasing opportunities, the numbers of competitors are also high in the market. Sage Hotels, Chifley hotels, Next hotel Brisbane are the major competitors of Hyatt in Australian hospitality industry.
In the macro and micro environmental analysis, two factors from each segment have been identified, which have higher level of impact on the current hospitality industry. In case of micro environment, it has been identified that media and competitors contribution in the business success in both the positive and negative manner. On the other hand, in case of macro environment, the economic and technological factors have been highlighted.
Analyzing the recent market growth and influence of social media, it has been identified that social media has become one of the popular medium for marketing. As people have become highly dependent on the business practices as the uses of the internet among people has increased. It is true that depending on the social media popularity, the brand image of the organization can be developed. It is the only way, by which large numbers of customers can be attracted at a time. In the words of Jain, Joshi and Shashi (2014) social media marketing plays a significant role in case of improving the brand awareness as well as brand loyalty. On the other hand, developing the customer relationship and engaging the large number of customers, social media is important.
By arguing this Siddiqui and Singh (2016) stated that in case of increasing negative popularity of an organization, the social media is being used by the competitors. It cannot be said that social media is being considered as the fastest platform in which the information can be transferred. In case of Hospitality industry, due to negative reviews and comments of the customers, it can impact on its sales revenue.
In the words of Khorram Niaki and Nonino (2017) increasing competition in the market is being considered as important influential factor in business success. In case of Hyatt, identifying the market situation, it can be said that increasing numbers of competitors in the market is the major threat of the company. However, it n not be denied that the competitors can impact in the business organization, in both positive and negative manner. As stated by Holsapple, Jones and Leonard (2015), in case of competition between the firms, the customers get the best prices, quantity and quality of the service and goods. In case of increasing competition in the market the business and customer benefits can be encouraged by the antitrust laws.
However, by arguing this Nagle and Müller (2017) stated that due to increasing competition in the market, the pricing strategy of the organizations can be affected. In the increasing competitive market small business organizations do not get the chance to develop their business. However, in case of the large organizations life Hyatt, the organization needs to give strong effort for maintaining the good image in the market.
In the report of 2016, the GDP rate in Australia has reached 1.2 Crores USD. Reviewing the growth rate in the Australian hospitality industry, it has been identified that by providing the standard quality of accommodation and accessibility facilities, in the year 2010, the occupancy rate in the hotels has increased 72.7% (Uddin, Alam & Gow, 2016). In the words of Platteau (2015), the economic growth can bring the changes in living standard as well as expenditure pattern of the customers. By supporting this Hartwell (2017) said, with increasing economic growth status, the behavior and level of confidence of the customers can be improved.
However, in the words of Zervas, Proserpio and Byers (2017), due to increasing economic opportunities, the creative destruction occurs, that distrusts the old economic structure. In case of negative economic growth, the interest rates, supply, recession, inflation increases. Due to this reason, the purchasing pattern of the customers can be changed.
In the 21st century, technology has highly contributed in the current hospitality industry. In the words of No, An and Park (2015) the technology has positively impacted on the business for improving the communication with people. Another way, Wagner, Beimborn and Weitzel (2014) said, technology has brought the revolution in the manufacturing industry. As its result, the productivity as well as the sales rate of the organizations can be influenced.
However, Westerman, Bonnet and McAfee (2014) stated that due to increasing demand of technology, the pressure on the natural resources has increased. On the other hand, due to availability of technological innovation, increasing demands of the customers, increasing challenges for the organization.
In the study, it can be concluded that micro and macro factors can bring the positive and negative influence in the business growth procedure. In the above study, Hyatt hotel from the hospitality industry has been chosen. Both the positive and negative impact of the micro and macro environments has been discussed in this study. It has been identified that negative popularity and changes in pricing strategy are the major issues in micro environment. On the other hand, inflation, changing purchasing pattern and increasing technological influences has brought the challenges for the tourism and hospitality industry in Australia.
Analyzing the above issues, it can be said that decreasing the negative impact of social media, a customer support team is needed to be developed so that the quarries of the customers can be dealt in proper manner. In order to survive in the competitive market, uniqueness in customer service is needed to be introduced.
On the other hand, dealing with the economic issues, the strong finance team is needed to be developed in the workplace. As its result, the organization will be able to identify the innovative way to get out of the situation. In case of increasing technological demands, the organization can bring the unique technology in its customer relationship management.
Reference list and bibliography:-
1.Basu, P. K. (2017). Is sustainable tourism development possible? Broad issues concerning Australia and Papua New Guinea. In Tourism and Economic Development (pp. 140-149). Routledge.
2.Hajli, M. N. (2014). A study of the impact of social media on consumers. International Journal of Market Research, 56(3), 387-404.
3.Hartwell, R. M. (2017). The industrial revolution and economic growth. Routledge.
4.Holsapple, C. W., Jones, K., & Leonard, L. N. (2015). Knowledge acquisition and its impact on competitiveness. Knowledge and Process Management, 22(3), 157-166.
5.Hyatt.com (2018). Available at https://www.hyatt.com/promo/hotels-australia?src=reso_melbo_ppc_google_search_corp_goo_eng_au_brand_bm
6.Jain, M. S., Joshi, M. P., & Shashi, M. (2014). Impact of social media on business. target, 1, 1.
7.Khorram Niaki, M., & Nonino, F. (2017). Impact of additive manufacturing on business competitiveness: A multiple case study. Journal of Manufacturing Technology Management, 28(1), 56-74.
8.Munoz, P., & Cohen, B. (2017). Mapping out the sharing economy: A configurational approach to sharing business modeling. Technological Forecasting and Social Change, 125, 21-37.
9.Nagle, T. T., & Müller, G. (2017). The strategy and tactics of pricing: A guide to growing more profitably. Routledge.
10.No, H. J., An, Y., & Park, Y. (2015). A structured approach to explore knowledge flows through technology-based business methods by integrating patent citation analysis and text mining. Technological Forecasting and Social Change, 97, 181-192.
11.Platteau, J. P. (2015). Institutions, social norms and economic development. Routledge.
12.Siddiqui, S., & Singh, T. (2016). Social media its impact with positive and negative aspects. International Journal of Computer Applications Technology and Research, 5(2), 071-075.
13.Uddin, G. A., Alam, K., & Gow, J. (2016). Population age structure and savings rate impacts on economic growth: Evidence from Australia. Economic Analysis and Policy, 52, 23-33.
14.Wagner, H. T., Beimborn, D., & Weitzel, T. (2014). How social capital among information technology and business units drives operational alignment and IT business value. Journal of Management Information Systems, 31(1), 241-272.
15.Westerman, G., Bonnet, D., & McAfee, A. (2014). Leading digital: Turning technology into business transformation. Harvard Business Press. A. (2014). Leading digital: Turning technology into business transformation. Harvard Business Press.
16.Zervas, G., Proserpio, D., & Byers, J. W. (2017). The rise of the sharing economy: Estimating the impact of Airbnb on the hotel industry. Journal of Marketing Research, 54(5), 687-705.
17.Zervas, G., Proserpio, D., & Byers, J. W. (2017). The rise of the sharing economy: Estimating the impact of Airbnb on the hotel industry. Journal of Marketing Research, 54(5), 687-705.