Directions: Answer the following questions briefly and refer to the rubrics provided.
1. Identify at least two business establishments in the tourism or hospitality industry.
2. Assess, evaluate, and determine their company's competitive approach.
3. Compare and contrast the two identified business establishments as to their competitive approach including their firm's competitive scope within the industry.
Answer:
1. Two business establishments in the tourism or hospitality industry are Marriott International and Airbnb.
2. Marriott International adopts a differentiation strategy by offering upscale, diverse accommodations and loyalty programs. Airbnb focuses on a platform business model, connecting hosts and guests for unique, personalized experiences.
3. Marriott's competitive approach emphasizes brand reputation and consistent quality, while Airbnb leverages a peer-to-peer model for a wide range of accommodation options. Marriott's competitive scope is broader, spanning luxury to budget segments, while Airbnb focuses on a decentralized, sharing economy approach.
Explanation:
1. **Marriott International and Airbnb:**
- **Marriott International:** A multinational hotel chain, Marriott operates in various segments of the hospitality industry, offering hotels and resorts across the luxury, premium, and budget categories globally.
- **Airbnb:** A platform that connects travelers with hosts offering unique accommodations and experiences, Airbnb disrupts the traditional hospitality model by enabling individuals to rent out their properties or offer experiences.
2. **Competitive Approaches:**
- **Marriott International:** Adopts a differentiation strategy by providing high-quality service, consistent standards, and loyalty programs like Marriott Bonvoy. This approach focuses on building a strong brand image and customer loyalty in a diverse market.
- **Airbnb:** Utilizes a platform business model, acting as an intermediary between hosts and guests. Airbnb's competitive approach emphasizes the sharing economy, offering a variety of accommodations from private rooms to entire homes, providing a more personalized and local experience.
3. **Comparison of Competitive Approaches:**
- **Differentiation vs. Platform Model:** Marriott focuses on differentiating itself through brand reputation and service quality, while Airbnb relies on a platform model, connecting diverse hosts and guests for unique experiences.
- **Competitive Scope:** Marriott's competitive scope is broader, covering luxury to budget segments with a consistent brand image. In contrast, Airbnb's scope is more decentralized, involving a wide range of hosts and locations in the sharing economy.
In summary, Marriott excels in brand consistency and loyalty, while Airbnb thrives on its platform connecting hosts and guests for diverse, unique experiences within the sharing economy.