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Case research: Outrigger hotels and resorts

The research study is approximately the Outrigger Hotels and resorts that whose foundation was maintained by Roy C. Kelly in 1963 with the quest of providing the dreams of holiday in heaven to fact for a middle-class consumer. Within the next 2 decades it widened through new engineering and acquisitions and became the largest among its opponents with a centralized management structure. It also varied its product stock portfolio with international expansions and rebranded its fifteen hotels by the name of OHANA for budget travelers on one hand and Outrigger hotels and resorts for top quality travelers through the addition of condominiums that represented a distinctive business opportunity. Using the international extension the management style also evolved from centralized to decentralized with independent operations and prepared like traditional resorts.

Competition: The hotel group controlled in immediate competition with more developed brands like Marriott International, Hilton Hotels and resorts, Starwood hotels and resorts, ASTON Hotels and resorts and Marc Resorts Hawaii which had a big market presence however the Outrigger group scored over them by long-term romantic relationships with distributor network, local knowledge, strategic concentrate and good employee relations.

Its IT infrastructure was also considered to be strong which is exemplified with the fact that it implemented JD Edwards ERP years before its large level implementation across business. It also bought a business intellect program from Epiphany to gain an information into its business. Regardless of all the above explained competitive advantages Outrigger Hotels and Resorts group is facing the following changes:

  • Problem of integration of business procedures across the countries
  • The proliferation of choices for a consumer with respect to entertainment budgets
  • The Hawaiian tourism industry was centered upon the airlines industry which itself

    was under extreme financial pressure after terrorist attacks

  • Inefficiency of wholesalers to work with the changing technology and count on fax machines

    for the same. Outrigger select an available travel alliance XML expectations nevertheless they were not

    clear about the right partner

  • A lot of cash was allocated to business intelligence program but the organization

    didn't know its usage in the daily operations

  • Problem of training the personnel and providing scientific facilities to the guests
  • The change in the circulation network by the arrival of Internet where almost all of the

    tickets were booked through third-party travel sites offering active packages,

    degrading the good thing about wholesalers for the Outrigger group.

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