ENTERING A FOREIGN MARKET
Entering a foreign market is, without a doubt, one a significant challenge to most organizations that try to internationalize. That idea is based on the fact that most of the barriers discussed in the essay affect not only hotels but also other organizations in the hospitality industry and beyond. As the manager, the most important task is that of developing the best strategies that will give customers the best experience during leisure. One of the facts is that most of the customers of major hotels go there during free time and when they want to spend their surplus income. For that reason, the services and products offered should give the consumers a kind of experience that brings out the highest degree of happiness possible. Doing so appears to be significantly difficult when entering a foreign market because the organization needs to find the best direct operators, such as kitchen workers, housekeepers, servers, and porters. It also has to look for other parties such as the management teams and marketing personnel. For that reason, the Holiday Inn Express Hotel will experience significant stress in its bid to internationalize.
Analysis of the Process and the Impact of the Process on the Organization
The impact of the process of internationalization on the organization will significantly depend on whether the hotel will profitably focus its strategies on the needs of the customers. According to []]], organizations in the hotel industry should always try to maximize the quality of services and products offered to customers as opposed to focusing on competition. Holiday Inn Express Hotel will be able to preserve its competitive advantage in the international markets if it focuses more on improving its products and services as opposed to competition. One fact is that hotels such as Holiday Inn Express Hotel and other organizations in the hospitality industry are associated with a significantly high degree of employee-customer interaction. For that reason, the degree of customer satisfaction and loyalty significantly depends on the quality of interaction between the employees and customers. More empowered workers are more likely to offer high-quality services. For that reason, the impact of the internationalization process on the organization also depends on the empowerment of its employees. According to [[]]], an employee who has the power to make important decisions can easily make suitable decisions near customers in a bid to meet various customer needs. Therefore, the Holiday Inn Express Hotel can experience positive changes in the international market if it allows its employees to make important decisions regarding service delivery.
The process of internationalization is likely to make the Holiday Inn Express Hotel more productive. Most of the manor organizations that merged after the industrial revolution focused on increasing the scale of production in a bid to generate more revenue. A larger organization produces more products or services and serves a significantly large number of people as well. Holiday Inn Express Hotel’s bid to expand into international markets aims at achieving that goal. One of the best ways to do so is by entering markets in the developing countries, which are associated with many positive factors, among them a growing discretionary income, expanding consumer intake, and higher market development rates.
Competitive advantage in the hospitality industry relates at least to some extent, with customer satisfaction. For that reason, the strategies of internationalization should all be focused on improving products and services offered. Various professionals provide various strategies that help international organizations deal with most challenges associated with the process of entering into new markets. Some of the approaches promote customer satisfaction as well. Some of the ideas include the use of advanced methods of transportation, the use of new communication technology, and increasing the use of computer technology in performing most of the business activities.
Holiday Inn Express Hotel can achieve significant success in the international markets by showing some efforts in environmental conservation. That idea aims at exploiting the opportunities presented by the rise of environmentalism in various parts of the world. Organizations that develop effective green strategies achieve significant competitive advantage in their respective industries. On the same, Holiday Inn Express Hotel should focus on not only dealing with the companywide environmental challenge but also abiding by the rules and regulations set by the government and international organizations regarding environmental conservation.
Answers to Questions about the Topic Presented
Many business executives would raise questions regarding the viability of most of the discussed modes of internationalization. The best way to answer them is by providing significant examples of cases in which particular organizations applied them and looking at the outcomes. Franchising appears to be one of the most appropriate modes of internationalizing. The idea has been applied by major hotels such as Hilton and has yielded significantly positive results. Holiday Inn Express Hotel can also use the same approach and achieve similar outcomes. The organization can also use management contracts for the same reason. The hospitality industry has many management agents with a significant positive reputation in the field. Such include Sodehxo and other organizations in various parts of the world. Holiday Inn Express Hotel should also try ideas such as forming alliances with other organizations in the hospitality industry in various parts of the world. The approach has been tested and proven viable by many organizations with positive results. A good example is the alliance between the Japanese Hokke Group and Accor. According to []]], the services part of the international trade is the fastest growing. For that reason, Holiday Inn Express Hotel has a high chance of achieving meaningful success in the industry.
Conclusion
The effects of the process of entering a foreign market will depend to a large extent on the mode of entry. Every organization would like to experience positive impacts from the process. However, that requires them to be cautious enough when developing entry strategies. In conclusion, the best approaches are the ones that help the organization deal with the challenges of internationalization while at the same time increasing the company’s competitive advantage.
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