Business Model Innovation and Business Radical Innovation

Question: Discuss about the Business Model Innovation and Business Radical Innovation. Answer: Introduction The report of business planning is based group of hotel chains who have decided to merge with their business with other hotels to fight the pressure of market regarding the low priced hotels. The formation of the new chain is started as stay together for having thousands of hotels from every category around the world. It is associated with combating the sale of hotels through various popular websites like hotels.com booking.com etc. However, marketing to this popular websites is causing a reduced of the profit that the hotels game and thus it is draining out the corporate brand image of the popular hotels. They decided that bookings will be made on a single website only with the help of different mobile phone applications and the prices that will be fixed and kept the same with the peak pricing situation of the time. The business report is setting light on the customer loyalty scheme of stay together. The configuration of the kitchen and dining system with complimentary breakfast and buffet lunch is also a part of this report. Rebates, discounts and credits for the customers are attractive packages. Keeping in mind the significance of Corporate Social Responsibility, the hotel chain system stays together focuses on providing charity from their earned profit. The most important thing in this business is the information technology and the information system of the company. This technology is needed by the hotel chain system because the company has some hotels under them and they have to control all the chains and all the hotels which are not an easy job for the company. In that case, they form the strategic alliance by which they can control the business. The important things come under the strategic alliance is the Information Technology and the information system. These two things are most important because the information system is collecting or handling the data or the information of the business by which the company is getting the updates (Buhalis Law, 2008). The information technology is the technology which is controlling the information or the data of the company. The technologies are such as the internet, websites and the application. By the help of these, the company is not only getting the benefits of getting the updates of their own business but also the customers are getting benefits by getting the detail information of the company. By those applications, they can check the availability of the service or the rooms of the hotels. This system is made by the company because previously the companies use to take the help of the other online website to promote their business or for online booking but by the system, they are facing losses because they have to pay cut off money to the website company and that is hurting the margin of the company. So they decide to form an individual website by which they can promote their own business (Chan, 2011). Loyalty scheme It is necessary for the company to hold their customers and also to gain long-term customers for their business. In that case, the case should become satisfied with the product or the service of the company. On the other hand, the communication system of the company should be modified because communication is the most important part of any business. With the help of the communication system, the company use to create the business channel. The customer of the company always looks into the behaviour of the staffs towards the customer. If the behaviour or the presentation is perfect, then it will become easier for the company to gain the customer and to maintain the customer properly. If the customer is satisfied and they stick to the company for the long time that is called the loyalty of the customer. Now the loyalty is not a thing that the entire customer or the people will trust any companies blindly. For building up the trust, the company needs hard on their service and the product by which they can satisfy the customer (Faulkner, 2001). The company has to build an image among the customer by their service and the product so that the mind set up of the customer will become fixed towards the existing company. As the day will progress, the company has to innovate with new kinds of product and also to create new strategies. The innovation of the products will make the expectation level of the customer high by which they will wait for the product till it launches. On the other hand, the company has to develop new kind of strategies and ideas in all kind of departments. At first, the company has to build the plan regarding the product and its manufacturing (Goffman, 2009). The company must create a good plan regarding the product, the company should think about the advantages and the disadvantages of the product before creating. On the other hand, the company have to think about the newly product of the product. After manufacturing of the product, the company use to think about the promotion, advertisement and marketing of the product. The marketing plan is the vital plan because the company has to go think new concepts and way of marketing by which the customers will get attracted to the product. After marketing the company has to think about the price of the product, the company has to set the price of the product in minimum and also in a reasonable so it can become affordable to all kind of customer. After the launching of the product, the customer should become satisfies with the product. These all facts will lead a customer to become loyal towards the company (Hoque, 2013). Free buffet breakfast and dinner There are several companies which are developing themselves and going for new marketing strategies by which they are attracting the customers. Now the companies have to take the risk during the making and executing the marketing plan of the company. But here the base and subject of the business are hotel chain business then they have to make wise strategies during the time of their promotion and sales (Kimes, 2011). In todays world people are booking hotels and resorts by the whelp of the online sites or the application because it is giving them more access to the place and also assuring their bookings, but with the help of these applications or sites, the hotels are losing their profit margins. They have to pay a cut of the money to the online websites. Along with that, there are others issues that are that the website is not only promoting a particular hotel but also promoting several hotels in same regions. This is what the particular hotel is facing difficulties to promote their business. For these particular reasons, the hotels are making their websites and application by which the customer can easily access to their details and can easily book their hotels by their websites and application. The small hotel's chain business face difficulties to spread their business for that they use to choose to make their websites and applications by which they can promote themselves. On the other hand, t hey promote their business by the help of the social media apps where they can connect a lot of peoples (Mok, Sparks Kadampully, 2013). When the company is making marketing strategies that time the hotels use to set some attractive offers. When a small hotel business is opened that they can promote their business or give extra benefits to the customer is equal to promotion. The hotels use to give complimentary free buffet breakfast and the dinner for which they will not charge a single penny from the customer regarding the food. This is a great strategy by the hotels to promote their business in the ongoing trip. This is the new the modern concepts. They use to take this type of strategy because it is not possible for all hotels to invest huge money on advertising so they can create new concepts which will become more fruitful to the customers. This type of strategies and service use to create a good relation with the customers, and the customers become loyal to the company for its service. This transforms the temporary customer to the permanent customer (Molina-Azorn et al. 2015). Providing rebates to the customers is an essential decision of the management where they are striving to facilitate the customer's satisfaction and loyalty. On booking up for rooms and related services, the company provides special discounts for the customers on different plans and schemes. After the discount, the amount which is to be paid by the customer is the rebated amount. The chain of 10 hotels or stay together formation has come up to this decision to come back their market pressure and beat up small Hotel accommodations. It is very much important to value the customers and provide necessary services to gain customer loyalty. Once the customers are satisfied with the service as well as the price strategy, it is quite obvious that they will opt for the same service again and again (Noone, McGuire Rohlfs, 2011). Price is the most important issue that influences the financial condition of the customer. If the customer is willing to book a hotel, or plans to go for the recreational period, it may happen that his financial pursuits and not allowing him to think on it again. Therefore, keeping all such pros and cons in view, the management decides to facilitate the customers with special offers and discounts. These strategies not only benefit the company but also trigger the customers' desire in an economical way. For example, it can be assumed that to attract the middle-class customers it is necessary to compromise with the prices of hotels and complementary services. Throughout the vacations and the peak seasons, it is justifiable that the prices of hotels are fair enough to pay. However, if we talk about of seasons, the chain of hotels and their management has to formulate some strategies to attract customers in the offseason too (Pappas et al. 2009). There lies the capability of the management appropriate marketing strategies which has to be implied unimplemented on the existing customers as well as the new ones. People are much fascinated about the low-cost budget with high-quality service. Therefore, promoting the business with a view on the financial status and consideration gradually attracts more than an average number of customers (Shaw, Bailey Williams, 2011). Social responsibility Corporate social responsibility refers to the responsibility of the business organisations and corporate sectors towards the environment and the surrounding of their society. Referring to the situation here, the stay together formation is planning to provide the charity with their earned profit. There is a charity organisation that is in association with stay together and is facilitated with amounts considerable out of the profits earned by the chain of hotels. The hotels directly charge the amount of Charity from the customers. 10% of the amount of Bill that the customer is playing is taken as a donation to the charity. It is thus, an important and effective significance of forming the strategic alliance. Not only focusing on the profit and to combat the market pressure, but the alliance is also responsible enough towards the society and the well-being of the people (Souto, 2015). Conclusion The whole report focuses on the marketing strategy applied by the Chains of Hotel to attract more customers and combat the market pressure that they are facing in reality. However, there are lot more decisions to be made by the management. It is not only about facilitating the customer with customer loyalty schemes and approaches but also generating appropriate customer relationship. Keeping in mind the business view, earning the profit is the main motive but to attract a lot of customers, it is essential to implement some more marketing strategies. It is known that human resource management deals with the internal employees and stakeholders of the company. On the other hand, public relation management is the approach that will deal with the outer stakeholders of the businesses. The whole system of stay together has a great influence on the small market regions and has propagated with Charity considerations. Therefore it is necessary for the alliance to organise surveys for taking feedbacks from the customers. Customers are the main stakeholders for whom the business is being operated. Therefore, it is important to make good communication with them and serve them to the best possible way (Sparks Browning, 2011). Reference Buhalis, D., Law, R. (2008). Progress in information technology and tourism management: 20 years on and 10 years after the InternetThe state of eTourism research.Tourism management,29(4), 609-623. Chan, E. S. (2011). 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