The Ritz-Carlton Hotel is one of the most luxury hotels in the universe, and it has kept its luxury and elegance for decennaries. The Ritz has become a name to imply glamor, elegance and luxury. The trade name Ritz-Carlton Hotel has been the signal for the luxury and elegance of life. Currently, the house has hotels and resorts with 74 belongingss located in major metropoliss and resorts in 23 states worldwide. The Ritz-Carlton hotel offers odd and unexpected experiences for every traveller from all over the universe.
For the enlargement of the Ritz-Carlton all over the universe, the house chooses large metropoliss and aureate location for the entry of concern hotels, while celebrated resorts for vacation adjustments. In this essay, the enlargement of the Ritz-Carlton Hotel has been analyzed by giving an illustration of its entry in China, the largest developing state in the universe.
Marketing Environment of China
As for the markets entered, while China is a developing state non every bit rich as America and the most European states, but the Ritz-Carlton Hotel did non take down its criterion in China. It chose to turn up its new hotel in the large five metropoliss: Beijing, Shanghai and Guangzhou, Shenzhen, a metropolis near Hong Kong, and besides a particular economic country, and Sanya, who earned its repute of the golf, beach, Sun, pulling visitants all over the universe. There are adequate clients who are able to see the luxury of The Ritz-Carlton, and besides looking frontward to it.
PEST model is used to analyse the micro-environment of the luxury hotel industry in China. It stands for political, economic, societal and technological environments that might impact the companies. For the political portion, fall ining WTO offered China a great chance of globalisation, the authorities offer enormous chances for concern travel by keeping 2008 Beijing Olympic Games, 2010 Shanghai World Expo and 2011 Guangzhou Asiatic Games, which will hike touristry and therefore lead to great demands of hotel suites. For the economic portion, with the booming of China ‘s economic system and addition of people ‘s life standardisations, the luxury trade name like The Ritz-Carlton become affordable for some people, it is easy for the house to happen its clients both domestic and abroad. For the societal portion, the addition of economic increasing normally reflects on people ‘s societal activities, people tend to go to different topographic points to see different civilization ; in conclusion, for the technological portion, the development of engineering velocity up the transit to and besides spread the information like hotel advertizement faster. Though more people will acquire to cognize this traditional western trade name and have the chance to bask it.
Therefore, for the past 10 old ages, The Ritz-Carlton has chosen a best clip to come in Chinese market. Harmonizing to the web site of The Ritz-Carlton, the house is be aftering to open new hotels in Macro and Hong Kong in the close hereafter, which besides demonstrate that the operation in China is successful.
Entry Chinese Market and Strategies Adopted
Ritz ‘s entry to Chinese market followed the method of establishing direction contracts. Such method, as Ekeledo and Sivakumar ( 1998 ) and Hill, Hwang, and Kim ( 1990 ) put, can assist the company maintain its strengths in the new environment every bit good as its ain structural and strategic features, these advantages could be defined as particularly helpful for Ritz ‘s enlargement in Chinese market, because a house with strong competitory advantages in intangible facets, such as services, will be improbable to consort with an outside trade name or concatenation, so the concatenation owned, unaffiliated scheme suit the company who has the intangible advantage the most, because it helps the house to command more of the hotel ‘s selling and operations maps, pointed by Dev, Brown and Zhou ( 2007 ) .
However, as what being put frontward by Osmond Vitez, such method can besides convey some disadvantages for multinationals. These disadvantages could be summarized as followers: 1. Ambiguity may be aroused since the contracts can non turn to all the issues, 2. since the concern contract has already made some determination for the concern, it may be non that flexible to follow the alteration of concern universe, 3. By establishing direction contract, it may be difficult to rectify mistakes for client, therefore fostering the negative good will between clients and the company.
What ‘s more, when sing such entry method followed by Ritz from some other angles, such as operation, selling and the Forth, Dev, Erramilli and Agarwal ( 2010 ) pointed out that the method of direction contract can convey unreproducible advantages for the efficiency betterment of corporations ‘ operations, because the nucleus advantage of this hotel is the outstanding service served by ladies and gentlemen, merely like the slogan of this house: we are ladies and gentlemen functioning ladies and gentlemen. This nucleus advantage is difficult to copy by the other organisations or houses, it is unreproducible. While the house besides owns the other advantages like the luxury design and ornament, good location, and so on, these facets are easy to copy and conducted. In this regard, having the highest degree of control is really of import for the company to maintain the outstanding public presentation. Therefore when the Ritz-Carlton Hotel entered Chinese market, it used direction contract, which mostly maintain its excellence.
The Ritz-Carlton civilization is why the house keeps first-class service. While come ining into Chinese market, where the civilization is really different from western civilization, the Ritz-Carlton besides does a great scheme in maintaining its ain civilization while adapt to the environment of China.
Kent ( 1990 ) , by experience the Ritz-Carlton Hotel in Pentagon City seven yearss prior to its gap, made a decision that the Ritz-Carlton opens a new hotel with the accent on transfusing its civilization in the staff. It includes utilizing significant sums of clip learning new employees about the Ritz-Carlton cryptic and creed. In China, we have a really different workplace civilization than hotels in the United States or Europe, but through encouragement, the Ritz-Carlton keeps its civilization ( Cooper, 2000 ) . The hotel promote the right behaviours through acknowledgment, and the hotel reinforce the actions it is looking for through the sort of narratives it tells and the sort of actions it writes thank-you cards. If an employee does something for a invitee that is really personal – for illustration, she leaves work for a piece to take a invitee ‘s lovely plaything to person she knows can repair it, so brings it back in clip for the invitee ‘s flight – the house acknowledge that. Even in the environment of China, a state with five thousand old ages of brilliant but solid history, the Ritz-Carlton keeps its ain cultural and tradition of authorization. By sharing good and traveling narratives from employees from subdivisions all over the universe and the flexible ordinance of authorization, the house invariably reminds people of the sort of actions that it wants to see.
The nucleus of the company ‘s service doctrine: we are ladies and gentlemen functioning ladies and gentlemen. It is easy said than done, particularly in China, a state influenced by five-thousand-year of rigorous category categorization. The steadfast keeps its tradition that the slogan is printed in a card carried by every employee at all times. And the employees could reexamine the stairss of services as they want: 1, a warm and sincere salutation ; 2, expectancy of and conformity with invitees demands, and 3, a fond farewell. Both the slogan and three stairss of services encourage employees to construct good relationship with clients, and exceed the criterions which are written in the ordinance.
The Ritz-Carlton besides takes a rigorous line on enrolling the right people. They want to enroll the people who fit in with the strong service civilization, non merely those who has tonss of related experience. “ We select talent and teach staff the proficient portion of their occupation, we seek people who care for and esteem our invitees and each other. Those who have a high work moral principles are detail oriented and relationships driven are the types of features we seek in people, ” says Grippo.
Based on the above, though seeking difficult to suit the Chinese civilization, the Ritz-Carlton maintain its excellent by maintaining its nucleus civilization and direction manner.
The Standardization and Adaptation of Ritz ‘s Selling Schemes
In order to sketch the standardisation and version of Ritz ‘s selling schemes, this subdivision will foremost present the schemes being followed by Ritz in Chinese market. Then, the standardisation and version of such schemes will be analyzed critically.
The schemes taken by the house in Chinese market are client oriented, instead than rival oriented. It keeps its criterion of services but besides adapt to Chinese environment, particularly in item facets. A deep analysis will be done by utilizing Marketing Mix.
The elements of Marketing Mix are monetary value, topographic point, merchandise, and publicity, besides known as the Four P ‘s. It is likely the most celebrated selling term. They are the variables which can assist the directors to command in order to outdo satisfy clients in the mark market.
Product ( service )
The Ritz-Carlton Hotel offers adjustment, meeting, airdrome choice up and many other services all over the universe. As suites are the core merchandise of the company, both standardisation and version are applied in the Chinese market. First, the design is a combination of Chinese and western civilization. The suites are decorated by Chinese traditional images, the rug, the tea equipment, or the picture passing on the wall are demoing that the hotel is in China, while the standard bed, the agreement of pillows, the installations in the washroom, and adapters offered, etc. these show that it is an international hotel. For the eating house, the hotel offers both Chinese traditional dishes ( local nutrient sometimes ) and western nutrient to run into the demand of assorted services.
There is besides a little item. In China, we think the figure four, 14 represent decease, since the pronunciation is similar to “ decease ” in Chinese. Thus the Numberss listed in the lift, there is no four and 14s, when it comes to that floor, figure four is represented by figure five, while really it is figure four. From this instance, we can easy happen that The Ritz-Carlton Hotel do adapt and esteem Chinese civilization.
The Ritz-Carlton Hotel did non take down its criterion in China. The monetary value is higher than the state-owned five-star hotels in China, and every bit high as other luxury hotels such as Shangri-La. There is ever some price reductions for dinners, but comparatively rare for the suites.
There is besides version of puting monetary value. In western states, the monetary value offered by the hotel for group clients are ever being fix, or with small infinite for bargaining. But in China, the environment is different. We prefer dickering and the regulations are negotiable, the group can ever acquire lower monetary value aftering negociating with gross revenues representative. Therefore in the Ritz-Carlton, its gross revenues representatives besides conduct this manner.
The publicity of The Ritz-Carlton Hotel in China is concentrating on the combination of east and western civilization. Since six out of seven subdivisions now in China are concern hotels, the advertizements are ever about concern enters Chinese market which encounters in The Ritz-Carlton Hotel.
As a western hotel entered Chinese market, it is really of import to construct good relationship with Chinese authorities. Since China is now in the procedure from planned economic system to market economic system, the state-owned hotel still enjoys the great advantages of acquiring more trades from the authorities. Possibly in western civilization, houses can acquire net income from the good quality of merchandises, but in the environment of Chinese market, the authorities plays an of import function in the development of the company. Confronting this state of affairs, the house is seeking hard in public dealingss taking to gain more support from the authorities.
Beside an environment protection plan settled by the house for its subdivisions all over the universe, another plan was set for Guangzhou.
In 2008, the Ritz-Carlton Hotel set a service preparation plan for cab drivers in Guangzhou, for back uping Asiatic Olympic. This public publicity is superb for three grounds. First, the house successfully direct the message to the populace that the service of this hotel is outstanding and first-class ; secondly, the cab drivers are of import for they can act upon the determinations of some clients geting at Guangzhou, the preparation plan could assist them to better understand this hotel and its nucleus value ; in conclusion, by carry oning this method, it is much more easy to gain support and acknowledgment from the authorities. The general director, Francois J. Cnockaert besides receives awards from the authorities.
As discussed before, the house chooses large metropoliss and aureate location to show its luxury and elegance. The location is near to the metro and coach station every bit good. By staying to acquire the station named of The Ritz-Carlton, it is besides Chinese manner to recognize some topographic point, instead than utilizing the name of the route.
Based on the treatment above, the Chinese market is a good market for the entrance of The Ritz-Carlton Hotel. The house is now successfully spread outing in Chinese market by maintaining the highest control of the house to maintain its outstanding services, while accommodating to the east civilization in some extent.