Globalization In The Hotel Industry Essay

CHAPTER 1

INTRODUCTION

1.1 Introduction

Globalization has incurred dramatic transformation to commerce practices around the globe. Corporations like Intel, Apple, and IBM have begun to outsource experts from different parts of the globe, reasoning variation in firm’s structures and work shifts (Bernstein, Kripalani and Engardio, 2004). Consolidation between airlines (e.g., sky alliances, world members & star alliances) is further instances of variations caused due to this phenomenon. According to Jean de la Croix (2011), as many other industries, hospitality and tourism sector has also been affected by the globalization. Hence, this dissertation peruses the impacts of globalization on the five star hotels in Geneva city, Switzerland with a specific concern on how it impacts the hotels marketing strategy and also their business performance. In this etude, “globalization” reflects on the procedure of augmenting cultural and social relationship, economic, and political interdependence, market and financial accretion that are due to the advancements in transportation technologies, communication, and business liberation (Lenway and Eden, 2002)

As international business and trade expand, there is no doubt that international connections will become more and more significant for the hotel industry. According to Zhang Zhen (2005), in the late decades, many hotels have received foreign customers one day or another. However, since the sector evolved, and with the advancement of technology and transportation systems, the industry’s structure has become more and more complicated in regards to management, dependency and ownership. Zhen further states that there are two main reasons why hotel chains started to look for occasions to ent...

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...ats and opportunities on the 1) overall performance of Geneva’s five star hotels, & 2) global marketing strategy.

2.3 Globalization & companies’ performance

As there are not many literatures written regarding the affects of worldwide market threats and opportunities on the performance of the five star hotels in Geneva and as well as their marketing strategy, this dissertation tends to explore the relationship between these two impacts on company’s performance and how globalization has affected their marketing strategy. In one hand, it is believed that worldwide market gives an opportunity to the companies to have global resources and therefore enhancing the performance of the companies (Eng, 2001; Fawcett, 1983). However, on the other hand, it results in more intense competitive environment, which creates more uncertainty in the market (Jones, 2002; Levitt, 1983).