Application of a Differentiation Strategy in an Organization

1092 Words Feb 22nd, 2018 4 Pages
An effective competitive strategy should be based on the organization’s goals and objectives as well as the market situation (Allen & Helms, 2006). Hotel ICON is an independent teaching hotel focusing on creative and innovative design and services. As the slogan ‘Unlike Any Other’ illustrates, Hotel ICON strives to create a unique hotel experience for customers instead of a stereotype one that they can gain in most chain hotels. This indicates that the hotel is following a differentiation strategy to gain competitive advantages in the Hong Kong hotel market by providing stylish design supplemented by the revolutionary technology trend (Hotel ICON, 2011).
An organization applying differentiation strategy may focus on providing unique product or services which emphasizing on quality service, innovation as well as the revolutionary technology trend (Allen & Helms, 2006). By applying differentiation strategy, organizations usually could achieve higher customer loyalty by providing customers unique and high-quality services. They are also likely to gain higher revenue because customers may be willing to pay more for the value-added experiences. Since Hotel ICON mainly adopts differentiation strategy, high-technology elements are involved throughout almost all aspects of Hotel ICON’s operations, such as the…
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