case digest - the corporate brand: help or hindrance?

8/17/2019 Case Digest - The Corporate Brand: Help or Hindrance?

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Group 10: Batalon, Ballesteros, Kua, Sarayba

Case Digest: The Corporate Brand: Help or Hindrance?

I. Problem Statement

Should a corporate brand be created for Lilypads chain of e!clusi"e hotels or lea"ethem as ha"in# separate brands$ %ill the company be able to cross&sell$

II. 'ase (nalysis (. S%)* (nalysis of Lilypads +otels

S*-G*+S/ 'ustomer loyalty for specific

locations/ niue tra"el e!perience/ 2ocuses on customi3ation of

its hotels based on local culture andtastes

/ 4i"erse locational reach

%-(K-SS-S/ Brand reco#nition/ Lo5 cross&property affiliation

a5areness/ Inconsistent uality

/ (bility to ser"e the e!istin#customers better

/ *urno"er of employees for thepast fe5 months

/ Staffs arent pro"idin# the#uests 5ith personali3ed care.

/ Layout of the rooms in their hotels

)PP)*I*I-S/ Brand reco#nition/ Increase in annual cross&

property usa#e/ (ttractin# ne5 customers/ )fferin# 6un7ies

*+-(*S/ Limited #ro5th/ 'ompetition 5ith more

established brands

B. Porters 8 2orces 9odela. Buyer Po5er

i. Lo5 buyer po5er: 4emand for hotels at times 5hen someone

needs a place to stay is "ery inelastic 5ith respect to price, meanin# that the

customers 5ould not be able to successfully bar#ain 5ith the hotels prices and

so the mar7et as a 5hole 5ont be much able to dictate the price.b. Supplier Po5er

i. 9edium supplier po5er. Since their hotels are located at "ariouslocations, they are not sub6ected to the 5hims of a fe5 suppliers, as they can

chan#e suppliers if needed. (c7no5led#in# that the locations are e!otic, there

may be times thou#h that only a fe5 suppliers are a"ailable, and these are the

times they may increase prices.

c. *hreat of ne5 -ntry


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i. 9inimal threat of -ntry: -nterin# the industry 5ould need a lot of

capital and in"estments therefore it is hard to enter.d. *hreat of Substitute

i. 9edium threat of Substitutes: 4emand for lod#in# is elastic as

more tra"ellers could opt to stay in alternati"es that offer lo5er accommodation

rates such as motels, hostels, or bed spacin#. nfamiliarity 5ith the locationsmay force customers to find hotels in these e!otic en"ironments, as these are

percei"ed to #i"e satisfyin# uality, but may bal7 and find an alternati"e if prices

are too steep.e. 'ompetiti"e i"alry

i. +i#h competiti"e ri"alry: *his threat poses a "ery hu#e challen#e

for Lilypad as they encounter more established hotel companies 5ithin the

industry that is also lurin# the same set of customers to their hotels.

III. (lternati"e 'ourse of (ction ('(; (. 4o othin#

Lea"in# the situation unchan#ed 5ill ob"iously sa"e Lilypad from underta7in# acostly initiati"e 6ust to place its name front and center since it is uncertain if this

mo"e 5ill #uarantee any success. +o5e"er, the ca"eat to this is they 5ill be

missin# the opportunity to secure hi#her profits.

B. Be an umbrella company, 5ith all hotels under the company, yet still retainin#

each hotels uniue


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the #eo#raphical location of the hotel. 2or e!ample, in 9aritime in e5 For7, the mana#ement

can build pools and massa#e centers to offer rela!ation for the #uests.

case digest - the corporate brand: help or hindrance?

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