Lily pad Hotels and Resorts Company has over the years expanded the size of its market from the United States to other parts of the world. Currently, this company has more than 12 boutique hotels and resorts in the United States, Middle East, and South America.
Industry Strength and Weakness
Though the Lily-pad hotels and Resorts have expanded in recent years, their success has not come without challenges. One of challenges that this chain of hotels has experienced is the fact that the company has been a victim of both social friction and infant-related problems when the Company opens new businesses in new areas. For example, one of the company’s subsidiaries, the Flagship Hotel had difficulty establishing itself in San Francisco. The management team had to pump its own personal money into the hotel to help it conform to taste and preferences of the consumer market in San Francisco.
External Environment
The operations of the Lily-pad Hotels face a competitive business environment. Though Lily pad has been able to capture a large number of customers, its brand has not yet resonated with consumer market. It is evident from this case study that there are customers who get the services from different affiliates of the Lily pad company but do not even realize that they are getting services from the chains of the same company. It is therefore paramount that the Lily-pad establishes its own brand that is unique with the Business environment that the affiliates of the company operate. Currently, the Lily pad chain of Hotels does not have enough endowments both in capital and land to begin its operations in high traffic areas. This is the reason why the Lily-pad hotels have not been able to create a firm brand name that differentiates it from other competitors in the market.
Corporate Level Strategy
Among the Corporate strategies that the Lily-pad Hotels and Resorts Company has adopted includes the structuring of operations of the company such that the company offers services that match with the culture, taste, business environment, and geographic location of the subsidiary companies. Some of the ways that the Lily-pad hotel has been able to adapt to the different business environments involves the use of architectural details, and furnishing of buildings with models that are in line with the tastes and preferences of the consumers with the business environment that the affiliate companies operate.
Business Level Strategy
One of the business strategies used by this company is the adoption of new branding strategy. The business also aims at reaching an international consumer base. The CEO of the Lily pad Hotels and Resorts, and the administrative team does not only target the United States’ consumer market but also seek to expand its market base to other continents like the Middle East, and South America.
Recommendations
One of the recommendations that I would give in the case of this company is that the Lily-pad chains of hotel should use one brand name. This is going to be an efficient strategy in creating economies of scale for the company (Mankiw 281). This is because, the company can practice business strategies like transfer pricing that can allow the company to report more taxes within the business environments where the taxes are lower(Eden 39). In this way, the lily-pad chain of hotels can expand its growth.
Works Cited
Eden, Lorraine. Taxing Multinationals: Transfer Pricing and Corporate Income.
Toronto, Canada: Toronto University Press, 1998. Print.
Mankiw, Gregory. Principles of Economics. Mason, OH: Cengage Learning, 2008.
Print.
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