Differentiation corporate strategy
Every organization requires a corporate strategy that provides it with a direction to take in achieving its goals and becoming successful in the long term. In our new Sports Bar Restaurant, we have developed a corporate differentiation strategy that takes into perspective the scope of our restaurant’s activities, the nature of the business involved, the kind of environment we will operate in, and the competition we will face. The primary objective of the corporate differentiation strategy is to provide clear, concise directions for all business units in our restaurant to ensure that it meets our shareholders’ expectation and provides value to our customers. The differentiation corporate strategy calls for a development of products that employ unique attributes from those of the competitors that are greatly appreciated by the customers. Product differentiation strategy is used to manage competition and rivalry within industries (Hill & Jones, 2010).
The Sports Bar Restaurant will employ the differentiation strategy where the restaurant services and products will be different than those of its competitors. This will offer the enterprise with a prime source of competitive advantage, as the Sports Bar Restaurant will serve its customers better and in a more profitable manner. The Sports Bar Restaurant aims at offering high-quality services and products to its clients (Zook & Allen, 2011). All within the same roof, the enterprise will provide sports, restaurant and bar services. Delicious food, beer, and huge screens will all be provided within the same vicinity. A restaurant will be designed with adequate space for people to drink, dine, and socialize with free Wi-Fi access.
Sumptuous foods will be available prepared using fresh ingredients in an open kitchen. A bar area will be designed where beers, spirits and wines will be served and the space will be available for birthday, corporate or private events. In the sports area, huge flat screens will be available were sports-loving individuals will meet to watch matches. A full menu will be offered in the sports bar and individuals will enjoy their delicious meals from there. For the differentiation strategy to be successful, the business will employ a highly creative and skilled service development team that will do research continuously about the customer needs and expectations. A strong marketing and sales team will also be needed to communicate the Sports Bar restaurants products and services strengths to be able to attract more customers.
Justification for the adoption of the differentiation strategy
The hospitality and entertainment industry is rapidly developing. People are changing their eating habits because of the change of lifestyles. Many people prefer to buy take-outs or eat at restaurants, rather than cooking at home. We want our Sports Bar Restaurant to be different in terms of providing unique, tasty meals to our clients. The Sports Bar restaurant will also provide a number of services in the sports and bar facilities. The differentiation strategy will help the enterprise to stand out from the crowd and gain a competitive advantage over its competitors. By doing so, the enterprise will be able to attract the right stream of customers that is an essential strategy of enhancing the business success.
In addition, a brand will be developed that will enable the business to obtain a more competitive advantage that will be readily perceived by the customers. In doing so, the business will incur some increased cost for differentiating its products and services. However, this expense will be passed on to the clients, as they will have to pay a slightly higher price for the unique goods and services attributes provided in the Sports Bar restaurant. Customers in the hospitality and entertainment industry often value hotels and restaurants that provide unique services and have a brand; therefore, the corporate differentiation strategy will work effectively for the business.
References
Hill, C. W. L., & Jones, G. R. (2010). Strategic management theory: An integrated approach. Boston, MA: Houghton Mifflin.
Zook, C., & Allen, J. (2011). The great repeatable business model. Harvard Business Review. Retrieved from https://hbr.org/2011/11/the-great-repeatable-business-model
