Due restaurant in the Alps. This meant that

Due to
having great location this puts the hotel in a great position as guests like to
be close to all the activities such as, the ice skating/curling rinks, hiking,
skiing etc. as mentioned above in the SWOT analysis, Zermatt is surrounded by
beautiful scenery of the Pennine Alps. This gives the clients more reason to
come visit the beautiful area of Zermatt. Many clients venture out to Zermatt
just for the skiing.

The same
employees return for seasonality work. Urs came up with an idea that would
attract more of a market. Chef Francois, a friend of the family, who previously
managed a two-star Michelin restaurant. Urs decided that Chef Francois will be
one of the main attractions at the Leckerli hotel. The chef will agree with
this because he had a dream of one day running a Michelin star restaurant in
the Alps. This meant that it will come true. Urs stated that “Chef Francois
could fulfil his dream, remain a friend and become a long-term business
partner”. With this going ahead, Urs also decided that the staff should wear
traditional costumes that represent each of the seasons of the mountains.

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As
mentioned above, the Leckerli hotel is famous for their loyal guests.
Unfortunately, this has changed in recent years and more and more “loyal guests”
aren’t returning to the hotel. The Leckerli hotel is very outdated, and cannot
attract a younger generation, if they attract a younger generation (e.g.
millennials), this could help the business in the near future. A meeting took
place with each of the family members and they each gave their input on how to
progress the hotel. For example, Sophie gave an idea of the E hotel. The E
hotel is a hotel that works mainly on technology. The way this idea works is to
enhance the amount of time spent checking in, speaking with the receptionists
etc. The E hotel fixes this. This idea is for individuals who don’t mind the
idea of lack of communication with employees at the reception. Firstly, there
is high speed Wi-Fi as soon as you walk in to the hotel, then they can scan
their reservation code using their mobile phones, if a green light shows it
means that their room is ready. There is a key pick up machine in the reception
where the guest can collect their keys. This is a massive opportunity towards
the hotel as this will save time and money, as there is no need for a
receptionist as the front desk, and it will attract a younger generation.

Also, due
to Brexit happening the Swiss franc got strong, this is good for the hotel as
their money will be strong and they will attract more visitors etc.

Porters’ Generic Competitive
Strategy

Porters’
generic competitive strategy is the two essential types of competitive
advantage with the extent of activities for which a firm looks to accomplish
them, which leads to three generic techniques for accomplishing better than
expected performance in an industry: Cost leadership, Differentiation and
Focus.

Differentiation
focus most closely approximates the competitive approach that the Leckerli
hotel is employing. The differentiation strategy includes making your product
or service unique in relation to and more alluring than those of your competitors.
The hotel is taken different approaches to solve the hotel’s strategic
challenges.

Each of
the family members have different view points on where the Leckerli hotel
should end up. Firstly, Mathilde Zurberger thinks that to sell or to rent the
hotel will be the best for the hotel. She feels that she doesn’t want her
children living the same lifestyle that she did for the past 50 years. The
Zurberger family has already received offers for 6 or 7 million Swiss Franc to “acquire”
the hotel.

Urs
Zurberger has a different approach than that of his wife. Urs wishes to keep
the hotel in the family. Urs believes that he should recondition the hotel in
the rooms, restaurant and the bar. Also, Urs wants the Leckerli to become the
number one reference for Swiss food in the Zermatt region. Urs has put a lot of
thought in to the way the Leckerli should be redesigned for example, a wooden
structure with large glass windows, rooms and the front desk would only need a
few minor changes, the staff will wear traditional costumes that will represent
the distinct seasons of the mountain. Finally, the hotel should become more
technologically advanced if they wish to attract a newer target market.

Sophia (Urs
daughter), had two interesting ideas to attract a newer generation of tourists.
The first conclusion Sophia came up with was “the E hotel”, which is a highly
technological environment. She feels that this will attract a younger generation
(20-45-year olds). High speed wireless connectivity is available throughout the
hotel, guests can collect their key at the front desk (pick-up machine), and all
the 22 rooms will have the latest technology.

Sophia’s
second idea was somewhat different than “the E hotel”. Sophia has an interest
in organic and natural products, which gave her an idea of an environmentally
friendly hotel. Swiss and German customers tend to be more environmentally conscious
and they favour sustainable options. Many Millennials also favour this option.
The Leckerli hotel will be transformed into an environmentally conscious hotel,
with all-natural products that are sourced from Zermatt and its surroundings
(e.g. linens, toiletries, and materials used for paintings and decorating the
walls). She also proposes that all TVs and other electronic devices should be
removed from rooms.

Alain (Urs
Son), he proposed that the hotel change into serviced apartments. He believes
that there is a growing market for this. There is a great opportunity for jet
setters and high-income travellers.

Critical Analysis

Urs, the owner of this establishments mission is to
attract an all new generation, in which they have not targeted yet. Through the
years Urs had hoped that he would not have to change his traditional business.
It could be a possibility that Urs isn’t willing to change but his clients are.
Over the past number of years, Urs number of “loyal guests” has decreased and
new clients aren’t emerging. It is Urs goal to try to enhance his family
business and target the younger generation.

Urs wishes to know “is the Leckerli still
well-equipped to perform in the Zermatt market?” many clients got him thinking
whether his hotel is too “outdated” and “bad value for money”. Some younger
generations began to criticize him on TripAdvisor, on what stated above.

The vision that Urs wished to conquer, is to keep his
loyal guests, but also try and attract a new generation. Urs created a family
meeting, with his wife, son and daughter. He created this, so he could receive
ideas from each of the family members. His wife Mathilde thinks it would be
better for them to sell or to rent the hotel. She feels that they have been
working with this hotel for the past 50 years, that maybe they are getting too
old to keep on going. She wishes that her son and daughter don’t end up in the
hospitality business, because it is a stressful area to stay in. Although, they
have been in this industry so long, it is hard to escape from it. Luckily for
their son he doesn’t not work at the hotel, but he occasionally advices the
family in case of investments etc. Urs has a different opinion than his wife,
he feels that the hotel has been in his family for so long that he shouldn’t
part with it. He feels with some decorating and refurbishment in the rooms,
reception, bar that the hotel can still be highly attractive.

Sophia came up with the idea of the E hotel, which is
mentioned above. This is meant for a younger generation, for individuals who
don’t mind the lack of communication etc. another idea that she had is the
environmentally friendly hotel. With all-natural sources coming from Zermatt
and its surroundings. This came to mind because she previously did a strategy
course at Ehl. Swiss and German clients are very environmentally conscious and
so are Millennials.

Alains idea was about renting out service apartments,
he stated that these apartments are great for jet setters and high-income
travellers. He believes that this would be great for individuals who travel in
groups and who wouldn’t not be able to afford to stay at a destination like
this on their own. This means that they split the income and it’s not as much
between a large group. It would also be good for large families, who go on
vacation together.

Urs is still deciding what he should do to help his
hotel, but he is taken his families ideas into strong consideration. He
believes that each one of his family members has their valid points and they
have strong arguments. The difficult part is to decide what would be best for
his hotel and his family.

Evaluation of the Zermatt hotel

Based on what was said above, the researcher feels
that Urs and his family makes strong argument. It seems that The Leckerli hotel
has been struggling for a long time, and it is now time for a change. They need
to target the right clients and they need to make the right decision. Anyone
can talk about their future goals on their organisation, but not many
organisations succeed or even go through with it.

The researcher feels that it is time to make a change
to the Leckerli hotel, and what Urs and his family stated is sincere and once
they decide on a proposal they will go through with it. The Leckerli has been a
traditional family run hotel for some time now, Urs still seems to not want to
take the tradition out of the hotel, but the researcher feels that he will to
keep the hotel in his family for decades to come.

It is a possibility that the family is all talk and
they have nothing to show for it, but the researcher thinks that once they
decide on their future, they will be able to succeed with the growth of the
Leckerli hotel.

Recommendations to your organisation
to sustain the company’s growth

To sustain the company’s growth and support continued
strong performance in the years ahead, the researcher would look at past
figures of clients traveling to Zermatt. As mentioned in the case study, there
is a lack of the younger generations traveling to Zermatt, and the Leckerli
hotel is too outdated for the younger generations. Even past customers of an
older generation have stated that the hotel is “outdated”. The older generation
is between the ages of 40’s-60’s, they aren’t getting any younger and once they
are gone there will be no loyal guests. Leckerli must find a way to attract the
younger generation.

Research ought to be occurred on Zermatt and what
pulls in clients to go there, and why is there not a more youthful age. 

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