• +44 7897 053596
  • [email protected]
Premier-Dissertations-LogoPremier-Dissertations-LogoPremier-Dissertations-LogoPremier-Dissertations-Logo
  • Home
  • Dissertation
        • Dissertation Writing Service
        • Dissertation Topic and Outline
        • Dissertation Proposal Writing Service
        • Dissertation Proofreading and Editing
        • Dissertation Chapter Writing
        • Statistical Analysis Services
  • Services
        • Essay Writing Service
        • Assignment Writing Service
        • Report Writing Service
        • Coursework Writing Service
        • Presentation Writing Service
        • Model Answers and Exam Notes Writing
        • Reflective Report Writing Service
        • Poster Writing Service
        • Literature Review Writing Service
  • Dissertation Topics
        • Social Psychology Dissertation Topics
        • Customer Service Dissertation Topics
        • Physical Education Dissertation Topics
        • Islamic Finance Dissertation Topics
        • Criminal Psychology Dissertation Topics
        • Music Dissertation Topics
        • Forensic Science Dissertation Topics
        • Clinical Psychology Dissertation Topics
        • Cognitive Psychology Dissertation Topics
        • Educational Psychology Dissertation Topics
        • Business Intelligence Dissertation Topics
        • View All
  • Examples
    • Dissertation Examples
    • Report Examples
    • Dissertation Topic and Outline Examples
    • Essay Examples
    • Dissertation Proposal Examples
    • Assignment Examples
    • Dissertation Chapter Examples
    • Coursework Examples
    • Literature Review Examples
    • View All
  • Library
        • Student Blog
        • Dissertation Topics
        • Informative Articles
        • Academic Guidelines
        • Examples
        • Academic Library
  • Plagiarism Checker
        • Coursework Plagiarism Checke
        • Plagiarism Remover Service
        • Turnitin Plagiarism Checker Free Service
        • Difference Between Paraphrasing & Plagiarism
        • Free Plagiarism Checker for Students
        • How to Cite Sources to Avoid Plagiarism?
        • Assignment Plagiarism Checker
        • Dissertation Plagiarism Checker
        • Thesis Plagiarism Checker
        • Report Plagiarism Checke
        • Free Similarity Checker
        • How Plagiarism Checkers Work?
        • Plagiarism Checker Free Service
  • Free Topics
  • About Us
    • Contact us
    • FAQ
    • About Us
    • Reviews
  • Get a Free Quote
  • Home
  • Dissertation
    • Dissertation Writing Service
    • Dissertation Chapter Writing
    • Dissertation Topic and Outline
    • Dissertation Proposal Writing Service
    • Statistical Analysis Services
    • Dissertation Proofreading and Editing
  • Services
    • Essay Writing Service
    • Assignment Writing Service
    • Report Writing Service
    • Coursework Writing Service
    • Literature Review Writing Service
    • Model Answers and Exam Notes Writing
    • Reflective Report Writing Service
    • Presentation Writing Service
    • Poster Writing Service
  • Dissertation Topics
    • Criminal Psychology Dissertation Topics
    • Cognitive Psychology Dissertation Topics
    • Social Psychology Dissertation Topics
    • Clinical Psychology Dissertation Topics
    • Educational Psychology Dissertation Topics
    • Customer Service Dissertation Topics
    • Music Dissertation Topics
    • Business Intelligence Dissertation Topics
    • Physical Education Dissertation Topics
    • Forensic Science Dissertation Topics
    • Islamic Finance Dissertation Topics
    • View All
  • Examples
    • Dissertation Examples
    • Dissertation Proposal Examples
    • Essay Examples
    • Report Examples
    • Coursework Examples
    • Assignment Examples
    • Literature Review Examples
    • Dissertation Topic and Outline Examples
    • Dissertation Chapter Examples
    • View All
  • Library
    • Academic Guidelines
    • Student Blog
    • Examples
    • Dissertation Topics
    • Informative Articles
    • Academic Library
  • Plagiarism Checker
    • Assignment Plagiarism Checker
    • Coursework Plagiarism Checke
    • Dissertation Plagiarism Checker
    • Thesis Plagiarism Checker
    • Report Plagiarism Checke
    • Plagiarism Remover Service
    • Plagiarism Checker Free Service
    • Turnitin Plagiarism Checker Free Service
    • Free Plagiarism Checker for Students
    • Difference Between Paraphrasing & Plagiarism
    • Free Similarity Checker
    • How Plagiarism Checkers Work?
    • How to Cite Sources to Avoid Plagiarism?
  • Free Topics
  • About Us
    • Contact us
    • FAQ
    • About Us
    • Reviews
  • Get a Free Quote
✕

Hire a Writer

Get an experienced writer start working
on your paper

Check Examples

Review Our Examples
before placing an order

Academic Library

Learn how to draft
academic papers

The Risk of Losing Competitive Advantage: InterContinental Hotel Groups PLC

Home  »  Blog • Essay   »   The Risk of Losing Competitive Advantage: InterContinental Hotel Groups PLC
Mobile Business Technology and Design
June 15, 2022
Alternate Area of Nursing: Learning Disability
June 15, 2022
June 15, 2022
Categories
  • Blog
  • Essay
Tags

Introduction

According to IHG (2020a), InterContinental Hotel Groups plc (IHG) is a British hospitality company that has its presence over the globe. It exists in many different countries under many different brands and aims to provide premium service to its customers. IHG’s journey started in 1777 by William Bass under his name. As added by IHG (2020b), since then, the company has grown to become a multinational and gained a competitive advantage due to its size, reach, and market share. There are many other hotel and hospitality business that aims to take their competitive advantage from them. This report will explain the risk of losing competitive advantage for IHG and will further recommend strategies to tackle the risk.

About the Risk

According to David and David (2015), the area of the business where an organization does better than its competitors can be defined as that organization’s competitive advantage. The competitive advantage gives an edge to an organization over its competitors. Similarly stated by West, Ford, and Ibrahim (2015), with this edge, the organization enjoys gains as its competitors lack in that area of the business. A competitive advantage is often a unique advantage that cannot be easily accessed or imitated by the competitors as it is beyond the competitor’s reach, it is this factor that provides long-term benefit for the organizations with competitive advantages. As per Kaleka and Morgan (2017), different types of competitive advantages exist for different organizations in different industries. An organization may have the advantage of having low operating costs or providing premium quality service or charging low prices.  Further contributed by Kumar and Pansari (2016), these competitive advantages help organizations outperform their competitors. An organization can have different strategies for having a competitive advantage. Two main strategies give a competitive advantage to one organization over the other.

Cost Leadership

As defined by Leonidou et al. (2015), in cost leadership, the company reduces its operating cost to gain a competitive advantage over its competitors. With operating costs reduced, the company keeps its prices market competitive and gains more profits than its competitors even though its revenues are similar to its competitors.

Differentiation Leadership

As stated by Pereira-Moliner et al. (2016), companies that follow differentiation leadership aim at providing premium service or product that is unmatchable by their competitors. The services or products provided by these companies are of unique quality that provides unmatchable experiences to their customers. Agreed to Leonidou et al. (2015), the prices of the products and services of these companies are high, however, by selling their products and services at economies of scale, these organizations hold their competitive advantages. 

Relevance of the Risk to the Industry and IHG

As stated by IHG (2012), InterContinental Hotel Groups plc operates in the hospitality and hotels industry and has gained a competitive advantage over its competitors due to its premium quality service and reach over different markets in different countries. However, as per MarketWatch (2020), many other companies operate in the same industry with a similar competitive advantage that poses threats to their market share. There are many other hotels such as Hyatt, Marriott International, Hilton, and more that are also present over the globe and provide quality service to their customers. As stated by ARC (2019), due to the presence of these competitors, the differentiating factor that gave a competitive advantage to IHG is diminishing as there is not much difference left in the quality of service provided by IHG and other hotels. Further added by MarketWatch (2020), in the current context of the world hospitality market, many multinational hotels provide premium services to their customers which have prevented IHG from dominating the market. Further added by ARC (2019), the competitive advantage that the company holds due to its big size and high quality is losing its importance as many other hotels are fighting with a similar competitive advantage. From the perspective of the North American region, IHG is not present in the top five competitors of the industry. 

Risk Treatment Strategies

IHG is still a major entity in the hotel and hospitality business over the globe (MarketWatch, 2020). There are certain strategies the company can take to dominate the market. As per the three lines of defense framework, the following are the recommendations for the InterContinental Hotel Groups plc.

Line of Defence

1st Line of Defence

2nd Line of Defence

3rd Line of Defence

Role

Front Line Management

Risk Management and Compliance

Internal Audit

People Involved

Marketing and Sales Department

Senior Management 

Directors and Owners

Action

Diminishing Competitive Advantage

No Differentiating Factor

Innovation

competitors, the differentiating factor that gave a competitive advantage to IHG is diminishing as there is not much difference left in the quality of service provided by IHG and other hotels. Further added by MarketWatch (2020), in the current context of the world hospitality market, many multinational hotels provide premium services to their customers which have prevented IHG from dominating the market. Further added by ARC (2019), the competitive advantage that the company holds due to its big size and high quality is losing its importance as many other hotels are fighting with a similar competitive advantage. From the perspective of the North American region, IHG is not present in the top five competitors of the industry. 

Risk Treatment Strategies

IHG is still a major entity in the hotel and hospitality business over the globe (MarketWatch, 2020). There are certain strategies the company can take to dominate the market. As per the three lines of defence framework, the following are the recommendations for the InterContinental Hotel Groups plc.

1st Line of Defence

The marketing and sales department of the IHG will be responsible for realising that the company does not have a decisive competitive advantage. As discussed above that the competitive advantage differentiates an organisation and makes its product or service unique. Since IHG does not have anything unique that separates it from its competitors thus the marketing department and the sales department that attracts customers to the company by presenting its advantage will notice the need and inform upper management. 

2nd Line of Defence

The upper management will be responsible for deciphering what is required for the company and how to tackle the risk. For the upper management of IHG, the role will be to realise that their company do not have a differentiating factor that makes its service unique. After deciphering the need, the senior manager will be responsible for further transferring their knowledge to the directors thus the needed action can be taken. 

3rd Line of Defence

Finally, an internal audit is to be conducted where the directors of IHG will make a decisive plan to tackle the issue. They must agree on bringing innovation to their business that will help them regain their competitive advantage and make their service unique and different from their competitors. Innovation could be in the form of expanding to new markets, adding new facilities in its services, and more.

Get a Dissertation Proposal

Start your dissertation writing process with experts

Safe and confidential process
Free custom topics to choose from
Any deadline
Unlimited free amendments
Free anti-plagiarism report
Money-back guarantee

Proposal Services Order Now
1

Get a Dissertation Proposal – Get Going!

Dissertation Proposal Lays Down the Outline of Your Final Dissertation


Get a Dissertation Proposal that matches your requirements, which includes the topic title, research aim and objective, research questions, research gap, literature review, methodology and list of reference papers.
The Dissertation Proposal will be foundation of your final dissertation. It is very important to get this done perfectly to avoid any problems!

Proposal Services Order Now

Conclusions

InterContinental Hotel Group plc is a widely known hotel and hospitality company that has been operative for a few centuries. The brand provides premium quality service and has its quality as a competitive advantage. However, many other hotel and hospitality brands are providing premium quality services over the globe which has rendered the competitive advantage of IHG to insignificance. The company needs to follow the three-line strategy to regain its competitive advantage to dominate the market over the globe. 

 

References

ARC, 2019. Luxury Hotel Market Analysis 2019 By Size, Share, Trends, Segmentation And Vendors, Industry. [online] Medium. Available at: <https://medium.com/@arcognizance/luxury-hotel-market-analysis-2019-by-size-share-trends-segmentation-and-vendors-industry-e7515a5940bf> [Accessed 2 May 2020].

David, F. and David, F.R., 2016. Strategic management: A competitive advantage approach, concepts and cases. Pearson–Prentice Hall.

IHG, 2012. [online] Ihgplc.com. Available at: <https://www.ihgplc.com/files/reports/ar2012/docs/IHG_Review_How_we_win.pdf> [Accessed 2 May 2020].

IHG, 2020a. Our History. [online] InterContinental Hotels Group PLC. Available at: <https://www.ihgplc.com/en/about-us/our-history> [Accessed 2 May 2020].

IHG, 2020b. [online] Ihgplc.com. Available at: <https://www.ihgplc.com/-/media/ihg/files/results/2020/our-global-presence.pdf?la=en&hash=027FF24DD7CEF07B8684B23BE38B5818> [Accessed 2 May 2020].

 

Kaleka, A. and Morgan, N.A., 2017. Which competitive advantage (s)? Competitive advantage–Market performance relationships in international markets. Journal of International Marketing, 25(4), pp.25-49.

Kumar, V. and Pansari, A., 2016. Competitive advantage through engagement. Journal of marketing research, 53(4), pp.497-514.

Leonidou, L.C., Fotiadis, T.A., Christodoulides, P., Spyropoulou, S. and Katsikeas, C.S., 2015. Environmentally friendly export business strategy: Its determinants and effects on competitive advantage and performance. International Business Review, 24(5), pp.798-811.

MarketWatch, 2020. Luxury Hotel Market Trends 2019 Global Industry Size, Share, Growth, Demand, Top Players, Opportunities And Forecast To 2025. [online] MarketWatch. Available at: <https://www.marketwatch.com/press-release/luxury-hotel-market-trends-2019-global-industry-size-share-growth-demand-top-players-opportunities-and-forecast-to-2025-2020-03-06> [Accessed 2 May 2020].

 

Pereira-Moliner, J., Pertusa-Ortega, E.M., Tarí, J.J., López-Gamero, M.D. and Molina-Azorin, J.F., 2016. Organizational design, quality management and competitive advantage in hotels. International Journal of Contemporary Hospitality Management.

West, D.C., Ford, J. and Ibrahim, E., 2015. Strategic marketing: creating competitive advantage. Oxford University Press, USA.

How We will work?

Our team will;

Select Dissertation Topics
Dissertation Proposal (for approval and feedback)
1st half Dissertation
Final Dissertation

Check Samples Order Now
2

Free Dissertation Topic


    Get 3+ Free Dissertation Topics within 24 hours?

    Share
    25
    Iqra Khan
    Iqra Khan

    Related posts

    Determining/To Determine/Determine Employees’ Attitudes Towards Changing Amazon’s Prime Video Services
    December 14, 2022

    Determining/To Determine/Determine Employees’ Attitudes Towards Changing Amazon’s Prime Video Services


    Read more
    December 14, 2022

    Arsenic Contamination of Environment


    Read more
    A Case Study of Qatar Healthcare Setting
    December 13, 2022

    Impact of Leadership Styles on the Job Satisfaction of Nurses- A Case Study of Qatar Healthcare Setting


    Read more

    Comments are closed.

    Dissertation Topics

    • Project Management Topics
    • Tourism Dissertation Topics
    • Marketing Dissertation Topics
    • Construction Engineering Topics
    • Nursing Dissertation Topics
    • Fashion Dissertation Topics
    • COVID19 Dissertation Topics
    • History Dissertation Topics
    • Education Dissertation Topics
    Verified Order

    Great Supportive Team

    I really like the way you guys work. You guys are doing an amazing job. I will let you know when I have my next essay writing order.

    Ellis
     
    Expert Writers

    Hire our expert academic writer for your dissertation paper!

       Dissertation Services


    Review Examples

    Check our Examples before placing an order!

       Dissertation Examples


    Free Topics

    Get 1 free topic in your area of study with aim and justification

       Yes I want the free topic

    About Us

    Supporting students since 2010, the team at Premierdissertations.com is arguably the UK’s most trusted and safe academic writing organization.

    +44 7897 053596

    160 Kemp House, City Road, London EC1V 2NX

    Our Services

    Full Dissertation Writing
    Dissertation Proofreading and Editing
    Dissertation Chapter Writing
    Dissertation Topic and Outline
    Dissertation Proposal
    Statistical Analysis Services
    Essay Writing Service
    Assignmet Writig Service

    Library

    Dissertation Topics
    Dissertation Examples
    Dissertation Proposal Examples
    Essay Examples
    Informative Articles
    Academic Guidlines
    Stundent Blog
    Examples

    Important Links

    About Us
    Contact Us
    Cookies Policy
    Fair Use Ploicy
    Privacy Policy
    Faqs
    Write a Review
    Terms and Conditions

    © 2023 Premier Dissertation. All Rights Reserved. Premier Dissertation
    • +44 7897 053596
    • [email protected]