Globalization Strategies Adopted by Five Star Hotels in Nairobi, Kenya to Gain Competitive Advantage

Abstract

The hospitality industry is highly competitive and is subject to risks relating to competition that may adversely affect the operation of firms. Competition has been further increased with the advent of globalization hence need to identify strategies to enable organizations gain competitive advantage in the market. Most strategies remain as just good ideas unless they are implemented and translated into the organization. Globalization strategy is an organization's strategic guide to globalization. It involves thinking in an integrated way about all aspects of a business from the perspective of both domestic and international market standards. The purpose of this study was to identify the globalization strategies adopted by five star hotels to gain competitive advantage. The research adopted a cross sectional survey. It was a census study of all the eight gazetted five star hotels in Nairobi as per the Restaurant and Hotel Act Cap 494. Data from the survey relied on primary data collected by use of semi structured questionnaires filled by the Marketing Managers of the hotels. Data was analyzed using SPSS and presented using tables, charts and graphs. The results confirm that the hotel industry in Kenya is highly competitive and as a result of globalization and increased competition hotels employ globalization strategies. The study established that implementation of the globalization strategies by the five star hotels enabled them to gain competitive advantage in the industry. There was need for the hotels to identify their core competencies and capitalize on them in order to sustain the competitive advantage gained. The study recommended a participatory organization structure where employees and relevant stakeholders are adequately represented in the policy and strategy formulation and use of feedback from clients to modify policies. On managerial practice the research the study suggests that organizations need to frequently benchmark with other organizations within the same industry so as to gauge their overall performance, it further suggests that management should identify effective strategies to be adopted for maximum returns to the organization and they should provide adequate support to the implementers.