The influence of Vertical Integration of hotel competition--多伦多Assignment代写作业范文

多伦多留学生Assignment代写作业范文:“The influence of Vertical Integration of hotel competition”，这篇论文主要描述的是旅游和酒店行业竞争是比较的激烈，想要在这种环境下取得竞争的优势，那么就需要有一个较好的营销策略，其中垂直整合的方式对于企业长远的发展是最为有利的，这种管理方式能够让自己形成一个高效率的供应线，从原材料、生产、销售等方面自上而下的进行整合，能够降低企业运营的成本。

In order to become successful in the travelling and hospitality industry, there are various marketing strategies which have been employed. The competitions in the modern market become fiercer. Among the marketing strategies, the vertical integration plays an essential role(Etgar, 1978). The leaders of companies or corporations should have a good knowledge and employ vertical integration to expand the size and areas of the business, which will contribute to the development of the company in the long run(Arrow, 1975). Hospitality and travelling are the two industries that focus on the service for human beings, which must consider the feelings and necessities of people all the time.

In the business management, the meaning of vertical integration is that an arrangement where the company’s supply chain is owned by that corporation. In common cases, every member of the supplying chain will offer one distinct product or service, and the combine of the products to meet the common needs. Horizontal integration is contrasted with vertical integration. Vertical integration is also considered as a kind of management styles which can include great portions of the supply chain, avoiding the problem of hold-up. For instance, in the 19th century, steel tycoon Andrew Carnegie has employed this strategy to make full use of the system to improve the financial situation and promote the working efficiency.

Vertical integration can be divided into 3 typical forms, which is considered as the degree to which a certain corporation owns the buyers in the downstream and the suppliers in the upstream. It is distinct from the horizontal integration which consolidates lots of corporations that deal with the same element of a producing process(Arrow, 1975). Vertical integration has the characteristic of one corporation engaged in various parts of the production, such as the providing the raw materials, producing, and marketing. The three types can be called the upstream vertical integration, downstream vertical integration and the balanced vertical integration. Every type of vertical integration has been employed in the business from the oil industry to the hospitality industry. There are many cases which have proved the benefits of the vertical integration. However, every coin has two sides. The aim of all the business is to make profits. With the competitions in the market becoming more and more fierce, it is necessary for a company to employ proper strategies to improve the businesses, but the managing strategy should be based on the specific situation of the corporation.

The benefits and the losses of the vertical integration can be analyzed in the external and internal aspects. The benefits in the internal aspects include the lower cost in the transaction, and the balance of demand and supply in the products’ chain, and the uncertainty in the investment will also become lower(Etgar, 1978). The company can also employ the vertical integration to monopolize the industry by the market foreclosure, which can also promote the strategic independence of the corporation. On the other hand, the cost for coordination is much higher, and the cost in the monetary and organization aspects will also be higher(Dobson, 1996). The motivation for performing well at the very beginning of the supply chain will be weaker, for the sales of the products have been ensured, which may cause the shortcomings of the final products.

For the society, on the one hand, the reduced uncertainty can offer much better chances for the increase in investment(Martinez, 1997). The ability for the local corporations will be strengthened to deal with the competitions of the foreign companies. However, it can also lead to the monopolization in a certain market, and the organizational structure can be too rigid to promote the development of the economy.

One of the most important advantages of the strategy of vertical integration is that it can reduce lots of the price markups in every procedure of the products, which can decrease the cost and creates the economies of scale(Martinez, 1997). Most of the companies employed the vertical integration can also gain the efficiency in the cost by managing the quality in every procedure. Moreover, the vertically-integrated corporations do not have to bother to allocate the resources to price, contract, pay and coordinate with the third-party vendors. Finally, vertical integration can also create the obstacles for the potential competitors when the corporation controls all the access to a few or all of a resource that a certain production needs, which has raised the antitrust worries(Crew, 1971).

A corporation should own its own expertise in every procedure of the production and the process of distribution to make full use of benefits of vertical integration(Williamson, 1971). For instance, X Corporation must know the methods to grow potatoes and the way to produce French fries as well. In order to stimulate a few aspects of the strategy of vertical integration in a more implicit way, corporations will hope to sign long-term contracts with some certain suppliers.

The vertical expansion in modern economy become more and more common, which is considered as the growth of a corporation by acquiring other corporations which produce the intermediate commodities that is necessary for the business or useful for marketing and distributing its goods(Comanor, 1967). This kind of expansion can be desirable, for it can secure the supplies that are needed by the corporation to produce its goods. This can reduce the cost, and the business profits and efficiency will also be improved as well.

The hospitality and travelling industry both provide service to the customers, which can employ the vertical industry to help the customers to solve all the necessities in the hotel or during a trip, which aims to make the customers to feel more comfortable in certain situations(Hirsch, 1952).

The development of the products in the hospitality and travel industry also plays great role in the success of a company. In order to increase the sales amount of a product, the corporations should pay attention to the needs of the customers and to development new products based on the customers’ demands. Only in this way can the companies achieve success in the fierce competitions in the market.

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