HOSPITALITY AND SERVICE MANAGEMENT 4
Hospitalityand Service Management
“Thesuccessful adoption of customer-focused business models should seebusinesses improving both their market share and their profitability”(Hassanien, Dale & Clarke, 2010, p.82). Evaluate this point ofview within the context of a type or brand of hospitality operationof your choice and illustrate your discussion with appropriateexamples.
Almostin every business, customers emerge as the big asset to the businesssince without customers, it is not possible to realize sales targetor even make any sale. This implies that there would be no revenuesfor the business, which can even lead to the closure of the business.Customer-based business model is a kind of business model that placescustomers firmly at the heart of the business this implies that inmaking every business decision, customers are considered (Miller& Miller, 2007).Customer-focused business models should see businesses improve theirmarket share and profitability.
Whena business is customer-focused, customers are going to be satisfiedwith the services and products that they purchase from the business.Every customer desires to seek satisfaction in the services andproducts that he/she consumes. This implies that a customer will tendto associate with a business, where he/she can receive maximumsatisfaction (John,2003).Customer-focused businesses ensure that customers receive maximumsatisfaction. This is likely to make a business improve its marketshare and profitability because as customers become satisfied, theywill always identify with the business for their services andproducts (Parker,2012).For instance, a restaurant that is customer-focused will provideservices that seek to satisfy the needs of customers, which will makecustomers to always seek services from the restaurant. This is ofimportance to the restaurant business because it will have a vastnumber of customers seeking services from the business. This willdefinitely make the restaurant business improve its profitability.This will emanate from the reasoning that the business will have alarge number of customers, which implies high revenues. Besides, thebusiness will also improve its market share since as customers seekservices from the business, the business will tend to expand itsexistence in the market in order to serve the large number ofcustomers. This will result to the business having a vast marketshare.
Abusiness that is customer-focused is also likely to retain theexisting customers and attract new ones. Customers will tend toidentify with a business that put their interests at heart. Thisimplies that a customer-focused business will retain existingcustomers since they feel important, when their needs are met by thebusiness (Hines, 2004). Upon retaining the customers, the existingcustomers will introduce new ones into the business, which will makethe business to have many customers since every new customer will bea potential for bringing another customer. For instance, a restaurantthat is customer-focused will make existing customers introduce newcustomers into the business, which will make the restaurant have alarge number of customers. On the other hand, when a business iscustomer-focused, it will tend to attract new customers because theywill tend to identify with a business that will meet their needs. Theincreased number of customers will provide the restaurant with theimpetus of increasing its existence in the market in order to servethe increasing number of customers. This will improve the marketshare and profitability of the restaurant.
Hines,T. (2004). SupplyChain Strategies: Customer Driven and Customer Focused.London: Routledge.
John,J. (2003). Fundamentalsof customer-focused management: Competing through service.Westport, Conn: Praeger.
Miller,F. R., & Miller, L. E. (2007). That`scustomer focus: The overworked and under-appreciated manager`s guideto creating a customer-focused organization.Toronto, ON: Training Bank.
Parker,D. W. (2012). Serviceoperations management: The total experience.Cheltenham: Edward Elgar.