Accor Hotels Case Analysis
Identification of Key Issues/Problems
Oliver Arnoux, Senior Vice President (SVP) Customer Experience and Satisfaction of Accor Hotels, was facing a challenging task on figuring out the digital probplems depicted in different markets and geographical locations. The digital wave had brought along with the invention of new technologies, coming with business opportunities, which had not been foreseen. Initially, the digital technologies did not integrate with each other; therefore, they did not have a significant effect on the various sectors of the economy. However, when they started to integrate to create business opportunities, the definition of most markets, including the hospitality industry, started to alter dynamically. This new and unforeseen turn of events caused a fracas in the hospitality industry with the entry of new market players. Therefore, understanding the new definition of customer expectations and satisfaction necessitated Oliver to travel different markets and acquire the necessary information.
Ideally, Oliver had three main concerns. One concern was how an organization could remain customer-centric across the digital platforms. Various digital fields provided business opportunities that enhanced marketing and customer service experience. However, what Oliver was concerned with is the issue of creating a customer experience that would ensure a repeat of dealing with clients over a long period using the existing digital technologies.
The second concern that ailed Oliver was how to create and disseminate online content in a systematic way. One of the most important factors to consider about online business is the creation of relevant and appropriate content, which was a problem that Oliver was facing. The new digital technologies had abruptly entered the hospitality market and disrupted the traditional way of doing business. What ensued was a revolution of such a type that was focused on digital technological fundamentals that helped business create more market power from the online population. However, without the right content and viable means to disseminate the it, one would stand to lose the benefits that come with an adaptation of digital technologies.
The third concern that Oliver constantly pondered on was the influence on e-reputation and how the adaptation of such metrics would eventually affect business operations of Accor Hotels. Be it as it may, Accor Hotels Company was not that responsive on the issue of the I nternet. Therefore, the company had no established front on business matters concerning online presence and e-reputation. The main issue Accor hotels faced was how to create and maintain an online presence and e-reputation. Consequently, another issue was the integration of these metrics based on digital technologies into their fundamental business operations. Oliver Arnoux wanted to get a grip on the company’s situation on the online front to make sure that new entrants did not become major shareholders of tthe hospitality industry.
Analysis and Evaluation
To comprehend what was necessary to create an online presence and e-reputation for Accor Hotels, Oliver Arnoux would have to carry out a complete analysis of markets in different geographical locations. Furthermore, he would have to understand the different technologies that exist, and how they currently affect the market. All these aspects would lead to an activity that would involve a research and required resources to ensure an online presence that befitted the company’s offline reputation.
Accor hotels were faced with the challenge of redefining itself in regard to the digital technologies that were being employed by players in the market to act as driving forces to gain the market share. Ideally, content was not the issue for Accor as an established company. The real problem lied in the ability to incorporate the content on a digital platform in a manner that establishes a unique online presence. In essence, Accor Hotels had gained a significant market share in the hospitality industry over the many years it has been operating. However, there was a need to change the definition of the company to counter the change that was happening in the market.
The digital transformations that were happening in the hospitality industry were not to be ignored. New technologies of digital nature were being invented by the day. The ability to incorporate such changes was what was defining the company’s grip on market share in this new information age (Cham, 2017). The main task that laid ahead for Oliver Arnoux was to involve the adaptation of new technologies in the hotel’s operations. It was evident that online content formed the better part of what was needed to accomplish such a task. However, Oliver was troubled with how to use the content by incorporating it to digital platforms and how to integrate the new changes in regard to business operations.
The market had been redefined by the entry of new actors brought about by the digital transformation that was taking place. These entrants had made the use of new technologies to change the market’s dynamics and create a sustainable competitive advantage that experienced actors in the hospitality industry that had not yet realized. The significance of the transformation became considerably once new entrants started to gain a higher market share in a short period. Digital technologies had changed the way business was being operated in terms of financial flexibility due to appearance of multiple online payment methods, booking options through online platforms, ease of communication between service providers and customers through digital platforms, and improved customer experiences on online platforms.
Recommendations
To create an online presence that would make Accor hotels an established industry player, Oliver should understand market dynamics and how they affect customer relationship and satisfaction. New technologies provide various opportunities for companies in the hospitality industry. Accor hotels can redefine themselves by adapting various technologies that seem to interact with their business operations more efficiently. For instance, the allure and flexibility of online payment methods when adopted by a company can ease the burden of customer’s having to be present when making financial transactions on different products physically (Westerman & Bonnet, 2015).
Accor hotels should adopt various digital platforms to enhance customer experience and satisfaction. One important platform is social media. It involves the dissemination of online content to a given online market as per the business perspective. Such platforms also offer a cost-effective and efficient means of marketing (Zhu & Jin, 2013). These means are essential for the creating of a relevant online presence, enhance communication and customer services, and ensuring an e-reputation. They will redefine the company and help grow their market share in the digitally transformed hospitality industry.
References
Cham, K. (2017). Consumer as producer; value mechanics in digital transformation design process, practice and o utcomes. In cultural policy, innovation and the creative e conomy (pp. 61-81). Lo ndon: Palgrave Macmillan UK.
Westerman, G., & Bonnet, D. (2015). Revamping your business through digital transformation. MIT Sloan Management Review, 56(3), 10.
Zhu, Z., Zhao, J., & Jin, X. (2013). A typology of net-enabled organisational capabilities for digital competitive advantage: The case study of travel and hospitality industry in China. International Journal of Networking and Virtual Organisations 11, 12(1), 56-69.
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