PEREZ, CRIS JANE E.

BSHM-3A

1. What is the importance of Integration Strategy in the Hospitality Industry?

Integration strategies are an important tool in building a competitive business. Businesses can
use various integration strategies to increase their influence in supply and distribution or lessen
competition. This can help them consolidate and expand their place in the market and increase
their competitiveness. Integration system is an essential tool for hotels who want to stay
competitive in the massive, modern online marketplace. Integration allows for the convergence
of essential departments such as sales, front desk management, housekeeping, payment
processing, and revenue management.

2. Differentiate Integration Strategy and Intensive Strategy.

Integration strategies are processes those businesses can use to enhance their competitiveness,
efficiency or market share by expanding their influence into new areas. These areas can include
supply, distribution or competition. Integration Strategies: These strategies are used when
company wants to expand its business and to increase their market share but not to diversify.
Intensive strategies: These strategies require intensive efforts to improve the competitive
position of the firm. These strategies help in enhancing the efficiency and effectiveness of the
existing as well as the new products by adding value to these products and therefore increasing
sales and revenues of the firm. These strategies also help in fast growth and thus making the
company stronger and competitive
Following are the Intensive strategies:
1. Market Penetration
2. Market Development
3. Product Development

3. What is Market Penetration?

Market penetration strategy is used to increase the market share for the existing products or
services in the existing markets. This strategy requires intensive and focused efforts for
increasing the market share. This strategy can be used alone or in combination with other
strategies. This strategy enhances the market share by implementing the innovative and
efficient strategies so as to make the existing product more successful and attractive. It includes
offering wide sales promotion items, increasing the number of sales persons, rising advertising
expenditures, or extensive publicity efforts. It carries very low risk, therefore is the most
preferred Intensive strategy.

4. How is diversification strategy helpful in an industry that is in the declining stage?

 When the current product lines of the company are not profitable then the company can resort
to expand its business, such strategies are called as diversification strategies. Why diversification
strategy is important?
Diversification allows for more variety and options for products and services. If done correctly,
diversification provides a tremendous boost to brand image and company profitability.
Diversification can be used as a defense. By diversifying products or services, a company can
protect itself from competing companies.

5. What are the 5 forces of M. Porter?

 Competitive Rivalry.
 Supplier Power.
 Buyer Power.
 Threat of Substitution.
 Threat of New Entry.

6. Provide the differentiation strategy of your group's chosen local fast-food chain.
KFC follows a differentiation strategy as the recipe for its products is very unique and never
been imitated. the product differentiation stages of KFC are unique, because it has made the
product unification according to location wise taste and demand of people. The main strategy of
KFC is to establish its market position in other countries.