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Milestone 1 - Competitive Strategic Analysis

Funmilayo O. Joe-Oka

Department of Business Administration, Nexford University

BUS6110: Competitive Strategic Management

Dr. Michael Simms

February 24, 2024

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Milestone 1 - Competitive Strategic Analysis
Introduction
Businesses are trying everything possible to remain competitive across all industries

today and this is beyond just “pen and paper”. So, it is of paramount importance for

companies to plan and have strategies in place to stay ahead of the competition.

A competitive strategy is a company’s long-term action of how to gain an edge over its

rivals. (Kitov, 2023). This action is usually taken to assess a competition’s strengths and

weaknesses and identify opportunities and threats in the market.

The importance of competitive strategy cannot be over-emphasized in that it helps

businesses to develop new ideas for products and services they can offer in other to retain

customer loyalty, innovate to stay competitive, and be current on technological changes in the

market. (Indeed Editorial Team, 2023).

A SWOT analysis is a framework that evaluates a business’s strengths, weaknesses,

opportunities, and threats. Lindley (2023). This framework is important for businesses to

make informed decisions and better understand how to use the business’s strengths to stand

out from competitors, address the weaknesses in the business, seize opportunities, and

prepare for and avoid potential threats. (Lindley,2023).

Selected Business: HOSTRAS – IITA (International Institute of Tropical Agriculture), Ibadan Nigeria.
HOSTRAS, the Hospitality and Travel Services is one of the corporate support units of IITA (a not-for-profit
research-for-development organization, that generates agricultural innovations to meet Africa’s most pressing
challenges of hunger, malnutrition, poverty, and degradation of natural resources with the main priority of
ensuring food secure future for sub-Saharan Africa). The Hospitality unit is responsible for catering to the
accommodation, food and beverage, conference facilities, travel, and many other services to staff and
collaborators.

Milestone 1 - Competitive Strategic Analysis
Strengths:
1. Appealing ambiance – the facility has modern
furniture and fittings and a serene environment that
provides customers with a place to connect and relax.
2. Experienced kitchen staff – the staff are
professional with a friendly disposition and
outstanding customer service skills
3. High-quality food and beverage offerings – menus
are reviewed and updated regularly to meet the
increasing demand for variety from customers.
4. multi-cuisine menu development – menus are
developed to meet customer’s needs.
5. High customer satisfaction -above average Net
Promoter Score. HOSTRAs benefits from its loyal
customers' recommendations.
6. High-profit margin – HOSTRAS has a good
system of managing its costs and revenue.
Recommendation to Enhance Strengths:
1. Continuously update the interior design to stay
modern and inviting and incorporate more elements
of nature.
2. Provide ongoing talent development to keep staff
updated on the latest culinary trends and techniques,
and implement a reward system to motivate staff.
3. Implement and follow up on feedback from
customers to ensure consistently high standards.
4. Offer customizable menu options to cater to
different dietary needs and collaborate with chefs
from diverse culinary backgrounds to create unique
and appealing dishes.
5. Encourage customers to provide feedback to gain
insights and address issues that may arise promptly.
6. Regularly review and optimize pricing strategies to
ensure profitability without compromising value for
customers.
HOSTRAs can further strengthen its competitive
position and ensure sustainable growth in the market
if it can focus on these areas
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Weaknesses:
1. Fewer rooms available to accommodate events
with many participants
2. lack of a successive plan for skilled employees -
3. low marketing campaigns as it is a unit of a not-
for-profit organization.
4. Aging kitchen equipment – equipment is old and
staff have to struggle to meet the business demand
with the available ones
5. Lack of publicity – despite having a strong profit
margin, many people are unaware of the hospitality
services that HOSTRAS offers because it is not open
to external service provision.
Recommendation Remediate Weaknesses:
1. Prioritize bookings for larger events, partner with
such facilities around, and explore the options for
expansion.
2. Identify key performing employees and provide
them with training to take on higher positions.
3. Leverage the organization's network and
connections to promote HOSTRAS through word-
of-mouth and community events.
4. Implement a preventive maintenance schedule to
prolong the lifespan of existing equipment and
minimize downtime and Explore financing options
or budget allocations to invest in new, more efficient
equipment.
5. Showcase the hospitality services offered by
HOSTRAS through targeted marketing efforts
within the organization's network.
By addressing these weaknesses systematically,
HOSTRAS can improve its operational efficiency,
attract more customers, and strengthen its overall
competitiveness in the hospitality industry.

Milestone 1 - Competitive Strategic Analysis
Opportunities:
1. Increase demand to use the facility by non-
collaborators
2. Increase popularity among the hubs
3. less competition
4. Provide Oot-door catering
5. Increase price
6. Uniqueness
Recommendation to Exploit Opportunities:
1. Offer incentives to attract non-collaborators to use
the facility.
2. Sponsor community events to enhance recognition
within the hubs.
3. Focus on delivering exceptional customer
experiences to foster loyalty and attract repeat
business in the absence of direct competitors.
4. Promote outdoor catering services through targeted
marketing campaigns and partnerships with event
planners or venue providers.
5. Conduct a thorough analysis of market demand and 5. Stay informed about relevant regulations and
competitors' pricing to determine the optimal pricing compliance requirements affecting the hospitality
strategy for HOSTRAS' offerings.
6. Encourage positive word-of-mouth and online
reviews to amplify the perception of uniqueness and
attract new customers.
By actively exploiting these opportunities,
HOSTRAS can expand its market reach, increase
revenue streams, and solidify its position as a
preferred hospitality destination.
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Threats:
1. Pandemics
2. Poor Road Infrastructure
3. Unstable currency
4. Unpredictable fund cuts from donors
5. Government regulations
6. Unfavourable economic conditions
Recommendation to Minimize Threats:
1. Maintaining a contingency fund to weather
periods of reduced demand or mandated closures.
2. Advocate for improvements to road infrastructure
in collaboration with local authorities and
community organizations.
3. Monitoring currency fluctuations closely and
adjust pricing or financial strategies accordingly to
mitigate potential losses.
4. Develop contingency plans and budget reserves to
cushion the impact of sudden fund cuts and maintain
operational stability.
industry and adapt operations accordingly.
6. Focus on cost containment measures and
efficiency improvements to preserve profitability
during challenging economic periods.
By addressing these threats, HOSTRAS can mitigate
risks to its operations and maintain resilience in the
face of external challenges.
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Milestone 1 - Competitive Strategic Analysis
References

Indeed Editorial Team. (2023, March 11). What is a Competitive Strategy?

(With 4 Common Types).

https://www.indeed.com/career-advice/career-development/competitive-strategy

Kitov I. (2023, March 1). Competitive Strategy:

Definition, Types, and Execution.

https://365financialanalyst.com/knowledge-hub/business-analysis-and-strategy/competitive-

strategy/

Lindley A. (2023, June 23). SWOT Analysis: What Is & How to Do it.

https://www.semrush.com/blog/swot-analysis-examples/

Milestone 1 - Competitive Strategic Analysis
Strengths:
1. Appealing ambiance – the facility has modern
furniture and fittings and a serene environment that
provides customers with a place to connect and relax.
2. Experienced kitchen staff – the staff are
professional with a friendly disposition and
outstanding customer service skills
3. High-quality food and beverage offerings – menus
are reviewed and updated regularly to meet the
increasing demand for variety from customers.
4. multi-cuisine menu development – menus are
developed to meet customer’s needs.
5. High customer satisfaction -above average Net
Promoter Score. HOSTRAs benefits from its loyal
customers' recommendations.
6. High-profit margin – HOSTRAS has a good
system of managing its costs and revenue.
Opportunities:
1. Increase demand to use the facility by non-
collaborators
2. Increase popularity among the hubs
3. less competition
4. Provide Oot-door catering
5. Increase price
6. Uniqueness
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Weaknesses:
1. Fewer rooms available to accommodate events
with many participants
2. lack of a successive plan for skilled employees -
3. low marketing campaigns as it is a unit of a not-
for-profit organization.
4. Aging kitchen equipment – equipment is old and
staff have to struggle to meet the business demand
with the available ones
5. Lack of publicity – despite having a strong profit
margin, many people are unaware of the hospitality
services that HOSTRAS offers because it is not open
to external service provision.
Threats:
1. Pandemics
2. Poor Road Infrastructure
3. Unstable currency
4. Unpredictable fund cuts from donors
5. Government regulations
6. Unfavourable economic conditions
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Milestone 1 - Competitive Strategic Analysis