Business models try to create a differential advantage for their business compared to indirect or direct competitors.
a. Identify three competitors (direct or indirect) for the business that you are exploring this semester. [Please do not sayt that you have no competitor. Every product has a substitute] Based on research (websites, online searches, reports in databases) identify the strengths and weaknesses of each of these three competitors.
b. Discuss how your business model will be different from direct or indirect competitors. Please consider some of the following ways of gaining advantage
- Core strategy
- Strategic resources
- Partnership networks
- Customer interface.
c. Mission Statement: In a few lines describe the Mission Statement of your company. The goal in writing your mission statement is to identify and find a way to communicate how your business is better than every other business that says it does what you do. It should be an intentional, powerful statement of your commitment to your customers, differentiating you from the crowd.
Please address all three parts of the above assignment.
Note on Mission Statements
Business schools give a list of approximately 9 basic components to mission statements, but not all are required in every mission statement to be effective. Choose the pieces that apply to you.
Customer - Mission Statements should answer the question " Who are your customers?"
Products and Services - What are your major products/services?
Markets - Define the markets in which you are competing.
Technology - Define the technology which you use in running your business
Concern of survival, growth and profitability - How are you committed to growth and financial soundness?
Philosophy - What are your basic, belief, values, aspiration and ethical priorities.
Self concept - What is your distinctive competence or major competitive advantage.
Concern of public image - How are you responsive to social, community and environmental concerns?
Concern of employees - Are employees valuable assets of the firm?
Your statement can be a sentence, a paragraph, or a page. Look other mission statements to get ideas, but don't be a copy-cat! After reading them, take the time to define exactly who you are. Remember that your mission statement needs to be about what differentiates you from the rest of the pack.
Differentiation usually occurs on one of three aspects: (a) Quality, (b) Cost, and (c) Focus (a special group of customers you plan to service). Don't try to do everything - you will not to do any successfully.
Here are a few mission statement (very different hotels in very different markets) to look at:
Ritz Carleton: manonamission.blogspot.com corporate.ritzcarlton.com
Hilton Hotels: We provide business and leisure travelers with a choice of excellent hospitality products that offer good value for money, while assuring a good return to owners and shareholders and inspiration to employees.
Motel 6: www.motel6.com
As a hotel, where is your focus? A specific customer base? Convenience? Customer service? Special amenities or add-on services?