As you learned in the course in Chapter 2, there are Three (3) generic competitive strategies: Overall cost leadership, Differentiation and Focus in service industry as quoted by Michael Porter. By applying all three of the strategies, an entrepreneur can determine the potential success of a business. Answer the situation below using concepts you learned from the course to support your arguments.

Situation:

Imagine that you are the manager of a new hotel located in a major city. Your hotel sits amongst several other hotels of the same or similar level of service, amenities and property features. During recent times, there has been unrest in the local community attracting fewer visitors to your city and, more specifically, your hotel;

Environmental Facts:

Covid 19 pandemic has hit badly all tourism and hotel industry in Malaysia since March 2020 and the hotel business losses almost 40% revenue over the past several months.

Local small businesses like restaurants, bars and retail stores are closing their doors at alarming rates.

Occupancy in the area is down by 30%

Your hotel's occupancy is down by 50% over the past few months

Any social events (wedding, party), meetings, conventions events are prohibited during MCO (lockdown)

Property Facts:

200 rooms including single rooms, 1 and 2 bedroom suites and a presidential suite with a view of the city skyline

One fine dining restaurant, a large lobby bar and a coffee/breakfast area

Outdoor/Indoor heated rooftop pool

Conference/Banquet space

Large theater that can accommodate 2,000 people complete with a stage and sound system

Top management is considering selling the hotel and asked you to make a strong argument for keeping the property. Using Porter's three generic competitive strategies, assess whether your hotel will be successful under the current circumstances. As you apply the three strategies to the current situation, be sure to include recommendations and strategies for current and alternative uses for the property and its revenue centers.

Answer the question:

The application of those 3 strategies for future projection.