Hotel Management
Company’s Overview
Shilla Hotel is a Korean based company that is involved in hotel operations as well as management. Shilla Hotel is mainly involved in operating luxury hotels along with duty-free outlets. The hotel firm is among the leading operators in the hospitality global context. The company is headed by Lee Boo-Jin as the CEO and general manager (Korean Foundation, 2013). The firm is owned by Samsung Corporation. The hotel was founded began its operations on 1979 in March under the guidance and plans of Byung-Chung Lee who is the establisher of Samsung Inc (Korean Foundation, 2013). The title Shilla is an origin of traditional Shilla family in Korea. In Korea, Shilla hotel is located in Seoul. The corporation has been expanding into the established fitness institutions management and the restaurant and hospitality businesses. Shilla Hotel is mainly centered on the attractiveness as well as the harmony of modernity and conventions. The hotel is currently situated in four different countries in addition to South Korea (Korean Foundation, 2013).
Shilla Hotel is popular for its consumer-centered services. In that its services and management is grounded and customized based on the different needs of the consumers from different locations across the countries that it is situated at. Shilla Hotel is a metropolitan lifestyle hotel that mainly combines conventional Korean stylishness with a contemporary sensitivity of its consumers (Okuro, n.d). The hotel is involved in the provision of international class hospitality servicing. The company’s vision is to be the leading provider of the required hospitality servicing for improving the quality of living such as entertainment services, shopping, dining, and relaxation and Spa services (Travel-Square, 2016).
Company’s Size and Brand
Shilla hotel is an international company that mainly operates in three major business divisions which includes hospitality management, duty-free outlets as well as leisure and routine related services divisions. The division of duty-free outlets operates under the brand title The Shilla Duty-Free which is mainly engaged in the provision of luxury brands in regard to jewelry, fashion, boutique products, cosmetics, accessories and so on (Samsung, 2014). The hotel operation is mainly focused on two major hotels being Jeju and Seoul Shilla (Korean Foundation, 2013). On the other hand, the routine and leisure business division play part in management of a custom-built fitness association under the brand title Vantt (Korean Foundation, 2013).
The company’s entry and competitive advantage of its luxury brand lie on its differentiation, customized and modernized services. The hotel is globally celebrated as the leading hotel in South Korea (Okuro, n.d). The Shilla Seoul hotel is a reputable hotelier located in South Korea that partnered with Samsung in order to support its vision of becoming the best hotel brand in the entire region of Asia. The hotel was mainly in the need for innovative and modernized technological design to facilitate its differentiation strategy. Unlike most of its competitors who are mainly focused on brand affordability, the form is mainly focused on developing a more innovative and classy brand that suits its quality and the need to become the hospitality brand leader in Asia (Okuro, n.d). In order to improve the experience of its guests, the company sought an innovative solution as offered by Samsung to ensure that the consumers acquire the utmost satisfaction.
Brand Developement
The company mainly makes an emphasis on three major values which are a convenience, quality, and innovativeness. In that, the firm believes that effectiveness in the modern hospitality industry can best be achieved by applying innovation since it is one of the primary aspects that is driving the will and satisfaction of the industry (Samsung, 2014). The company’s hospitality services demonstrate a more precise picture of the focus of firm on modernity, quality, and more smooth design that suits well with the luxurious atmosphere. Similar to the global leading companies such as Apple, Shilla is guided by a rather premium setting that puts more emphasis on quality rather than prices. The company is guided by the philosophy that consumers are likely to get satisfaction based on quality and degree of differentiation that any company offers than cost. It is not the cost that counts rather it is the quality of such services (Samsung, 2014).
Shilla hotel has improved the hotel’s contemporary and luxurious image brand with its innovative aspects, quality as well as the smooth design to fit into its values and standards (Samsung, 2014). The company’s guests normally enjoy quality, customized as well as convenient experience since they can acquire direct information regarding the display of the hotel as well as the rooms. In the meantime the utilization of the smart technology in helping the firm in communicating its cost constructions and enhanced operational efficiency (Samsung, 2014). The company’s brand is therefore based on the provision of differentiated, contemporary, luxurious as well as innovative services. the hotel is designed as a modern routine hotel that integrates traditional elegance with modernized sensitivity offering all kinds of needs that are needed in improving modern lifestyle in a premium and quality way (Travel-Square, 2016). The hotel is involved in hosting global events and it also accommodates prominent individuals across the globe thus influencing the revolution of the service industry in the Korean sector with pride and a feeling of accountability. Shilla Seoul which is one of the Korean icon landmarks is popular as the image that best represents the values and the achievements of Samsung Company as the Korean hospitality industry (Samsung, 2014). The company is focused on being the number one leader in the Asian market by creating a more customized, contemporary as well as comfortable brand image.
In order to rebuild its luxurious brand value after it engaged in a 7 months period renovation. The renovation has established itself as an international global luxury Hotel that is involved in competition with other global based luxury hospitality brands (Samsung, 2014). The primary concept for the rebuilding of the company was to generate a location where each moment that is spent in the setting is never forgotten. It is perceived that the guests are exposed to essential lives moments at the hotel (Travel-Square, 2016). In that, the company allows and accommodates needs ranging from business, relaxation, meals and the general participation in leisure operations (Samsung, 2014). The hotel has built this name by providing the most conventional preferences within the market in a more definite and delicate style. In that, the preparation is both stylish and sophisticated.
Geographic Distribution and Global Expansion
Shilla hotel’s global or geographical distribution is however minimal since it is only based in Asia. The hotel has its presence on Seoul in Korea, China, Suzhou and Jeju (Okuro, n.d). This, therefore, demonstrates that is competitive position is weak and cannot confidently compete with some of the well-established hospitality firms in the World. However, this aspect is driven by the fact that the firm mainly seeks on becoming the global leader in Asia first prior to venturing to the rest of the world. However, based on its resources and profitability the firm has a number of strengths that can sustain it in the global market. With the positive image that it has created, it is rather evident that it can perform well in the global context. The differentiation branding and development approach is mainly fueled by its general potential by the guests to suitably and securely acquire services based on their needs. In that, the company mainly classifies the services not only based on the preferences but the need of the consumers. In that, it is particularly focused on diversification (Samsung, 2014). The company’s goal is to improve the experience of all the guests by providing them with the general access to varieties and well-recognized options.
Contrary to offering more domestic-based it offers more modernized and customized brand menus and settings. In addition, to improving the experience of the guests and their feelings, The Shilla hotel’s is based on a cost-effective display with a more ease setup, reduced energy reduction thus lowering the expenses related to operation (Okuro, n.d). The contrary’s expansion is guided by the need to maintain low operating expenses in general. In that, in doing this the quality of the services has to be balanced. However, the company has no challenges trying to minimize its expenses because based on its reputation most suppliers are willing to offer materials at the minimal costs since the firm will maintain long-run relationships and its purchasing more is quite high (Samsung, 2014). On the other hand, it has well-situated sources that are dependable and thus its operations cannot be affected.
The use of smart technology in providing more innovative services to the consumers and managing operations has led to increased efficiency. This, therefore, means that less effort is applied by the corporation in its attempts to reduce expenses since the efficiency addresses such issues directly. Most consumers in the hospitality are more centered on services quality rather than just the expenses. For those that seek premium and luxurious setting, it is the designs and the general quality of services that are offered that contribute to their satisfaction. This aspect of differentiation and quality leadership strategies seem to be paying off the company which has in the past retained its position (Okuro, n.d). Despite the intensifying competition, in the market, the general effectiveness and performance of the company have not been affected in any way.
To sum up, Shilla hotel has acquired a rather competitive position in the hotel industry in Asia and particularly in Korea. This has mainly been facilitated by its luxurious and yet quality brand. The company offers services that are customized based on the preferences of their consumers. Despite the fact that the company is grounded on the traditional Korean lifestyle its services are modernized and luxurious that suits the general demands of clients in the market. The hotel mainly supports and offers modern lifestyle services that combine the conventional elegance with more modernized compassion that promotes classy services. Through the use of differentiation and innovation, the company has managed to become a hotel leader despite the fact that its presence in the globe is particularly minimal.
References
Korean Foundation. (2013). Korea Focus – 2013 Focus. The Korea Foundation
Okuro, Nikko. (n.d). The Shilla Seoul. Retrieved from https://www.okura-nikko.com/korea/seoul/the-shilla-seoul/dining/
Samsung Inc. (2014). The Shilla Seoul. Samsung smart hospitality technology that complement a world-class hotel’s premiums guest experience, case study. Samsung Electronics Co., Ltd. Retrieved from displaysolutions.samsung.com/fileDownload/23287?dir=solutions&file=hospitality
Travel-Square. (2016). The Shilla Hotel, Seoul. Retrieved from https://travelsquire.com/the-shilla-hotel-seoul/
