International Business Strategy Essay Example | Topics and Well Written Essays - 1500 words

International Business Strategy - Essay Example Capital investments of Shangri-La is chiefly in Asia- Pacific regions. Apart from extensive hospitality and marketing strategies, some part of growth and expansion of Shangri-La is also due to increase in travelling tendencies of people. The fact that international traveling has become more hazardless has also contributed to this fact. Shangri-La is known for its business focus and capital investments. Like most other hotel chains in Asia, Shangri-La hotels do not engage in multiple business provisions. Shangri-La hotels and resorts are situated in 29 locations and have over 23,000 rooms. In order to compete in global market, Shangri-La has ventured beyond its business activities in Asian markets, and has entered other nations especially into China. Expansion was made in luxury segment as well as in business relationship between owner and operators. This was achieved by extension and well management of contracts. As per their extension programs, Shangri-La has established as many as thirty- five hotels in different and popular tourist destinations of Asia. Some of these destinations include Singapore, India, Malaysia, Japan, etc. Shangri-La has its branches in almost all prominent cities in these continents, like Chicago, Miami, London, Vancouver, Paris, Las Vegas, etc. These achievements have made Shangri-La one of the largest chains of deluxe hotels that are based in Asia. Business activities of Shangri-La, in fact, have not been constrained to Asia only. Over time Shangri-La branches has been established in Dubai in the United Arab Emirates first, and then to Muscat, Oman. Later on it was expanded to other Middle East, Europe, and North America as well. Shangri-La has also expanded in Australia. In 2006, the organization had approximately 40 future projects. (Campbel and Kazan, n.d., pp. 432- 438) However, as far as its expansion to China is concerned, Shangri-La has experienced huge benefits from China’s growing economy. Since 2006, Chinese economy h as turned towards a new growth. This has made China one of the most important concerns of Shangri-La. this concern is evident from the fact that since 2006, most of the projects regarding establishment of new hotel branches were set in China. The figure is estimated to be somewhere around 188 hotels. Another reason why Shangri-La has invested a major part in China is because, in recent times, China has introduced much relation in travel, and has withdrawn some travel restrictions also. It has resulted in significant growth in domestic and outbound travel in China. Also, international events like Olympics in 2008, held in Beijing have not only given China more exposure internationally but have also boosted the country’s economy. All these factors, combined, have prompted Shangri-La to invest more in China. (Campbel and Kazan, n.d., pp. 433) Shangri-La has been following a differentiation strategy as far as international competence is concerned. This chain of hotels had differe ntiated itself by establishing itself as a cultural brand. That is to say, overall brand strategy of Shangri-La is based on Asian hospitality and cultures. The chief aim is to please and delight the customers. Other objectives include consistent top- notch service that would keep up the brand image. Shangri-La Care is the best example of this. This unit has been set up by Shangri-La Hotels as a measure to ensure customer service. This program also included training and developmental