Would Michael Porter sleep in this bed?

, , , , , , ,

Michael Porter is arguably the world’s most famous management theorist. His theories such as the 5 forces model and Value Chain Analysis are key parts of the syllabus for several ACCA and CIMA papers.

His generic strategy approach of “differentiation” and “cost leadership” has been around for a number of years and whilst there is a clear argument that a significant proportion of companies are nowadays trying to combine both approaches by aiming to differentiate the product or service whilst at the same time focusing on cost reduction, there is one particular segment of the hotel market that almost certainly has to differentiate to survive.

The boutique hotel segment inherently struggles to compete with the big national and international chains of hotels on the cost leadership approach (these bigger hotel chains will have significant economies of scale for example).

Instead, they will need to be “different” in terms of for example location or “friendliness”.

When it comes to differentiation, the aptly named Jumbo Stay Hotel will be hard to beat for people that are keen on airlines.

Located on a disused runway at Stockholm Arlanda airport, the Hotel is in fact an old Jumbo jet that that has been converted into a luxury hotel. The Jumbo Jet hotel has 27 bedrooms with 76 beds but the best room has to be cockpit which has now been made into a luxury suite with panoramic views of the airport.

The upper deck of the plane which used to house business class passengers is now a cafe serving fresh food and drinks.

We’ve blogged before about Ryan Air’s cost leadership approach to their flights and it’s nice to see a differentiation approach to another part of the airline industry.

It looks like Saturday could be a record day...

When I was younger I can remember queuing with friends to get the latest album by my favourite group. At the risk of showing my[..]

Do you wear cheap chic or luxury clothes?

Floods earlier this year caused significant damage to major cotton crops around the world. A knock on effect of this is there is now a[..]

A bitter coffee taste...

Anyone that has studied hard for their exams will almost certainly at one time or another utilised the services of a strong coffee. Whilst desperately[..]

KPMG partners cheated in exams.

Ethics are pretty important if you’re a partner in an accounting firm. Unfortunately for these guys though they weren’t the most ethical of people as[..]

Time up for Swiss watches?

Switzerland has a reputation for being the home of some of the most prestigious watch manufacturers. Omega, Tag Heuer and Breitling are just three if[..]

How much for a speech?

The salary of Boris Johnson, the current UK prime minister is just over £150,000. I’m sure that most Prime Minsters don’t do the job for[..]

KPMG fined £700,000.

KPMG in the UK has been fined by the Financial Reporting Council for what only can be described as pretty poor auditing. The situation behind[..]