Business

Every company either producing goods or services have some competitive advantages through which it distinguishes itself from other competitors. After reading this case analysis, I feel that the biggest advantage which Novotel has over its competitors is standardization of their whole system. They have set same room structure and managerial practices across the globe. Its customers will be welcomed by equal warmth and passion in every Novotel hotel. They developed this advantage by centralizing the training practices to its headquarters in Paris.

As far as value chain is concerned, it seems that Novotel is focusing on partnership programs such as supplier partnership program which has been mentioned in the case. Through this process, Novotel is building its value network. Thus they are making internal and external linkages for marketing. Moreover the multi- skill practice is also a good example of value chain. Rather than delegating certain tasks to certain people, they are addressing their employees as unified whole and are enabling everyone to perform every task. Moreover the exchange of staff among Novotel creates a multi cultural environment which assures that customers will get a diverse culture in every Novotel hotel. So basically Novotel has scanned its value chain and value network and has created its net value by standardizing all the procedures which relates to management, infra structure, services etc.

Novotel has very smartly used the VRIO model in order to maintain consistency of its competitive advantage. It values it human resource more than other assets. Academic Accor and focus on standardized training proves human resource as their priority. Its also rare because other hotels cannot provide same atmosphere and same layout of their hotels throughout the world. Certainly this advantage cannot be copied as well unless someone starts hotel business from scrap. Their training is developed and delivered only at its headquarters so there are less chances of information leak for its competitors. Novotel has also organized itself by monitoring standards through internal team of inspectors. This enables them to deliver their services with consistency and lesser flaws.