Business

The Novotel case study shows that along with its specialties such as multi cultural and multi skill staff, the biggest advantage it enjoys over its competitors is the standardization. Firstly there hotel design and guest rooms are standardized which enables management functions to be standardized as well. To maintain there standardized pattern, training is centralized at the Academic Accor which is located at the headquarters outside Paris. This results in consistent service standards no matter where customer is staying n the world. This idea gives the customer a comprehensive knowledge about their services. This competitive advantage is near to impossible to imitate for existing hotel firms because Novotels competitive advantage depends on their infra structure of hotels and management as well. And it is not possible for other firms to change their infrastructure.

Value chain configuration shows that internal management processes and linkages between different activities can also build a unique competitive advantage which helps the organization to deliver values consistently. Value chain helps to sustain the competitive advantage any organization enjoys. For primary activities such as greeting and basic services provided to customers, Novotel developed multi skilling approach. For support activities such as human resource development, they centralized and standardized training activities. Moreover they also exchanged staff internationally to create multi-culture.

As far as VRIO framework is concerned Novotel values multi skill staff. So it has reduced its core staff levels and has made more resourceful workforce through multi tasking. Flexible working patterns have certainly increased its operational efficiency and broke down the staff reluctance to work within specific area. To show rarity, through 95 bolts, Novotel has standardized their service and customer would get same treatment wherever he stays in Novotels hotel which is very unique. This would result in stronger brand name and consistency of services delivered. Good thing is that the standardized method of physical infrastructure and standardized management patterns are really difficult for competitors to imitate. Thus Novotel enjoys these advantages over its competitor. And the idea of partnership programs in relationship marketing is an example of how Novotel is extracting benefits from the normal procedure of buying and how well organized its structure is.