International Marketing Management on Generator Hostels

TASK 1

Generator Hostels' Expansion

Generator Hostels is the leading group of hostel facilities worldwide. In the UK it is situated at 37 Tavistock Place, London, England, WC1H 9SE. The group provides various facilities to the customers such as free wifi, a bar, a cafe, 24-hour reception, chill-out areas, hygienic food, a cinema room, etc (Generator Hostels, 2016). There are various kinds of theories that are adopted by international businesses to expand the business into the international market (Czinkota and Ronkainen, 2013). The Generator Hostels Group is using the Uppsala Model to expand business into the international market.

The model adopted by the group in business expansion is the Uppsala theory. Uppsala theory is a theory that explains how firms gradually intensify their activities in foreign markets. The Uppsala model helps the group of hostels expand into the international market. The company using this theory has the tendency to enter a new market successfully through a demographic and psychic distance which means the summation of factors that are hindering the flow of information from one market to another market; these include differences in age, gender, living standard, income, education, culture and industrial development (Papadopoulos and Heslop, 2014). Through this model the company mainly focuses on state and change aspects such as market commitment and market knowledge; commitment decisions and current activities. After that expanded its new project into the international market.

Benefits of Uppsala Theory

• A major benefit of the Uppsala model is its theoretical conceptualization in the field of the firm (Terpstra, Foley, and Sarathy, 2012). It is one of the best-known models of how firms set about the internationalization process.
• It is beneficial to achieve their knowledge from the home market before moving to the distant market. This theory has the competitive advantage opportunities based on the amount of resources and research that are carried out in foreign countries before entering (Berthon and Shapiro, 2012).
• Firms launch their overseas operations by making use of traditional exports and slowly but surely moving to the use of more intensified and demanding operational models like sales subsidiaries at the company and targeting the international level.
• Drawbacks of the Uppsala Model:
• This model is too deterministic because its principles are predicted by the evaluation of time (Alden and Soutar, 2013). All its advances are based on and controlled by the environment in which the firm exists or planning to expand.
• The model is relevant to the physical product industries but usually very slow in entering distant or international markets in terms of psychic distance at an early stage and it is frequently not valid for the service industries as services can be dynamic and more time-compressed also require initial commitments (Paliwoda and Thomas, 2013).
• This model only focuses on a selected firm and its research of environmental explanatory variables.

TASK 2

Global Trends

A general development or change in a situation that affects many countries of the world. The Generator Hostels is an international company, so by affecting countries, this business is as well. The Generator company focuses on the demographic area of the market, where it attracts more customers. Demographic factors include age, gender, marital status, race, education, income, and occupation of consumers (Meissner, 2012). The company is focusing on the demographic sectors only to provide wide services worldwide.
The key global trend of the firm is targeting the demographic area of consumers (Majaro, 2013). The aged firm targets the students and youngsters mainly because they need the hostel facilities. The company is focusing on elders also but in a lesser number compared to youngsters. It facilitates services for all types of ages such as children, youngsters, elders, etc. according to their requirements (Berthon and et. al., 2012). Under gender the company provides facilities for the boys and girls separately, this facility has also attracted a larger number of consumers. Most people are worried about the separation of girl's and boys' hostels, so it gives them satisfaction to.

The Generator Hostels provide facilities according to the marital status factors as well. Here the company has separate rooms and it gives privacy to couples. It is majorly attracted to the new generations instead of the old generations. The hostels reimagined the key trends shaping the global hostel marketplace. The company is facilitated according to the education and income also, here it provides the student with facilities such as table chairs, hygienic food, proper timely, etc. It gives facilities according to income such as normal-level rooms, high-level rooms, and luxurious rooms also according to the ability to pay off the consumers. It facilitates according to the occupation of the consumers (Czinkota and Ronkainen, 2012). Under this, it provides the conference hall, business classrooms, employees rooms, etc. The new generation has realized that it is a better hostel for them. The company is doing renovation from time to time by which they get new designs and new features, this makes consumers more attractive. The company is re-inventing the hostels with smart designs that attract more customers. The hostels' group facilitates accommodation to tourism also, in this way, the company ties up with the travel and tourism sector companies as well. Hence, the company is attracting more customers after using the global trends, especially the demographic segment.

TASK 3

Competitive Advantage

Competitive advantage is a condition or circumstance that puts a company in a favourable or superior business position (Ghauri and Cateora, 2010). It is a property that a business can have over its competitors. This can be gained by offering clients better and greater value.
Smart Hyde Park View Hostel provides the facilities and is also a great choice of accommodation in the UK. It's the competitor of the Generator Hostels Group. In comparison to location, both hostels are situated in the popular streets of London. Both offer comfortable, clean rooms, hygienic food, and fantastic access to London's most famous sights and attractions. Both facilitate the transportation facility to the customers. There are 24 hour buses running next to the hostel which connects to many of the city's train and bus stations, making both of them accessible at day or night.
The Generator hostel is differentiation from the competitor hostel Smart Hyde Park View Hostel. The company has a competitive advantage in terms of design and attractiveness. The Generator hostel has a unique design agency that brings a vibrant generator hostel to Amsterdam. It set up a former health sciences building and zoological museum and design agency. This facility does not have its competitors (Jean, Sinkovics, and Kim, 2010). Generator hostels fit the bill offering high-end design at budget prices. Competitive prices with a product that deploys cutting-edge and art of the company. The Generator hostel's main competitive advantage is it re-inventing and renovating the hostels with updated design and smart designs.

The core part of the competitive advantage of Generator Hostels is its interior design. The hostels are leading the way in the burgeoning hip hostel faced with fracturing guest demographics, non-traditional competition, and executive, so a core part of its strategy is its interior design which makes it different from its competitors in the lodging segment. The Smart Hyde Park View Hostel has the interior but is not updated. The competitor firm is not adopting the new designs, which attract a lesser number of consumers in comparison to the Generator Hostels. Cutting edge design creates sociable spaces and amazing bars with vibrant atmospheres setting the Generator hostels apart from the competitors. The Generator hostels are mainly focused on interior design which more and more customers because they also want updates on everything. It is very important for companies to become updated to attract more consumers (International Marketing, 2016).
Hence, the Generator Hostel is differentiated from its competitor Smart Hyde Park View Hostel in terms of interior design. The core competency of the Generator hostels is its interior design.

Conclusion

Summing up the present report it can be concluded that managing international marketing operations of business requires a systematic and strategic approach. Generator Hostels can expand its business by making effective marketing policies to achieve competitive advantage. Adopting Uppsala Theory will support doing internationalization of companies' existing activities and profitability. Financial revenues of corporations can also be enhanced by expanding the business in international market areas. Companies can target specific groups of consumers by categorization on a demographic basis. Various elements are considered in demographic criteria including age, gender, marital status, and occupation of consumers. Better policies and strategies can be formulated by making use of authentic data and information that are collected from reliable sources.

Related samples on International Marketing

• Competitive Analysis & Marketing Theories of Prada
• International Marketing Management On Coca-Cola
• International Marketing Management on Generator Hostels
• Competitive Analysis & Marketing Theories of Prada

References

• Alden and Soutar, G.N., 2013. The effect of global company animosity on global brand attitudes in emerging and developed markets: does perceived value matter? Journal of International Marketing.
• Berthon, P. R. and et. al., 2012. Marketing meets Web 2.0, social media, and creative consumers: Implications for international marketing strategy. Business horizons. 
• Berthon, P.R. and Shapiro, D., 2012. Marketing meets Web 2.0, social media, and creative consumers: Implications for international marketing strategy. Business horizons.
• Czinkota, M. and Ronkainen, I., 2012.International marketing. Cengage Learning.
• Czinkota, M.R. and Ronkainen, I.A., 2013. International marketing. Cengage Learning.
• Douglas, S. P. and Craig, C.S., 2011. Convergence and divergence: Developing a semi-global marketing strategy.Journal of International Marketing.
• Ghauri, P.N. and Cateora, P.R., 2010.International marketing(pp. 15-16). McGraw-Hill Higher Education.Jean, R.J.B., Sinkovics, R.R. and Kim, D., 2010. Drivers and performance outcomes of relationship learning for suppliers in cross-border customer-supplier relationships: The role of communication culture.Journal of International Marketing.
• Majaro, S., 2013. International Marketing (RLE International Business): A Strategic Approach to World Markets. Routledge.
• Meissner, H.G., 2012. Strategic international marketing. Springer Science & Business Media.
• Paliwoda, S. and Thomas, M., 2013. International marketing. Routledge.
• Papadopoulos, N. and Heslop, L.A., 2014. Product-country images: Impact and role in international marketing. Routledge.
• Terpstra, V., Foley, J. and Sarathy, R., 2012

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