Ritz-Carlton Case Analysis

Ritz-Carlton Case Analysis

Business Strategy

There are essentially three service design strategies used by firms which are in the service industry

• Production-Line Approach

• Self-Service Approach

• Personal Attention Approach

The focus of the three service design approaches outlined above is completely different and hence the target customer segment is also different. While Production-Line Approach and Self-Service approach focus on cost efficiency of the service delivered, the Personal Attention Approach is focused on providing customized service by building a relationship with the customer. It is evident from the case study that Ritz-Carlton clearly focuses on the Personal Attention Approach to provide the finest personal services and facilities that enables it to charge a premium for the service it provides to customers.

In fact the differentiating point of any luxury brand is the service quality offered which in itself becomes the underlying product for a customer and this principle holds true even for Ritz-Carlton. Thus the target segment of Ritz-Carlton is the customer segment which would pay a premium for the experience of enjoying personalized and finest hospitality services on offer.

Consequently the management of Ritz-Carlton has programmed the firm to foster customer-centered behavior in employees at all levels. The top management has strived to create a customer-centered culture that identifies, nurtures, and reinforces service as a primary value. At the same time a lot of emphasis is placed on the rigorous selection process to ensure that the superior quality of service offered and the brand Ritz-Carlton become synonymous with the guests.

In fact the key success factors for the brand are: mystique, employee engagement, customer engagement, product service excellence, community involvement, and financial performance.

Evidently Ritz-Carlton follows a highly integrated business model that combines the underlying product i.e. hospitality experience with a superior service quality, driving strong growth and profitability in the process.

Quality at Ritz-Carlton

At Ritz-Carlton Quality is defined in terms of customers' perception of the service and facilities on offer. Hence the top management defines quality as the ability of the organization to provide defect-free and satisfactory hospitality services consistently and effectively to its customers. Quality is thus meeting and exceeding the assessed needs and defined expectations of the customer through efficient and effective management and processes.

Thus the organization has created the mascot Mr. Biv to stress the common sources of quality lapses which in turn