Hilton Case Study
After staving off two major takeover attempts in the 1990's, Hilton Hotels Corporations (HHC) decided to adjust its overall strategy and become more aggressive in its business operations. Although already a force in the hotel industry with a strategic focus in three areas: hotel ownership, managing and franchising, and timeshare; Hilton Hotels decided to shift more resources into gaming, resort operations and the mid-priced segment of the hotel industry (hotel-online.com 2006). This change in strategic direction dictated that the organization redirect its marketing objectives as well. Traditionally, the firm had focused on place, product and promotion, by establishing the finest hotels in the most attractive, convenient and sometimes expensive places in the world. In the new millennium, particularly after the attacks on September 11th, Hilton has gone after the mid-priced client and the more affluent lodging clientele.
One of HHC's strategic decisions was to continue to be a major player in the gaming industry. In the early 1990's, the Las Vegas Hilton and Flamingo Hilton provided up to 44 percent of the firm's income (Handbook of Texas 2001). With profit soaring more competition was sure to come and it did in the form of hotels like the Mirage and Excalibur. In order to compete with the news kids on the block, HHC had to do major renovations and modernization. HHC decided to invest in upgrading its gaming properties and upping the ante in providing a holistic gaming experience to lure customers from other establishments. The gaming experience would now include activities such as fine dining, shopping, golfing, and high end resort amenities. HHC also decided to segment the market along price lines by offerin ...