What is the management strategy adopted by the hotel?

The hotel adopts the cost leadership strategy.

This is the application of value chain analysis. From the perspective of hotel operation, which activity can create the most value and reduce the cost in the competition? The reason why a hotel can retain customers is mainly the quality of its own food, especially the production of seafood dishes, which is the key link that best reflects the delicacy of a hotel. On the other hand, when preserving raw materials such as seafood, the superficial hotel is limited by the technical restrictions of transportation and feeding, so it can't look like a hotel can save a lot of money by buying a lot of seafood at one time. However, due to the technical limitations of transportation and feeding, hotels can't guarantee the survival rate of seafood, resulting in a high mortality rate of seafood, which makes customers unable to enjoy delicious food, thus leading to a large number of customers losing. On the other hand, because the hotel keeps its own fresh seafood, fish owners can't charge high prices to the hotel in this respect. For their own benefit, they will not reveal the secret of preservation to the hotel, and also decide not to sell better seafood to the hotel, thus increasing their income.

Through value chain analysis, it is not difficult to find that hotels must have better seafood if they want to have more tourists, but hotels are not good at it, are at a disadvantage and have high opportunity cost. If it is outsourced to the fish boss, although the current cost may increase slightly, in the long run, the fish boss is willing to provide better seafood for the hotel because he can get more benefits from it. Moreover, they save a lot of opportunity costs for the hotel in terms of value preservation. Hotels can absorb this part of the cost from the income of providing customers with high-quality seafood. Even if the price of dishes is not raised, more customers will be attracted to spend at home because of the improvement of the quality of dishes, which is enough to absorb the increased cost due to outsourcing seafood preservation.

So from this point of view, hotels, fish owners and customers are all satisfied.