“if you know your enemies and know yourself, you will not be imperiled in a hundred battles; if you do not know your enemies but do know yourself, you will win one and lose one; if you do not know your enemies nor yourself, you will be imperiled in every single battle.”
The Art of War 5th Century B.C.
There are sentences that are always true, they do not depend on time but they are a constant of the human being.
The above is a well-known quotation from Sun Tzu (in Japanese Sonshi).
The author is making three points:
- If you understand yourself and your enemy, you will be far more likely to win any battle.
- If you understand yourself, but not your enemy, you have roughly a 50/50 chance of winning.
- If you understand neither yourself nor your enemy, you will probably lose every battle.
1 In Business Terms:
“Understand yourself” means to understand who you are:
- your resources (how many resources are you able to put on the table?)
- your product (what are you selling, is it a competitive advantage?)
- your value proposition (how your customers are perceiving your product?)
“Understand your enemy” means to understand your business environment:
- your competitors (how many competitors?, what kind of product are they selling?, Am I a market follower or a market leader?)
- your providers (who are my providers, are my distributors well balanced? which is my bargain power?)
- your destination (how your customers are perceiving your location?)
2 To summarize we have 3 steps
Destination -> Compset -> my Hotel
- Destination: we are at the macro level, it’s defined by a plurality of opportunities in perfect competition
- My Hotel: we are at the micro level: we have a “polipoly based on a polipolistic demand” defined by a large number of vendors and buyers and each vendor has a specific value proposition which creates a product differentiation. Products are often grouped by clusters where we have hotels with similar features (Compset) competing for the same value segments.
3 How Lybra.tech Hotel Revenue Intelligence can support your strategy
The strategic weapon any hotel can use to “fight” are:
And Lybra.tech Hotel Revenue Intelligence can be the perfect choice to support your decision-making process since we developed advanced algorithms which help you to optimize marketing and revenue activities in the easiest way.
Lybra is a top rated tool which helps you:
To Understand who you are: analyzing and evaluating your segmentation, value proposition, business mix, optimizing your pricing and revenue strategy
To Understand your compset: having a clear vision of your competitors, your distribution strategy, the demand pressure over your destination.