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Bed & Breakfasts in Italy: The case of the Emilia-Romagna Region

di Teresa Branzaglia

Alma Mater Studiorum
Università di Bologna
School of Economics Management and Statistics
Campus Rimini
Second Cycle Degree Programme in Tourism Economics and Management
Relatore: Manuela Presutti
Anno Accademico: 2015/2016

3.3 - Corporate Strategy

The plan of transforming our house into a receptive structure is based on the increasing interest captured in the market in the last years about rural places and on our desire of promoting our territory to people form all over the world. Through the B&B, we share our passion for Emilia-Romagna. The aim of gaining a competitive advantage is carried out through a differentiation strategy, which stems from the concept of emphasizing the unique traits that a firm/company/business has compared to its competitors. In other words, we compete with a strategy based on looking “different” to the eyes of customers; more specifically we plan on looking bigger, friendlier, and “cooler” thanks to the presence of the swimming pool. According to Porter, the value added by the uniqueness of the product may allow the firm to charge a premium price for it, but we will consider this option later in time.

We build our strategy on the experience offered: sophisticated and convenient at the same time. In fact, we set our prices at the average level of the other B&Bs in the area of reference, which offer a lower (in few cases similar) level of quality in terms of structure, amenities, extras, etc. Our offer is focused on the sophisticated consumer (willing to spend whatever amount of money to be sure of receiving the best service), but does not limit itself to this niche, extending its appeal to consumers with all kinds of income. The combination of different activities in the surroundings better shape a truly enjoyable experience, to give a surplus to the ordinary countryside holiday, that is the full immersion in the Ultimate Emilia-Romagna Experience, starting from the “Food Valley” with its 41 PDO and PGI products, going all the way to the “Motor Valley” (Ferrari, Lamborghini, Ducati, Maserati, etc.).

Moreover, in order to develop en effective corporate strategy it is important to observe the Ansoff matrix (Figure 11) and choose one of the four alternatives:

Figure 11 The Ansoff Matrix

B&B in Italy: the case of the Emilia Romagna - Immagine 20

In our case, the offer will be articulated in order to exceed our main direct competitors’, providing a high-quality range of services, and customizing the stay according to guests’ preferences. The product already exists and the target market is the same, therefore we will use a market penetration strategy.