DIFFERENTIATION STRATEGY ANALYSIS IN KAPAL GARDEN HOTEL USING VALUE CHAIN ANALYSIS AND PERCEPTION GAP ANALYSIS

Abstract

The differentiation strategy analysis carried out in this study aimed to find out what types of differentiation strategies which are applied by Kapal Garden Hotel (KGH) based on Thomson’s, et al. (2022) five types of competitive strategies. As supporting material, the analysis of consumer segments, the factors driving differentiation, and gap analysis were also examined. The gap analysis is used to determine whether there is any gap in differentiation perception between the management and KGH consumers in the company. This research is a descriptive quantitative study in which data collection is obtained from questionnaires distribution. The instruments were obtained from the distinguishing features of Thomson's, et. al. (2022) strategy types, segmentation in the tourism industry according to Bowie, et al. (2016), and the differentiation driving factors which were analyzed using value chain analysis tool. The perception gap analysis was done by comparing the percentage of the results of consumer perception mapping and corporate strategic group mapping. The results indicated that KGH has a tendency to apply broad differentiation strategy which were supported by the results of the KGH consumer analysis which tends to target 3-star hotel consumers widely. KGH differentiated its products to target 3-star hotel consumers rather than specific consumers of certain niches, and perception gap analysis found that there was a perception gap between the management and KGH consumers.