The Evolution of the Hotel Industry (B): Blue Ocean Perspective W Hotels – The W Way Leading the Boutique Hotel Industry

This case focuses on the evolution of the hotel industry (red ocean and blue ocean perspectives) and the strategic and innovative creation of a leading boutique hotel brand - W Hotels. Emerging at a time when the industry was relatively stagnant, W Hotels stood out from conventional luxury competitors thanks to novel positioning and value innovation. Case (A) describes the origins and growth of the hotel industry, the standards used (star ratings) to assess properties at the luxury end of the market and other segments, and the competitive landscape in the late 1990s. Case (B) zooms in on W Hotels and its value innovation. Instructors can use the cases as the basis of group exercises, and to discuss other examples of value innovation in the hospitality industry, such as the citizenM and hotelFI brands.

• To discuss the past, present, and future of the hotel industry. • To understand the conventional star ratings system of the hotel industry. • To understand the sources of W Hotels’ value innovation and competitive advantage. • To learn the features of blue ocean strategy and the creation of new market space.