International Marketing Management on Generator Hostels


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International marketing management requires a systematic and strategic approach for ensuring growth and success of business (Douglas and Craig, 2011). Present report is based on Generator Hostels which renders hostel facilities for its consumers. Importance of expanding operations of corporation in international market has been described in the report. In addition to this strategies adopted by organization for achieving competitive advantage has been described. Moreover benefits and drawbacks of Uppasala theory and its significance in international operations of firm has also been mentioned.


Generator Hostels' Expansion

Generator Hostels is the leading group of hostel facilities worldwide. In the UK it is situated at 37 Tavistock Place, London, England, WC1H 9SE. The group provides various facilities to the customers such as free wifi, bar, cafe, 24 hour reception, chill out areas, hygienic food, cinema room etc (Generator hostels, 2016). There are various kinds of theories which are adopted by the international business to expand the business into international market (Czinkota and Ronkainen, 2013). The Generator Hostels Group is using the Uppsala Model to expanse business into the international market.

The model adopted by the group in business expansion is Uppsala theory. Uppsala theory is a theory that explains how firms gradually intensify their activities in foreign markets. Uppsala model is helps to the group of hostels in expansing into international market. The company using this theory to have the tendency of entering a new market successfully through demographic and psychic distance which means the summation of factors that is hindering the flowing of information from one market to another market; these include differences in age, gender, living standard, income, education, culture and industrial development (Papadopoulos and Heslop, 2014). Through this model the company mainly focus on state and change aspects such as market commitment and market knowledge; commitment decisions and current activities. After that expand its new project into international market.

Benefits of Uppsala Theory

  • Major benefit of the Uppsala model is its theoretical conceptualization in the field of the firm (Terpstra, Foley and Sarathy, 2012). It is one of the best known models of how firms set about the internationalization process.
  • It is beneficial to achieve their knowledge from the home market before moving to the distant market. This theory has the competitive advantage opportunities base to amount of resources and researches that are carried out in foreign country before entering (Berthon and Shapiro, 2012).
  • Firms launch their overseas operations by making use of the traditional exports and slowly but surely moving to the using of a more intensified and demanding operational models like sales subsidiaries at the company and target international level.
  • Drawbacks of Uppsala Model:
  • This model is too deterministic because its principles are predicted by the evaluation of time (Alden and Soutar, 2013). All its advances are based and controlled by the environment of which the firm exist or planning to expansion.
  • The model is relevant to the physical product industries also but usually very slow in entering distant or international markets in terms of psychic distance at an early stage and its frequently not valid for the service industries as services can be dynamic and more time compressed also requires initial commitments (Paliwoda and Thomas, 2013).
  • This model only focuses on selected firm and its researches to environmental explanatory variables.


Global Trends

A general development or change in a situation that affects many countries of the world. The Generator hostels is an international company, so by affect countries this business is as well. The Generator company focuses on the demographic area of the market, where it attracts to more number of customers. Demographic factors include age, gender, marital status, race, education, income and occupation of consumers (Meissner, 2012). The company is focusing on the demographic sectors only to provide the wide services worldwide.
The key global trend of the firm is targeting the demographic area of consumers (Majaro, 2013). Under the age the firm targeting the students and youngsters mainly because they need the hostel facilities. The company is focusing elders also but in the lesser number compare to youngsters. Is facilitates the services for the all type of ages such as children, youngsters, elders etc. according to their requirements (Berthon and et. al., 2012). Under the gender the company provides facilities for the boys and girls separately, this facility is also attracted to the more number of consumers. Mostly people are worried about the separation of girls and boys hostels, so it gives the satisfaction to them.

The Generator Hostels is providing facilities according to the marital status factors as well. Here the company have the separate rooms and it gives the privacy to couples. It is majorly attracted to the new generations instead of the old generations. The hostels reimagined that key trends shaping the global hostel marketplace. The company is facilitates according to the education and income also, here it provides the students facilities such as table chair, hygienic food, proper timely etc. It having gives facility according to the income such as normal level rooms, high level rooms and luxurious rooms also according to ability of pay of the consumers. It facilitates according to the occupation of the consumers (Czinkota and Ronkainen, 2012). Under this it provides the conference hall, business class rooms, employees rooms etc. New generation is realized that t is better hostel for them. The company is doing renovation time to time by which they get new designs and new features, this makes consumers more attracting. The company is re-inventing the hostels with smart designs which attract to the more customers. The hostels group is facilitates accommodation to the tourism also, in this way the company tie up with the travel and tourism sector companies as well.Hence, the company is attracting to the more number of customers after using the global trends specially the demographic segment.


Competitive Advantage

Competitive advantage is a condition or circumstance that puts a company in a favourable or superior business position (Ghauri and Cateora, 2010). Ii is a property that a business can have over its competitors. This can be gained by offering clients better and greater value.
Smart Hyde Park View Hostel is provides the facilities and is also a great choice of accommodation in UK. It s the competitor of the Generator Hostels Group. In compare to location both hostels are situated in the popular streets of London. Both are offers comfortable, clean rooms, hygienic food and fantastic access to London's most famous sights and attractions. Both are facilitates the transportation facility to the customers. There are 24 hour buses running next to the hostel which connect to many of the cities train and bus stations, making both them accessible at day or night.
The Generator hostel is differentiation with the competitor hostel Smart Hyde Park View Hostel. The company having competitive advantage in terms of the design and attractiveness. The Generator hostel is having the unique design agency which brings vibrant generator hostel to Amsterdam. It set a former health sciences building and zoological museum and design agency. This facility is not having its competitors (Jean, Sinkovics and Kim, 2010). Generator hostels fit the bill offering high end design at budget prices. Competitive prices with a product that deploys cutting edge and art of the company. The Generator hostels main competitive advantage is it re inventing and renovating the hostels with the updated design and smart designs.

The core part of competitive advantage of Generator Hostels is its interior design. The hostels are leading the way in the burgeoning hip hostel faced with fracturing guest demographics, non-traditional competition and executive, so core part of its strategy is its interior design which makes differentiate with its competitors into the lodging segment. The Smart Hyde Park View Hostel is having the interior but not updated. The competitor firm is not adopting the new designs, which attract lesser number of consumers in comparison to the Generator Hostels. Cutting edge design creates sociable spaces and amazing bars with vibrant atmospheres setting the Generator hostels apart from the competitors. The Generator hostels is mainly focused on the interior design by which more and more number of customers attract because they also want the updates in every thing. It is very important to the companies to become update for attracting more consumers (International marketing, 2016).
Hence, the Generator Hostels is differentiated with its competitor Smart Hyde Park View Hostel in terms of the interior design. Core competency of the Generator hostels is its interior design.


Summing up the present report it can be concluded that managing international marketing operations of business requires systematic and strategic approach. Generator Hostels can expand its business by making effective marketing policies for achieving competitive advantage. Adopting Uppsala Theorywill support in doing internationalization of companies existing activities and profitability. Financial revenues of corporation can also be enhanced by expanding the business in international market areas. Company can target specific group of consumers by doing categorization on demographic basis. Various elements are considered in demographic criteria and it includes age, gender, marital status and occupation of consumers. Better policies and strategies can be formulated by making use of authentic data and information that are collected from reliable sources.

Related samples on International Marketing


  • Alden and Soutar, G.N., 2013. The effect of global company animosity on global brand attitudes in emerging and developed markets: does perceived value matter?. Journal of International Marketing.
  • Berthon, P. R. and et. al., 2012. Marketing meets Web 2.0, social media, and creative consumers: Implications for international marketing strategy.Business horizons. 
  • Berthon, P.R. and Shapiro, D., 2012. Marketing meets Web 2.0, social media, and creative consumers: Implications for international marketing strategy. Business horizons.
  • Czinkota, M. and Ronkainen, I., 2012.International marketing. Cengage Learning.
  • Czinkota, M.R. and Ronkainen, I.A., 2013. International marketing. Cengage Learning.
  • Douglas, S. P. and Craig, C.S., 2011. Convergence and divergence: Developing a semiglobal marketing strategy.Journal of International Marketing.
  • Ghauri, P.N. and Cateora, P.R., 2010.International marketing(pp. 15-16). McGraw-Hill Higher Education.Jean, R.J.B., Sinkovics, R.R. and Kim, D., 2010. Drivers and performance outcomes of relationship learning for suppliers in cross-border customer-supplier relationships: The role of communication culture.Journal of International Marketing.
  • Majaro, S., 2013. International Marketing (RLE International Business): A Strategic Approach to World Markets. Routledge.
  • Meissner, H.G., 2012. Strategic international marketing. Springer Science & Business Media.
  • Paliwoda, S. and Thomas, M., 2013. International marketing. Routledge.
  • Papadopoulos, N. and Heslop, L.A., 2014. Product-country images: Impact and role in international marketing. Routledge.
  • Terpstra, V., Foley, J. and Sarathy, R., 2012
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