Reardon’s Hotel has been successful domestically. It has earned itself the reputation of being a family owned business with Edward Reardon at the father figure of the business. The Hotel successful expanded into seven hotels domestically within the United Kingdom from its more modest beginning as one small Hotel in Somerset. Now the Hotel wants to expand internationally by acquiring a rural Hotel in Spain. Now there are many reasons for Hotels to internationalize. The case study states that Reardon Hotels wants to internationalize because they are looking to implement a long-term strategy. As part of their long-term strategy, the first step in overseas operations will be the acquisition of the rural hotel in Spain.
The many benefits in internationalization are usually understood through the push and the pull factors. The pull factors are forces of attraction for the Reardon to enter the international hotel market. Now some of the attractive prospects for Reardon are the profit making that is observed in the case of the international hotel market. Internationally, the Hospitality services industry has revived after the economic recessions of 2010. The timing to internationalize is hence good for Reardon. Moreover, in terms of push factors, it could be said that the domestic market is seen to be saturated. Saturation of the domestic market in the case of Reardon means that there are similar small scale boutique hotels in the UK. The Bingham Hotels, the Quincy Hotels, and the Cary Arms are some of the boutique hotels in the United Kingdom. There is intense competition in this sector and so it could be said that whatever domestic strategy is followed by Reardon, there would be only a certain amount of difference observed. The efforts of domestic strategies would not rear much more improvement than what is already present. In this context, for profit maximization and increased revenue, internationalization is necessary for the Hotel.
There would be significant growth opportunities for the company moving forward in the international sector. Internationalization shows the strategic move of the Hotel in the long run. When a product or service is launched for the first time, it goes through a stage of growth and maturation after which it stays steady at a saturated state or even decline. Now if Reardon was to stay in its current saturated state, then there could be high chances that the company would not grow more, and could even fall into decline stages.