Chip Conley And Joie De Vivre Hotel

Joie de Vivre Hospitality differentiates its boutique hotels from other hotels by offering a distinctive and diverse atmosphere for its clientele. The owner, Chip Conley has developed a vogue themed hotel while keeping the room prices low to in order to attract a culturally diverse group of customers. Dressler (2015) defines competitive advantage as any factors that allow a company to differentiate its product or service from those of its competitors to increase market share (p. 60). The company has developed a niche in the hotel market industry in offering an economical stay coupled with a unique and vibrant atmosphere which has allowed Chip Conley to expand his business by purchasing other hotels in California bay area and into Silicon Valley. Joie de Vivre spends approximately $50,000 annually on marketing their product. Joie de Vivre depends on their customer’s word of mouth advertising which has enabled the company to forgo huge advertising fees on marketing their product

Chip Conley’s business structure is based upon a pyramid structure with the front line employees on the bottom and corporate management at the top. Conley stopped his salary and the other members of the management team took a pay decrease and salary freeze; however the front line employees were secure in their jobs knowing they would be paid and receive increases during this time. Conley knew that his business is based on customer service and if the front line employees were concerned for their basic needs then the level of customer service would diminish. So to counter act this potential economic disaster that was happening globally, Conley managed to secure the company by sacrificing his and management’s salary for the future of Joie de Vivre and recognizing the basic needs of his