Expansion, Network Management Strategy. Zero Cost

Considering the enterprise general and long term, business strategy deals with many major issues like enterprise survival and development. Generally speaking, it is very important that if an enterprise can survive the environment in which it operates or if an enterprise can respond to the changes from the market needs (include some latent needs) and these decide the competitive advantage against competitors, and the future development. In the 90's there were many changes emerging in the environment in which enterprise operate. In a way, this saying sums it up well: "Change is becoming something which never changes," and such changes occurred mainly in those fields like internationalized economy, globalization market, rapidly developing techniques, improved competitive methods and some deep changes in culture, systems and markets. Such changes are now becoming more rapid. These changed the business strategy from aiming at suiting the competitive environment to aiming at key priorities according to future changes.The management of business strategy thus becomes more dynamic and systematic. And it becomes more urgent to initiate newer and more efficient methods to control and evaluate the overall process of planning, implementing, dominating and assessing.In the present development situation of tourism and hospitality, we can systematically analyze it, and reach this conclusion: the development of internationalized tourism is becoming more rapid. The world focuses on the topic of continuous development. All nations are paying more attention to strategy and it is becoming more systematic and is involving more initiative. Especially after joining the WTO, the Chinese tourism industry has to face ruthless competition from the international companies.In the above concerned background, how can a hotel survive and develop on the original basis? Specifically, how can the Guanfang Group, who mainly depends on architecture, combine its competitive advantage and the brand priority of the Lijiang Guanfang Hotel, and then with the development of its sub-companies, ensure its own development? Such important issues are thoroughly discussed in this paper.Based on the theory of "Industrial Analysis" and "Key Ability," We can establish an investment passage for other companies or individuals, coordinating the Guanfang Group's competitive advantage - architecture - to enlarge the industry's field. At last, we can fulfill the dream of "the development of sub-companies leading to the development of the whole group". It is the strategy of, we say, "Zero Cost Magnify." At the same time, we can also establish a multi-company strategic alliance and adjust the structure of the industry, and then get the result of net marketing and net operations. As to the management way, we can operate the method of "Nanny Service" (or "Housekeeper's Service") which give our guests a thorough routine of service from breakfast, dinner, housekeeping and computer. As to marketing and brand establishing, we try to build the concept of "Green Hotel" in guests' minds, so that they're not just out sightseeing but actually being involved in nature. In addition, because we can get a large sum of funds from the operation and collection of down payments for fractional (ownership) interests, we also can put these funds in money (financial) markets, avoiding the loss of cash. This is truly an efficient capital operational and management method.