1. What is Hilton's core business model? What is the definition of a customer in a franchising model? With close to 3000 properties in 91 countries, Hilton is among the top most brands in the hospitality sector. Following are the elements of their core business: Hilton works aggressively to gain competitive advantage over other competing hotels so as to retain its global image and reputation and be the first choice of the people traveling around the world for business or leisure. After the takeover of Hilton by Blackstone group, the main intention of the group is to invest in Hilton and other brands from around the world which will help them to grow the business for the benefit of stakeholders and eventually become a “premier in global hospitality business.” Hilton believes in providing experience better than the last time the guest visited them, by taking care of guests’ preferences and what the guest would be expecting out of them Hilton believes that wherever the guest travels around the world the services provided should be consistent. They work on minimizing the difference in level of services through various training programs for the employees Hilton defines itself as a brand management company, whose main aim is to take excellent care of their guests. In a franchising model, the primary benefit of the franchisors is the ability to use other people's money to expand the brand more rapidly than they could either on their own or through investors or lenders. As the property owners are involved in providing service to the travelers, they are the most important stakeholders and also the customers in the franchising model. It is the traveler satisfaction they provide that brings revenue and adds value to the Hilton Brand. 2. Does the combination of OnQ and CRM represent a VRIN resource for Hilton? Why/why not? With the OnQ becoming the part of the Hilton’s nervous system, the unifying factor that maintained the Hilton brand name and helped retain customers was their