Ministry of higher and secondary special education of the republic of uzbekistan bukhara state university

INTRODUCTION
In Today’s Highly Competitive Business Due to the ever increasing competition, almost all organizations are now finding it hard to compete on price alone rather they are developing other strategies in order to survive the fierce competition. (Cook, 2008) states that most service sector organizations are depending on supreme quality customer care strategies in order to outperform their competitors. According to Gal breath and Rogers (1999) almost 98% of dissatisfied guests opt for another competitor without going through the complaint procedure. On the other hand, (Bove and Johnson,2000) stated that fully satisfied guests are six times more likely to remain loyal to the hotel rooms and brand comparing to only just satisfied customers. Moreover, they pointed that a 5 % fall in customer defection can increase the overall profit by 30 to 85%. The of every hotel is to attract and retain the customers to maximize its revenues. Therefore, the fundamental responsibility lies on the management to design and develop the strategies that will help the organization to gain the competitive edge over its rivals (Dewitt and Meyer, 2004).The hotel ability to the excellent customer service to its customers is not only essential to attract new customers but it also plays a very important role in retaining existing customers as it is said by Drucker and Levitt,1992 that it would cost a business twice as much to acquire new customers than to retain the existing customers. There have been a lot of debates going on what strategies and tools hotels can implement in order to improve the provision of services to its customers and it has been the central point in setting strategic objectives and mission statements in today’s rising companies (Mintzberg, H. et al. 1998). There are a key number of strategic management literatures available which provides a range of competitive and non-competitive strategic and operational theories and models to enable hotels to achieve competitive edge over their rivals. These forces are: the threat of substitutes, the bargaining power of buyers, rivalry among the competitors and the entry of new competitors. Porter (1985) Further presented a diverse range of generic strategies which he suggested will help an organization to gain and sustain a competitive edge over competitors. These generic strategies are: cost leadership, differentiation and focus strategies. Cost leadership strategy enables a hotel to produce high quality service at significantly lower cost in the tourism industry. The third generic strategy is focus which facilitates, services to a particular segment of the market where there is least amount of competition. Porter (1985) further highlighted in his work that, “The goal of competitive strategy for a business unit in an industry is to find a position in the industry where the hotel can best defend itself against these competitive forces or can influence them in its favor…The key strategy is to delve below the surface. (Porter, 1998). Therefore, an organization focusing in line with differentiation can effectively provide quality service to its customers.