Looking back on the disastrous vacation of an American couple in Indonesia, this case shows how a globally branded North American hotel chain disregarded the basic tenets of maintaining their global brand promise, ignored generally accepted customer service standards, failed to instigate delivery failure recovery, and leveraged firm-specific capabilities to maximize shareholder wealth. The reaction of the local manager at the Indonesian hotel and adaptation of the value proposition are told from the perspective of the vacationing couple that experienced the diluted brand firsthand.
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