Malaysian hotel industry has gained an increasing amount of attention as this industry is significant to the nations economic growth. However, in the current hyper-competitive business environment, it is getting more challenging for hoteliers to survive and compete successfully. The understanding of cost leadership strategy, competitor orientation and process innovation will create best strategic fit and strategic direction as well as has potential to curb the challenges faced by the hoteliers in the current economic situation. Explain the importance of cost leadership strategy practiced by the Malaysian hotel industries as the main tool of competition and as the need of Malaysian hotel industry for success in future strategically. (60marks) Question requirement: 1. To review the challenges of Malaysian hotel industry and its competitiveness. 2. Analyse its competitor orientation, process innovation so to create best strategic fit and direction in order to overcome the challenges faced. 3. Explain cost leadership strategy adopted by the industry and the need of the industry to innovate for future success strategically