Armani Hotel Dubai

7484 Words Feb 19th, 2012 30 Pages
BUSI 2208 K
Introduction to Marketing
Winter 2011

Written By
Zain Mahmood
Kristina Vald
Ravneet Jammu
Robert Kiwanuka
Paul Gremmen

Dr. Irfan Butt
March 31, 2011

Table of Contents
Title Page
Executive Summay……………………….……..………...............................................................2
Problem Statement………………………………………………………..……………………….2
External Analysis………………………..…………………………………………………...……3
Internal Analysis…………………..………………………………………………………...…….6
Segmentation Analysis…………………………………………………………………………….9
Alternatives ………...…………………………………………………………………………....11
Recommended Alternative
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They are now focusing on how the short term uncertainty will impact the near-term investment climate as well as tourist numbers in key markets across the region (Irhal, 2011).
Economic
Opportunity
Tourism is a very profitable sector in Las Vegas and New York. There is an Opportunity to make higher profits in Las Vegas and New York where tourists spend $41.8 billion and $31.0 billion respectively in 2009. In total USA hotel industry 44% of the market is in New York and 34% of the market of hotel industry in found in Las Vegas (NYC stats, 2009). Although the market size of the Hotel industry in Las Vegas is 10% smaller than New York but it generates $10.8 billion more than New York. Despite the global financial crisis sapping demand for luxury goods in 2009, the Armani group has showed "impressive resilience" to the downturn. Consolidated Revenues of 2010 are 1,620.3 million Euros which is 1.5% better than previous year and it is increasing at a constant rate by 2.4% each year (Armani press release, 2009).
Threat
Recent threat, not only to the hotel industry but to the whole world was the recent economic crises where people including CEOs and board of directors of companies were left jobless. The potential CEOs who could be future customer for the Armani products and brand loyal personalities went bankrupt. With the passage of time market has recovered