Industry Environment Business Strategy Gap Analysis

6407 Words Jun 15th, 2012 26 Pages
Table of Contents
Introduction: 2

Macro-Environment Business Strategy Gap Analysis 8

Industry Environment Business Strategy Gap Analysis 9

Strategy-Capability Gap 9

1. Macro-Environment Analysis 16

2. Industry Analysis 22

2.1 Threat of New Entrants 22

2.2 Bargaining Power of Suppliers 24

2.3 Bargaining Power of Buyers/Customers 25

2.4 Power of Substitutes 26

2.5 Intensity of Industry Rivalry 27

3. Internal Analysis Appendix 29

Introduction:

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Taj Hotels, Resorts and Palaces operates under the parent company Indian Hotels Corporation Limited. They have been operating for 107 years, and were positioned as India’s largest hotel chain, with a range of properties for
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Furthermore the global economic environment presents that U.S. economy has decelerated which will ultimately impact the share market value of the organizations properties with in this country.

Global market managers are now in the advantageous position to invest in a very dynamic manner, acknowledging these rising economies within Asia, Africa and South America which have opened new gateways for future investment within these growing economies. The reasoning behind these growing economies is due to higher education levels within each country; higher education levels have created a wiser and more aware market.

Since 2006, a growth rate of 4.6 per cent in Latin America, 6 per cent in Africa and in the Commonwealth of Independent States (CIS); West Asia, growth will probably remain at around 5 per cent even if the volume of oil production cannot keep growing at the same rate as in previous years. Furthermore Latin America as a whole has succeeded in transmitting external stimulus into the domestic economy without reviving inflationary tendencies. Hence why the Taj group should incorporate these potential markets into its medium to long term corporate strategy.

Market studies conducted by Taj found that the majority of the organizations potential target market belongs to Gen-X and Gen-Y. This market segment has shown to have more product knowledge than ever before, where service and product