Market Entry into India Essay

2535 Words11 Pages

The global hotel industry is currently thriving with business, encouraging new players to enter the market and compete for profits. To be successful, firms must look to expand into new markets to gain a greater share of wallet by leveraging core competencies to increase competitiveness. In 2007, it was evident that the global hotel industry had become highly concentrated in that “about 15 percent of the world’s hotel rooms [were] concentrated in the hands of 20 brands” (Papiryan). Research also indicates that the luxury hotel segment was experiencing a significant amount of growth in 2007 through the increase in hotel capacity and the introduction of new brands into the hotel market. To differentiate offerings, hotel
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After selecting the precise market location, we will develop a business level strategy that will neutralize threats and take advantage of opportunities. The details of the hotel will then be identified based on the business level strategy. In discussing the specific hotel elements, we will address the name of the hotel, the target market, and the main features. We will also concentrate on the internal strengths and weaknesses of the new hotel, including specific resources used and characteristics that may be a hindrance in achieving competitiveness.


Our project is based on the hotel industry, which is divided into eight strategic groups in India. These contain ‘five-star deluxe’, ‘five-star’, ‘four-star’, ‘three-star’, ‘two-star’, ‘one-star’, ‘heritage’ and ‘to be classified’ (Appendix Table 1). The major competition is in the ‘two-star’ and ‘three-star’ hotel market. This is one of the reasons why we are looking to position ourselves in the ‘five-star’ and ‘five-star deluxe’ market. Our competition is comprised of hotel chains such as Indian Hotels Company Limited (The Taj Group), EIH Limited (The Oberoi Group), ITC Hotels Limited (The ITC Welcome Group) and public sector chains including Indian Tourism Development Corporation (ITDC) and Hotel Corporation of India (HCI) (A Report on Indian Tourism and Hotel Industry). Privately owned hotel chains pose the greatest

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