TABLE OF CONTENTS
Introduction 2
Macro-Environmental Analysis 3
Industry Analysis 3
SWOT Analysis 4
Conclusion 5
References 6
INTRODUCTION
The Indian Hotel Company Limited (IHCL) is an Indian based Hospitality Company which provides accommodation services in four different market segments globally. The company has its headquarters in Mumbai, India. It is listed in Bombay Stock Exchange (BSE).
Company strategies
The growth strategy of the company is to operate 20,000 rooms from the current 14,000, in 25 major destinations around the world. They target on a group turnover of US$ 2 billion, from which 33% would be from international operations by 2012.
Company operations
The company portfolio comprises of 4 brands; The
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If there is high rivalry the profitability of the company can be affected. The hotel products are highly perishable, which creates an urge to cut prices and sell the inventory below its profitable rate to cover the fixed cost.
Internal environment of the company:
The internal environment of the company can be divided into two types they are Tangible and Intangible resources.
Tangible resources include assets which can be seen and felt, like physical properties, Yachts, Flights, and other fixed assets which spread around 5 continents.
The intangible resources are the one which cannot be seen or felt but play a major role in the business like the brand value, Leadership style, Human resource etc.
IHCL being the subsidiary company of Tata Sons Limited, which has a company background since 1868. IHCL itself operates in hospitality sector in India for last 108 years, and have the market share of 22% in India shows the brand value of the company. In terms of leadership style the company has a style of innovations and pioneer of Luxury property and wild life lodges (Joint venture with CC Africa) and budget hotel chains (Ginger Hotels), Spa resorts and properties in India.
SWOT
* Intangible Resources – Family commitment, networks, organizational culture, reputation, intellectual property rights, trademarks, copyrights
Tangible resources that have physical substance, are used in the operations of the business, and are not intended for sale to customers.
InterContinental Hotel Group is a hotel company with over 350,000 employees working in 100 countries. It has over 5,000 hotels globally. One of IHG’s brand is the Holiday Inn, the Holiday Inn’s international headquarters are in Americas, Europe and Australasia. In London, UK, there are 72 hotels with the Holiday Inn or Holiday express brand. The InterContinental Hotel Groups structures their business into sections depending on what the hotel’s aims are. For example, the Holiday Inn Resort is abroad with outdoor swimming pools, it’s a very holiday place when you can spend 1-2 weeks there where the Holiday Inn is a place to stay over for one night or even the weekend. These two hotels have the same brand but different aims.
Additionally Kraft Foods opens their plant facilities to other company’s allowing for the “develop of ingredients and applications for their products” (Kraft Foods, 2014).
This was mainly due to the large number of diversified hotels in the chain across the globe
Premier Inn is the name of a British Budget Hotel chain running the largest hotel brand in the United Kingdom. Hotel chain is running 690 hotels with more than 50,000 rooms built in different countries. The hotel chain listed in London Stock Exchange in 1987 with brand name of “Whitebread” and started trading of its services under the chain of “Travel Inn” in order to compete with travellodges. Business operation of Premier Inn is not only limited to city centers but also covering suburbs and airports locations Hotel chain is following the expansion and acquisition policies since the time of its inception and acquired hotel chain named as Premier Lodge in 2004 (Whitebread, 2013). This acquisition increased the number of hotels and the profit as well. Premier Lodge was running with 141 hotels and contributed 70% of the total profit of “Whitebread”. Target market of the hotel chain is not only the leisure visitors and families but also the world business class seeking countless business and travel facilities. Award winning business services, comfortable sleep on king size beds and delicious breakfast are further adding value for the hotel chain while elevating the status of Premier Inn to be the first choice of families and business class to take their stay decisions at Premier Inn. The ambitious and high paced profitable progress of the Hotel chain is opening new ways of expansion and development. The hotel chain is therefore, planning to increase around 45% i.e. 75,000 rooms
Intercontinental Hotels Group – It is British company and the most profitable among the four industry leaders. It owns, manages, leases and franchises approximately 3,741 hotels in approximately 100 countries as of 2006. It ranks number one in gross margins (54%), operating margins (24.7%) and earnings per share ($2.10) even if it’s smallest in the strategic group. It appears to be the cost leader among the big four companies in the industry.
hotel company, its initial exponential growth followed by a rapid decline in 1999 due to various
Growing at an annual rate of approximately 2-3%, the industry is divided into four tiers, consisting of budget/economy, mid-scale, first-class and luxury. Though there are countless hotels around the globe, the major players in the industry are the 10-12 parent companies that operate a chain of hotels, often with brands that are spread across the four tiers. In addition to international players, each tier also contains an abundance of smaller hotels that competes in its respective tier .
As mentioned earlier in Chapter 1, China Lodging Group is a multi-brand hotel group which as per now manages seven hotels with each having a specific target of customers. These Hotels are Hi Inn, Han Ting Hotel, Elan Hotel, Star-way Hotel, JI Hotel, Manxin Hotel, and Joya Hotel. Its mission statement is to create great brands of hotels that guests love. The group predicts to be owning over a quarter of the hotel market share in the next five years to come. The two major objectives that the company has set for the next five years to ensure that they attain their goal is to build one large five-star hotel in the heart of China Capital’s serene outskirts and to ensure that they hire enough
The report focused particularly on the following hotel chain Hilton Worldwide. Hilton legacy began in 1925, it was founded by Conrad N. Hilton. The first hotel was built in Texas and had 40 rooms; today Hilton is one of the most respected brands in the world. The company owns, manages or franchises a hotel group of some of the most famous and highly regarded hospitality brands worldwide, including Hilton, Conrad Hotels & Resorts, Double Tree by Hilton, Embassy Suites Hotels, Hampton, Hilton Grant Vacations, Homewood Suites by Hilton and the Waldorf Astoria Hotels & Resorts. With 4000 hotels and 650,000 rooms in 90 countries Hilton Worldwide is one of the world’s leading hotel. (Hilton Worldwide, 2013)
Resources are the main means of bringing value to the firm because and help in gaining competitive advantage. It is noticed that IHG makes use of resources for increasing the value of their hotel in the eyes of customers. They focus on making use of similar resources that are used by their competing firms so that resources can be
Firstly, let us take a look at tangible resources. Under this category, we have financial resources, organizational resources, physical resources and technological resources.
The internal environment consists of the inherent competencies of the firm and the structure of its internal systems and processes. It is imperative for the organization to conduct an internal analysis
Be the first company to create and penetrate into high-end segment. Provide a unique of hotel & resort and spa that meets high-end customers need. Well-trained for staffs with five – star standard service and measure by efficiency and productivities. Launching new brand to meet a middle class, Angsana, on time and providing to market more product portfolio like Gallery and The Museum Shop. Smart in distribution products and services thru GDS. Success in building CSR and environmental conservation, Success in using local culture and heritage that will be served and satisfied their customer, these culture and heritage will be differentiated in each county. Bring benefits to local famer and traders by purchasing fresh product and traditional art, handicrafts. Information Technological System is available with latest updating about BTHR program. it is very convenient for customers.