The name Shangri-La was inspired by James Hilton's legendary novel Lost Horizon. A tranquil haven in the mountains of Tibet, Shangri-La casts a spell on all who resided there. Today, Shangri-La stands as a synonym for paradise. And even though mythical in origin, the name perfectly encapsulates the genuine serenity and service for which Shangri-La Hotels and Resorts have come to be recognized.
Key Dates: 1971 : Robert Kuok extends interests into property and hotel development, building his first hotel in Singapore. 1981 : Kuok establishes a second hotel in Kowloon, launching the Shangri-La brand, and entering direct hotel management. 1982 : The company incorporates as Shangri-La Hotels & Resorts.…show more content… Company Strategy
Shangri-La Hotel is adopting the generic competitive strategy of focused differentiation strategy targeting narrow market segment or market niche.
The company’s strategy of investing in relatively unknown areas had placed it in a strong position to profit.
The risks associated with a differentiation strategy include imitation by competitors and changes in customer tastes.
2. Actual Choice of Locations
Shangri-La takes that the actual physical location chosen for a hotel would be extremely important to the success of its operations. Shangri-La saw potential in developing its position in lesser-known and smaller cities. Advantage:
In this way, the company’s properties became first – and often only – luxury hotel in a given area. Many of these cities nonetheless had populations of five million or more, and represented important industrial growth areas.
Disadvantage: 1. Aggressive marketing programs should be considered and these will incur an additional cost. 2. Shangri-La has to make a careful assessment of costs. The ideal location would be one where costs are minimized.
3. Competitive Pressures
The big threat on expansion of other hotels are started to pop up especially western hotels.
Since competition is concerned, Shangri-La will improve its product and quality service