gropup presentation assessment

8/3/2019 Gropup Presentation Assessment

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Hotel Industry AnalysisBy

Xiaoling Huang

Ying Wang

Gong Chen

Dung DinhBatu Cem Ekiz

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Content Prologue Incumbents

SWOT

PESTEL

Porters 5 Forces

GAP

Investment Strategy Marketing Strategy

Epilogue 2


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Chain Scale Segments

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(Source: Smith Travel Research)


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Chain Scale Segments

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ECONOMY OR

MIDSCALE ?

The 2008 Study shows Premier Inn ahead of otherbudget hotel chains including Travelodge, Etap,Comfort Inn and Formule 1. However, Premier Innalso scored above Best Western, Express by Holiday

Inn, Campanile, Quality, Ibis and Park Inn who areall in Mid-Scale segment for the 2008 study.

(Source: Premier Inn website)


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Incumbents

Luxury Red Carnation

Upper upscale Marriott

Upscale Hand Picked Hotels

Midscale with F/B Premier Inn

Midscale without F/B Choice/Comfort

economy EMPTY 6


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PESTEL Analysis

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PESTEL Analysis

Generally, it is a stable environment which affects little

the ability to generate revenue.

Low degree of internvention from governments compared

to other industries such as education and medical.

1- Political

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PESTEL Analysis

Recent recession: Made small business-oriented hotel

chain go into liquidation.

Tax change: UK vat rate increased to 20%recently to cope

with high public debt.

Exchange rate: An increasing rate of pairs eur/usd andeur/gbp.

2- Economic

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PESTEL Analysis

Trend: Increase in number of tourists from china and india

in recent years.

Hotel guests seek more value for their money Addedvalue differentiation strategy comes into play.

Social problem:

- Rebel in the uk last summer.

- Rebellions in arab world

- Crime rates in specific sites.

3- Socio-cultural

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PESTEL Analysis

Premier inn implemented the installation of mobile

booking room reservation systems.

Access to technology is expensive and required enormous

amount of capital.

Challenge for the new company find a distinguishingmarketing strategy.

4- Technological

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PESTEL Analysis

Weather and climate changes.

Global warnming and epidemics.

Hotel guests are more conscious of environmental problems.

Environmental protection will become a legal obligations for hotel.

Those who act first will acquire comparative advantage.

5- Environmental

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PESTEL Analysis

Laws and regulation applied for hotels:

- Employment law

- Health and safety

- Competition law

Recently, the uk government set to abandon support for

hotel star-rating system consumerreviews important.

6- Legal

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Porters 5 Forces1-Competitive Rivalry

14(Source: The Five Competitive Forces that Shape Strategy)


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Porters 5 Forces3-Threat of Substitutes

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Porters 5 Forces

Powerful Union

Fewand Large VolumeBuyers/Suppliers

Dontdepend onindustry

fortheirrevenues

Lowswitchingcosts

4-Bargaining Power of Suppliers & Buyers

-Labour Suppliers

-Commodity Suppliers

-Low-income Households-Students

NO NEGOTIATING POWER

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GAP, ANALYSES, BARRIERS

THAT SHAPE STRATEGIES

ECONOMY SEGMENT OF

CHAIN

SCALE

GAP

ANALYSES OF PESTEL ANALYSES

CUMULATIVE EXPERIENCE

BARRIERS

UNEQUALITY IN MARKETING

SUPPLY-SIDE ECONOMIES OF

SCALE

DEMAND-SIDE BENEFITS OF

SCALE

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Investment Strategy

1- Invest globally & Stable countries

2- Franchising

3- Co-operation with inter-rail

4- Problem19


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Investment Strategy1- Invest globally &Stable countries

Seasonal Industry

Hedging the risk- switching operation

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Investment Strategy

2- Franchising

Acquire capital inflows

Good model of growth followed by incumbents experience

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Investment Strategy3- Inter-rail destinations

Main student destination

Education Vacation

Cheap transportation

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Investment Strategy4- Problem

Capital intensive

Not enough credibility for franchise

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Marketing strategy

1- Designing Website

2- Promotion

3- University Aassociation Pprogram

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Marketing strategy

1- Designing Website

Booking online

Website optimization

Robust search engines

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Marketing strategy

2- Promotion

Ads

Personal selling

Public relations activities

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Marketing strategy

3- University Association Programme

Discount for students

Affiliate programme

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Epilogue

Chain Scale Segments, PESTEL, Porters 5 Forces

Spotted the GAP

Recommended investment and marketing

strategies

Hope this will assist your decision of whether to

enter the industry

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THANKS FOR YOUR PATIENCE

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