strategy annisa
TRANSCRIPT
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Tune Hotel,
HanoorAnnisa Amir
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Tune Hotel, BaliTune Hotel, Bali Tunes hotel Bali, open in Legian
and Kuta Beach.
Tunes hotel star at room rate Rp.
98000 ($ 10.5)
The budget hotel follows closely
AirAsia's model by offering
rooms for accommodation at
attractive prices.
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Balance Score CardBalance Score Card Vision
To be hotel chain that offer highquality rooms with low price.
( 5 Star Sleeping experience with1 Star price )
Mission
To provide hotel serviceresulting long term satisfactionof our stakeholders.
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Tune Hotel ProductTune Hotel Product Limited Service
Low Price, Low Service
Omitting conventional full Service
Additional amenities and services liketoiletries, air-conditioning, TV and in-room Wifi are offered as pay as you useextras.
Hotel space is also available for rent to
advertisers (indoors, outdoors as well aswhole floors) also on room walls, onroom keys, in hallways and in the lobby.
Major Brand that have advertisement =
Nestle, CIMB Bank, King Koil
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Unit Selling PointUnit Selling Point Tune Hotel design its hotels, rooms and business for
guests who are more likely to spend most of their timeout and about during the day time.
Its five unique selling propositions are:
5-star beds
Heated, high-pressure Power Showers
Central and strategic locations
Clean environment
Safe and secure environment with 24-hour securityguards on duty and extensive CCTV coverage
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SWOTSWOT Strength
Low price in the market.
High market in the Air Asia
Customer.
Weakness
Low Quality Workers.
Opportunity
High Tourism market in Bali.
There is a lack of hotel that are
cheap and good quality rooms.
Threats
Indonesia Economic and
Political Crisis
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PESTELPESTEL Political =
Instability fromgovernment
Uncertainty ofgovernment
changing Developing Taxation
Security Issues
Risk of Political Instability, 2010 Country Rating1
Australia 9.24
Singapore 8.78
New Zealand 8.76
Germany 8.49
France 8.46
United States 8.16
H on g K ong S AR 7. 49
Uni te d Kin gdom 7. 41
China 7.12
India 7.08
Malaysia 6.90
Taiwan 6.42
Korea 5.72
Japan 5.40
Indonesia 4.94
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EconomicEconomic Instable Economic Policy
Global Financial Crisis
Increasing in hotel competitive in the hotel industry
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PASTEL, contPASTEL, cont Social
Low minimum income for labor
Low Level of Education
The high gap between low and medium to highincome.
High Consumerism
Environment
Natural Disaster
National Security
Technology
Challenges of Technology in Indonesia.
Law and Regulation
UMR ( Minimum wages by regulations )
800.000,0 ( $ 79 )
Instable Regulations.
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Porters 5 Forces ModelPorters 5 Forces Model Threats of new Entrants
Capital Requirement, the startup cost for making investment
are better compare to other
country.
Experience, Tune Hotel recruit
Indonesian employee and
shareholder.
Cost Competitive, Tunes hotel
are the cheapest hotel in the
area.
Threat of Substitute
There are number of low pricehotel in this area.
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Porters, contPorters, cont The bargaining power of buyers
Low degree of dependency
High buyer information
availability
Unique of our hotel product.
The Bargaining Power suppliers
High variations of distributionchannels
High substitutes but quality
questionable.
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Porters Generic StrategiesPorters Generic Strategies Tunes Hotel is Cost Leadership for Hospitality, not
just one specific market can be family, business etc
They have the lowest price in the hotel industry in
Bali, but they have profit from cost effective and
efficiency.
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COMMENTSCOMMENTS Good background
Identification of cost leadership strategy
The PEST should have come first giving more structure
Think of the S and its effect on E and the environment
and then link to business implications
SWOT identified and utlised, develop criticality
Use of P 5 Forces could have been more critical
Fair attempt.
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Reference ListReference List harp, Byron; Dawes, John (1996), "Is Differentiation Optional? A Critique of Porter's Generic
Strategy Typology," in Management, Marketing and the Competitive Process, Peter Earl, Ed.London: Edward Elgar.^ Speed, Richard J. (1989), "Oh Mr Porter! A Re-Appraisal ofCompetitive Strategy," Marketing Intelligence and Planning, 7 (5/6), 8-11.^ Yetton, Philip,Jane Craig, Jeremy Davis, and Fred Hilmer (1992), "Are Diamonds a Country's Best Friend?
A Critique of Porter's Theory of National Competition as Applied to Canada, New Zealandand Australia," Australian Journal of Management, 17 (No. 1, June), 89-120. Allio, RobertJ. (1990), "Flaws in Porter's Competitive Diamond?," Planning Review, 18 (No. 5,September/October), 28-32.
"Indonesia: Country Brief". Indonesia:Key Development Data & Statistics. The World Bank. September2006.^ "Historical Exchange Rates". OANDA. 7 January 2010. Retrieved 28 April 2010.
Indonesian Central Statistics Bureau (1 September 2006). "Tingkat Kemiskinan di IndonesiaTahun 20052006" (in Indonesian) (PDF). Press release. Archived from the original onSeptember 27, 2006. Retrieved 26 September 2006.
"Indonesia". InterKnowledge Corp.. Retrieved 6 October 2006.
http://www.tunehotels.com/, ( 2 October 2010)