Analysis of Hospitality Industry (indian Hotels Company Limited)
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STM Assignment Workbook
Faculty: Prof. Anshuman Tripathy
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Contents
1 Executive Summary 5
2 Industry Overview 6
2.1 Nature and Size of the Industry 6
2.2 Key Growth drivers for the Industry 8
2.3 Identification of Critical Success Factors (CSF) 9
2.4 Industry Benchmarks 10
2.5 PESTEL Analysis 15
2.6 Porter’s Five Forces Analysis 18
2.7 Strategic Group Mapping 20
2.8 Competitive Landscape 21
2.9 Market Segmentation 22
2.10 Buying Criteria Analysis of the Industry 23
2.11 Key trends and future developments 24
3 Company Overview 26
3.1 Company background 26
3.2 Timeline with key milestones and their strategic impact 26
3.3 Vision, Mission, Goals, and Strategic Themes 27
3.4 Key Product and Service Portfolio 27
3.5 Core Competencies of the firm 28
3.6 Business Model of the organization 29
3.7 3rd Generation Balanced Scorecard (Amalgamation of 1st Generation BSC and Activity System Map) 34
3.7.1 DESTINATION STATEMENT 34
3.7.2 FINANCIAL PERSPECTIVE 35
3.7.3 CUSTOMER PERSPECTIVE 35
3.7.4 INTERNAL PROCESSES 36
3.7.5 LEARNING AND GROWTH 36
3.8 SWOT Analysis 37
3.9 Competitor Analysis (identify competitors) 38
3.9.1 Based on Critical Success factors 38
3.9.2 Based on Financial indicators 39
4 Future Growth Strategy for the organization 40
4.1 Portfolio Analysis 40
4.1.1 Based on BCG Matrix 40
4.2 Company’s Strategic Roadmap for future 42
4.3 Product Market Investment Strategy 44
4.4 Re-imagining the Organization with the transformed business model or Use-case based on SMAC and IOE 44
Executive Summary
The Indian Hotels Company (IHCL) and its subsidiaries, collectively known as Taj Group, is one of Asia's largest and finest groups of hotels. Incorporated by the founder of the Tata group, Jamsetji Tata, the company opened its first property, the Taj Mahal Palace, in Bombay in 1903. The Taj, a symbol of Indian hospitality, completed its centenary year in 2003. It operates in the hospitality industry. The Indian hospitality industry is in its growth stage with direct contribution to GDP in 2016 is estimated to be US$47 billion. It is expected to grow at 7.2% per annum during 2015-25. Its contribution may increase to US$160.2 billion by 2026. The total contribution to Indian GDP is forecasted to increase by 4.97 per cent per annum. In this report we analysed the core competence, strengths and weaknesses of IHC Ltd in the hospitality industry. We also analysed the macro environment condition in India through PESTEL analysis. Through SWOT analysis we found that some of the key strengths of IHC Ltd. are innovative practices like E-CRM, customer service, etc. As per the PESTEL analysis, we found that the business environment in India is conducive for hospitality industry with an annual growth rate of 8-10% and Government is also framing policies like E-Tourism visa service to cater to the growth. Analysing the key indicators like political stability in the region and global growth of hospitality industry we found that the overall growth of tourism in developing world shows positive sign because of flow of FDI to these countries and great market growth potential. Because of future growth prospective and conducive business environment, IHC is facing huge competition from both domestic and foreign players. IHC has been able to maintain its position as market leader because of its brand value and customer service. In order to gain competitive advantage, the organisation should work and develop the expertise on the critical success factors like brand recognition, price, customer service and global presence. |
Industry Overview
Nature and Size of the Industry
History and Evolution of the industry | The concept of hotels in India was brought in by the British for their own use or for foreign visitors. Except for the Taj Mahal Hotel in Mumbai, almost all hotels initially were owned and operated by Britishers and the Swiss. Western-style residential hotels are comparatively of recent origin in India. These hotels were first started about 160 years ago mainly for princes and aristocrats and high dignitaries. The twentieth century can be called the turning point in the history of the hotel industry in India. It was during this period many big business owners entered into the field. In 1903, JRD Tata started the Indian Hotels Company Ltd and the first hotel of international standard Taj Mahal Hotel, Mumbai was established. In 1966, India Tourism and Development Corporation of India (ITDC) was established to look after hotel development in India. |
Key Consumers of this industry and their changing needs | Key consumers of this industry can be divided into Solo travellers, couples, families and business travellers. Growing demand in the hospitality industry is seen in the case of growth of e-commerce and digital marketing. Customers tend to find it more suitable now-a-days to search and book hotels online. They are demanding more online presence of the hotels through websites and mobile apps. Also, increase of loyalty programs in premium hotels is also a big demand of the consumers. More than lower rates travellers’ today search for more innovative package deals. |
Stage in the Industry Life cycle |
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Total Available Market Size (National and Global) |
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