Market Analysis
SWOT analysis: This is a framework used for summarizing a situation and position of a company (Rao et al. 2008). Swot analysis, an acronym for Strength, weakness, opportunity and threat, will be used to gather the internal and external vulnerabilities affecting the hotel.
Strength:
The hotel brand has an established name in the tourism and travel industry giving it an …show more content…
This gives the hotel an advantage of maximizing its revenue through additional units which it establishes. The hotel also has an advantage of being able to grow its market through acquisitions which increases its footprints.
Threats:
The hotel considers government regulations as a threat to its operations, for instance since the government allows its employees to be unionized which weighs down its cost structures, in terms of the bargaining power.
PESTLE analysis This is a framework used for conducting a scan on potential factors that affect the organizations ability to meet its objectives if not managed (Webster & Williams, 2010). It gathers information from the macro environment that affects the strategic operations of the company from the external environment.
Political: The hotel 's operations are influenced by political activities of the country. These include government policies, tariffs and laws governing trade in the country. Higher tariffs levied by the government on travellers and tourists tend to reduce the occupancy …show more content…
This is because the economy of the surrounding areas directly affects the revenue streams of the company, which also tends to strain its budget. Economy also affects the travellers due to economic constraints reducing their income. The company is mainly affected by higher inflation rates that directly affect the pricing strategy hence influencing the decisions of travellers.
Social:
Social attributes continue to influence the operations of the hotel chain due to socio-cultural elements and shifts in consumer attitudes which weigh down on the occupancy rates of the hotel.
Technological:
The hotel has potential due to its vast use of information technology to streamline its operations. The company uses its IS platforms and technological based platforms to connect multinationals, hence reducing travel and at the same time attracting corporate firms to using its resources.
Legal: Laws and regulations affect the operations of the hotel in that the laws governing the country tend to tighten some areas in the hotel industry. Legal elements discourage the use of tobacco and cigarettes in the hotel, while liquor is also discouraged hence driving away