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shangri la hotel marketing strategy

Category: Business Paper Type: Homework Reference: APA Words: 1500

Assignment on Shangri-la group By: ABC Date Introduction The focus of this report is on the sustainability of Shangri-La group of hotels. For analyzing, formation and implementation it is the important element of the organizations for sustaining their businesses. Efficient strategies are very helpful for the sustainability of the businesses. Shangri-La group of hotels basically operates in the different sectors like resorts, hotels and traders hotels with the luxurious facilities. The management of this company try to maintain all the operations of the company like qualities of the product with the good functions, and human resources. This company facilitates the customers for the accommodation, conferences and servants or recreations. CITATION CWL09 \l 1033 (hILL & jONES, 2009)The purpose of this strategy is to understand the needs of the customers for the efficiency of the hospitality operations. This proposed strategy is very helpful for the satisfaction of the different events of the organizations, conferences and accommodations. This strategy is also helping to meet the future goals or the standards of the world class hotels. CITATION Lor07 \l 1033 (Lincoln, 2007)In 2010 there were the strong sale of the company; this shows the strong financial position of the company. For the year of 2014 the annual sales report recorded as $ 21112.00 million as compared to the other years. This annual report shows the strong annual achievements in sales. CITATION Hab08 \l 1033 (Haberberg & Rieple, 2008)Marriot international, ITC group in India, Hilton are basically competitors of the company. It is also important to understand the impact of the competitors on the different operations and functions of the business. CITATION Pul \l 1033 (Pulfold & Alan)Analysis Porter’s five forces Competitive analysis of the company shows that that there are the different factors or the forces that are affecting the Shangri-La group of hotels. These forces also describe the analysis of the different forces for the identification of factors that are creating their impacts on the business of the company. Bargaining power of the buyers, is bargaining power of the suppliers, rivalry, threats of the substitutes and the threats of the new entrants. CITATION Hen11 \l 1033 (Henry, 2011)Bargaining power of suppliers For fulfilling the needs of the customers for maintaining the business operations it is necessary that the company has to understand the suppliers demand. For maintaining the high quality of the products and services company has to require the different resources. The satisfaction of the suppliers is important for influencing Shangri-La hotels products and services. They have the low controlling on the quality of the supplies. As the collaboration or as the partnering the switching cost of the selected suppliers to the alternative suppliers is low. Importance of the input of the suppliers regarding the quality of the goods and services is high. CITATION Smi \l 1033 (Smith, 2003)Bargaining power of the buyers For increasing the satisfaction level of the customers the authorities of the company has to understand the demands and needs of the customers that what they want. For increasing the satisfaction level of the customer’s quality of the products play the important role, the quality of the products influences the bargaining power of the buyers. For increasing the revenue or the profitability of the company customers play the important role. CITATION Che \l 1033 (Cheng, 2013)Threats of new entrants It is the responsibility of the authorities to analyze the market current conditions or the different elements that affect the hotel. the new entrants are always remain the big threat for the business, in the same way new entrant affects the business or the marketing of the Shangri-La hotels. Therefore it is necessary for the authorities of the company to identify the marketing methodology for analyzing the impact of the new entrants on the different business. This company has very low product differentiation and economies of the scale that is the big threat for the company due to which they are suffering the customer crises. With the increasing demands of the hotels or the new entrants threats for company has been increasing. CITATION Eng01 \l 1033 (Engel & James, 2001)threats of substitutes Company does not have the different options of the substitutes, their product line is limited that is the reason that if customers does not like the one thing then they are not able to offer the other substitute of that product. If they have the substitutes, these substitutes are not filling the needs of the customers. That after the use of these substitute customers does not feel satisfy. Therefore for attracting the more customers they have to expand the product line and have to introduce the substitutes of the different products for increasing the satisfaction level of the customers. CITATION ALE13 \l 1033 (COWAN, 2013)Rivalry Rivalries greatly impact the different industries that have the same products, therefore it is necessary Shangri-La hotels have to understand the impacts of the rivalries. These rivalries may be the competitors of the company, therefore for competing the Hilton, ITC and Marriot Company has to improve their performance. For the future development the management has to analyze the different factors that are affecting the company and then make the strategies regarding those situations. CITATION Che \l 1033 (Cheng, 2013)International Business environment As per the VRIO framework Shangri-La group of hotels are the rare, valuable and imitate perception for understanding the importance of brand in the market. For the customers Shangri-La group of hotels provide the standard quality services and hospitality. Achieving the sustainability us the major goal of the Shangri-La hotel management. In 2015 well headed targets are conservation and the environmental achievements. CITATION Hol13 \l 1033 (Tuppen, 2013). Shangri-La hotels or the resorts try to provide the luxurious life in all around the world, without compromising the natural resources. Company ensures that every property respects the local cultures, traditions and restore natural habits. CITATION Hol13 \l 1033 (Tuppen, 2013)2.2 Industry analysis Malaysia is considered among top countries in hotel destination. In 2012, 24.7 million people visited Malaysia. It shows long-term growth in the hospitality industry due to economic growth and good agreements with other countries. Its GDP is increasing and giving chances of growth in industry. CITATION btc12 \l 1033 (, 2012)Macro factors: PEST analysis Political Political factors greatly affect the operations of the Shangri-La hotels operations in the different ways. Each of the country has the different rules and regulations for doing business or the customers or the taxes. For example Malaysia GST is the result of the political trends. In the same way in different countries there are the different political factors that affect the Shangri-La group of hotels .For instances in Thailand political interruptions greatly affect the different business operations of the company. CITATION Fau03 \l 1033 (Faulkner & Campbell, 2003)Economical Due to the inflation company faces some of the problems, already company is going in loss but to the inflation company has to bear the more loss. Other thing is the exchange rates that affect the company, due to the high exchange rates company has to face problems for converting the currencies in other currencies. CITATION Eme091 \l 1033 (Emerson, 2009)This company fully depends on the business community or the tourism that is the reason that tourism strength in some of the special countries influences the economy of that country. The operations of the company and services of Shangri-La group of hotels influence the economic conditions of the countries in which they are working. for example Thailand is great tourism location for the global customers but still there are some of the factors that are impacting the business operations of the company. CITATION BOO15 \l 1033 (KOSITCHOTETHANA, 2015)Social There are the different communities that are affecting the Shangri-La hotels because of the understanding of the community on the hospitality of the Shangri-La hotels or the image of the company bring the more business in this hotel. Beside the social interaction of company also help for attracting the customers for the company business. CITATION Phi03 \l 1033 (Sadler, 2003)Technological Company uses the advance technology for the different operations of the company as well as the different functions of the hotel, technology play the important role for the satisfaction of the customers or for increasing the quality of the goods and services. They use the technology for the booking, and the services or the other hospitality functions. CITATION Phi03 \l 1033 (Sadler, 2003)Environmental The locations of the hotels in the different countries influences the images, the environment of the hotel play the important role for maintaining the quality of the services. The natural or the artificial forces creates some of the issues for the company. For instance, the impact of food at the Thailand is the example of the hotel industry. CITATION Phi03 \l 1033 (Sadler, 2003)3.6 Legal The management of the company understands the legal issues or the relations with the distributors or the suppliers for the operations of the company. Illegal entertainments like the casino, night clubs and prostitutions are illegal in Asia. Therefore they do not have the options of such kind of the activities while their competitors have the option of this. For getting money from these entertainments they have to move American and European countries. Beside this company has needed to practice the sustainability, because there are different rules and regulations in the different countries. CITATION Phi03 \l 1033 (Sadler, 2003)4 Resources and Competencies 4.1 Customers The customers of the company are tourist people or the business communities. These are the great sources of the finance for the company. Main focus of company is to satisfy the customers; therefore they provide the proper quality of the goods and services. Customers of the company like tourists, business communities are the strength of the company, because these are important sources for raising the finance for company. CITATION Car101 \l 1033 (Carpenter, Sanders, Rice, & martin, 2010)4.2 Competitors The competitors of Shangri-La group of hotels are ITC, Marriott, and Hilton; these are the business competitors in different areas especially in Asia. Therefore for competing with the competitors Shangri-La Company has to make some of the special or the unique strategies. CITATION Cap08 \l 1033 (Capon, 2008)4.3 Distributors For increasing the efficiency of the company it is necessary that the management of the company has to create the strong relations with the distributors. This thing help the company for improving the quality of the services. Therefore distributor’s regulations or the agreement is important for the company. Beside this company has to use some of the different ways for the motivations of the distributors, because if distributors feel satisfy then they do work well. CITATION Phi03 \l 1033 (Sadler, 2003)4.4 Suppliers For attracting the customers distribution of the product on the right place and right time is necessary, therefore company has to motive their suppliers. The quality of the services is influenced by the resources that are supplied by the suppliers of the company. With this it is also necessary that the management has to create the strong relations with the suppliers of the company for obtaining the proper resources from the different suppliers. For example refreshment with the unique flavors play the important role for the satisfaction of the customers. CITATION Phi03 \l 1033 (Sadler, 2003)4.5 Finance Major sources of the finance are tourists or the business community; they play the important role for raising the finance for the different operations of the company. Internal business analysis 4.1 Value chain It is the process of identifying primary as well as support activities for adding value in the final product. These value chain activities are used by company for reducing its cost and increasing its competitiveness. Primary activities related with final product directly while secondary activities are used to assist other activities that are called prime. CITATION ifm15 \l 1033 (ifm.eng, 2015)Value chain factors Security operations and hotel services Target achievements Automated services Marketing strategies Customer’s focus Good infrastructure Advanced technology Competitive workforce Local, seasonal and fresh ingredients Human resource The value chain analysis: Primary activities Firm infrastructure: The hotel business relates to services industry, and delivering high value customer services. Margins Human resource management: Training and development and recruitment of employees Technology development: Development of customer services software to enhance the loyalty and brand equity. Procurement: Supply chain management in procuring goods for the business operations. Inbound logistics: High value of services in effective lead-time and customer focus Operations: Acquiring more hotels and customer service representatives Outbound logistics: Contract with third party for the acquiring of more hotels and software development Marketing and sales: Promoting goods and services through promotional efforts Service: The delivery of services according to the behavior of customers and delighted environment.( Local, seasonal and fresh ingredients) Margins Supportive activities Explanation Nine success indicators are highlighted for the company. These are discussed in above table. Shangri la group has security operations and hotel operations that are giving value to its business. It has entering into online making for connecting its network of supply. These are used for improving its logistics related with inbound and outbound activities. Goals are set by company for achieving its strategy. This target achievement strategy is proving value to its business. It is having good marketing strategies for attracting its customers and satisfying their demand. Online services are provided to the customers. They can access restaurant and location after visiting site of company. It is providing international services with the help of online sales. It is using advanced technology for satisfying demand of luxury customers. Its workforce is competitive and highly skilled. It is attracting investors by proving them future value in their investments. It is financially strong and has good financial stability. Human resource is divided into different segments. It is able to communicate directly with workforce for obtaining organizational objectives. It used fresh ingredients in the products that make it product attractive in customers. It has competitive workforce with 28100 employees that work for the organizational success. CITATION mac15 \l 1033 (, 2015) 4.2 SWOT Analysis Strengths Sales growth Maintaining Asian culture Advanced technology Good quality service provider Leader in luxury brand High customer’s loyalty High profit Weaknesses Awareness of brand is Limited to Asia Limited to business community Opportunities International growth of tourism Demand of people is increasing Strengths-opportunities Expand its business in other countries (S1, S3, O1) Compete in market (S6, O1) Attract more customers(S5,O2) Opportunities-weaknesses Make other people aware of the brand(W1, O1) To attract more people in addition to business travelers(O2,W1) Threats Shift of Asia to region of mid market Cost of labor is increasing Natural disasters and terrorism attack Threat-strength Attract more skilled workers (S3, T2) Increase security arrangements at hotel (S7, T3) Threat-weaknesses Focus on increasing market share by attracting more customers(W1, T1) Explanation The Shangri-la group Sot analysis is given above. Its strengths are high profit ratio. Its profitability is increasing with the passage of time that is giving new opportunities of expanding its business and product line.. It used advanced technology for its operations. Technology is its important weapon of providing good quality service to its customers. It fulfilled demand of luxury customers with the help of advanced technology. Its market is share is increasing that is also strength. It is giving it high revenue and increasing its customers at international level. It is reputable and famous brand and high loyalty of customers is present there. Customers are loyal towards brand. Its weaknesses include limitation of operations in Asia by focusing only in Asia. Another weakness is that it is not attracting large group or category of people. It is focusing only on providing luxury services to the business travelers. It can attract more people and local customers. It can increase its services to these customers. CITATION Gup \l 1033 (Gupta, Gollakota, & Srinivasan)Growth of tourism is increasing at international level that is giving opportunities to the Company to increase its sale. Tourism industry highly affects hospitality business. People are coming from other countries and giving it chance to introduce business with more people. It is estimated that demand of food is increasing on annual basis. As Shangri-la Group targets high-income people and it provides high value product with safety standards. People are now willing to pay more for their healthy products. Threats include high cost of labor. In case of high cost of labor, there are chances of increasing price of services or to maintain with the previous prices in this case, profitability will be affected. Another threat is that countries are shifting towards mid region and it may affect operations of few regions. Another threat for company is that due to high terrorist attack in Asian countries, company can face damages in the future. CITATION for11 \l 1033 (, 2011) Second section of SWOT analysis provides strategies of using strengths for taking advantage from available opportunities. Four categories of strategies are developed by using weakness, strengths opportunities and threats. Strategy is developed for taking advantage from its opportunities and strengths. AS sales are increasing and there exist opportunity of increased customer’s demand its strategy is developed for increasing its customers line. By using strength of advanced technology and demand of people, strategy is developed fort moving to other countries. CITATION for11 \l 1033 (, 2011)Second strategy is developed for company for overcoming its weakness by using advantage of opportunities. At this level, strategy is developed for increasing awareness of brand in other countries and customers with the help of using opportunities of tourism. Another strategy is developed for attracting more customers in addition to the business communities. CITATION for11 \l 1033 (, 2011)Third strategy is developed for company reducing its threat with the use of strengths. Strategy is developed to for attracting labor that is more skilled. For reducing its threat, another strategy is developed to increase security arrangements at hotel. Last strategy is developed in SWOT analysis for avoidance of threats and minimization of weaknesses. This strategy is to reduce or shut down those operations that are not giving profits. It can open new operations in those are where there is need and demand of people. it can focus on increasing market shares by attacking more customers. These are strategies are developed for taking advantage from strengths and opportunities to reduce threats and weaknesses. CITATION Dav09 \l 1033 (David, 2009)Shangri-La hotels have some of the strengths that are important for competing with their competitors. It is the strong brand which help for attracting the people, beside this company maintain the Asian luxurious culture. Company has the good reputation and have good image in the minds of the customers that is the reason customers are loyal with the company. These are the great strengths of the company that help to grow the sales of the company. CITATION Hol13 \l 1033 (Tuppen, 2013)Weaknesses: But with this company has some of the weakness that affect the growth of the company. This company is limited in some of the specific countries that is the reason this brand is limits in limited countries. Beside this company also has the limited focus on the business communities. CITATION Hol13 \l 1033 (Tuppen, 2013)Opportunities: company has some of the opportunities by availing that opportunities it is very easy for the company to attract the more customers or to increase the profitability. These opportunities are helpful for capturing the international customers in Asia region. Internationally growth of the tourism is also great opportunity for the company. CITATION Hol13 \l 1033 (Tuppen, 2013)Threats: Company has some of the threats; company competitors are the main threat for the company. Beside these natural disasters, terrorist attacks and climate are threats for company and they also affect the labor cost. The threats of the company influence the sales or the revenues of the hotel. CITATION Cla11 \l 1033 (Berrebi, 2011)Strategic directions Strategic directions of Shangri-la group is embedded in its culture, it promotes its culture and strategies to all employees for increasing its profitability. It brings its employees together through its effective management strategies. Employees are monitored for their performance. It is using marketing strategies as promotions for attracting more guests every year. It provides training and development to its employees. CITATION Phi03 \l 1033 (Sadler, 2003)5.1 BCG Matrix BCG matrix is growth matrix that was developed by Bruce Henderson in 1970. It uses observation of units of businesses. Business units of company can be classified into different categories. This classification is done based on market share and growth for achieving competitive advantage. Dogs have low market growth and share. They did not consume or generate large cash amount. Question mark has large market growth and they used to generate large amount of cash. It has growing potential. Stars also generate huge cash amount. It has high rate of growth due to this cash is generated rapidly. Cash cows are mature market leaders. It has high asset return. They have opportunity to consume less but generate more from consumption. CITATION Phi03 \l 1033 (Sadler, 2003)Shangri-la has characteristics of cash cows because of its capacity of earning more. It provides dividend to its shareholders with sustainability and its also pays time debts. It has good financial strength. Monitoring plan Monitoring plan is essential to establish to handle future problems. This plan is conducted to ensure that proper management strategies are implemented in the business environment. In economic crises, company reduced its employees’ salaries for meeting emergency needs of the business and losses. It also sold shares in the public for raising funds. These strategies help to cope with the crises and economic down turn. It has option of reduction in rates of room. It is recommended for company to expand its business in other countries as well. Monitoring is done for accessing objectives of the organization. It is monitoring its objectives and employees for obtaining success internationally. It has expanded its services at international level after its foundation by using its business strategies. It has clear vision and mission for leading in the market. It used good marketing strategies. Its internal strengths are used for obtaining advantage and expanding opportunities. It has advanced system of management. It is aiming at becoming largest luxury hotel in the world. It can achieve its target by reducing its threats and weaknesses. CITATION Smi \l 1033 (Smith, 2003)5.2 Ansoff matrix Ansoff matrix provides different strategies for different businesses. These are market penetration, diversification, product development and market development. In market penetration company aimed at increasing its market growth by using its existing products. Market development demands targeting new market with the use of existing products of the company. Diversification means and demands entering into a new business with new products. Product development demands target of existing market with introduction of new product. Strategy selected for Shangri-la group is market penetration. It should expand its market share with current segments of market and with existing products. CITATION Smi \l 1033 (Smith, 2003)SAFS Framework 6.1 Sustainability Sustainability refers to the management of environmental, social and financial risks by taking into account opportunities and threats. Shangi-la is increasing its sustainability by using advanced technology and competitive workforce. 6.2 Acceptability Acceptability is related with the satisfaction of the shareholders with the outcomes performance. Three elements include risk, return and reaction of shareholders. Return includes expected benefits of shareholders. Risk includes loss of specific strategy. Reactions of shareholders include their reaction related with change in strategy. CITATION Phi03 \l 1033 (Sadler, 2003)6.3 Suitability Investment in company is suitable for the investors because it gives sustainable dividend and growth to them 6.4 Feasibility Resources for implementation of this strategy include time, people and funding. Different tools are used for purpose of measuring feasibility like break even etc. Conclusion It is concluded that it is necessary for the company to follow the sustainable strategies. Sustainable strategies based on the analysis of the political, social, economical, or the technological factors. Beside this SWOT analysis of the company help the company for making the sustainable strategies. porters five forces also support creation and implementation of the sustainable strategies. Recommendations It is recommended that company should expand its services and business in other countries and it should on western in addition to Asia. It main targeted customers are business travelers. For increasing market shares and profitability, it should attract more customers and tourists. As it is having good opportunities of expanding its business and it should use its strategies for attracting and emerging in those market here customers are present. It should use monitoring plan for monitoring performance of its strategies. It should use its strengths for taking advantage from opportunities. The expansion of services as well as product differentiation reveals the beneficial for the company and attracts more customers. In giving evidence towards, the suggestion is that the behaviors and trends of the customers changes with time that needs and the company should need change recognition in the strategies. The reaction of stakeholders is positive towards the changing environment in the external factors because the customers get the benefits and employees motivated to increase the values of the company. Acting as shareholders it will increase the values of the corporate structure and gives high profit margins. The specific actions are needed requirements to initialize the changing in the business operations. The strategy of product differentiation and expansion of product line is achievable for the sustaining in the environment. In the board of meeting, the specification and attributes of services improvement and product categories are discuss to retain the customers. References BIBLIOGRAPHY \l 1033 Berrebi, C. (2011). Earthquakes, Hurricanes, and Terrorism. Retrieved July 16, 2015, from (2012). Malaysia records 24.7 million tourist arrivals in 2011. Retrieved July 16, 2015, from Capon, C. (2008). understanding of strategic management. pearsons education limited. Carpenter, M., Sanders, G., Rice, J., & martin. (2010). strategic management:P a dynamic perspective concepts ands cases. Frenches forest, NWS, peasons austrailia. Cheng, D. D. (2013). Analyze the Hotel Industry in Porter Five Competitive Forces. 52 The Journal of Global Business Management, 9(3), 52-57. COWAN, A. (2013). Porter’s Five Forces. Retrieved July 16, 2015, from David, R. (2009). strtaegic management: concepts nad cases. pearson prentice hall. Emerson, L. (2009). writting guidelines for business stratrgy for students. South melborne : cenggae laerning austrailia. Engel, A., & James, F. (2001). strategic management communication process. Homewood IL:iRWIN. Faulkner, o., & Campbell, A. (2003). the oxford handboook of strategy. oxford university press. (2011). Time for China to Go Shopping. Retrieved July 16, 2015, from Gupta, V., Gollakota, K., & Srinivasan, R. (n.d.). business policy and strategic management: concepts and applications. New dehli: prentice hall of india. Haberberg, A., & Rieple, A. (2008). strategic management: theory nad application. Henry, A. (2011). understanding of strategic management. oxford university press. hILL, C., & jONES, G. (2009). essential strategc management. South meelborne:south western cengage learning. ifm.eng. (2015). Decision Support Tools. Retrieved July 16, 2015, from KOSITCHOTETHANA, B. (2015). Thailand drops in global tourism rankings . Retrieved July 16, 2015, from Lincoln, L. (2007, setember). Shangri-La Hotels and Resorts Developing Strategy to Enhance Corporate Social Responsibility . Retrieved july 15, 2015, from (2015). ShangriLa Number of Employees. Retrieved July 16, 2015, from Pulfold, Y., & Alan, B. (n.d.). strategic management. london bpp publshing limited. Sadler, P. (2003). Strategic Management. Kogan Page Publishers. Smith, P. (2003). strategic management. london kogan. Tuppen, H. (2013, may 17). Shangri-La Asia issues second sustainability report. Retrieved july 15, 2015, from

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