Before the Iranian revolution oftourism was a very big industry in Iran with a large number of foreign tourists from western countries, but the revolution and after that the war with Iraq made a serious dent to the tourism industry. Also coupled that with the sanctions imposed on Iran the inbound tourist arrivals virtually came to a standstill and has been reduced to mainly religious pilgrims. But the tourism industry has still developed considerably over the years and that is due to domestic tourists But the lifting of sanctions will greatly boost the tourism industry in Iran. The new government has been making efforts to increase the number of tourists.
Customer Profile for Hotel Industry 4. Analysis of the Industry Hotel industry is more global in nature as compared to most of the other industries i.
Other industries like Fast moving goods industry FMCGauto industry, banking industry to a large extent etc do not get affected so much with global changes http: Most of the firms do not have any major plans of investment in the next few years and hence the interest cost is expected to be lower thus higher overall profitability of the firms can be expected in the coming year.
Indian Hotel Industry premium segment is internationally competitive. This has been possible due to continuous improvement in the facilities and services provided by the domestic players and due to presence of various multinational brands. Domestic players have been forced to continuously improve so as to enable themselves to effectively compete with foreign firms.
However the hotel industry in India in general faces the challenge of poor infrastructure, lack of maintenance of historical and cultural places, and high taxes. The premium hotel segment industry has been analyzed using Porters Five Forces Model which is also shown in Figure 2.
The five forces working on the Industry are: Threat of Entry Threat of entry can be assessed from the barriers of entry in the Industry which can be created by various means. Establishing a Premium hotel requires huge investment of the order of ten million per room for most of firms.
The gestation period for a hotel is expected to be around 30 months. The investment is risky in nature as well. Hence, it automatically creates entry barriers of the new comers. Average employee cost in varied from Rs 4 lakhs to Rs.
The average employee to room ratio in India is 1. Also due to economy of scale a new firm will have to face this barrier. The room occupancy in the initial years are expected to be low for a new comer, given that there are already known brand hotels in this segment and the supply is more than the demand for most of the year.
Entry barrier is created due to the strong brand image that the hotels in this sector enjoy. Any new comer will have to either carry a brand name from other sectors or will have to create a brand name to exist.
Also many of the firms in this industry have presence in various sectors which provide them a high financial backup. Bargaining Power of Suppliers Suppliers are mainly of soap, toiletries, bed sheets and other clothes and similar articles. The suppliers do not enjoy much power in this industry as these are available of the shelf for the firms or there are enough providers for these articles.
Some of the firms also have in house production of these supplies. Most of the firms have a long term contract with the suppliers to get them in bulk through their central warehouse and then distribute to their hotels e.
Taj group till recently used to get bed sheets and other clothes from Bombay Dying through their Mumbai central warehouse. Since the products are standard and are bought in bulk through a long term contract value of products is also very lowit can be said that this force is relatively insignificant for this industry.
Tourist demand is seasonal in nature and hence to a large extent the industry faces a seasonal demand. The number of tourists coming to a certain geographical area is a function of the scenery of the area, business activities, and connectivity of the area with air, rail and road.
Corporate customers depend on the economic activity in the area. Both corporate customers and individuals enjoy some bargaining power given that their switching cost is negligible.
Customers enjoy a good amount of bargaining power on the quality of service provided in this segment. Customers are more particular to the service provided than other factors such as price charged by the hotels.Porters five forces Analysis.
Threats of New Entrants – Low. The threat of new entrants is relatively low in the business of hotels and resorts because of the high capital and cost incurred to the conduct the business operation.
Analysing McDonalds (fast food outlets) using Porters 5 Forces model – sometimes called the Competitive Forces model. Introduction McDonalds Canada opened in , thirteen years after McDonalds had taken the United States by storm. This was the first restaurant to be opened outside of the United States.
Marriott International, Inc. Porter Five Forces Analysis Strategic Management Essays, Term Papers & Presentations Porter Five Forces Analysis is a strategic management tool to analyze industry and understand underlying levers of profitability in a given industry. What is the porter's 5 forces of Airbnb?
Update Cancel. Answer Wiki.
1 Answer. Matthew Seely, MScBA, Customers can very easily choose a traditional hotel, b&b, hostel, couchsurfing, etc.
as an alternative in the future. How can Porter's 5 forces be applied to . Porter's 5 Forces Model. The condition of competition in an industry depends on five basic pushes, that happen to be diagrammed above. The collective strength of these makes determines the ultimate profit probable of an industry.
Oberoi hotels. Leela hotels. ITC Grand.
Le Meridien. Bargaining power of customers is very low. Bargaining. Mar 22, · Harvard Business Review beautifully describes five forces of competition in just two ashio-midori.coml Porter is a Professor in Harvard Business School.