Strength of Hotels
Strength of Hotels
Strength of Hotels
the right source would make Taj’s journey more comfortable. It hired prospective frontline staff
from small cities and towns like Haldia, Mysore, Indore, Dehradun, and Coimbatore, and not from
the big cities like other companies. The main idea behind this was that the people coming from small
towns appreciated traditional values and culture like giving respect to elders, humility, consideration
for others, self discipline, honesty, loyalty, and empathy. Taj recruited young staff directly from high
schools and mainly focused on three criteria while considering them for employment: respect for
elders and others, ability to work in adverse situations, and need of money to survive..
THE ROAD AHEAD: The Taj had a highly engaged and loyal workforce, the loyalty index of Taj
employees having set a global benchmark of 80%; also the benchmark level of employee
engagement had translated to a ‘guest first’ culture at touch points within the hotel, where
employees consistently strove to meet and exceed guest expectations..
EXHIBITS:
ITC:
Strengths - ITC Hotels: Designing Responsible Luxury
Strengths are the Itc Hotels capabilities and resources that it can leverage to build a
sustainable competitive advantage in the marketplace. Strengths come from positive
aspects of five key resources & capabilities - activities & processes, physical resources such
as land, building, financial resources, human resources, and past experiences and successes
.
- Diverse Product Portfolio of Itc Hotels – The products and brand portfolio of Itc Hotels is
enabling it to target various segments in the domestic market at the same time. This has
enabled Itc Hotels to build diverse revenue source and profit mix.
- First Mover Advantage – Itc Hotels has first mover advantage in number of segments. It
has experimented in various areas Innovation, Managing organizations, Sustainability. The
Leadership & Managing People solutions & strategies has helped Itc Hotels in coming up
with unique solution to tap the un-catered markets.
- Robust Domestic Market that Itc Hotels Operates in - The domestic market in which Itc
Hotels is operating is both a source of strength and roadblock to the growth and innovation
of the company. Based on details provided in the ITC Hotels: Designing Responsible Luxury
case study – Itc Hotels can easily grow in its domestic market without much innovation but
will require further investment into research and development to enter international
market. The temptation so far for the managers at Itc Hotels is to focus on the domestic
market only.
- Strong relationship with existing suppliers – As an incumbent in the industry, Itc Hotels has
strong relationship with its suppliers and other members of the supply chain. According to
Tonya Boone, Nalin Kant Srivastava, Arohini Narain , the organization can increase products
and services by leveraging the skills of its suppliers and supply chain partners.
- Strong Balance Sheet and Financial Statement of Itc Hotels can help it to invest in new and
diverse projects that can further diversify the revenue stream and increase Return on Sales
(RoS) & other metrics.
- Strong Brand Equity and Brand Awareness – Itc Hotels has some of the most recognized
brands in the domestic market it operates in. According to Tonya Boone, Nalin Kant
Srivastava, Arohini Narain , brand recognition plays a significant role in attracting new
customers looking for solutions in Innovation, Managing organizations, Sustainability
adjacent industries.
- Intellectual Property Rights – Itc Hotels has garnered a wide array of patents and
copyrights through innovation and buying those rights from the creators. This can help Itc
Hotels in thwarting the challenges of competitors in various industries Innovation, Managing
organizations, Sustainability.
Weaknesses are the areas, capabilities or skills in which Itc Hotels lacks. It limits the ability
of the firm to build a sustainable competitive advantage. Weaknesses come from lack or
absence of five key resources & capabilities - human resources, past experiences and
successes, activities & processes, financial resources, and physical resources such as land,
building .
- Lack of Work force diversity – I believe that Itc Hotels is not diverse enough given that
most of its growth so far is in its domestic market. According to Tonya Boone, Nalin Kant
Srivastava, Arohini Narain , this can reduce the potential of success of Itc Hotels in the
international market.
- Low Return on Investment – Even though Itc Hotels is having a stable balance sheet, one
metrics that needs reflection is “Return on Invested Capital”. According to Tonya Boone,
Nalin Kant Srivastava, Arohini Narain in areas Innovation, Managing organizations,
Sustainability that Itc Hotels operates in the most reliable measure of profitability is Return
on Invested Capital rather than one favored by financial analysts such as – Return on Equity
& Return on Assets.
- Customer Dissatisfaction – Even though the demand for products have not gone down but
there is a simmering sense of dissatisfaction among the customers of Itc Hotels . It is
reflected on the reviews on various on-line platforms. Itc Hotels should focus on areas
where it can improve the customer purchase and post purchase experience.
- Inventory Management – Based on the details provided in the ITC Hotels: Designing
Responsible Luxury case study, we can conclude that Itc Hotels is not efficiently managing
the inventory and cash cycle. According to Tonya Boone, Nalin Kant Srivastava, Arohini
Narain , there is huge scope of improvement in inventory management.
- Organization Culture – It seems that organization culture of Itc Hotels is still dominated by
turf wars within various divisions, leading to managers keeping information close to their
chests. According to Tonya Boone, Nalin Kant Srivastava, Arohini Narain of ITC Hotels:
Designing Responsible Luxury case study, this can lead to serious road blocks in future
growth as information in silos can result can lead to missed opportunities in market place.
- Lack of critical talent – I believe that Itc Hotels is suffering from lack of critical talent
especially in the field of technology & digital transformation. Itc Hotels is struggling to
restructure processes in light of developments in the field of Artificial Intelligence (AI) and
machine learning
MARRIOT
Marriott way: The biggest strength of the hotel chain is their strict
adherence to operational norms. Their code of conduct has been custom
designed by the top management and every employee is expected to
follow it to the final detail. It is said that many of these policies revolve
around resourcefulness.
Presence across the world: Marriott International has a presence in
122 countries around the world and has 600 properties under its
umbrella with 1.2 million rooms to its credit.
Focus on Innovation: Marriott’s operational philosophy is centered on
innovation and most of its procedures and systems try to integrate
commitment and innovation to ensure total value for money.
Drive for competitive advantage: Research indicates that Marriott is one
of the most competitive brands in the business and it tries to continuously
reinvent itself to combat competition.
Power of positivity: Marriott’s run to the top has been an uphill task and
they were continuously daunted by failure. But Marriott was unfazed by
failure and continued to maintain a positive outlook which is one of its
core strengths.
Club Mahindra has an astounding list of holiday options. To make the choice easier for the
member the holiday options are classified according to Beach, City, Desert, Hill Station,
Waterfront, Jungle and even Himalayan! Indeed from Kalimpong in the West to Kanha in the
east, From Dharamshala to Puducherry, members are spoilt for choice.
The company endeavors to add new and lesser known locations to its list – the latest being
the scenic Ashtamudi in Gods Own Country. Club Mahindra also has a presence in Kashmir –
with the option of staying in a House Boat! For those who crave to travel beyond the
boundaries of the Indian Subcontinent, Club Mahindra has International destinations too.
Singapore, Thailand, Malaysia, and Dubai are popular choices for International
Vacationers.In Finland, Club Mahindra has its presence with clubs like Caribia, Salla and the
beautiful Holiday club Saimaa on the banks of the famous Finland river.
Fantastic Service Quality
The common facet across all the properties of Club Mahindra is the Superior service quality.
The entire experience of a holiday is further enhanced with the ever friendly staff. In today’s
fast-paced world people have become increasingly finicky about the experience and are
willing to dish out more for a seamless holiday trip.
Club Mahindra staff are courteous and are always ready to lend a helping hand. Here, the
brand has gone an extra mile and focused on curating custom holiday experiences
depending on the member option, the property, the time of the year, etc.
One bone of contention among club Mahindra members has been the inconsistent (and at
times unexplainable) booking policies. For the different tiers of membership there exists
different guidelines. For some of the popular properties, the booking is to be done a whole
6 months prior.
This is inconvenient to a lot of members as sudden changes in the travel plan or last-minute
changes cannot be accommodated suitably. The company has been working on regulating
this and making it more feasible for members.