Question structure: Intro: rephrasing question & introduce theory (with this question I am going analyze/ identify … with the help of …) Body
explaining (whole) theory, apply it on questions. Conclusion: answer question! (think of: What level of strategic analyses is required(layers)?
Shangri-La Legendary hospitality around the world
*Strategic Group Business (Trader Hotels) and Leisure (Golden Sands resorts- Europeans and western countries)
Competitors: Hong Kong And Shanghai Hotels Limited, New Development company Limited, Mandarin Oriental Hotel Group Limited. These three companies
have the same target market, use the same distribution channels Resource commitment: 1. leaders in the industry 2. Service quality 3. Big presence in Asian
Market Why are they competitors?
Mission: To delight our guests every time by creating engaging experiences straight from our heart. Vision: To be the first choice for guests, colleagues,
shareholders and business partners. Long term goals/objectives: Sustainability (foodwaste, recycling, sustainable food), Expand, renovations (Shangri-La’s Le
Touessrok Resort & Spa, Mauritius)
Business Canvas Model: Value Proposition: Unique Asian Hospitality and culture, award winning hotel (Diamonds, gold list, best travel destinations) Hotels
and Resorts are world's leading Asia-based luxury hotel group, Landmark Buildings, Global presence, in 2015 awarded The Best Luxury Hotel Band Asia
Customer relationships: Golden circle membership- guest loyalty(points), Mobile App – travel tips, customer support), Horizon Club (personalized service and
exclusive privileges)Business travel programme Customer segments: Business, Leisure (upper class)channels: Social Media (Shangri La App, FB, Twitter,
YouTube, Weibo (Asia)), Key Partners: Investors (Summer Palace), Airlines (AmericanAirlines) and AsiaMiles local Food and beverage Suppliers who share the
value of corporate citizenship and respect for environment, Human Recourses (water, waste, energy and green housing) Key resources: Well-trained
employees with experience and knowledge of Asian Culture (training and development), Land mark buildings, key activities: Legendary Hospitality, hospitality
from the heart (Shangri-La hospitality from a caring family),Unique Asian standards of Hospitality and service, commitment to high standards (leadership,
guest loyalty, colleagues achieve personal and career goals Cost structure: revenue streams:
PESTEL + Strategies (Attractiveness of market and key drivers for change): P: Donald trump new legislation making it difficult for immigrants to get work
permits and visas, particularly people from Muslim countries. The industry is dependent on immigrants particularly in the united States, Government of both
Singapore and Hong Kong offer open immigration policies that supports work Visa's, when there is a need for the movement of foreign employees, E: The
weakening of most global currencies relative to the US dollar also diluted Group hotels’ revenues and profits, Terrorist attacks affect the arrival of international
travellers. A terrorist attack like the Charlie Hebdo newspaper building in 2015 means that many people were reluctant to travel S: According to the UN a big
social transformation is going on. The world's population is aging; here with they mean people who are over 60. This can have a big influence on all sectors,
think about labour, change of demand in needs/service/products, spending pattern. Due to the aging population hotels are threaten by lack of staff. In 2015
there were 901 million people aged 60 years+ worldwide, Healthy foods and Wellness Trend- Hotels are starting to capture guests that are health conscious
therefore having a new take on F&B by creating healthy meals for the demand of healthy eaters T: The Hospitality industry is becoming more technologically
advanced. Hotels are using robots, wireless charging, and interactive walls E: Hotels create waste, and consume large amounts of water and energy therefore
being sustainable in all operations is crucial. Worldwide environmental legislations are becoming strictly enforced, The Hospitality industry has played a huge
role in the release of hydro fluorocarbons into the atmosphere through their use of air cons and refrigerators. The USA is planning on reducing the sale of
machines that release the gas L: New Tax implications will be faced in the industry particularly those looking to invest globally
*Porter’s 5 Forces attractiveness of Industry
Power of buyers: high, because they can easily switch to other hotels who offer the same quality of service and have the same target market. Switching costs
are low, price sensitivity of buyers is high and product differentiation is low. Supplier power: Medium, if they increase their prices then Shangri-La is forced
to also increase its prices to cover operating costs. But they can also switch supplier, it is easy for a hotel to switch suppliers depending on which suppliers the
costs are low. Threat of substitutes: high, because there are many other hotels that offer the same or similar products and services. However they do not
offer the same quality service and Asian Charm. Threat of entry: Low, because it’s hard for new players to enter this market Start-up costs of newly opened
hotels operating in a weak business environment in China continued to lower profitability. Competitive rivalry: high: large number of competitors (strong
force), a few firms dominate the market (strong force), low switching costs (strong force). Final: it is not attractive to enter this market, because there are a
lot of competitors, it cost a lot money to create brand awareness and to meet the standards of Shangri-La would be very difficult as the industry is very capital
intensive, there are multiple substitutes and it is difficult to come up with innovations to differentiate from competitors.
Ansoff Corporate strategic direction: Market penetration – existing market/existing products/services. The Hotel brand is renovating existing hotels for the
same market and reopening hotels under Shangri-La management. But they are also
Industry Life Cycle (type of industry): Growth Stage, low rivalry: high growth and weak buyers, low entry barriers, growth ability key.
Industry structure: Oligopolistic - where just a few firms dominate an industry, with the potential for limited rivalry and great power over buyers and suppliers.
Shangri-La amongst few competitors offer the high class legendary service quality. Many hotels cannot compete with such standards, especially local hotel
chains.
Strategic capabilities (recourses and competencies): Brand Name internationally recognized for its incomparable legendary hospitality, Employees, Spa and
Treatments, Architectural designs (culture and Environment), Service quality, *award winning hotel (world class service and hospitality (Asia), Buildings, Global
presence, Commitment to employee development and wellbeing*
