Posted at 10.07.2018
A Shangri-la hotels and Resorts is founded in 1971 which is the first deluxe hotel in Singapore by the Malaysian-Chinese tycoon Robert Kuok. The name was influenced by British creator James Hilton's novel "Lost Horizon". The meaning of Shangri-la is ethnic youth, calmness and tranquility.
Shangri-la hotels and Resorts is the first enter to a Chinese language hotel market as a overseas investor and built its head office in Hong-Kong.
From 1982 to 2002 the company went through extreme development in Asia pacific region specially give attention to Chinese market. During widening period Asia has an instant economic development and a higher demand of the blissful luxury hotel for business travelers and international vacationers' needs in Asian. Therefore, the business was growing swiftly and save more money for future enlargement. Also the business is the largest luxury hotel string in mainland China. From 2002, the business continues to grow of brand internationally with a strong basis and great reputation in Asia.
Today, the business is a global school deluxe Asian hotel string and its own business throughout Asia Pacific, North American and the center East. In addition, by 2010 the business held 69 hotel and resorts and 29 under development of new hotels across the world. Due to its famous service, Shangri-la hotel received many international awards from the publication and hotel industry. As the effect, Shangri-la hotels and Resorts is the leading player in the blissful luxury hotel industry.
"To please our guests each and every time by creating participating experiences right from our hearts"
It identified the company's main task is attractive more customers to be able to achieve the business goals of increasing to be always a innovator in global hotel industry.
"To be the first choice for guests, co-workers, shareholders and business partners". The business states which it puts its customers to be the first choice to entice more customers in order to increase the business profit. The employee, shareholders and business spouse will get more benefit from the business. Moreover, due to excellent services to customers, the reputation of company will increase.
Respect, humility, courtesy, helpfulness, sincerity
This five core value is produced by Shangri-La Hospitality. It includes the positive affects to successfully working the business. As well as the center value creates a romantic relationship between customer satisfactions and employees' behaviors.
Shangri-La Hospitality from a caring family.
It means the hotel provides the great services and let the customer feel like being home
Shangri-la got 4 main businesses segments
Hotel ownership and operations
Property development, it includes commercial building and services
Hotel management services to group held and alternative party hotels
Spas at Shangri-La provides private spa collection and help the traveler relaxing and restoring the balance to mind and body
It offers five star and four star hotels in four different brands. Regarding to company's emblem "S", it reveals unique Asian architectural forms of the hotel location planning. It means hotel just like a majestic mountain and the lake or sea should encompass it. The most of five star Shangri-La hotel and resorts offer an sea or lake view to their customers.
Also the company specially encourages Asian hospitality for high quality services to meet the customer needs in several hotel brands. You will discover three main brands of hotel in the company to focus on different customers' needs.
The brand of Shangri-La hotel is a 5 star luxury hotel and typically target market comes from the higher income occupied travelers. It is located in top city.
Shangri-La resorts are a five star luxury hotel concentrate on high income travelers and individuals. It offers a relaxing environment for customer holiday. It is found in some of the world's most spectacular destination.
Trader hotel is a four celebrity luxury hotel and the price of the hotel is mid-range. It includes an efficiency and practical environment for the budget-conscious travelers. It usually mainly target market is business traveler who are able to purchase service and their expenses are supplied by their companies. It really is situated in business centers
Differentiation strategy in market market
The company offers different branding hotels to meet different market sets of customer prospects with a distinctive Asian hospitality services model such as spa branding hotel and trader hotel.
Moreover, it divided the business into different sections. It offers various services to their niche target market such as commercial and service apartment market and management agreements of operating business for other parties.
There is a definite about profitable of company' revenue and a competitive good thing about expanding business internationally by using of targeted differentiation strategy.
Economic factors: in Asia area, GDP is development faster than others, but inflation rate is increasing swiftly; in North America, the financial is recession now. In additional, as a worldwide business, exchange rate and interest levels directly affect the price and revenue of the business.
Socio-cultural factors: because of global business arising, there is more people need to go to overseas or other metropolitan areas. Moreover, holiday on travelling are more popular than before in Asian country. Asian consumers income increasing and has a solid consuming talents. In NA and European courtiers, most people still like touring during the holiday. Cultural distinctions in each area affect the business's quality services.
Environment and legal factors: renewable issues and administration regulations in each country influence the company's regulations changes and company's positive interpersonal responsibility.
The company is a rise market stage, because the consumer has brand recognition on this company and potential market is very competitive environment for new local hotels getting into and existing global company in hotel industry. The business should continue on differentiation strategy to raise the market share. Additionally, the company needs to improve the customer devotion and brand image to obtain a high ratio on customer return. Also aggressive promotion and operations expend can charm to more customers. As these strategies, company can achieve the goals of growing faster than market average.
Bargaining power of suppliers: low
Controlling the grade of the supplies
As a partnering or collaboration with determined suppliers
Switching cost to choice supplier are low
Bargaining power of clients: high
Customers turning cost are low
brand differentiation has increased market base
price and value of hotel is important to customer
The risk of potential new entrants: moderate
economies of level is certainly going down
few amount of investor enter into the industry
fastest growing industry about the world
The risk of substitutes: high
Difference of replacement products is low
Improvement of substitute performance is low
Large quantity of competitors provide same high quality services
Changes in an industry's long-term progress rate: in asian market, even though financial growth is certainly going up, development of asian market is a top of business, it affects the company growing slowly but surely and force the business entry new market in UNITED STATES and Euupean.
Growing customer preferences for differntiated products instead of standardized product: because of competition increasing and various group customer needs, the business forces to build up different main brands of hotel to gained the dedicated and increase marketing bottom.
Shangri-La hotel and resorts as one of the top luxurious hotel in Asia, still faces a strong competition with a great many other top global hotel companies and demestic hotel companies. The top of five competitiors of the company are:
Hong Kong and Shanghai Hotels Ltd: it offers more than 24 deluxe hotels, commerical and residential properties in Asia, Austrailia, Europea, and North America.
Mandiarin Oriental Hotel Group: it functions over 42 hotels in 30 countries.
New World Development: it includes a borad differetatian service lines to get a width range of costomers. Its business includes rentals, office buildings, hotels, shops, roads and ability crops in Hong Kong, mainland China and Southest Asia.
Mrriott hotel String: it opertes different brands of hotels which includes Ritz-Carlton, Renaissance and Courtyard. Also there is large market share in UNITED STATES hotel industry and the company began extending in Asian over 100 hotels by end of 2010.
Four seasons hotel resorts: it functions by high level quality service hotel, private residual proptery letting in 35 countries and owns over 84 five star hotels.
In Appendix 1, by the proper group map request, it shows the close competitors is Mandiarin Oriental Hotel Group and Four season hoter and holiday resort. These two hotels contain the almost same business strategies with Shangri-la. Also four times hotel and resorts gets the higher percentage of market show than Shangri-La hotel and resorts in over the world. In addition Mandiarin Oriental Hotel Group has the highest price level than other challengers.
Offered high quality of services and products increase brand image and customer satisfaction
Differentiated products and services to concentrate on different goal marketing
Culture training program in day-to-day performance specifically
Loyalty program to please customer
Choose the good Location to fit the client needs on each hotel
Effective on promotion and Special offer to appeal to the customers' attention
Effective process management to fast delivery services
Effective advertising on general public commercial
Compensation and incentive growth: pay back employees for a higher shows standard and making staff more valuable by settlement motivation.
The company's concentrated differentiation strategy matching the resources and capacities of the firm and develops the opportunities from the external environment. It includes advantages of competitive leisure industry and it is capable to fit the economical trends. Moreover, Shangri-La has a proper management of its financial system, even though, its income is lower than last year, and the company still keeps expansion for profit in every year. In addition, there's a the top investment to growing of new hotels and new tasks in next 2 season, which it believes the company will add more value to the shareholders and become better on its financial performance in next couple of years. Therefore, the company still must be better to increase its earnings and profits, however the current financial performance is showing positive.
The company may consider the next qualitative efforts to fit success factors.
The company must concentrate differentiation strategy and continues to improve the brand understanding and loyalty to attractive more customers
The company should put into action the human resource management by training employees and unique high quality services.
In order to raise the revenues, the business should offer low quality brands of hotel to appeal more customers
Innovation some unique high quality services to against strong competition such as relationship with Airline Company or car Lease Company.
Due to stuff competition, the company should put more investment on the employee's settlement to be able to stimulate their high shows.