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Porters Five Forces Model: Amaya lake hotel


Strategic Management is planning, applying and evaluating useful decisions that will allow an organization to reach its long-term targets. It is the path of discovering the organization's objective, vision and aims, developing strategies and plans, often assignments and programs are designed to achieve these objectives, and assigning resources to implement the strategies and strategies, assignments and programs.

Question 01;


Porter's five pushes model can be an outline for the market analysis and business strategy development, It includes five forces that make a decision the competitive ability and elegance of market.

Porter known those forces have an effect on its capability to provide its consumers and make profit. A change in virtually any of the causes make a business device to re-assess industry. Tough industry may look attractive start a business, it does not imply that every company in the industry will earn the same success. Organizations must apply their primary competencies, business model or network to achieve a profit over the other competitors.

This style of Porter's five pushes include - risk of established rivals, threat of new entrants, risk of alternative products, bargaining ability of suppliers and the bargaining ability of customers or clients.


When selecting a business I have seemed for places where I can research and apply Porter's Five Pushes model, and by conducting a market research I have chosen Amaya lake hotel (Under Amaya Resorts & Spa),

Amaya brings guests authentic Sri Lankan experiences. Architecture, arts, music, dance, cuisine - Amaya has each facet of local culture into its retreats. Amaya Resorts & Spas is a subsidiary of Connaissance Holdings. Under Amaya Resorts & Spa they may have three hotels. Amaya Lake, Amya Hillsides and Amaya Reef Hotel find at three deferent locations. In this assignment I have chosen Amaya Lake hotel at Dambulla to review and apply Porter's five pushes model.

Question 02.


Porter's Five Pushes Analysis demonstrates there are five important elements that verify competitive control in a company location. Bellow will be the studies and apply of Porter's five pushes for Amaya Lake Hotel,

1 Risk of New Entrants

Demand for Restaurants, Visitor Homes and motels remain under the location light. Yet most large chain hotels have established their power with functioning efficiency, and key marketing-mix outflow. This influential force has an immense impact on the small regular Hotels, Restaurants, bakers, Guest Properties and motels etc. Therefore, it possesses a tough obstacle for new companies who want to come into the hospitality industry. For instance, it becomes rather complicated for new opponents to raise satisfactory resources and build extremely developed service. That is also apparent in vast investment funds done by large chains like Amaya Resorts & Spa, on advanced technology for check-ins, checkouts and stock control systems that blow new rivals and the prevailing ones. Additional obstruction contains economies of size and differentiation (in the provision of products or services with a higher recognized value than the competition) attained by Amya Lake using their insistent functional strategies in product development, promotional activity and better service.

2 Bargaining Power of Suppliers

This force means the control of suppliers, yet that can be influenced by foremost hotel chains and by creating fear of losing their business to other suppliers. Suppliers can be the holy owners of the decision making in terms of price. Yet this can be managed insurance agencies volume of suppliers as an options, and yes it can bargain better promotional prices that small specific hotels cannot remain competitive. By that vitality of control over the suppliers are owned by the service receiver. By which suppliers are also susceptible by the growing capacity of large hotels to resource their resources from abroad at better discounts. At Amaya Lake they may have well managed the supplier power choosing many numbers of suppliers utilizing their growing capability in hotel industry as well as the srong romance with the other suppliers.

3 Bargaining Ability of Customers

Porter said that more the service become uniformed consumers find many options to selected, hence more power is directed at buyers. When a hotel will not identify customers need and braking system the informality of the service, keeping customers can be tiny hard task. At this time Amya Lakes famous devotion cards remains the most successful customer maintenance strategy that considerably increases the success of there business, also by taking good care of customer needs, providing customized service, ensuring low prices, applying better alternatives, adding value improvements, having constant promotions they have entice many amounts of customers under their wing. This has contributed to preserve their customer bottom over the period of time. Ecologically kind and ethically sensible food and beverage products makes customers more glued to Amya Lake than the competitors on the market.

4 Risks of Substitutes

Substitution is having other medias to full load once needs. For instance in-house guest who wants to enjoy a food have many choices. One will hotel restaurant and have the food or order room service and also have dishes or go to the out aspect restaurant and have his meal. Having third option chosen reduces the demand, as there is a risk of consumers moving over to the choices. Within the hospitality industry this can be seen in the proper execution of service-for-service or the substitute of need and is also more weaken by new improvements such as the way small hotels, restaurants, bars, night clubs ect how this happens in a way of convenience, tailor maidens, easy access and proper customer care ect. Amya Lake has overcome this with the addition of few value enhancements such as Pub, Restaurants, Gym, and Spots organic, DJ club for residents and non dwelling for affordable price with better service.

5 Bargaining Power of Competitors

Having many opponents searching for the same industry, who provides uniformly smart services, make one with little control over the condition, where suppliers and clients have the power to choice with whom they need to deal with, if indeed they do not get much from you. On the other hand, if only you provide a definite service and no-one can do what you do, then you can frequently have wonderful push over suppliers which leads them to have no choice.

Hospitality trade has seen a significant growth in the scale and market electricity of the bigger categories and small communities, with better size it could attract reasonable number of guest who are choosing selection of value improvements, which are actually important characteristics of the section. Yet some guest prefers small or mid size hotels with more privacy, affordable and even more spiritual, as it was mentioned above, the power of choosing in which a guest might want to go depends on competition on the list of industry. at Amaya Lake both customers will find there choices, since they have different room categories at different locations. Functioning in a established market makes development rough, this happens by your competition. This highly competitive market has increase level of expansion, ensuing in a circumstances where hospitality sector may need to be innovative to keep and build market show. Such innovation is seen in the introduction of a number of operating systems, in reaction to change in consumer tendencies. Market market leaders have reacted by focusing on service, price and value improvements. Amaya Lake is one of the chain hotels having its own customers in the market with other opponents like Sorrowwa Resorts & Spa, Gimanhala Hotel, Chaya Town, Heritance Kandalama Hotel, Thilanka Hotel by providing better service and value additions to its customers.

Question 03;


Porter's Gem of National Advantage Theory,

In this theory Porter outlined that comparative advantage inhabit in the factor donation a country may be lucky enough to inherit. Factor supports contain property, natural resources, labor, and how big is the neighborhood residents.

Michael E. Porter said that a nation can generate new highly developed factor efforts such as technology, skilled labor and knowledge base, authorities support, and culture. Porter put into action a diamond formed map as the building blocks of a structure to demonstrate the determinants of national advantage. This diamond means the national using field that countries setup for their deals.

Porter's Diamond of National Advantage Frame work

Four components of the diamond framework have an effect on national comparative gain. Those components are,

The convenience of resources and skills,

Information to choose which prospects to follow with those skills and resources,

The goals of people in business,

The make on businesses to innovate and invest.

Components of the precious stone body work are explains the following.

I. Factor Conditions

A nation produces its own significant aspects such as scientific support and skilled resources.

The reserve of factors at a given time is less significant than the scope that they are improved upon and deployed.

Local shortcomings in factors of creation power improvement. Unfavorable circumstances such as labor shortages or limited resources push firms to develop new methods, which improvement brings about a nationwide comparative edge.

II. Demand Conditions

When the marketplace for a specific product is better in locally than in overseas markets, the neighborhood firms dedicate more concentration on that one product than foreign firms, this will lead to a competitive benefit when that product commence to export.

Challenging local market leads to national advantage.

A strong local market assist local companies look forward to global market segments.

III. Related and Helping Industries

When local companies are aggressive, industry gets the benefit of more cost effective and innovative contributions.

This effect make more robust when the suppliers are strong with international challengers.

IV. Organization Strategy, Structure, and Rivalry

Local circumstances affect the strategy. For example, some businesses tend to be hierarchical. Some companies have a tendency to be smaller and are run more like extended families. Such strategy and composition helps to determine which types of establishments are good in region.

PorterHYPERLINK "http://www. quickmba. com/strategy/porter. shtml"'HYPERLINK "http://www. quickmba. com/strategy/porter. shtml"s Five Causes model says, at the start of a business little rivalry makes an industry striking. Though at time an industry prefers a smaller amount of rivalry, over time more rivalry is good since it build weight over a business to be more creative and be more advance. And also, the greater local rivalry a nation has less global rivalry will type in to the market.

Local rivalry pushes business to go beyond important advantages that the country can enjoy, such as low costs.

Hunt Strategic group Analysis Theory,

A proper group is a concept used in tactical management for businesses in a industry which may have related business models. For example, a hotel can be categories predicated on the area types such as standard, deluxe or suits and based on the worthiness added facilities, eco type hotels, colonial type hotels or modern architectural hotels. Each of them under one industry. Strategy is the road and capacity of a business over the time frame to attain rewards for the business enterprise while directing how the business can make money.

Hunt (1972) created the phrase tactical group while carrying out a study of the appliance industry, down the road he revealed an increased amount of competitive rivalry than expected by the industry. He regarded this as lifetime of subgroups within the industry that be competitive along different proportions. These unbalanced strategic groups underlying the industry to have more fast innovation, higher quality, lower prices and lower success than customary financial models would forecast.


The success of the Amaya Lake shows how far competitive vitality and elegance of a market can leads towards its output. It includes proven their personality by causing their servicing principle into a virus stations such as social aspects, physical, and characteristics friendly experience.

In a fast changing business atmosphere with high rivals businesses have to look at new development strategies and diversified the existing business in order to maintain its primary market in an already proven hotel sector. Amaya Lake has consistently adapted to the fast changing conditions. Strategy formulation has been detected as a practice of constant learning, which is made up of learning about the goals, effect of studies towards these goals and how to place into practice and perform these studies. The excellence of an invented strategy and the speed of its conclusion will therefore directly depend on the grade of Amaya Lakes behavioral learning procedures.

In large organizations like Amaya Lake, strategy should be analyzed and applied at different levels within the industry. These different levels of strategy should be related and mutually assisting each other. Amaya Lake's strategy at commercial level defines the firms in which Amya Lake will battle, by which it focus resources to convert distinctive competence into competitive benefits.

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