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Shangri-La Hotel — Strategic Analysis Introduction Shangri-La Hotels and Resorts have emerged as one of the most appreciable brands in the international hotel industry. The Company has garnered its reputation based on its commitment to provide a world class service.
Even though the hotel was running successfully during the s it had not evolved any core values or long-term strategic planning.
This has led to the implementation of "Shangri-La " strategic plan. Subsequent to the adoption of this strategic initiative there have been a number of changes that have been brought about in the functioning of the hotel. This paper details the competitive strategies of the hotel, management approaches and the role of employee training and culture in the success of the hotel chain.
The paper also discusses the core competencies and financial and operational performance which contributed to the success of the hotel. The paper also makes a few recommendations for ensuring a sustained success for Shangri-La hotel.
The hotel is considered as a status symbol for upper class people reflecting the privilege and honorable status in the society.
The hotel provides facility of services which is suitable for both business travelers as well as for people traveling for leisure and on vacation. The first of Shangri-La hotels was found in Singapore in the year and now this Hong Kong based hotel chain has grown as one of the largest hotel management companies getting a number of awards and accolades.
The hotel chain operates more than 49 high class hotels and resorts in key cities of Asia and the Middle East. The first venture of the hotel chain was established in Singapore by the Kuok Group which is a multinational conglomerate managed by Westin until the year In the yearthe Company established a sister concern Traders Hotels in Beijing with the objective of meeting the demand from the business travelers at affordable prices.
The Kuok Group continues to hold the controlling interest in Shangri-La Asia Limited Vision and Mission of Shangri-La Shangri-La wishes to be "the first choice for customers, employees, shareholders and business partners".
In order to achieve this, the Company has determined to "delight the customers each and every time". The objectives of Shangri-La is "expanding the Shangri-La brand globally and exploring opportunities to operate hotels gateway cities and key resorts around the world under management, equity participation and ownership".
Key Elements of Shangri-La Hotels Competitive Strategy "The Porter's 5 Forces tool is a simple but powerful tool for understanding where power lies in a business situation. Shangri-La managed the situation by controlling the quality of the supplies.
Buyer power is predominant in the case of hotel industry in general as the customers demand for more quality of service at lesser cost. Therefore the buyer power acts strongly on Shangri-La and the Company made adjustments to its strategies to meet the increased expectations of the customers.
Competitive rivalry is also high in the case of hotel industry with the number of hotel chains offering competitive services at higher quality levels.
The marketing strategy of Shangri-La has taken this aspect into account. The customers have a number of alternative choices of quality hotels, motels and other types of accommodations.
Therefore the threat of substitution is high in the industry. Shangri-La hotel adopted the strategy of improvement in the quality of service which enhanced its reputation and retained the customer base.Shangri-La's leadership is composed of some of the most talented professionals in the hospitality industry.
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Shangri-La International Hotel Management Ltd. Financial Performance. To review and discuss opportunities for revenue and profit optimization;. Shangri-La has issued several reports in pursuit of greater transparency and in compliance with international standards.
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Shangri-La Hotels Shangri-La Hotels and Resorts is a deluxe Asian hotel chain and was founded in in Singapore by the Malaysian-Chinese tycoon Robert Kuok. The name Shangri - La means “eternal youth, peace and tranquility” and embodied the serenity and service for which the hotel chain was renowned throughout the world.