Professional Summary
The subsequent report seeks making a strategic plan for the real-time organization. The chosen company is The Jumeirah Group and the chosen hotel is definitely Burj Ing Arab, which is the only seven star lodge in the whole universe. The report presents a brief synopsis with the Hospitality industry in Lebanon and in short , introduces the profile of Burj Approach Arab. The organization conducts an internal and exterior analysis with the aid of SWOT research and Porter’s Five Force Analysis to measure the current condition of the environment and plan against future threats and opportunities.
The report identifies the major competition of Burj Al Arabic.
It then uses the above info to come up with strategies which in turn would permit the company to keep their profit levels and enhance their market share in a time with the economic crisis. It also designs a great implementation plan that would identify the activities to get implemented by the company to achieve their preferred strategic targets. The statement recommends the company should certainly avoid giving price discount rates or take up any approach that would affect the market positioning of the organization.
Even so, they should work at offering more appeal for money with their customers to see new ways to draw them.
Advantages
The following statement aims making a strategic cover the current company. The chosen organization is The Jumeirah Group as well as the selected resort is Burj Al Arab, which is the only seven legend hotel in all of world. The report performs an analysis to understand the latest trends inside the internal and external environment of the organization. It uses proper tools to comprehend the positioning of the company in the China market. After that it formulates tactics which could enable the corporation to emerge successful nowadays in this market environment. It also suggests activities being initiated for the setup of the strategic plan.
Dubai Hospitality Industry
Dubai offers experienced tremendous growth in numerous sectors since it started diversifying their activities and increasing their system. The emirate steadily gained the reputation of becoming the business centre of the Central East region. The emirate also experienced a heavy increase of travelers as the federal government worked hard to promote the plus points with the place. The increasing growth rate from the Dubai travel and leisure industry a new direct influence on the Dubai hospitality sector. The purchase efforts from the government had been internationally acknowledged with the kick off of the Burj Al Arabic, the first seven celebrity hotel in the world. The below graph shows how the hotel room occupancy amounts had improved between 2000-2006. In 2008, the lodge attracted much more than 7 , 000, 000 hotel guests [1].
Source: DTCM Statistics, 06\
However , a global financial crisis afflicted many of the sectors in the China economy resulting in a reducing growth rates in these sectors. These kinds of negative styles were also relevant in the China hospitality market which got majorly affected by the global financial disaster due to the drop in the range of tourists travelling to the country. “The hotel income in Lebanon fell by simply more than forty percent in May 2009 as compared to the figures during the same period in 2008. This was mainly because fewer persons throughout the world were considering traveling due to the impact of the global financial trouble (Walid, 2009). The lodge occupancies in Dubai chop down by much more than 14. 5% in May 2009 as compared to the figures throughout the same period in 2008 (Walid, 2009).
Burj ‘s Arab
“Burj Al Arab belongs to the Jumeirah Group. The legendry hotel has a representational value placed on it that has gained worldwide attention make them in awe of Dubai’s progressive capabilities. The hotel is among the most photographed structures in the world. The lodge is molded like a billowing sail and has the height of approximately 321 meters. The hotel stands illuminated during night times and is simply individual, motivated and remarkable. This all-suite hotel demonstrates the very very best that the world has to offer. The hotel’s highlights include conductible driven Rolls Royce, subtle in-suite check-in, private reception desk in each floor and a groupe of experienced butlers. These services and more assure clients of the greatest in personal service throughout their stay” [3].
Target Buyers
The profiles of the goal customers to get Burj Ing Arab are as follows: Tourists who participate in the high income group and are willing to spend reduced amount pertaining to luxury, personalized service and comfort. Their very own main goal is to appreciate leisure actions and/or searching. Business pros who value professional high end environments that enable those to keep in touch with the people all over the world while traveling. Families who have value living spaces giving excellent views with high class service, relaxation and entertainment. Tour groupings that benefit luxurious life styles and enjoy various types of activities and they are willing to pay reduced for it.
Buyer Value Idea
The customer benefit proposition of Burj ‘s Arab can be:
“Offers high class customer support coupled exceptional view, deluxe lifestyle, comfort and ease, entertainment and relaxation with their customers. Presents 202 spacious duplex rooms ranging from 170 to 780 square metre distances
Six prime signature restaurants
Center of world class conference and banqueting sites
In-suite check-in & check-out
Butler service around the clock
Helicopter transactions and scenic tours
Majlis ‘s Bahar unique private beach front
Unrestricted access to Wild Wadi Waterpark
Private yacht charter services” [7]
SWOT Analysis
SWOT Research is a strategic tool that allows business planners to study the performance with the company and analyze the market situation.
Strengths
Weaknesses
Opportunities
Threats
Popular brand image all over the world
Over dependence on China Government
Expand in other countries of the world
Declining progress rates inside the tourism industry
Support and patronage of Dubai Government
Charges quite high prices which usually limits these to a thin target market
Expand inside the Middle East region
Low demand due to the a result of the global financial disaster on the UAE market
Financial Strength
Invest in related services just like sightseeing services, restaurants, etc .
Distributed of the swine flu
Trained and customer centered staff
Risk of a terrorist attack in Middle East region
Excellent position
Only several star hotel in the world
Personalized service along with luxury and comfort
Porter’s Five Pressure Analysis
This section gives the Porter’s Five Push analysis the strategic application that the managing utilizes to examine the power and weaknesses of each and every force with the exterior environment with the company.
Risk of new traders
The lodge and its pregnancy was the thought of the Dubai Government who also launched that through the conglomerate Dubai Holding. Consequently , the hotel enjoys the support and patronage from the Dubai Federal government. Moreover, the Government also exercises control over the kind and label of hotels coming into the Syria market. Furthermore, entry in the UAE industry with a identical concept would require the competing company to make enormous investments in terms of area, view and promotion of the trademark image. Consequently , there exists a top entry obstacle for new companies which reduce the threat of recent entrants for the company.
Menace of substitutes
The only substitutes for you can actually products and services will be the five star resorts that aim matching similar level of encounter and customer support. This is mainly in terms of the service agreed to their package customers. These kinds of hotels aim attracting clients by offering extremely customer centered service and charging a much lower price when compared with Burj Approach Arab. Many customers receive attracted to these alternatives as they give value for money and personalized services. Examples of this kind of hotels are Emirates Palace, Atlantis etc . These hotels also have the advantage of offering a fantastic view. Therefore , the company encounters a high menace from these kinds of new entrants and should work towards communicating their particular Selling Idea to their consumers which tends to make them stand out against their very own recent rivals.
Bargaining benefits of suppliers
The suppliers in the hospitality sector do not have a higher bargaining electrical power as generally there exist a large number of companies providing the same varieties of products and services. Moreover, the companies happen to be financially much less powerful compared to the top hotels in the UAE market. Furthermore, these companies as well aim at getting associated with these top brands of hotels as that would improve to their company image. These types of factors stop the suppliers by exercising any kind of control over the present companies in the marketplace thereby reducing their bargaining power in front of the hotels.
Negotiating power of customers
The customers have the choice of selection between a wide variety of hotels in the Dubai marketplace. Moreover, excessive income persons are usually challenging in nature and have specific demands and expectations from companies. This makes it essential for corporations in the industry to analyze customer choices and demands and work towards fulfilling all of them. In fact good companies aim at understanding buyer demand could the customer is aware of the need him self. The customers through this industry consume a high bargaining power and enjoying the capability to influence changes. Therefore , the luxury hotels in the market offer high goal to the customer and constantly work at pleasing them.
Competitive competition within the industry
There exists a solid competitive rivalry between the corporations in the hospitality industry. Difficulties competitors of Burj Al Arab will be Atlantis Hand Jumeirah, Emirates Tower Hotel, The Fairmont Dubai, Approach Qasr Madinat Jumeirah, The Address Down-town Burj Lebanon and Grand Hyatt China. These accommodations have exceptional locations and work towards giving world class service to their customers with the aim of increasing a customer commitment and a greater market share. Burj Al Arab should work at establishing an exclusive place or position on the market and in the eyes in the customers to be able to stand out from your competition. The company also need to be alert against any kind of new rivals entering the marketplace. The pushes operating in the surroundings are advantageous for the organization. However , the business should give attention to adopting tactics that would enable them to better deal with all their competitors.
Competitors
The major competitors of Burj ‘s Arab happen to be as follows:
“Atlantis Hands Jumeirah – The lodge has the talents of excellent watch, architecture and splendid support. The resort comprises of one particular, 373 visitor rooms in addition to a separate 166 suites. The rooms uses oceanic and Arabic influence” [1]. “Emirates Tower Hotel – Jumeirah Emirates Towers is a city way of life destination beyond compare. Set in the heart of Dubai alongside Sheikh Zayed Road, a few momemts walk through the Dubai Local area Station and just a short drive away from excellent beaches, this kind of established landmark encompasses a totally integrated elegant business resort with substantial octane luxury setting the scene with 400 roomy rooms and suites, paired with creative getting together with and business facilities” [8].
“The Address The downtown area Burj Syria – Positioned in the happening heart of Downtown Burj Dubai, the hotel has got the world’s tallest tower, Burj Dubai as well as the stunning Syria Fountain upon its doorstep and is outfitted by Dubai Mall, the world’s major shopping and entertainment middle. The Talk about Downtown Burj Dubai discloses a new fine art in providing service and comfort, in which every guest’s stay is definitely treated while an individual encounter. A combination of outstanding facilities and superlative attention to detail can make it the premier lifestyle place to go for international holidaymakers. Standing an extraordinary 63 storeys high and featuring 196 lavish areas and 626 serviced houses, The Addresses offers an comprehensive range of fabulous experiences, modern day meeting and event spots, a personal Spa, a fully equipped Health Centre, chilled pools and indulgent features and services” [9].
Strategies to be adopted to outlive the turmoil
The company should adopt the next strategies to preserve their success and market share in the Lebanon market: Costs Strategy – Burj ‘s Arab should revise all their pricing strategy by which includes further products and services in their packages. The reason is , the motel cannot lessen their rates as it might have got a negative influence on the brand picture of the company. The organization should work at offering more appeal for money with their customers since this would behave as an incentive to people in times of financial crisis. For example , the hotel consist of spa services in the room rates for a limited period of time. Promo Strategy – Burj Approach Arab will need to modify their very own promotion strategy whereby they have to offer product bundle promotions to their consumers. The company ought to avoid giving price special offers as this might negatively affect the image of the business. The company may offer promotions depending on the usage of their services where more consumption will result in even more benefits.
For instance , the company can provide free lunch to buyers who happen to be staying a minimum of 3 nights at the hotel. Innovative products and services – Burj Al Arab should certainly work towards offering innovative products and services to their customers as this may add worth to the current product and assistance portfolio proposed by the hotel. This would catch the attention of customers towards hotel and enhance their preference with the motel in comparison with the other fresh hotels that contain recently arise. For example , in the event the hotel starts off offering the services of dermatologists more customers may be likely to choose Burj Al Arab more than Atlantis or perhaps other competitors. Target new customer sectors – Burj Al Arabic should work at targeting fresh customer segments from different parts of the world. This can be created by targeting people from countries where the monetary impact from the global financial crisis is actually not much.
They need to work towards aimed towards business business owners and excessive net worth individuals. This would allow the hotel to get access to a new group of customers which would permit them to keep their standard of profitability and their market share inside the time of turmoil. The lodge should work towards maintaining their level of profitability and market shares when compared with peak profitability levels in 2007. Enhance new services – Burj Al Arabic should also work at promoting their particular other services like seminar rooms, organization halls, etc . The resort should liaise with exhibition and event organizers whom usually travel and leisure in groupings. This would likewise give the motel the opportunity to access the customer basic of these businesses. The company might therefore manage to expand their particular operations, enhance their profitability and increase their business by focusing on exhibitors and business representatives who would utilize other companies offered by the hotel.
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