Entry Mode: Wholly owned subsidiary

In the hotel industry, the necessity for close and personal interaction enhances the importance of cultural distance. In order to overcome cultural distance, it is suggested a greater emphasis on effective communication skills and workforce training (Lean-Darder, et al., 2010). Furthermore, there are relatively low levels of political and economic instability in French Polynesia, which also indicates a preferable strict method of control. This type of market entry mode is characterized by a good image of the company on the local market as well as the highest potential profitability (Wach, 2014). Furthermore, having analysed the country attractiveness and competitive strength of the company, the mentioned entry mode is considered the most appropriate. Hence, Taj Hotel would buy land on the island of Bora Bora in order to build a new hotel. This requires an authorization permit (issued by a “notary”) from the government of French Polynesia, which most likely to approve a hotel/resort investment, as it would crate good employment possibilities for locals (Bora Bora, 2017)

Market Entry Report TAJ Hotels, Resorts and Palaces

Taj Hotels Resorts and Palaces (THRP) is one of the oldest Tata brands in the hospitality sector in India. Currently, it operates in 10 countries through three distinctive brands: Taj, Vivanta and The Gateway. Each of them targets different market segment and has a considerably different positioning. This report will be an extensive analysis of the market of French Polynesia (Bora Bora) for THRP to expand its operations in. The market environment and competition of the market will be first analysed. What is more, further considerations such as entry mode, segmentation, targeting and positioning, pricing and logistics will be also analysed in order to give a full picture of the new potential foreign market.

Market Entry

In order to decide on a form of entry to the foreign market, a BCG Attractiveness- Competitiveness Matrix was applied. Dimensions of Country Attractiveness and Competitive Strength Country Attractiveness ● Value of International Tourism (receipts) was $510,000,000 as of 2014 (Index Mundi, 2016) ● Market Growth - Annual growth of 8.1% for the number of tourists arrived in the last year, thus the market value has most probably increased as well, however there is no data to confirm (Index Mundi, 2018). ● Market Potential Index - 32 as of 2017 (Global Edge, 2017). ● Luxury hotel rooms have the highest average filling factor of 66.2% as of 2014 (ISPF, 2015). 8 Competitive Strength of the Company ● Brand Recognition - a well-known brand, existing in 10 countries (Taj Hotels) ● Customer Loyalty - offers a wide variety of customer loyalty programmes that provide great benefits (Taj Hotels) ● Service Uniqueness - moderate uniqueness comparedto other hotels’ offerings.

EXTERNAL ANALYSIS

Economical ● Willingness to pay: An increase in the quantity bought and price continuously rising, have resulted in growth in the amount spent at 10.7% in the sector (ONS, 2017a). ● Consumers decided to save money where possible, seeking out bargains online and in store (Euromonitor International, 2017). ● Pound’s exchange rate has fallen slightly and remains significantly below its prior level (Bank of England, 2017) ○ Leaving UK citizens with a weaker buying power; ○ Causing increase in sourcing costs. ● As pound is weaker than other currencies, tourists can afford to spend more in the UK (Weinswig, 2016). Social ● Growing population: “In 2016 it was 65.6 million, its largest ever and it is projected to reach 74 million by 2039” (ONS, 2017b). ● Ageing population: In 2016, 18% of people were aged 65 and over (ONS, 2017b). ● Business Ethics - Socially Responsible Supply Chain regulations for sustainable business: ○ Ensure good working conditions in all garment factories; ○ Use sustainably grown materials.

Applying Marketing Concepts Analysis

The analysis also discussed recommendations which include focusing on Massimo Dutti as the high-end concept of the brand is not as developed as the fast-fashion one - Zara. The report also investigated some of the limitations of the analysis, which include the fact that only secondary data collection has been conducted, therefore a further research could be carried out using primary data.

This report was commissioned to examine Inditex’s marketing strategy in terms of its activities within the UK market. The analysis involved comprehensive secondary research by reviewing wide variety of academic and non-academic sources as well as using a range of marketing tools and concepts in order to evaluate the information collected. The research started by looking at the group’s external environment, where it was found that certain factors affect customers’ buying power such as the occurrence of Brexit, which also caused the pound’s exchange rate decline. In addition, the competition analysis drew attention to the fact that although, Inditex’s market share in the UK is relatively low, its financial performance is better than most of its competitors. Furthermore, despite the high level of competition in the industry, it was found that Inditex has an advantage over its rivals due to its ability to target diverse segments throughout its distinctive brands. Moreover, the internal analysis of the organization revealed that Zara is the concept that contributes the highest levels to the overall income of the group, which is not surprising as that is the brand with the most stores worldwide (2 236). Additionally, the Marketing Mix analysis showed that Zara, Bershka and Stradivarius are the most successful brands being identified as the “Cash Cows” according to the BCG Matrix. Furthermore, Inditex’s distribution strategy turned out to be slightly different compared to its rivals, having most of its factories located in Spain instead of Asia. In terms of price, it was revealed that although Zara’s concept underlies on offering high quality garments at affordable price, if compared to its main rivals, its prices are relatively higher.

Report on Strategic Analysis of Airbnb

This report analyzed Airbnb in terms of its Strategic Management. An extensive study was conducted in order to analyze Airbnb’s strategies on competitive and corporate level. Beginning with an analysis of the external environment, the PESTLE framework was applied to the hospitality industry in the UK. It suggested that Brexit affected tourism positively, while the considerably low pond’s exchange rate enables visitors to spend more.

Ansoff’s Matrix.

There was evident of all four strategies, two of which were further analysed – Market Penetration and Market Development, as it is believed they are core in Airbnb’s Growth Strategy.

SAF Module Evaluation

In terms of future strategies, after using the SAF model to evaluate them, it was recommended Airbnb sustains its Growth Strategy through Market Penetration and Market Development. At last, the leadership style was identified as transformational, according to Airbnb’s CEO statements. Although, it was recommended the organisation focuses on Gender Diversity and Hosts Discrimination issues, its Corporate Social Responsibility (CSR) considers its obligations to the society through a variety of programs.

Resource Based View of the Company (RBV),

Followed an internal environment analysis through The Resource Based View of the Company (RBV), where Airbnb’s recourse and capabilities were broadly examined. Some of them include the innovativeness of services and the ability to hire, motivate and retain human capital. Furthermore, competitive-level strategies were analysed, it was evident that Airbnb has entered the “Blue Ocean” market, making the competition in the hospitality industry irrelevant. Further study, examined how Airbnb has created Value Innovation by eliminating the main factor in the hospitality industry – property ownership and creating the trend for a “live like a local” experience when travel. This enabled the organization to adopt both Cost Leadership and Differentiation strategies as sources of competitive advantage.

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