Presentation onStrategy Formulation and

ImplementationHospitality Sector

(Taj Hotel and oberoi hotel)

Submitted To:- Submitted By:-Prof. Harish C. Jain Kanak Kumari Romana Aftab Anshu Aggarwal Heena Kumari

CONTENT

• INTRODUCTION OF HOTEL INDUSTRY

• INTRODUCTION OF TAJ HOTEL

• INTRODUCTION OF OBEROI HOTELS.

• PEST ANALYSIS

• PORTER,S FIVE FORCES MODEL

• GENERIC STRATEGY

• COMPETITIVE STRATEGY

• CRITICAL APPRAISAL

VIEW OF HOTEL INDUSTRY

• What is Hotel Industry?

“A Building Where Travelers Can Pay for Lodging and Meals and Other Services”

Objectives of Hotel IndustryCustomer SatisfactionHealthSafety EnvironmentTo Promote Tourism

Challenges for Hotel Industry

1. Shortage of skilled employees

2. Retaining quality workforce

3. Shortage of rooms

4. Intense competition

5. Customer expectations

Taj hotel in Mumbai

INTRODUCTION OF TAJ HOTEL

• It was founded by Jamshedji N. Tata on December16, 1903.

• Currently the Taj Hotels Resorts and Palaces comprises 57 hotels at 40 locations across India

• The Taj hotels are categorized as luxury, leisure and business hotels.

• The Taj Leisure Hotels offer a complete holiday package that can be enjoyed with the whole family.

Cont………. The Taj Luxury Hotels offer a wide range of luxurious suites with modern

fitness centers, rejuvenating spas, and well-equipped banquet and meeting facilities.

It provides exciting activities ranging from sports, culture, environment, adventure, music, and entertainment.

The Taj Business Hotels provide the finest standards of hospitality, which helps the business trips to be productive.

They offer well-appointed rooms, telecommunication facilities, efficient service, specialty restaurants and lively bars, well-equipped business centres, and other conference facilities.

Oberoi Hotels & Resorts

• The Oberoi Group, founded in 1934.

• It operates 29 hotels across five countries, one Nile Cruiser and one Backwater Vessel in Kerala under the luxury ‘Oberoi’ and five-star ‘Trident’ brands.

• The Group is also engaged in flight catering, airport restaurants, travel and tour services, car rentals, project management and corporate air charters.

• A distinctive feature of The Group’s hotels is their highly motivated and well trained staff that provides exceptionally attentive, personalized and warm service.

PEST Analysis

• Political:

– Tighter drink/drive laws may discourage local custom using restaurant.

– Disability discrimination act.

– Employment law (eg. Minimum wage, hour of work etc)

• Economical:

– Possible recession

– Unfavorable currency rates

• Social:

– Ageing population (more people with more leisure time)

– Country side not as ‘exciting’ as a city break

• Technological:

– Teleconferencing/ web cams

– Internet a key, fast growing avenue for advertising

Porter’s five force Model

TAJ GROUP OF HOTELS AND OBERI GROUP OF HOTELS GENERIC STRATEGIES

• Differentiation of Taj Hotel

– Cost Leadership

– Differentiation

– Focus

• DIFFERENTIATION OF OBEROI

– Notable

– Vertical Integration

– Cruises and Spas

– Environmental Protection

– Internal Control Systems and Risk Management

TAJ GROUP OF HOTELS AND OBEROI GROUP OF HOTELS COMPETITIVE STRATEGY

• TAJ Hotel follow Proactive strategy and Oberoi Hotel follow the responsive strategy

• TAJ Hotel decided to follow a sub-branded strategy and TAJ Group also plans to use its Gateway brand to bolster up the budget hotel segment

• In a similar move, the Oberoi Group has removed the Oberoi brand names from six of its hotels which are not luxury hotels.

TAJ GROUP OF HOTELS AND OBEROI GROUP OF HOTELS COMPETITIVE STRATEGY

• Current Strategy of TAJ Hotel is opening one hotel every six weeks for the last decade

• Current Strategy of Oberoi Hotel are now focusing on intra-India corporate travel and re-strategising to drive growth in that business

• Oberoi Hotel are strengthening their presence with properties in Dubai, Abu Dhabi, Oman and some Indian city

TAJ GROUP OF HOTELS AND OBEROI GROUP OF HOTELS CRITICAL APPRAISAL

• Taj is serving its customers to its best and it is able to achieve 5-star ratings from a long period.

• Taj can improve in the area of system as system of an organization can also be its core competency and it can also serve better if the internal system is good

• Oberoi Hotel can continuing to differentiate from their competitors by offering added value to their guest.