Tuesday, May 14, 2019

Kempinski Hotels in United Arab Emirates Essay Example | Topics and Well Written Essays - 1250 words

Kempinski Hotels in United Arab Emirates - Essay ExampleAt the moment the Kempinski Hotel of Ajman is in its growth menstruation and it is expected that it will soon reach its zenith in the hospitality industry. (Sen, 448-50)2) It is always difficult to enter whatever industry and the hospitality industry in UAE was no different. However with proper execution of five forces it becomes logically viable for a new company enter into a specified market Michael Porter in his famous idea of the Five Forces condenses his theory regarding the 5 separate forces, which, according to him, influence any devoted industry. These forces include the force of Rivalry, rampant between all the firms in the industry. Threat of substitutes is another force i.e. the curse comprise by outside harvest-homes which do not belong to the same industry as the product it tends to threaten. Buyer Power Barriers is another which, if high, buttocks even set the price for things available in the market. The c ontiguous one is the Supplier Power which, if high, can even bite of a good chunk of the manufacturers addition by simply supplying raw materials at a higher price. The last one is the Barriers to Entry, which is the teaching key in the hands of the old firms to keep new firms from entering the market.Porters five forces train a new competitor to scrutinize these 5 important forces before taking decisions pertaining to strategies your firm might be keen to pursue. Porter is quick to provide antidotes to deal with each of the force he so carefully describes. To combat either of the forces he outlines 3 different types of strategies the corporate direct strategy, the business unit level strategy and the functional or departmental level strategy. These strategies ought to be utilized for successfully confronting and overpowering the problems posed by any of the 5 forces he outlines. From the parameter of the paper it could be stated that Kempinski Hotels did exactly this and there of the entry was made possible with comparative smoothness. 3) In the context of hospitality industry in UAE it can be stated that the Kempinski Hotels made a late movement into the market of UAE. It is a certainty that the maiden movers enjoy a considerable advantage of over the late movers and in this case hotels like Marco Polo Hotel, millenary Hotel, Landmark Suites Hotel, Lotus Grand Hotel and Rimal Rotana all penetrated the UAE hospitality market on an earlier date than the Kempinski Hotels. However, with their defacement equity of the mother concern and with the incorporation of the effective business strategies the Kempinski Hotels compromised the disadvantages of late entry and came out as winners in the long term. (King, 34-5)4) Kempinski Hotels started their campaigns in UAE in a high note. Like all successful organizations they followed the raceway of strategic management and became successful. With the boom of tourism industry in UAE it was logical that there would b e a heady demand for accommodation and thus the market can be stated as soundly secured. It has been reported that the average room occupancy in 5 and 6 star hotels range from 75% to 90% which is extremely high under all conditions. Under such circumstances it would relevant to evoke that the basics of the product are already well positioned as the Kempinski Hot

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