Strategic Management

Ibis

Content

Part 1 General Information of Ibis Huamark HotelBackground – Accor Group Location Major Product and Service

2Part Ibis Huamark Hotel Business DescriptionVision & Mission Market Segmentation Marketing mix

3Part A AAAAAAA OT/SW Analysis Fi ve For ces Anal ysi s

3Gener i c St r at egi es Matrix Analysis Firm’s Capabilities

4Part Recommendation

5Part Conclusion

Part 1 General Information of Ibis Huamark Bangkok Hotel

Background – Accor Group

2347 hotels

1186 hotels

169 hotels

160 hotels

153 hotels

135 hotels

21 hotels

Hotel Brands – Accor Group

Etapibis

All seasonsSuitehotel

Mercure

Novotel

Sofitel

Location

Concept Comfortable, reli

able and afforda ble!

Simple Ibis, thin k Ibis!

iCafe Meeting Room Swimming Pool Bar

Standard Room Superior Room

Major Product and Service

Part 2 Ibis Huamark Hotel Business Description

Business planning

Vision

Mission

Core competency

value of money cleanness of

rooms Competitive Advantage

strong distribution channels & brand

value

Market Segmentation

Business Individual

Business Group

Leisure Individual

Leisure Group

1 . Thailand 32%2. Japan 11%3. Malaysia 8%4. Taiwan 6%5. Singapore4%

1 . Thailand 90%2 . U.S.A3. Singapore

1 . Thailand 24%2 . U.S.A 10%3 . Singapore5%4 . Australia 4%5. Korea 4%1 . China

30%2 . Korea

25%3 . Taiwan 20%4 . India

10%5. Hong Kong

5%

Total Market1 . China

21%2 . Korea

18%3 . Taiwan 14%4 . Thailand 13%5 . India

7%

Marketing mix

Distribution 1. P owerful inter

net booking s yst em

2 . direct contract to oversea agents

Promotion The first booker gets the cheapest rate.Cooperated with All Season Hotel Pattaya Accor members

Price

FIT 2200Baht BI 1500BahtBG 1300BahtLI 1200BahtLG 800Baht

Part 3 Analysis

A AAAAAAAAAAAAT o gain more market sh

are due to the location a nd brand value

Strategy B uild better CRM

OT

Threats More number of new hot

elsSubstitute Unstable political situation

Strategy Travel agent preferenceBuild better CRM

SW

StrengthCleanliness CRMBrand Value of AccorValue of moneyPrompt replyAttractive packages and better relationship

Strategy Maintain and improve 1 5minutes service guaran

t ee Continuous training

Continuous employee motivation

WeaknessLobby / breakfast area L

imitation Small Meeting Room

Swimming Pool Lack of Twin rooms to fe

ed travel agents’ needs Strategy

Increase the size of the l obby, meeting room and

swimming pool Increase the number of t

win rooms

New Entrants Barrier – Low

Hotel operating license

Capital requirement

Building distribution network

Human resource requirement

Porter’s Five Forces Analysis

Rivalry A AAA–

Many Competitors

Exit barrier

Bargaining Power of Suppliers – Low

M any suppliers

Switching cost of suppliers

Bargaining Power of Buyers – High

Switching cost

Advance technology

Substitutes – Low

Readily available and attractive priced

Not comparable

Switching Cost

Pros

Cons

3 Generic Strategies

Matrix Analysis

Novotel

Maxx

Ibis

Alexande

A

DynastA

Royal Pacific

Novotel Suvarnahumi - biggest competitor in leisure FIT market

L ocation, airport hotel

U sing same marketing channel(Accor group we

bsite)

N ovotel has stronger br and awareness.

S tay over one or two ni ght, there is not an absol

utely amount of cost sav ing compare from these two hotels.

Novotel

DynastA

Royal Pacific

Ibis

Alexande

A

Maxx

FIT R

ate

market share(%focus on leisure FIT)

Price is important for FIT or not

FIT didn’t care about little difference of price much

Novotel

DynastA Royal Pacifi

c

Ibis

Alexande

A

MaxxServ

ice Q

ualit

y

market share(%focus on leisure FIT)

Service Quality is important for FIT or not

Service quality is important for FIT guest.

Novotel

Royal Pacific

Ibis

Alexande

A

MaxxServ

ice Q

ualit

y

FIT Rate

Value of FIT guest

Ibis has much better Value compare to other competitors.

DynastA

Novotel

Royal Pacific

Ibis

Maxx

Gro

up (

sam

e s

ize)

rate

market share (%focus on leisure group)

Price is important for group or not

Price is a very sensitive factor of travel agent

DynastA

Alexande

A

Novotel

Royal Pacific

Ibis

MaxxServ

ice q

ualit

y

market share (%focus on leisure group)

Service Quality is important for group or not

Service quality is not a big issue of Leisure group market.

DynastA

Alexande

A

Novotel

Royal Pacific

Ibis

Alexande

A

MaxxServ

ice Q

ualit

y

Leisure Group Rate

Value of leisure group guest

Ibis has much better Value compare to other competitors, which seems like not necessary for this market.

DynastA

Novotel

Royal Pacific

Ibis

Maxx

Chin

ese

mark

et

Ownership/management independent

Who will prefer Chinese more

Ibis is not really suitable in this particular market

DynastA

Alexande

A

Novotel

Royal Pacific

Maxx

Bra

nd V

alu

e

market share (%focus on leisure group)

Strong brand should focus more on group sales or not

The brand value does not have big influence of travel agents, which is strength of Ibis. However, as we know, more than 60% of their business is Leisure Group.

DynastA

Alexande

A

Ibis

Novotel

Royal Pacific

MaxxTh

ai people

rate

- f

ore

ign r

ate

market segment(%focus on corporate group)

How profitable of Thai guests

Ibis set a big gap between Thai guest rate and foreign guest rate.

Government officer

Slow down cash flow

DynastA

Alexande

A

Ibis

Novotel

Royal Pacific

Inte

rnati

onal aw

are

ness

market share (%focus on leisure FIT)

How the international awareness help the leisure individual market

Ibis has a definitely higher International awareness than other hotels. They have big potentials to develop Leisure individual market.

DynastA

Alexande

A

Ibis

Maxx

Ibis hotel relies too much on Chinese tour groups to occupy their occupation

Ibis hotel has higher service quality, guest satisfaction and strong bra nd value compare to other hotels.

Ibis needs put more tactics to focus on FIT leisure travelers.

Matrix Conclusion

Analyzing the Firm’s Capabilities

AAAAAAAAAA A AAAA

Value chain

A AAAAA AAAAAA

FinanceSCM Marketing AAAAA&

Operations CRM &Services

Value chain

Ibis out sources food & beverage as well as laundry as a result majo

r part of the supply chain is cut down. Hence the supply chain of Ibi s is very small.

Ibis revenue is around 5 to 7 million per month. There are no cash fl ow problems faced by Ibis unlike certain other hotels of the same st

andard. They may take less risk to develop the government officer market which may slow down the cash flow.

W ord of mouthM aintain a personal relationship with the customersM aintain good relationship with the agents. Strong Brand Value

People and companies are able to book their reservations via the in ternet.

The employees are trained well hence the error is less than 1 %.

T he best value for money as well as for its cleanliness.S ervice guarantee 15minutes

On Thursdays it is set aside to handle the major complaints. Ibis keeps in contact with the guests in order to retain their custom ers.

Value Chain

AAAAAAAAAA A AAAA

Functional Areas

Corporate Management

Information Management

Sales and Distribution

Promotion

A AAAAA AAAAAA

Benchmarking

Need improvement SCM – They can make standard process

Lobby – Extend space, Ibis may use indoor car parking areas to enlarge its lobby space

F irms that are known to be at the leading e dge of these functions

Royal City Hotel, Royal River Hotel

Part 4 Recommendation

F ocus more on business segment and individual traveler

E nlarge the lobby space

C hange the room design

O ne click Ibis service

Recommendation

Part 5 Conclusion

Q & A