This report will evaluate strategies of InterContinental Hotels Group (IHG) in China and how they rose to being the biggest and most successful hotel operator in China. What strategies were formed and implemented to get to position. Then this report proceeds to define strategy and apply the SWOT, Porter’s diamond forces model and Porter’s five forces to IHG in China.
2.1 Company Profile – InterContinental Hotels Group
InterContinental Hotel’s Group is one of the world’s leading hotel companies having 679000 in over 4,600 hotels in nearly 100 countries and territories around the world. IHG operates nine brands which are InterContinental Hotels & Resorts, Crown Plaza Hotels & Resorts, Hotel Indigo, Holiday Inn Hotels & Resorts, Holiday Inn Express, Staybridge Suites Hotels, Candlewood Suites Hotels, EVEN Hotels and HUALUXE Hotels. This portfolio includes everything from luxurious upscale hotels in the world’s major cities and resorts to reliable family oriented hotels offering great service and value. So guests travelling for business or leisure, honeymoon or a family holiday, IHG will have a hotel that 's right for them.
2.1.1 Goal: To grow by making their brands the first choice for guests and hotel owners
2.1.2 Strategy: To build the hotel industry’s strongest operating system focused on the biggest markets and segments where scale really counts.
2.1.3 Operating System: IHG 's operating system is made up of all the things they do to drive demand for their brands. This report will look at this in the next section.
2.2 Driving Demand
This includes;
Hotel distribution: 4,600 hotels in nearly 100 countries and territories around the world. When people travel, they look for familiar brands they know from home, increasing the demand for hotels that operate under their brands around the world.
IHG’s Advertising and marketing campaigns: Annual fund totalling $1.2bn through a central fund where their franchisees pay a fee into, used on their