industry analysis
Industry Analysis
Before starting a new business, it’s important to do a several research about the industry, in which we would like to enter. The principal things at which we need to have a look are: entry barriers, supply and distribution, technological factors, seasonality, economic influences and regulatory issues.
Entry barriers
The initial investment in the hotel industry creates quite a barrier to entry but certain barriers to entering the hotel market are reduced by the internet. A presence on the internet reduces upstart marketing costs somewhat, and gives the new competitor access to potential suppliers and resources.
A vital barrier would be differentiation. A hotel that can differential itself by location, by service, amenities or some other quality has the potential to attract and keep its clients. Another barrier to entry would be expertise. Unfortunately, in a mobile society employees frequently leave one hotel chain to work in another and they take that expertise in terms of training or of experience with them. It is in the areas of expertise and of differentiation that a hotel can make the greatest impact on its client and thereby on its bottom line. In fact many established companies have synergies between their established business and online technology.
There are not other major barriers to starting an hotel. We can lease an establishment, which is quicker and more affordable than buying and setting up a new establishment.
We don't need formal qualifications to run an hotel business but experience and training in accommodation and hospitality are very useful. Also, we only need licences if our establishment will serve food or liquor, or will have gaming machines. We may need to meet a number of licensing and registration regulations depending on our hotel operations.
Before starting a new business, it’s important to do a several research about the industry, in which we would like to enter. The principal things at which we need to have a look are: entry barriers, supply and distribution, technological factors, seasonality, economic influences and regulatory issues.
Entry barriers
The initial investment in the hotel industry creates quite a barrier to entry but certain barriers to entering the hotel market are reduced by the internet. A presence on the internet reduces upstart marketing costs somewhat, and gives the new competitor access to potential suppliers and resources.
A vital barrier would be differentiation. A hotel that can differential itself by location, by service, amenities or some other quality has the potential to attract and keep its clients. Another barrier to entry would be expertise. Unfortunately, in a mobile society employees frequently leave one hotel chain to work in another and they take that expertise in terms of training or of experience with them. It is in the areas of expertise and of differentiation that a hotel can make the greatest impact on its client and thereby on its bottom line. In fact many established companies have synergies between their established business and online technology.
There are not other major barriers to starting an hotel. We can lease an establishment, which is quicker and more affordable than buying and setting up a new establishment.
We don't need formal qualifications to run an hotel business but experience and training in accommodation and hospitality are very useful. Also, we only need licences if our establishment will serve food or liquor, or will have gaming machines. We may need to meet a number of licensing and registration regulations depending on our hotel operations.