Missouri Flats Inn Using Porter's Five Forces Model
Project 1 Paper
Project 1 Paper The horizontal fracking of shale oil and natural gas has created a new era of prosperity for business owners in small towns across America, largely due to the influx of oil-related business in the area. Williston, North Dakota is one such town, and the recent oil boom has created a surge in demand for housing as oil workers flock to the area. The Missouri Flats Inn is a hotel located in Williston that has been there since it all began, and as a result has been profiting handsomely. But, does the hotel have a business strategy that will help it to survive and prosper as the market evolves and new competition increases? The following is an analysis of the Missouri Flats Inn using Porter’s Five …show more content…
The relative strength of these forces determines the ultimate profit potential of a business within an industry. Whatever their relative strength, Missouri Flats ownership’s goal should be to find a position in the industry where the hotel can best defend itself against these forces or can influence them in its favor.
Buyer & Supplier Power Currently the Missouri Flats Inn has a favorable position where buyer power is low and supplier power is high. Supply has not kept up with demand for housing in the area, and, as a result, the Missouri Flats Inn enjoys work week occupancy rates near 100 percent on a regular basis. The Missouri Flats Inn has also been able to keep average room rates stable and even increased them 8 percent over last year despite the fact that they offer an inferior product when compared with newer hotels in the area.
Threat of substitute products or …show more content…
Currently there are 9 to 12 flag properties in the process of securing land and building new hotels in and around Williston. With the increase in competition, the average room rates for newer hotels will most likely come down, putting pressure on the Missouri Flats Inn to either improve their product or reduce rates in order to compete.
Rivalry among existing competitors Rivalry between the existing competitors in the hotel industry is usually very high. However, with the supply and demand situation that exists in Williston, rivalry is not having a strong effect on the Missouri Flats Inn. With demand for rooms high and supply on the low side, occupancy rates and average room rates are high and very stable. As new hotels are built and the supply of rooms meets demand, rivalry will begin to have a more pronounced effect and the Missouri Flats Inn will have to improve its product in order to compete.
Value Processes
Project 1 Paper The horizontal fracking of shale oil and natural gas has created a new era of prosperity for business owners in small towns across America, largely due to the influx of oil-related business in the area. Williston, North Dakota is one such town, and the recent oil boom has created a surge in demand for housing as oil workers flock to the area. The Missouri Flats Inn is a hotel located in Williston that has been there since it all began, and as a result has been profiting handsomely. But, does the hotel have a business strategy that will help it to survive and prosper as the market evolves and new competition increases? The following is an analysis of the Missouri Flats Inn using Porter’s Five …show more content…
The relative strength of these forces determines the ultimate profit potential of a business within an industry. Whatever their relative strength, Missouri Flats ownership’s goal should be to find a position in the industry where the hotel can best defend itself against these forces or can influence them in its favor.
Buyer & Supplier Power Currently the Missouri Flats Inn has a favorable position where buyer power is low and supplier power is high. Supply has not kept up with demand for housing in the area, and, as a result, the Missouri Flats Inn enjoys work week occupancy rates near 100 percent on a regular basis. The Missouri Flats Inn has also been able to keep average room rates stable and even increased them 8 percent over last year despite the fact that they offer an inferior product when compared with newer hotels in the area.
Threat of substitute products or …show more content…
Currently there are 9 to 12 flag properties in the process of securing land and building new hotels in and around Williston. With the increase in competition, the average room rates for newer hotels will most likely come down, putting pressure on the Missouri Flats Inn to either improve their product or reduce rates in order to compete.
Rivalry among existing competitors Rivalry between the existing competitors in the hotel industry is usually very high. However, with the supply and demand situation that exists in Williston, rivalry is not having a strong effect on the Missouri Flats Inn. With demand for rooms high and supply on the low side, occupancy rates and average room rates are high and very stable. As new hotels are built and the supply of rooms meets demand, rivalry will begin to have a more pronounced effect and the Missouri Flats Inn will have to improve its product in order to compete.
Value Processes