Starwood Case Study
Identification of Case problem
Since India has a growing hospitality market they don’t have as many resources available which poses many problems for entrants into the market. Starwood plans to introduce the aloft brand into the untapped Indian hospitality market which creates a huge question mark as to whether or not there is a market in India for the economy brands. The skilled labour market is very slim in India, making it difficult to hire the right type of service oriented employees. The cultural differences will also prove to be a challenge for Aloft.
Aloft is a brand that isn’t well known throughout the international market let alone the domestic markets in the United States and Canada. Many people traveling to India who are traveling internationally will be looking for brands that are familiar which may pose a threat to the success of the Aloft brand in India.
Situational Analysis
Strengths
India offers huge demand for any hotel company looking to build rooms. The domestic market is growing exponentially and the government is replying by fixing roads to make travel easier (Simona Terron).
Weaknesses
Finding skilled labour has shown to be difficult in India and the adjustment to more westernized businesses will prove to be a challenge for locals. The infrastructure in India is still pretty bad even though the government is trying to fix the roads. Domestic travelers are used to the roads but foreign travelers will find it very difficult to navigate through the cities. India’s social unrest will be a hurdle that must be overcome in order to stabilize the economy as a whole. If the government isn’t strong, foreign travelers will steer clear of India.
Opportunities
The open sky policy created in 2008 opened up travel from India to the UK. The sky travel industry has grown 25 %, creating a huge opportunity for the service industry in India (The Financial Express).
Threats
While India is growing, there are many other companies that want to ride
Since India has a growing hospitality market they don’t have as many resources available which poses many problems for entrants into the market. Starwood plans to introduce the aloft brand into the untapped Indian hospitality market which creates a huge question mark as to whether or not there is a market in India for the economy brands. The skilled labour market is very slim in India, making it difficult to hire the right type of service oriented employees. The cultural differences will also prove to be a challenge for Aloft.
Aloft is a brand that isn’t well known throughout the international market let alone the domestic markets in the United States and Canada. Many people traveling to India who are traveling internationally will be looking for brands that are familiar which may pose a threat to the success of the Aloft brand in India.
Situational Analysis
Strengths
India offers huge demand for any hotel company looking to build rooms. The domestic market is growing exponentially and the government is replying by fixing roads to make travel easier (Simona Terron).
Weaknesses
Finding skilled labour has shown to be difficult in India and the adjustment to more westernized businesses will prove to be a challenge for locals. The infrastructure in India is still pretty bad even though the government is trying to fix the roads. Domestic travelers are used to the roads but foreign travelers will find it very difficult to navigate through the cities. India’s social unrest will be a hurdle that must be overcome in order to stabilize the economy as a whole. If the government isn’t strong, foreign travelers will steer clear of India.
Opportunities
The open sky policy created in 2008 opened up travel from India to the UK. The sky travel industry has grown 25 %, creating a huge opportunity for the service industry in India (The Financial Express).
Threats
While India is growing, there are many other companies that want to ride
Cited: Simona Terron. (n.d.). Hotelier India. Retrieved March 11, 2011, from Trendwatch 2011: http://www.hotelierindia.com/article-10424-trendwatch_2011/1/ The Financial Express. (n.d.). The Financial Express. Retrieved March 11, 2011, from India for open sky policy with the US: http://www.financialexpress.com/news/india-for-open-sky-policy-with-uk/314249/2