VRIO Analysis of McHotel
McKinsey’s 7S analysis of McHotel
This analysis will help in exploring the major 7 elements of McHotel operations and therefore, will provide the idea about the internal environment of the company.
Five forces analysis helps in evaluating the external environment and the competitive forces that may significantly influence the operations of the company. These five forces are listed below –
It can be concluded from the Porter’s five force analysis that there is intense competition in the market because of low switching cost and large availability of substitutes. In case of Hotels, the fixed cost in relation to the maintenance of rooms is very high affecting the profitability of the firm. In house development of McDonalds in McHotel will helps in restoring the income at a high amount. Moreover, arranging various types of conferences, seminars and exhibitions will help in fetching continuous income in the form of rents. It can also undertake planning to develop a shopping complex that includes the shops for beauty and health treatment shops will help in achieving greater amount of income. It must ensure attractive location for the construction of hotels in different regions that can be easily accessed and helps in providing high quality services to its customers.
Porter’s generic strategy analysis of McHotel
As per the generic strategy model of Porter, organizations are available with the three basic strategy options that may help the firm in achieving competitive advantage, namely, cost leadership, focus and differentiation (Islami et al. 2020). Organization that follow cost leadership strategy can achieve advantage in the form of rise in market share by offering products and services at lower prices. On the other hand, organizations can achieve profits by differentiating its products from the other rival firms.
Ansoff matrix analysis of McHotel
This analysis concentrates on current situation of the company, its products and markets. It takes into consideration the various ways to grow with the help of existing products or with the development of new products and market (Loredana 2017). There are four dimensions in which this matrix is analysed. These are as follows –
Bowman’s Strategy Clock analysis of McHotel
This strategy helps in analysing the different aspects regarding how a corporation can place its product or services on the basis of two dimensions. One dimension is concerned with price and other is concerned with perceived value (Echchakoui 2018). Different combinations of these dimensions led to the development 8 strategies out of which a corporation can go for one which will help it in accomplishing competitive advantage.
After analysing the recent market situation of UAE, it is suggested that McHotel must undertake differentiation strategy. It must improve its operational efficiency and brand image with the help of advertising. It must design the rooms and the overall ambience in such a way that allows the customers to repeat their stay. It must offer good quality food and promote environment friendly activities and always ask for the customer feedback so that it can get the idea about the scope of further enhancements required.
List of several strategic steps that can be considered effective while formulating business plan for UAE
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