Site Loader
Order Essay
111 Town Square Pl, Jersey City, NJ 07310, U.S.
111 Town Square Pl, Jersey City, NJ 07310, U.S.

The hotel comprises of 296 rooms, is a 4.5 star hotel. Crowne Plaza is a part of InterContinental Hotels Group which is therefore one of the leading hotel chains in the world. At the moment Crowne Plaza itself has got more than 400 hotels in more than 65 countries. Crowne Plaza Canberra offers facilities such as an onsite fitness and wellness centre, self-parking, valet-parking, in-room dining, hotel bar that is used for light refreshments, a restaurant where buffet breakfast, lunch and ala-carte dinner is served 7 days a week, 24 hours business centre, complimentary internet. A detailed analysis of the hotel Crowne Plaza is mentioned below:
Market/ Segmentation – Business/ Corporate Travellers, Free Independent Travellers, Government Delegates, Leisure Travellers, International Visitors, Students, Young Adults:

On the basis of the above diagram (Australian Bureau of Statistics) in the last few years it can be seen that Australia has attracted many tourists. In terms of education Australia offers excellent education standards for all the students around the world. Example of such Australian Universities are Australian National University, University of Canberra, etc. Australia has also seen a rapid increase in business travellers/ government delegates. A rapid increase in terms of foreign investors seeking for quality assets and similarly on the other hand Chinese investors are therefore looking for long term generational wealth income. On an average the general demographic that are seen being fascinated by the hotel industry are usually within the age group of mid 20’s to mid-50 which includes couples, young adults, corporate clients, families and solo travellers.
Analysing the business environment the organisation operates in:
The situation analysis which is a process of assessing the current situation facing the organisation, arriving at a set of assumptions about future, identifying key strategic issues which are likely to confront the organisation. (Reed, Peter, 2014, p. 65). It therefore commences with a review of the external environment in which there are forces that can be described as being remote or macro-environment which comprises of economic, socio-cultural, climate change, and technology such as
Macro Environment
Peste Analysis
Political Economic Social Technological Environment
Danger and effect of Terrorism,
International Relations, Legislation, Political unrest Inflation, Exchange rates, Fiscal Policy Staff is bilingual Hotel needs to be up to date with latest technological changes such as wireless internet, HDTV’S etc. Hotel adopting to environmental friendly sustainable programs, focusing on reducing energy, water consumption, waste management etc.

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!

order now

Opportunities Threats
Emerging market expansion worldwide, Employee retention is a threat from brands such as Marriott, Hyatt, Hilton
Having the benefits of a significant increase in the tourism/ hospitality industry in Australia.
change in the consumer demands could hurt Crowne Plaza and can also have a negative impact on the brand, similar services provided by other hotels

And on the other hand forces that are described as near which comprises of suppliers, clients, staff, market demand and supply. (Reed, Peter, 2014, p. 65).
Micro Environment
Strengths Weaknesses
Location, Loyalty Program (IHG Rewards Club), trained and efficient staff, no. of rooms – 296 Overpriced room rates similar to the rooms in other hotels, Poor Interior Designing of the hotel

Crowne Plaza works with suppliers that at all times meet the hotel requirements and therefore it increases the value of the products and services delivered to the guests. Porter’s five-force model: forces driving industry competition (Reed, Peter, 2014, p. 73) is useful for this hotel. Porter argues that competitive intensity in an industry and hence industry profitability depends on collective effect of five forces. (Reed, Peter, 2014. p. 74)
1) Potential Entrants (Threat of new entrants) – There are many hotel giants that are already in the market such as Marriott, Hilton, Hyatt, Accor, etc. If a new hotel chain plans to enter such highly competitive market then they have to go through a lot as this industry is all about being up to date with technology. If a new hotel chain can adopt to technology in a unique way to sell its products or services, customers might be impressed with it and might switch. Crowne Plaza is tackling the threat of new entrants by constantly innovating new products and services.
2) Power of Buyers – Guests (buyers) hold the advantage as hotels cannot make money, profits until and unless their facilities (products and services) are used. There are millions of people using the products/ services of Crowne Plaza and if they don’t like the services/ product it will be very easy for them to switch brands resulting in losses for the organisation. This is tackled by the launch of the world’s largest loyalty program IHG rewards club.
3) Power of Suppliers – Crowne Plaza has different suppliers across the world. Suppliers hold an upper hand in terms of costs being offered to a particular hotel. Competition among hotels such as Marriott and Hilton will influence the suppliers to increase their rates on the products as well as services that are being supplied. This will damage a hotel’s reputation if something goes wrong. Crowne Plaza has therefore build effective supply chains with a variety of suppliers.
4) Competitive Rivalry – Rivalry can be classified as competition between the hotels in order to increase market share. In order to retain guest’s hotel offers different types of loyalty and membership programs to have an edge over others. Hotels are seen doing mergers with other brands to obtain competitive advantage. An example can be seen where Accor Hotels have merged with Mantra Hotel Group to obtain competitive advantage. Therefore, Crowne Plaza an InterContinental Hotel Group Brand offer excellent services to its guests including business, corporate, leisure, families etc and is itself competitive.
5) Threat of Substitutes – Substitutes are classified as where a particular product/ service meets the wants of the guest’s in different ways. Crowne Plaza tackles the treat of substitutes by being a service oriented brand instead of a product-oriented. Crowne Plaza as a brand goes one step ahead in understanding the needs/ wants of their guests.

Post Author: admin


I'm Elizabeth!

Would you like to get a custom essay? How about receiving a customized one?

Check it out