SWOT and PESTEL Analysis - Marketing Management Assigment (Case Study)

THE MANOR HOUSE COUNTRY CLUB HOTEL 

- (CASE STUDY) - 

SWOT and PESTEL Analysis

NOTE: My marketing management assigment when i was at the university.

CASE STUDY OVERVIEW:

About Manor House Country Club Hotel (MHCCH)

The MHCCH is a family owned business which was started in 1992 by the Jenkins Family. The MHCCH has been developing its properties by using knowledge management with innovation and service quality by using its background in 18 years at hotel industry. However, in recent years, many branches launched out to a hospitality market mainly in Singapore and East-Asia.

The vision and objectives of the MHCCH

Bringing world-class standards of comfort and convenience under the authentic service quality of Singapore Hospitality is a vision of all hotels and resorts of the MHCCH. The objective is to provide elegant Singapore style and modern style’s convenience accommodation and service quality, various facilities and outlets under the concept of Singapore service standard.

The MHCCH hotel Background

The MHCCH is located in three acres of prestigious reclaimed landing Singapore and is currently operating as one hotel. The hotel is just a mile away from some of the famous tourist attractions. Providing comfortable accommodation divided in 2 areas: the business area and the leisure areas. The MHCCH has its own brand and focuses on Singapore service quality providing the traditional service standard, offering guests more facilities which guests would feel free to use when they are under the brand of the MHCCH.

COMPETITIVE ANALYSIS:

Kotler (2003) noted that a good competitor analysis must extend beyond inventory comparisons to true competitive advantages of the companies within the competition. Generally in this case, the competitive factors can compare by type of the hotel, location, target groups, available of outlets and facilities, prices, brand and technology focuses on the same target market. Thus, The MHCCH needs to figure out how to upgrade its properties and what would be the unique advantage of the MHCCH hotel.

SWOT ANALYSIS OF THE MHCCH:

In order for a business to provide a service or expand, it needs to know what its consumers need and want.  A business that values its consumers, and demonstrates this through making them feel special, over a prolonged period of time, will become the best-performed company (Kotler 77). Doing a self SWOT analysis would be wise for a business in our current situation. The term SWOT analysis provides check-lists for auditing the organization’s strengths, weaknesses, opportunities and treats in the business environment (Mercer, 1998). When a business knows these things about itself, it can improve on its faults and emphasize its assets.  The SWOT analysis is probably the first step in putting together a marketing plan or business plan for our business.

The strengths and weakness concern the internal organization while the opportunities and the threats concern external organization as shown in Figure.

STRENGTHS:

§  18 years experience in Hotel Business. It was started in 1992 and since that time, The MHCCH has been developed and today, it has a very important experience.

§  Establishing the authentic East- Asia hospitality. Traditional Singapore style and friendly atmosphere.

§  Providing excellent service quality, various entertainment outlets and facilities such as various restaurants, the spa.

§  Well educated staffs and good customer care. Having efficient potential human resources by well educated and trained staffs. Staffs are trained in customer care and communications skills.

§  Enough land to expand for other facilities. The MHCCH is located in three acres. The purchase of an adjacent property offered additional accommodation. We can purchase it whenever we need.

§  Popular tourist location. The MHCCH’s current location is just a mile away from some of the famous tourist attractions ( e.g. a theme park and museum) and also prestigious reclaimed land

§  Enough luxury bedrooms.

§  The bar licensed.

§  Bistro. The bar is renewed as an informal European-style restaurant.

§  The new restaurant.

§  Visual aspects of the main hotel and new spacious foyer.

§  Beauty salon. It has very latest beauty treatments.

§  Well managed. Administrative staffs are capable.

§  The new function suite for business opportunities.

WEAKNESSES:

§  Limitation of its own brand. The MHCCH is not a chain hotel like Hilton or others. Therefore, to do advertisement of our hotel is a bit difficult than these kind of chain hotels.

§  Its hotel is not the most hi-technology if compare with other elegant hotel chains.

§  The most modern style and Lack of specialty such as high multi graphic to motivate visitors on the website, which is the best distribution channel of the current age

§  Unfinished refurbishment.

§  Not enough advertising.

§  No special offers out of season.

§  Tunnel vision.

§  Not enough reputation.

§  Not to provide online reservation system.

§  Similarity with other hotels.

§  No providing convenience facilities including in accommodations such as wireless internet.

§  Limited menu. Consumers want new styles of food and drink from different parts of the world (e.g. French, Italian, Portuguese, Indian, Japanese, Thai, Malaysian and Middle Eastern). Moreover, there is a demand for healthier eating.

§  Not enough opportunities for all kind of customers (e.g. authentic experience for affluent consumers; exclusive, educational and cultural experiences for high-end travelers; cater for the needs of different age groups and family travelers).

OPPORTUNITIES:

·      The MHCCH has supported the tourism and hospitality industry which its policy concentrates on national development and launch marketing campaign will focus on the themes of quality, sustainability and competitiveness, using a marketing image for the country of ‘Happiness on Earth’.

·      The coming of low cost service airlines and aggressive efforts by the National Tourist Board (e.g. the Uniquely Singapore Campaign) will be instrumental in making Singapore a regional travel hub.

·      The government focuses on developing medical services, health promotion services with an emphasis on spa and traditional massage services, and health tourism. Our new beauty centre is one of the best of own field.

·      The Singapore government intends to triple spending on tourism to Singapore US$ 27,200,000 and triple the number of tourists over the five years.

·      The number of trade conferences and exhibitions held in the country has gone up by 30% during the last two years, indicating a growth area for the hotel industry.

·      Become more family friendly.

THREATS:

·      Customer’s awareness of unsafe destinations

·      Other competitors. Singapore hotel industry has a wide variety of accommodation types to suit all budgets and preferences, ranging from backpacker, budget and youth hostels to boutique and five-star hotels.

·      Lack of differentiation. Most hotels have standard facilities.

·      New laws. Increased amount of bureaucracy, new licensing laws and a ban on smoking in public areas.

·      Changing economy and trends. The persistent price wars by the mass-market tour operators point to the need to focus on niche sectors, including honeymoon packages, specialist holidays and activity breaks.

·      The effect of America-Iraq conflict desists the travel motivation of widespread tourists

·      The impact of bird flu continued attracting the economic and social sectors

·      Suddenly occurred of a disaster of Tsunami and its result effect a wide angle in Singapore.

PESTEL ANALYSIS of the MHCCH

PESTEL or macro environment known as ‘the external factor’; political, economic, social, technological, environment and legal factors which the company cannot control them have a wide framework-effect for a company (Knowles, 1998). Hence, this analysis identifies the external impacts might give potential opportunities or threats that are a concern to the company. To explain the MHCCH’s PESTEL analysis as follow as:

1) The political factor:

The Singapore government had set up the Tourism Ministry designed to create, develop and improve the quality and standards of the country’s products and destinations. As a result, we can say that nowadays, bureaucracy is a very important obstacle on the hotel industry ways. Nevertheless, the government certainly supports the field of the tourism and hospital industries.

2) The economical factor

In 2003-2004, the global tourism was affected by 2 major situations: the American–Iraqi conflict and the Severe Acute Respiratory Syndrome (SARS) epidemic in Asia. SARS left behind the most direct impact in Singapore tourism history. However, the domestic travel and tourism market has experienced a steady growth during the last decade, with the occupancy rate hitting as high as 90% in recent months. Moreover, the coming of low cost service airlines and aggressive efforts by the National Tourist Board has led to an increase in inbound tourism from abroad. Finally, the Tourism Authority of Singapore expected the amount of visitors from this field should be US$ 27,200,000 spending over the next five years.

3) The social and cultural factors

The recent decade, Singapore has had an image of the land of smile including the original and traditional Singapore culture becoming the unique image and conducting to dramatically develop Tourism and hospitality industry. However, as a result of SARS and the America-Iraq conflict, in 2003, total trade with international tourists sharply decreased. Because of these unsatisfactory factors, there was much confusion among the tourist markets, especially the sensitive female market, which preferred to travel safety and delay a trip. In addition, the effect of the economic had changed Singapore’s strategies using Tourism to enhance the revenue and had a direct impact to population issues such as occupation and social culture. In particular 2007, the number of trade conferences and exhibitions held in the country has gone up by 30% since the last two years. Equally important, local people tend to travel inside the country more than outbound leaded the domestic tourism showed an important role of the low-cost service occupation becoming a significant part of society.

4) The technological factor:

Technology widely influences the business environment of tourism, leisure and hospitality. The development of computer reservation systems introduced on a worldwide scale has also changed the marketplace for booking holiday. The worldwide electronic room nights in 2004 increased 7.5 percent for the Global Distribution System (hotel-online.com). In addition, the internet has increasing its role in distribute various information through the website. Importantly, nowadays most people in modern lifestyle spend their time on searching the internet. Hence, the most effect is the online life has influenced new generations and has occurred new activities via the website. Thus, this factor seems slightly impact in a short term but large value in long term with many businesses can earn more benefits from high technology including the leisure filed industry.

5) The environmental factor

The result of SARS and the America-Iraq conflict had enormous impacts to Singapore in 2004. The movement of global tourists dramatically decreased lead many businesses in tourism and hospitality steadily declined in that year. In 2004-2005, the influence of the bird flu and Tsunami had occurred and effected to wide angle in Singapore continuing to 2006. Other event, the bird flu has effected in the domestic economic area but importantly, the damage from the Tsunami on December, 26 2004 pushed the Singapore National Tourist Board to launch a new strategic management to renovate and support suffered areas so as to console domestic tourists and return international tourists to Singapore.

6) The legal factor

In recent years, there are some new licensing laws which are increased by government. Importantly, there is a ban on smoking in public areas. Hence, the hotel industry sector has some problems because of new rules.

PORTER’S GRID (GENERIC) STRATEGY

According to Porter in 1986, strategy is a pursuit of competitive advantage; his typology of strategy includes three generic types: overall cost leadership, differentiation, and focus but we can explain focus by separating two parts that cost focus and differentiation focus. Therefore, we will explain it in 4 titles. Companies can choose from “generic” strategies: Cost leadership; cost focus; differentiation and differentiation focus.

Competitive advantage:	Competitive scope:	Strategy description:
Lower cost	Broad target	Cost leadership
Lower cost	Narrow target	Cost focus
Differentiation	Broad target	Differentiation
Differentiation	Narrow target	Differentiation focus

Figure: Four Generic Strategies

In this case, if we analyze the MHCCH, we will focus to customers and we will use different strategies for different customers. We have few types of customers that:

ü  Non-business guests

ü  Family non-business guests

ü  Corporate guests

Type of Consumers		Strategy
Non-business guests	High-end travelers	Differentiation focus
	Affluent consumers	Differentiation focus
Family non-business guests		Differentiation
Corporate guests		Cost focus

Differentiation Focus (Non-Business Guests):

Current market research and benchmarking in Singapore show that luxury is becoming a personal state of mind for an increasing number of affluent consumers who wish to have an authentic experience. On the other side, high-end travelers increasingly demand exclusive, educational and cultural experiences which reflect their specific tastes and values. For this reason, we give answer for different consumers’ expectations.

1^st of all, we need some special place for luxury guests. We have to decorate this place a kind of authentic place where our consumers feel their self like in the real Singapore and East-Asia life. We don’t need a new building. Just separate small parts of existing building and decorate for luxury class. Following the vision of the MHCCH emphasizing on the authentic Singapore hospitality’s service, the MHCCH’s atmosphere is based on Singapore traditional concept. The hotel decoration is combined between original Thai and modern style which make guests feel more welcome. These make the MHCCH hotel more unique in its image and brand name. The MHCCH and its resorts and its brand has contributed and conducted it to gain a stronger, more famous image, intended hold the customer loyalty. Therefore, the MHCCH has enormous products, services, facilities which it provides more choices as ‘all things are in the MHCCH to meet the guest’s expectation.

2^nd, for high-end travelers, we organize some trips to museums, villages, natural life…etc where are exclusive, educational and cultural experiences. Most of high-end travelers are educated people and the communication tools are more important for them than other guests. Therefore, we will give lots of choice to them to use. In addition, in current age, the internet distribution channel obviously will give the MHCCH more benefits. Online distribution channel is the easy way to contact and the most convenient way for customers in the modern lifestyle-society. In order to fulfill the demands of business and leisure travelers, the MHCCH forms general hotel profiles via the mhcch.com website such as the hotel location, room types, restaurants, and other facilities. It also offers the price of connecting internet in rooms, room rates, the details of meeting and convention center, and facilities in the hotel such as the spa center, the fitness center, the golf club all including the location, opening hours. Especially, in the restaurant section, it provides chef’s profile, capacity, and type of each restaurant. It illustrates the restaurant to visitors and helps them make a decision to choose and book a table on the internet. In addition to assessing this web, it allows visitors to organize a smart travel plan. Travelers can check the suitable time for their trip according to seasons and an event calendar. Moreover, our website provides few languages. The call center will serve better for customer happiness.

Differentiation (Family non-business guests):

Family travel is another growth area, making it necessary for service providers to cater for the needs of different age groups. For this reason, we will offer convenient facilities such as a cable/ satellite television, a direct telephone line with fax/ modem, a voicemail,

and a wireless internet access available also providing 8 different national cuisines for example Spanish, Chinese, English, French, Italian, and Japanese styles.

Many hotels have never stopped developing their properties conducting to competitive advantages. Then, mhcch.com needs to become alert and seek the way to maintain its resources and gain its advantages. They can be established by technology, organization or structure, and people. But, the essential and main sources are people and people-driven process to sustain advantages (Thompson, 2003). The MHCCH managers must discuss and let employees know that they are important and make them more valued by giving rewards, promotion, and perks. Making them feel they are a part of the organization and satisfy them in their jobs in order to use company knowledge assets to increase its productivity. To improve or generate knowledge, leaders or manager ought to discuss with employees because they are the people who directly communicate with customers. The knowledge transfers from staff and inputs from top managers through organizational levels. Employees receive new challenges and ways to generate knowledge. They are able to adapt or put new knowledge into the knowledge management information systems and this leads the hotel to analyze the marketing plan more efficiently under the quality resources.

Cost Focus (Corporate Guests):

The Singapore hotel industry is highly competitive and provides a wide variety of accommodation types to suit all budgets. In addition, the number of trade conferences and exhibitions held in the country has gone up by 30% during the last two years. This shows that corporate guests are a big market and we have to focus them. These kinds of consumers find all choices in the market but we will gain from off take. The accommodation prices of the MHCCH are divided by the size, type, and other facilities in the room following the seasons, peak or low seasons similar to other competitor’s prices. However, it offers discount and various activities for the member who handles the MHCCH Gold card and MHCCH association. Moreover, it offers a special price for the travel agency and the business’s customers.

We will have some promotion activities which concerned advertising, personal selling, direct marketing, internet and online marketing, sale promotion, publicity are used as a strategic marketing. Likewise, The MHCCH will provide various activities of the promotion marketing. For example, the marketers or sale contact to customers via the travel agencies or the customer’s company giving them special prices, collecting night program or complimentary who use directly or indirectly the products or services of the hotel such as giving the secretary special collecting night programs. Thus they are motivated to due with the MHCCH. On the other side, the mhcch.com website provides much more benefits to do promotion activities. The hotel can do the advertising, giving the special promotion, or do the public relations via the website which the MHCCH has provided an electric customer relationship management (CRM) program for visitors. In addition, there provide the loyalty program, the affiliate program, to motivate customers to join and become a part of the hotel.

CONCULUSION:

To offer a successful hospitality product, hotels and resorts should recognize the importance of using marketing and how to manage their knowledge in organizations. The organization needs to seek what customers want. Also, there are many approaches to meet a customer prospective. The marketing plan is an appropriate tool in order to analyze both sides of own hotel and customers and overview situation and macro, microenvironments of the destination. However, the marketing strategy of the MHCCH emphasizes the Singapore service quality’s standards and using company resources increase business performance and its brand in order to catch customer relationships in long term activities. This relies on CRM to meet customer satisfaction making the organization more powerful allowing them to reinforce the marketing process more efficiently and be able to sustain its competitive advantage.

As a result, we see in the analysis of PESTEL, SWOT, PORTER’S GRID ‘Generic’ that we don’t need to sell the hotel or to invest in an external property. May be, we can invest some minor areas but we don’t need to do large investments. We need just to be our self and to do the best of ours.

REFERENCES:

Kotler, P .et al.,(2003) Marketing for Hospitality and Tourism, 3^rd, Prentice Hall, USA

Jobber, D. (2004) Principles and Practice of Marketing. 4^th ed. McGraw-Hill. London.

Mercer, D. (1998). Marketing strategy: the challenge of the external environment. SAGE, London

Knowles, T. (1998) Hospitality Management: an Introduction, (2^nd Edition) Essex: Pearson Education Ltd.

Thompson, J. L. (2003) Strategic Management: Awareness and change. Thomson Learning, London.

http://www.hotel-online.com/News/PR2005_2nd/Apr05_eMonitor.html [Accessed 11 April, 2005]

        For more informations:

https://en.wikipedia.org/wiki/SWOT_analysis

https://en.wikipedia.org/wiki/PEST_analysis