Entry of Mandarin Oriental the Russia Hotel Market - Essay Example

Synopsis This report begins by looking at the international hotel market with a historical and expansion outlook. It introduces the hotel in focus, i.e. the Mandarin Oriental hotels and looks at the various successes it has been through in its past and present operations. The Russian market is also further explored for a better position to relay the proposed entry of the hotel into the country’s market. The report then embarks on an analysis of the hotel by use of the eclectic theory and further uses the competitive matrix to propose a way forward to the hotel chain.

Table of Contents The International Hotel Market………………………………………………..………………….5 The Eclectic Theory………………………………………………………………..…………….6 Ownership Advantages……………………………………………………………………………7 Locational Advantage……………………………………………………………………………9 Internalization………………………………………………………………..……….

………….10 Analysis………………………………………………………………………….………………11 Conclusion……………………………………………………………………….………………12 Recommendation…………………………………………………………….………………….13 Bibliography…………………………………………………………………….………………14 Appendix……………………………………………………………………………………….

16 The International Hotel Market Hotels have historically flourished because they provide the very basic necessities that are needed by people, i.e. food and shelter. With the dawn of the civilized nations, there has been an increased need for travel and leisure, and hence the requirement for somewhere to get some rest or simply accommodated (Lockyer, 2007). This need coupled with the effects of globalization and the information and technology revolution has further enhanced the rise of international hotel chains that are standardized to provide the environment of ‘a home away from home’ (Dunning and Gray, 2003).

The international hotel industry has been categorized in the group of the service industry because it provides an intangible service of accommodation, even though sometimes the service may mean provision of material commodities. This paper looks at a popular international hotel chain, Mandarin Oriental, and examines how it can easily venture into the Russian hotel market. Mandarin Oriental is a popular hotel group founded in 1963 from an initial ownership of Mandarin in the Chinese city of Hong Kong.

 Currently, it has a total of 11,000 bedrooms and additionally has restaurants, drinks spaces, luxury leisure clubs and ample onsite parking spaces. The hotel chain has a total of 44 hotels in different locations around the world that sum up to massive 28-country coverage. It offers a wide range of services to its clients, which are of a high standard. All these massive investments have been achieved all the years through rapid acquisition strategies of purchasing world class hotel enterprises (Mandarin Orientals, 2012).

Against the backdrop of this