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Management . Jumeirah Group - Essay Example

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Most companies are embracing expanding into international market to grow their revenue and reduce the impact of competition within their home country since international diversifying strategy can enhance company’s’ growth and performance (Hwee 2007, P.17). …
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Management Essay. Jumeirah Group
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"Management . Jumeirah Group"

Download file to see previous pages A company may grow internationally through setting up new enterprises to a new area that has not been tapped, through buying off a company or integrating with an existing company (Marcelo at el 2008, P.1). Travelling for leisure of business mostly involves crossing national and state boundaries (Prokkola 2010, P.223) and tourism and hotel services provider must tap into providing competitive services and products to the visitor travelling to their company. Jumeirah Group is multinational company that operates luxurious hotels and serviced apartments in Dubai, Rome, and Shanghai, Germany among other places in the world and its headquarters is Dubai (Newswire, 2012). The company was found in 1997 and is affiliated to Dubai Holding (Hornett, G 2013). The company is planning to grow their operation by establishing five star luxury hotels in various countries in Africa one of them being Seychelles. Seychelles is a group of about 115 granite and coral tropical island in Indian Ocean (Background Note: Seychelles 2007). Its temperatures vary all round the year though they are humid due to their size. Mostly people occupy Major Island while small islands are sparsely occupied, with most of residents being Africans, Indians, Chinese and French settlers while others are expatriates (Political Conditions 2012, P. 10). Their culture is a mixture of French and Africa though most used language is English and French. This paper will critically analyze expansion strategy of Jumeirah group of hotel in this island nation. Feasibility analysis Indian Ocean islands depends on tourism as a main economic activities with Seychelles and Maldives being the most preferred than the rest in terms of gross domestic product, employment, tourism income and tourism ventures investments (Prayag 2011, P.221). For example in 2010 tourism contributed to the Gross domestic product of this islands as follows Mauritius 26.5 %, Reunion 4 % in Madagascan 12.7 % % Maldives 63.4 % and Seychelles 46.4 % while it also contributed to the national employment about 14.2 % of the total new appointment in Mauritius, 1.9 % in Reunion,3% in Madagascan, 28.1% in Maldives and 31.5 %Seychelles (Prayag 2011, P.223). In recent times Indian Ocean islands have recorded increase in tourism activities due to their favorable climate, geographical isolation, relatively long coastlines, diversity of ecosystems, cultural diversity and political stability (Prayag 2011, P.223). However there have been challenges in this industry such as poor working conditions for the employees, high staff turnover, environmental degradation, poor staff training and insufficient rules and regulations (Prayag 2011, P.223). Major islands in Indian Ocean that include Mauritius, Reunion, Madagascar and Seychelles have teamed up to Form Vanilla islands to market their countries as tourist destination with the aim of increasing visitors (Ramchurn 2011, P. 49). The combined strategy is to increase their competitive advantages over other island tourist destination like Caribbean and Maldives islands due to their diverse cultural experiences. Their plan is to win the confidence of the services providers such as hotels, Airlines, tour operators and the media to connect the islands. The major advantages of Vanilla islands over the Caribbean island are their cultural diversity and they are not far from each other thus reducing jet lag (Ramchurn 2011, P. 50).Tour operators have introduced itineraries that cover all the regions and Airlines have also introduced connection flights to islands. This combined strategy is likely to increase tourism flow as the tourist will be able to get diverse experience in one trip as compared to planning several trips to each of the island. In 2008 ...Download file to see next pagesRead More
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