Loews Philadelphia Hotel SWOT Analysis - Case Study Example

Loews Philadelphia Hotel SWOT analysis Name Institution Course Number Tutor Date Company: Loews Philadelphia Hotel Section One—Company Background l. Brief history of the company Loews Philadelphia Hotel is located in Philadelphia. It is less than 15 minutes walk from both the Liberty Bell and Independence Hall near the Philadelphia Museum of Art. The hotel was built in the 1930s in the center city and serves as a landmark for exploration of the City of Brotherly Love. It was initially known as the Philadelphia Saving Fund Society (PSFS) building that was constructed in the 20th century. The building was aimed to serve the PSFS in 1932. It is a tall building characterized by international architecture style (Loews Hotel, 2016). The building had a variety of activities being conducted by traders. The first floor was for retail businesses while the second floor served as the banking hall, bank offices, and the related facilities. At the top of the skyscraper was the bank’s boardroom. In 1998, the building started being transformed into the Loews Philadelphia Hotel, which was officially opened in 2000. The building was converted in a manner that it enhanced a space for around 581 guestrooms with 37 suites. In the contemporary world, the hotel has restaurants, lounge, studio, and a bar (Loews Hotel, 2016). 2. The product, including physical attributes, and pricing Loews Philadelphia Hotel is a luxury hotel offering accommodation and other hospitality services. The hotel has conferences for meetings and different events, such as weddings, function space and menus, and the ceremony and reception locations. The hotel provides a valet parking at a rate of $38. Its accommodations include the rooms and suites, and their charges start at a rate of $199. The rooms have a refrigerator and a coffee maker for customer’s convenience. The restaurants and lounges present dine and drink to their clients at different prices depending on the customer’s choice. There are also other services like, golf, gym, spa, and amenities that are provided to the guests for their satisfactory visit (Loews Hotel, 2016). 3. The current marketing strategy The present hotel market strategy is having a maximum investment in the digital marketing. The hotel conducts online marketing. Its marketing tracks are; Entrepreneurship 101, which is conducted from the business plan to financing (Loews Hotel, 2016). Marketing to the Boomers is another track, which enables the hotel to reach the market efficiently. The other one is a global perspective of reaching to the global marketplace. 4. The closest competitors The direct competitors include the Hilton Garden Inn located in the Philadelphia Center City. The other one is the Club Quarters in the same location and Sofitel Philadelphia in the city. Other competitors of Loews Hotels are; Microtel Inn & Suites Philadelphia Airport and the Doubletree by the Hilton Philadelphia Center City (Park, & Oh, 2012). 5. The financial status The hotel is doing well economically because it has revenue of $13.4 million (Loews Hotel, 2016). Section Two—Internal Environment Analysis Strengths: Location; this hotel is located in a strategic place that allows easier access by the visitors. Its ground is large enough for the accommodation of many guests and enables various events to be conducted. Its building is in a ground enables a breathtaking view of the Center City. It is just some few minutes to walk from the Liberty Bell (Loews Hotel, 2016). Also, walking from the Independence Hall, which is close to the Philadelphia Museum of Art to the hotel, only takes some few minutes. The hotel is situated in a place that does not require much advertisement and marketing activities because the building is famous and its structure is unique in the city (Wernick, & Von Glinow, 2012). Design; the hotel is well designed with many rooms and suites. It comprises of 581 rooms and 37 suites, and refrigerators and coffee tables for enhanced customer satisfaction (Loews Hotel, 2016). The building is constructed in line with an international architecture style. All the rooms and suites are stylishly planned to meet the interests of the guests who visit the hotel. Quality services; the restaurants and bars offer worth services to the customers. The facilities around this hotel include golf, gym, spa, cocktail lounge, and massage services among others. The employees offer all the services with dedication and commitment, and with the intention of meeting the requirements of the tourists (Colander, 2014). There are parking services offered to all visitors accessing the premises by motor vehicles, with a tight security to ensure the clients merry at peace. The customers also enjoy valuable laundry services from this hotel, which aims at creating a fresh and comfortable environment with a long-term aim of tapping more and frequent clients. The fitness center and the pool have a sole focus on the general health of the customers, leisure and relaxation. Further, within this hotel is a diverse businesses facility to meet the diverse needs of incoming visitors and ensure quality visitors economic interaction (Park, & Oh, 2012). Cost/Pricing; the hotel operates on fair price charges for its products. Dining, drinking and taking meals from the hotel does not require one to spend a lot of money because their menu has friendly price tags. Some amenities are free, for instance, the newspaper, while others such as telephone, coffee maker, and the internet are charged at low rates (Ling, Guo, & He, 2012). Management; the managers of Loews Hotels are competent in their job. The entire customer’s concerns are handled to reach customers interests. In addition, following excellent management organization, services are offered with much convenience at all the departments (Aliouche, & Schlentrich, 2011). The communication line between the managers and their subordinates is a classic one, thus improving the management of the hotel. Weaknesses: Much focus in the local market; Loews Hotels aim at serving the tourists only when they come in Center City, Philadelphia and the locals, but do not serve customers from outside the city. This limits the hotel’s growth and productivity. The majority of its customers are local visitors, and this hinders innovation in the international market (Ling, et al. 2012). Failure to consider inclusion of low-cost lifestyle brand; lack of this brand in the hotel’s production portfolio, limits it from serving all customers. Luxury brand; the upper brands leave the hotel for the potential downturns to gain some improved penetration in the major markets (Pranić, Ketkar, & Roehl, 2012). It does not engage in economic travel for the accommodation of the relevant destinations. Service delivery; customers experience some issues when receiving their services because sometimes the hotel is in full house and workers lack proper planning on how to serve all the customers effectively (Lee, & Xiao, 2011). Some services are offered without consideration of time adequacy, thus leaving the customer without the expected gratification. Network security threats; the hotel’s IT suffers from network vulnerability, this makes customers feel uncomfortable as their personal information can be tapped. The reporting of risks is also connected with some problems because of the poor operation system associated with testing the firewalls (Yang, Luo, & Law, 2014). Section Three—External Environment Analysis Opportunities Technological advancement; the current world has a probable for continued improvement of the technology. Improved technology is a major opportunity for the Loews Hotel to improve the quality and efficiency of its operations. The technology would enable the hotel to offer easier reservation services to its customers through online services and regular communication with the clients. With the implementation of technology in the hotel’s hospitality, it will be possible to cut its cost and realize increased profits (Luo, Yang, & Law, 2014). Additionally, when the provisions of services to customers are made timely and satisfactory through the advanced technology, the hotel will have a chance to improve its reputation in the market. Through technology implementation, it would be possible for this hotel to explore the market and conduct its marketing activities without difficulties. Emerging markets; the emerging nations have a high potential market because of the challenges in the business environment. The Loews Philadelphia Hotel has an opportunity to turn to the emerging nations and ensure proper research of the market to operate with a clear understanding of the customer needs and preferences. The emerging market is an opening that enables the hotel to set its targets as it can move with the market growth pace (Demirciftci, Cobanoglu, Beldona, & Cummings, 2010). The new markets allow an opportunity to gain some additional revenue and generate a strong presentation as time goes by. It would also be possible for the hotel to advertise its products in the new market because of minimal or lack of competition. Globalization and traveling demands; the individual traveling experience is faced with a growing demand. The practice generates a prospective of the hotel to develop some outstanding properties, brands, and hospitality services for market attraction. Many organizations operate in the international market, thus requiring movement of business persons within nations (Demirciftci, et al. 2010). The traveling of people in Philadelphia or through the Center City is an opportunity for improved performance of the hotel. Through increased traveling, the hotel will have a chance to market its products in the international market, thus a clear chance of expanding its business. Rising income; consumers are continuously experiencing increment in their incomes following the major changes in the economy. Increased customer income is a potential for Loews Hotels growth. This is because it is likely to realize increment in the number of its visitors. Positive change in the economic status of people also helps the hotel to set its prices well with consideration of the incurred costs and the expected profits (Demirciftci, et al. 2010). Threats Competitive forces; the hotel experiences some intensive competition from its direct rivals in the Center City and the entire Philadelphia location. Its top competitors are; the Hilton Garden Inn, Club Quarters, the Doubletree by the Hilton Philadelphia Center City, Sofitel Philadelphia, and Microtel Inn & Suites Philadelphia Airport. The competition status is capable of threatening the operation as they fear losing customers to its rivals (Luo, et al. 2014). The rivals might also influence the pricing of the products since the moment they start offering their services at some reduced prices, the Loews Hotel would be forced to lower its prices, thus not collecting the expected revenue and sometimes realizing huge losses. Economic forces; due to unstable international economic status, which affect the hospitality industry in Philadelphia, the economy of Loews Hotel is likely to be negatively influenced. Furthermore, the rapid growth of the major brands is a potential danger to the mid-scale brands, and this might lead to their slowed growth (Yu, Byun, & Lee, 2014). Operating in unstable economy threatens the target setting of the hotel because it is not possible to predict about its future. Additionally, the supply of resources becomes a problem. Consumer self-reliance; consumers have preferences associated with the products they wish to get from a resort. The general business and economic condition in a nation adversely affect the earning levels of the potential quests. Additionally, some customers lack self-confidence in the major markets, such as the United States, and this could negatively influence the operations in the Loews Philadelphia Hotel. The hotel has a strong presence in Philadelphia with value and strong spotlight on the luxury brands. A recession in the business conduct like underprivileged economic situations is likely to force the hotel to minimize its operations. The issue is capable of leading to reduction in tourists visitation (Demirciftci, et al. 2010). The fluctuation in the global tourist entrance in Philadelphia is capable of influencing the profitability of this hotel. Terrorist activities; in the contemporary world, nations are threatened by terrorism. It is widely noted that terrorists focus crowded and heavily populated or places with high flow of persons such as the hotels. Terrorism is a major danger in the operation of this hotel because of unpredictable terrorism in the area (Yu, et al. 2014). Terrorism is well known to threaten security in a place, thus influencing the confidence of tourists towards visiting the particular place. Such cases would threaten the operations in the Loews Philadelphia Hotel (Luo, et al. 2014). Once a nation or a city is known to be vulnerable to terrorism, people avoid visiting or living in that place. In such uneventful occurrences, avoidance of the hotel would endanger its continuity in the market. Section Four—Recommendations For the management of Loews Philadelphia Hotel to have success in its operations, it is required to work towards changing its weaknesses for the best and overcome the likely threats. The Loews management is supposed to advance its business to the international market and set some branches in other places to present itself in the market efficiently and successfully (Ling, et al. 2012). Making sales online and communicating with the customer over the internet would also help in improving its productivity. It is the intension of the hotel to reach as many customers as possible. To achieve this goal, Loews management should include the low-cost lifestyle brand in its invention portfolio as it would meet and tap the low-economic class clientele. The management of Loews Hotels also requires engagement into business travel to reach all the destinations despite operating as a luxury brand (Park, & Oh, 2012). Customers like the quality of the products provided by Loews Hotel and their prices, but the hotel’s service delivery is problematic. To enhance satisfactory in service provision, the management is supposed to plan well on how the employees are supposed to conduct their duties from the customer reception to one’s departure. The hotel should work towards improving its network security to solve all the network problems that give a leeway to its information and customer’s information. Futher, techniques that are highly sensitive to detect threats and likely solutions to Lowes information platform should be put in place. To overcome the competitive threats, Loews management should ensure that the hotel offers unique services that outdo the hotel’s rivals in the market (Demirciftci, et al. 2010). The hotel should also ensure it meets all the customer interests, review customers’ opinions and apply them within the system to retain their new and old clients. Products prices should always be friendly and adjusted as per the economic changes to ensure some concern for the economic status of the clients. The hotel should engage in more advanced innovations and proper handling of the employees to allow their support in the hotel’s success (Luo, et al. 2014). Having a good plan and a well structured budget will help the hotel to overcome the economic forces likely to threaten the hotel’s operations and its profitability (Pranić, et al. 2012). The Loews Hotel should ensure acquisition of all the information regarding the economic changes in the economy. In most cases, the hotel faces economic issues that affect their stability, such as a recession. To cope with such situations, Loews Hotel is required to look for ways to enable proper handling of its finances. The hotel should invest in other activities that would generate some revenue when the hospitality industry is faced with economic problems. The hotel requires the provision of all sorts of products that enhance the satisfaction of people from all economic classes to build on customer confidence even during economic issues. To cater for the customers at the low-income level, the hotel’s management should have some services and goods charged at low costs (Aliouche, & Schlentrich, 2011). The practice would also help in attracting increased tourists and gaining of more profits. Being a luxury brand, Loews Hotel should ensure proper penetration in the market through advertising its products to all customers and freely interact with the customers to sell out its brands further. Terrorism threat are fundamental and require direct-contact handling from the hotel to guarantee visiting customers safety as they get their services from the Loews Philadelphia Hotel. The hotel’s staff should be trained on how to fight terrorism. Additionally, the hotel should have efficient security techniques and machines, such as CCTV to enhance detection of insecurity issues (Lee, & Xiao, 2011). There should be check-up to all visitors entering the hotel from the gate and strict registration of vehicles from the entrance. The hotel management should operate in partnership with companies providing security services in Philadelphia and the community in general to acquire their assistance in the maintenance of security (Yang, et al. 2014). References Aliouche, E. H., & Schlentrich, U. (2011). A model of optimal international market expansion: The case of US hotel chains expansion into China. In New Developments in the Theory of Networks (pp. 135-154). Physica-Verlag HD. Colander, D. (2014). Loews Philadelphia Hotel, Regency Ballroom C1 Association for Evolutionary Economics. Demirciftci, T., Cobanoglu, C., Beldona, S., & Cummings, P. R. (2010). Room rate parity analysis across different hotel distribution channels in the US. Journal of Hospitality Marketing & Management, 19(4), 295-308. Lee, S., & Xiao, Q. (2011). An examination of the curvilinear relationship between capital intensity and firm performance for publicly traded US hotels and restaurants. 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