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Strategic Analysis on Industry - Essay Example

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The industry is explained for its business, participants and regions it is typically dividend into. The industry is analyzed using two methodologies for its strategy and key drivers. These methodologies are…
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Strategic Analysis on Industry
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Strategic Analysis on Industry

Download file to see previous pages... The report concludes with key drivers for change and success in the selected industry.
The UK Hotels and Motels Industry comprises of establishments that are providing short-term lodging including hotels, motor hotels, resort hotels, and motels. In addition to the lodging services they also offer services, such as food and beverage services, recreational services, conference rooms and convention services, laundry services, parking, and other services1. The UK hotels and motels industry could be segregated into different groups according to the type of customers they serve including domestic consumers, domestic business and international business & consumers.
Evaluation of the UK hotels and motels industry suggest that the main revenue drivers other than providing accommodation are from services such as casinos, conferences, matrimonial gatherings, social functions, shops and telecommunication services. A recent survey carried out by Data Monitor, a research company, highlighted that the total revenues of the UK Hotels and Motels Industry were $35 billion in 2008 that implies a CAGR of 5.6% over the period 2004-2008. However, the same report expects that the industry will slow down because of the poor economic conditions currently prevailing in the global market and lower spending on travel and tourism. The industry is expected to grow at a lower CAGR of 3% till 2013 to reach a level of $40.1 billion2.
The international political scenario is negating the growth prospects of the hotels and motels industry. The political risks have direct correlation with the investment decisions of international hotel companies in developing countries. Political instability in a country creates social unrest that could affect the flow of travellers to that country that may in return affect the sales of hotels and motels. These political risks could also be viewed as ...Download file to see next pagesRead More
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