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CONTENT
INTRODUCTION
THE OBEROI HOTEL BANGALORE
BASIS OF COMPETITIVE ADVANTAGE
Cost Leadership
Differentiation
Focus
MANAGEMENT OF GREEN ISSUES
Go Green
Green Power
Recycle for a Cause
DIRECTION FOR GROWTH
CONCLUSION AND RECOMMENDATION
REFERENCES
INTRODUCTION:
The oberoi Group of Hotels was founded by Mr.Rai Bahadur M.S.Oberoi in 1934.
The Oberoi hotel is one of the “Leading Hotels in the World”. The Oberoi group of hotels owns and manages 35 luxury and international & first class hotels in 7 countries.
Out of 35 Hotels Five Oberoi Group Hotels are members of 'The Leading Hotels of the World' and eight are members of 'The Leading Small hotels Of the World'.
They have two principal brands –
THE DELUXE OBEROI BRAND
THE FIRST CLASS INTERNATIONAL TRIDENT BRAND.
The activities carried out by the Oberoi group of hotels are Airline catering, management of restaurants, bars in airport, tour services, travel services, renting cars, project management.
There are about 12 thousand people are working in the Oberoi group of Hotels worldwide. Oberoi group of hotels are the first to employ women in their hotel and first to introduce the in-house laundry.
Currently there are about nine Trident hotels in India. They are located in Bare, two places in Mumbai, Agra, Udaipur, Cochin, Chennai, Bhubaneshwar, Gurgaon, and Jaipur. The Oberoi group of hotels also operates Trident hotels in Jeddah, Saudi Arabian.
Available at: http://www.oberoihotels.com/gallery.asp (Accessed: 11th March 2010)
Available at: http://www.oberoihotels.com/gallery.asp (Accessed: 11th March 2010)
The OBEROI BANGALORE
TYPE OF HOTEL: 5 Star Luxury Business Hotels
GROUP: Oberoi Group of Hotel
ADDRESS: 37-39, Mahatma Gandhi Road - 560 001, Bangalore (India)
TELEPHONE: +91 80 2558 5858
FAX: +91 80 2558 5960
EMAIL: [email protected]
WEB: www.oberoihotels.com
TRANSPORT: Airport – 38 kms, (1 Hour 30 minutes by Car)
Airport – 14 kms, (45 minutes by Car)
LOCATION: Situated in the heart of the city on Mahatma Gandhi Road.
Available at: http://www.oberoihotels.com/oberoi_bangalore/travel_guide/location_access.asp (Accessed: 11th March 2010)
BASIS OF COMPETITIVE ADVANTAGE
Porter’s Generic Competitive strategies states that “A firm’s relative position within its industry determines whether a firm's profitability is above or below the industry average. The fundamental basis of above average profitability in the long run is sustainable competitive advantage” (Porter, Michael E., 1985)
There are 2 Competitive advantages which firms need to possess:
Low cost or Differentiation
The above 2 Competitive advantage combines with the scope of firm and gives the 3 Generic strategies. They are
1. Cost Leadership2. Differentiation
3. Focus
Available at: http://www.ifm.eng.cam.ac.uk/dstools/paradigm/genstrat.html
(Accessed: 10th March 2010)
1. COST LEADERSHIP
To gain Cost Leadership, then firm should sell low cost of their products.
The Cost Leadership depends upon the structure of the Industry.
If the industry gets the Cost Leadership, then it can be the performer in its Industry.
2. DIFFERENTIATION
To be differentiated and to be valued by customers then firm should be Unique along some dimensions.
Cost Focus: Firm aims to gain Cost advantage.
3. FOCUS
Cost Differentiation: Firm aims differentiation.
Now I am going to use the Michael Porter’s Competitive advantage theory for The Oberoi Hotel Bangalore.
Available at: http://img173.imageshack.us/img173/8589/oberoi2nb.jpg
(Accessed: 11th March 2010)
Extraordinary Features of the Oberoi Hotel, Bangalore
Hotel is situated in the heart of central city of Bangalore. Easily linked with Whitefield and Electronic City, major IT
Business parks at Embassy Golf link.
All rooms contains private balcony facing the pool or the garden.
Award Winning garden across the hotel for about 2.8 acres.
Prize winning Chinese restaurants and Thai restaurants.
Good collection of Wine and spirits in Alfresco Bar.
Swimming Pool (Outdoor).
Business centre (24 Hours) with Wireless Internet Connectivity and Broadband services.
Teleconferencing and video conferencing Hall.
Doctor Service (24 hours).
Butler and room Service (24 hours).
Indoor Games.
Travel Services (24x7).
Airport assistance facility.
COST LEADERSHIP:
Following are the prices for 2 person accommodation per night in The Oberoi hotel, Bangalore.
Luxury Room - King/ Twin Bed
With INR 14,500
Private Balcony
Premier Room - King/ Twin Bed
With INR 16,000
Private Balcony
& Breakfast
Executive Suite - Breakfast
Two ways Airport Transfers INR 22,000
Private Balcony
Deluxe Suite - Breakfast
Two ways Airport Transfers INR 24,000
Private Balcony
Starting from luxury room to deluxe room, we can see the price difference. So as customers needs the Oberoi hotel has made convenient cost for the customers.
Located on MG Road, in the heart of the business and shopping districts of Bangalore, the luxury hotel has an abundance of greenery that is characteristic of the ‘Garden City’. And is also the globally renowned centre of India’s software industry. At The Oberoi, Bangalore, all the tastefully appointed rooms overlook landscaped gardens and guests can enjoy cuisine from around the world. The hotel offers impeccable service, understated luxury, fine cuisine and most modern facilities for discerning business travellers.
Compared to cost for accommodation with the other Hotels, the cost of accommodation in The Oberoi Hotel Bangalore is cheaper than other same category hotels.
The Oberoi hotel has almost all the services like
Business service Leisure and other services
Travel Desk Services
Travel assistance.
Even though the Oberoi hotel, Bangalore is near to the Bangalore Airport and to The Cantonment Railway station the Cost of accommodation is low.
The costs mentioned above are comparatively cheap from other hotels. So Oberoi hotel gets a Cost advantage.
Available at: http://www.oberoihotels.com/oberoi_bangalore/meetings/index.asp
(Accessed: 11th March 2010)
Available at: http://nyc.images.agoda.com/hotels/89392/OTHERS/OTHERS_89392_9.jpg (Accessed: 11th March 2010)
DIFFERENTIATION:
It is the exclusive deluxe hotel of the city which caters to different cliental. As the category in which it falls makes it different from the other star hotels of the town.
Bangalore plays a major role in India’s Software industry because; the entire major IT Companies, Whitefield and Electronic City, major IT Business parks at Embassy Golf link are located in Bangalore only.
In Bangalore, The Oberoi Hotel is a well known Business hotel.
Hotel is situated on the heart of Shopping and Business Zones of Bangalore.
It is well known renowned centre of India’s software Industry.
The Oberoi Hotel, Bangalore is renowned centre for India’s software Industry.
All the business related meeting, business related conference takes place in this hotel only.
The business hotel has abundance of greenery, and so called as Garden City.
All are well structured rooms with landscaped gardens and guests can enjoy the beauty sitting in the Cuisine.
FACILITIES OFFERED AT OBEROI BANGALORE:
There is a wide range of international cuisines are available to the visitors of Oberoi hotel, Bangalore.
There are about 3 Top class restaurants available. They are
Le Jardin
o The speciality of the Le Jardin, serves breakfast and a wide varieties of Indian and Western Cuisines.
o It is a 24 hour restaurants with a rotating myriad of theme nights.
Szechwan court
o With Cantonese specialities, the Szechwan court offers an authentic Chinese Szechwan style food for dining.
o It is Oberoi’s award winning restaurant.
Rim Naam
o The Oberoi’s special Thai restaurant with the alfresco setting.
o For lunch its perfect choice with Unique and one and only Flavour of Thailand.
THE EXCLUSIVE BAR AT OBEROI HOTEL BANGALORE:
The Polo Club is the Bar available in Oberoi, Bangalore. It is a unique bar with both indoor and outdoor seating.
The bar and dining area are open from morning 10am to night 11pm.
Both Indoor and Outdoor seating are available. Outdoor seating is located overlooking the lush garden. So people can meet friends or colleagues for a fine cocktail or for an informal drink.
MANAGEMENT OF GREEN ISSUES
The environmental problem such as destruction of rain forest, global warming and Ozone depletion are the high priority problem for people in real life.
Changes in the external structure and environment of the firm will definitely change the internal environment of that firm. External environmental design policy should be made in way in which it should not make the ecological damage.
Climate change is the main problem existing in reality. It cannot be solved by one people alone. All the people in the world should join together and solve this problem. Now some how star hotels have taken
some action against the climate change problem and to reduce carbon footprints and to protect the world environment.
The various green strategies that Oberoi Hotel, Bangalore has implemented are
GO ORGANIC:
The Oberoi hotel, Bangalore has implemented organic gardening across the hotel.
Award Winning garden across the hotel for about 2.8 acres.
The dried leaves which is falling from trees are collected and mixed equal proportion with sand and soil and used as the manure for other plants and trees.
To safeguard plants from insects pesticides such as neem cake and herbal pesticides are used.
The fruit skin, fruit peel, vegetables are collected from kitchen and they are fragmented and then converted into the organic manure and these manure is fed to the plants which are inside the hotel premises as periodic basis.
All rooms private balcony has a small garden all over it.
GREEN POWER:
The green lighting and the decoration in the hotels are done by using the Green power. Hence the consumption of the electric energy will become less and hotel become eco-friendly with the environment.
The hotel has taken some conservation effort to save electricity and they switched on to some gadgets. Hence by using the gadgets will consume less electricity then the other normal lights.
The Oberoi hotel, Bangalore is using the LED lights in parking space. Because LED lights glows brighter and less electricity will be used.
In Oberoi hotel, Bangalore all the toilets and rest rooms are fitted with a motion sensors. Lights on when some one enters the toilet or rest rooms, and gets switched off when they leave the toilet or rest room.
To reduce the boilers usage, The Oberoi hotel, Bangalore has installed many solar water heaters. Hence consumption of electric energy will be reduced.
Using the air coolers the Oberoi hotel, Bangalore has successfully cut down the CFC emission and consumption of the electric power.
Padmaraj stated “Saving on the excess amount of power, the eco- friendly chillers and centralised air conditioning system at the hotel has helped us save 0.27 KW per tonne refrigeration (TR). The use of CFLs for lighting saves us 0.40 KW of power every day per room,” (Pinky Padmaraj, 2010)
The Oberoi hotel, Bangalore further using the variable frequency techniques in the machines to their optimum capacity has helped the hotel to save 160 units of power per day. Hence lots of electric energy is saved and hotel becomes eco-friendly.
RECYCLING FOR A CAUSE:
The organic wastes such as vegetables, fruit peels etc. are converted into the bio-fertilizers and used as manure for plants and trees.
In-organic and non-biodegradable waste which are generated from the Oberoi hotel, Bangalore are recycled.
The candles which are lit in Oberoi hotel, Bangalore for dinner services in evening are recycled to make the new ones.
The used candles are send back to the vendors who manufacture the candles. The vendors then melt the used candles and they make the new candle out of it.
The plastic wastes from kitchen and from all parts of the hotel are directly send back to recycling.
In Oberoi hotel, Bangalore the coconut shells are converted into pieces of charcoal. And those charcoals are used in kitchen purposes later on.
The Oberoi hotel, Bangalore has given up using the plastic bags. They started using the cloth instead of plastic for newspaper and laundry delivering.
The Oberoi hotel, Bangalore recycles soaps also. The recycled soaps are send to charity later on.
In Oberoi hotel, Bangalore is using the Indian herbs and natural botanical extracts for making the bathroom amenities.
DIRECTION(S) FOR GROWTH :
Igor Ansoff developed a new matrix for finding and identifying the corporate growth opportunities.
Available at: http://2.bp.blogspot.com/_6pWqpEUQNjk/Rij5eMBDSSI/AAAAAAAA
AH0/uWqaE1eDP_w/s400/300px-AnsoffMatrix.jpg (Accessed: 04th March 2010)
The two dimensions in the Ansoff’s matrix determine the scope of options. They are
Products
Markets
In Ansoff’s matrix the generic growth strategies are of 4 types:
Market Penetration Product development
Market Development
Diversification
Market penetration (existing markets, existing products):
For a company to grow the least risky way is a Market Penetration.
When a company enters into a market with the current products then Market Penetration occurs.
The easiest way to achieve the Market penetration is making the current user of your product to use more of your product by give promotion, etc.
Other ways attracting non-users of your product to use your product by advertising or by some promotions.
PRODUCT DEVELOPMENT (existing markets, new products):
If the company’s current product is moving good in current market, then when company introduce new product it will also move fast.
By introducing the new product in existing market can attract the non users of company product to buy the product.
MARKET DEVELOPMENT (new markets, existing products):
If one company product is moving well then they can introduce into a new market and make revenue on their product.
DIVERSIFICATION (new markets, new products):
A company entering into a new market or new place where its presence is never been before.
THE OBEROI GROUP- PRODUCT DEVELOPMENT & MARKET DEVELOPMENT.
The owner of the Oberoi Group pf hotel is Rai Bahadur M.S. Oberoi. He just started his business with a small hotel, THE CLARKS HOTELS. Then he signed a lease with Grand hotel, Calcutta to manage 500 rooms operations.
After several years, Mr.Oberoi had purchased shares from Associated hotels of INDIA (AHI).The AHI owns Maiden hotel, Delhi, Imperial hotel, Delhi, each hotel in Murree, Lahore, Rawalpindi, Cecil and Corstophans hotels in Shimla. Because of the these many hotels partnership Oberoi hotel became the India’s finest and the largest hotel chain.
Then Oberoi group of hotel had a agreement with the international renowned hotel chain. After the agreement the Oberoi hotel had opened The Oberoi Inter Continental, which is shortly called as The I-Con in New Delhi in 1965. This I-CON is the India first luxury Hotel.
After the Delhi I-CON, Oberoi group has opened Oberoi Sheraton in Bombay in 1973 with 35-storey.
Oberoi School of hotel management is recognised by the International Hotel association in Paris. They have started the Oberoi Centre of Learning and Development.
Oberoi group were the first people to employ the women’s in hotel. Other than hotel they also produced consumables and stationary with the highest quality.
Oberoi were the first group the first to start the flight catering operations in 1959. They have started the Oberoi flight services in Delhi, Mumbai, Chennai and Cochin. Then they started international level in-flight meals.
Hotel and hospitability business mainly depend on Travel agents. So they decided and established own travel agency called Mercury travels.
Now Oberoi and L&T has joined and set up a five star hotel in Bangalore International airport at Devanahalli. It’s the India’s first hotel which is in walk able distance from airport terminal.
Then they have started and established hotels all over the world. The Oberoi, Lombok, Indonesia; The Oberoi Zahra, luxury Nile cruiser, Egypt; The Oberoi SahlHasheesh Egypt:
The Oberoi group has more than 28 hotels and has 12 thousand employs in five country all over the world.
CONCLUSION AND RECOMMEDATION:
The Oberoi Group has been in this trade for long but it has always concentrated in a different segment which at times will be a problem for their growth due to the financial crunch, people are preferring more small hotel as compared to the deluxe segment which they offer since the people or even the business travellers don’t have much options to choose from if they would only prefer Oberoi Group, so they must diversify to remain in the market.
Oberoi group of hotels are mostly used by rich people. That means the cost of accommodation in this hotels is affordable for rich people only. So Oberoi should reduce the cost of their firm.
Oberoi hotels should bring some budget hotels so that all common people can get benefit from them.
Oberoi hotel should focus on international markets also. They have a very good reputation on international level for their hotels. So they have to introduce more hotels internationally and expand their hotel all over the world.
REFERENCES:
1. Ansoff, I., Strategies for Diversification, Harvard Business Review, Vol. 35 Issue 5, Sep-Oct 1957, pp.113-124
2. PRODUCT-MARKET GROWTH MIX . Available at: http://en.wikipedia.org/wiki/Product-Market_Growth_Matrix (Accessed: 24th February 2010)
3. ANSOFF’S MATRIX . Available at: http://tutor2u.net/business/presentations/strategy/ansoff/default.html (Accessed: 24th February 2010)
4. Shashwathi Bhanukumar (2010) 5-star hotels’ Green way of life. Available at: http://www.bangaloremirror.com/article/93/201001122010011215141110858b06ec6/5star-hotels%E2%80%99-green-way-of-life.html (Accessed: 24th February 2010)
5. Charter, Martin II & Polonsky, Michael J. ed. (1999) GREENER MARKETING: A Global perspective on Greening marketing practice. 2nd ed. Sheffield, Greenleaf Publishing.
6. Porter, Michael E.( 1985), "Competitive Advantage". Ch. 1, pp 11-15. New York. The Free Press.
7. http://www.ifm.eng.cam.ac.uk/dstools/paradigm/genstrat.html
8. http://www.bangaloremirror.com/article/ 93/201001122010011215141110858b06ec6/5star-hotels%E2%80%99-green-way-of-life.html
9. http://www.oberoihotels.com/oberoi_bangalore/index.asp
10.http://www.tripadvisor.in/Hotel_Review-g297628-d304212- Reviews-The_Oberoi_Bangalore-Bangalore_Karnataka.html
11.http://www.thehindubusinessline.com/2006/12/21/stories/ 2006122106771000.htm
