Final Burj Al Arab Strategic Plan

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  • Topic: Hotel, Dubai, Burj Al Arab
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  • Published : November 28, 2014
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Burj Al Arab Strategic Plan

Executive Summary
The following report aims making a strategic plan for the real-time company. The chosen company is The Jumeirah Group and the selected hotel is Burj Al Arab, which is the only seven star hotel in the whole world. The report presents a brief synopsis of the Hospitality industry in Dubai and briefly introduces the profile of Burj Al Arab. The company conducts an internal and external analysis with the help of SWOT analysis and Porter’s Five Force Analysis to examine the current state of the environment and plan against future threats and opportunities. The report identifies the major competitors of Burj Al Arab. It then uses the above information to formulate strategies which would enable the company to maintain their profit levels and enhance their market share in a time of the economic crisis. It also designs an implementation plan that would identify the activities to be implemented by the company to achieve their desired strategic objectives. The report recommends that the company should avoid offering price discounts or adopt any strategy that would affect the market positioning of the company. Nevertheless, they should work towards offering more value for money to their customers and look for new ways to attract them.

Introduction
The following report aims making a strategic plan for the real-time company. The chosen company is The Jumeirah Group and the selected hotel is Burj Al Arab, which is the only seven star hotel in the whole world. The report conducts an analysis to understand the current trends in the internal and external environment of the company. It uses strategic tools to understand the positioning of the company in the Dubai market. It then formulates strategies which would enable the company to emerge successful in the current market environment. It also recommends activities to be initiated for the implementation of the strategic plan.

Dubai Hospitality Industry
Dubai has experienced tremendous growth in various sectors since it started diversifying their activities and building up their infrastructure. The emirate gradually gained the reputation of being the business hub of the Middle East region. The emirate also experienced a heavy influx of tourists as the Government worked hard to promote the plus points of the place. The increasing growth rate of the Dubai tourism industry had a direct impact on the Dubai hospitality industry. The investment efforts of the government were internationally recognized with the launch of the Burj Al Arab, the first seven star hotel in the world. The below graph shows how the hotel room occupancy levels had increased between 2000-2006. In 2008, the hotel attracted more than 7 million hotel guests [1].

Source: DTCM Statistics, 2006
However, the global financial crisis affected many of the sectors in the Dubai economy resulting in a reducing growth rates in these sectors. These negative trends were also relevant in the Dubai hospitality industry which got majorly affected by the global financial crisis due to the decline in the number of tourists travelling to the country. “The hotel revenues in Dubai fell by more than 40% in May 2009 as compared to the figures during the same period in 2008. This was mainly because fewer people throughout the world were considering traveling due to the impact of the global financial crisis (Walid, 2009). The hotel occupancies in Dubai fell by more than 14.5% in May 2009 as compared to the figures during the same period in 2008 (Walid, 2009).

Burj Al Arab
“Burj Al Arab belongs to the Jumeirah Group. The legendry hotel has a symbolic value attached to it which has gained international attention and put them in awe of Dubai’s innovative capabilities. The hotel is one of the most photographed structures in the world. The hotel is shaped like a billowing sail and has the height of approximately 321 meters. The hotel stands illuminated during night times and is simply...
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