Five Forces Analysis: Competitive Environment

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  • Topic: Hotel chains, Hotel, Hotels
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  • Published : December 19, 2012
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PA #3. Analysis of the Competitive Environment (five forces analysis)

By: Laura Calderón
Alicia Correa
Gerardo Estruch
Selma Janssen
Rafael Vilarrasa

| | Brief explanation of the factor| Influence predicted: positive or negative? | Reasoning for the influence predicted | Company’s actual reaction to the factor| Assessment of company’s reaction & proposal of alternative actions| CURRENT | Cur.1| Spain's NH Hoteles has received a preliminary offer from U.S. private equity firm KKR to buy bonds that can be converted into shares of hotel chain.| Negative.| NH Hoteles is indebted. This investment in their company might re-activate its power in Spanish market. | As this is a recent new Melia has not had time to react to the movement of the famous venture capital fund.| We think Melia should be aware in what concerns to pricing and advertisement because one of its most important competitors is going to come out from its crisis.| COMPETITORS| Cur.2| Hilton Hotels is committed to introduce its brand DoubleTree in the Spanish market, where it has already been operating by 20 years.| Negative.| DoubleTree is a highly reputed brand from one of Melia’s main competitor. Rivalling with Gran Melia brand, it is going to attract potential Melia customers in the long term.| Melia has already introduced some special offers to frequent customers in this region of Spain, where the Melia Golf Vichy Catalan is the most affected.| In our opinion Melia should also offer discounts for potential customers. They have to remember that is important to attract new guests as well as maintaining them. | POTENTIAL | Pot.1| ………… (3)| | | | |

COMPETITORS| Pot.2| ………… (4)| | | | |
SUBSTITUTE | Sub.1| Airbnb has gained popularity by connecting travellers withapartment and home owners across the world, providing an alternative to hotels.| Negative| As this new kind of lodgement ismuch cheaper than a night in most hotels, people prefer to...
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