Hyatt, one of the renowned international hotel chains has expanded their global operation across the world. The strong brand image along with efficient global account management, so far Hyatt has achieved great success in hospitality industry. Their success has created strong position in Asian market owning hotels in more than 10 nations. Even there are maximum of 3 hotels only in India. The mission is to provide authentic hospitality by making a difference in the lives of the people every day. The focus on this mission in pursuit of goal of becoming the most preferred brand in each segment that serves the associates, guests, and owners. Hyatt supports the mission and goal by adhering to a set of core values that characterizes our culture. Hyatt manages, franchises, owns and develops Hyatt branded hotels, resorts and residential and vacation ownership properties around the world. As of March 31, 2011, the Company's worldwide portfolio consisted of 451 properties. The hospitality industry in Bangladesh on the other hand is a very new industry specially the niche luxurious and premium hotel services. There are few international hotels operating in Bangladesh but are not sufficient enough to treat the locals and foreigner with same values. Therefore, government’s positive signal towards the hospitality industry and successive tourism, have made the business more lucrative for foreign investors. At this point, it is quite predictable that Hyatt Corporation has potential in this not-so-matured hospitality industry with less than 10 actual 5 star hotels. The environment of operating business for Hyatt seems to be very friendly as there is no fierce competition but indeed there is a potential threat for new comers in such attractive industry in near future. Considering the technical, financial and legal aspects or feasibility of investing in Bangladesh, Hyatt may take benefits of the allowances provided by the government and start their operation based on support and implementation strategy. In such strategy, Hyatt would be able to manage the business more efficiently. Again, the pursuable headquarter level strategy should be Area or Geographic division structure to control the operations in Asia pacific region denying the existing matrix structure. Such implementation would not only let them succeed but also would allow them create a brand image over the market segment in Bangladesh.
Market Segment Analysis
Luxurious hotels in Bangladesh occupy a niche market of the hospitality industry. The services provided by the 5 star and 3 star hotels are premium charged. As a result, the customer segment purely contains of the people of upper class and upper middle class. Another major source of the customer segment is foreign visitors or tourists coming from worldwide. Hyatt Bangladesh’s prime focus would be to sustain the excellence of their premium service amongst the richest 20% of the population in Bangladesh and the others from secondary sources of foreign occupants. The above diagram shows the income distribution of Bangladesh and it is also shown that service sector allocates approximately 51% of GDP. So as lucrative new industry, hospitality has a niche yet growing market segment for Hyatt in Bangladesh.
Positioning Vs. Resource Based Perspective
Considering the potential of hospitality industry, resource based perspective will not be appropriate as Hyatt provides diversified services along with localization. In such case, positioning based perspective would be the perfect choice for Hyatt. Strategic Group Map and Competitors
The Information Technology and global management industry in Bangladesh has become very competitive within a very short time. Many global companies and MNCs have found the country lucrative for future investment. As a result, the incremental foreign operations have established a need for international hotel industries. Haytt being one of the specialized international hotels has...