Orchid Ecotel
The Orchid Ecotel (Orchid) is currently experiencing financial difficulty with dropping sales, as well as an increase in competition in the coming years. In order to solve this problem, Orchid needs to pursue a focused differentiation strategy by catering to the domestic business segment of the hospitality market with a business-class luxury experience. To achieve this Orchid must:
Introduce business-class rooms that include a work space with a comfortable desk and chair
Have available conference rooms for meetings and seminars
Include complimentary continental breakfast for a quick start to the morning
Provide access to high speed broadband internet
Pursue contract pacts with domestic businesses
Orchid has already established itself as a five star eco-friendly hotel in Mumbai, Pune and Jallandar, giving them a competitive advantage over their current competitors. By capturing a large share of the business traveller market, Orchid will strengthen its presence in the business market while maintaining its five star eco-friendly reputation.
Orchid must use its competitive advantages to regain financial health
Despite a consumer trend towards eco-friendly alternatives, it is evident that this cannot be the sole selling point of a hotel based on Orchid’s recent financial struggles (Exhibit 3). Orchid needs to change its current business strategy (Exhibit 5) to better align itself with the changing environment. Fortunately,
Orchid’s needs-based positioning can easily be adjusted to focus on domestic business travellers (Exhibit
6). Orchid’s eco-friendly and luxury value propositions in a competitive market are viable against other luxury hotels since:
•
•
Orchid is Asia’s first and only ISO 14001 certified eco-friendly five-star hotel, which serves as a differentiator Domestic consumers have a preference towards green and eco-friendly hotels
Orchid simply needs to add an additional value proposition that it can offer to customers to
Introduce business-class rooms that include a work space with a comfortable desk and chair
Have available conference rooms for meetings and seminars
Include complimentary continental breakfast for a quick start to the morning
Provide access to high speed broadband internet
Pursue contract pacts with domestic businesses
Orchid has already established itself as a five star eco-friendly hotel in Mumbai, Pune and Jallandar, giving them a competitive advantage over their current competitors. By capturing a large share of the business traveller market, Orchid will strengthen its presence in the business market while maintaining its five star eco-friendly reputation.
Orchid must use its competitive advantages to regain financial health
Despite a consumer trend towards eco-friendly alternatives, it is evident that this cannot be the sole selling point of a hotel based on Orchid’s recent financial struggles (Exhibit 3). Orchid needs to change its current business strategy (Exhibit 5) to better align itself with the changing environment. Fortunately,
Orchid’s needs-based positioning can easily be adjusted to focus on domestic business travellers (Exhibit
6). Orchid’s eco-friendly and luxury value propositions in a competitive market are viable against other luxury hotels since:
•
•
Orchid is Asia’s first and only ISO 14001 certified eco-friendly five-star hotel, which serves as a differentiator Domestic consumers have a preference towards green and eco-friendly hotels
Orchid simply needs to add an additional value proposition that it can offer to customers to