Table of Contents2
Past and Current Strategies4
Analysis and Evaluation5
Key Industry Factors6
Five Forces Analysis6
Corporate and Functional Strategies11
Alternative 1 – Forming Alliances or Partnerships with International Brands in New Countries13 Alternative 2 – Expand Culture and Training Programs to Ensure Cultural Compatibility14 Alternative 3 – Aggressive Marketing Campaign and Staff Recruitment and Retention Program15 Recommendation and Action Plan15
Appendix A: Five-Forces Model of Competition20
Symon Bridle, CEO must determine if the current strategy Shangri-La has in place could maintain their unique brand of Shangri-La Hospitality as they moved into tighter labour markets. As they battle with high-end Western hotel chains at home and abroad they need to overcome wages and cultural issues with their hotels world wide. To ensure Shangri-La maintains its service model during their expansion a consistent platform and service quality needs to be maintained. The following alternatives are to be considered:
1. Forming alliances or partnerships with international hotel brands in new countries 2. Expand current culture and training Programs to ensure cultural compatibility and consistently trained employees 3. Implement an aggressive global marketing campaign and staff recruitment and retention program
It is recommended Bridle present a combination of alternative two and three to the executives. The plan will ensure that Shangri-La will be able to maintain their service model that is their competitive advantage. Marketing their differentiating features will grow their brand globally and building a staffing recruitment and retention plan will ensure they have enough staff to ensure the plan is successful.
Past and Current Strategies
Shangri-La began operations in Asia with their focus in the 1980s and 1990s on rapidly expanding in the Asian market. In the early 2000s, Shangri-La began expanding beyond its core Asian markets into such countries as Dubai and Oman and in recent years expansion has extended to into Europe, Australia and North America.
Shangri-La Hotels and Resorts (Shangri-La) was a leading player in the luxury hotel industry with a signature standard of “Shangri-La Hospitality”, a service model based on traditional Asian hospitality. They have a stated mission to “delight customers each and every time” and provide its customers an unforgettable experience by blending local cultures, exotic art, and lively ambience. There past strategy focused in the Asian market focused on building its brand based on this service model. However their current strategy is not only focused on expanding into Asia, but into the western world and adapting this hospitality service model to each country’s local requirements.
Shangri-La remains focused on developing local talent to world class expectations and ensuring that each global employee delivered service “The Shangri-La Way” and retaining them by creating transparent, well-defined career paths.
Shangri-La is planning on expanding their name worldwide, but they are encountering problems doing this. They are realizing increased competition in the Asian market from well known brand names. The newcomers are poaching already trained employees from Shangri-La and offering higher wages driving up historically low wages. As a way to diversify, Shangri-La is expanding into the European, Australia and North American market; however, these countries have more expensive labour markets where trained hotel...