Commented [U1]: This title has to be on top, cover page

Crown Plaza Hotel Market Entry Strategy

[Student Name]

[Instructors Name]

[Institution Name]
Contents
Introduction ..................................................................................................................................... 4

Global Hotel Industry ..................................................................................................................... 4

Crown Plaza Hotel .......................................................................................................................... 5

SWOT Analysis .............................................................................................................................. 6

Strengths ..................................................................................................................................... 6

Weaknesses ................................................................................................................................. 6

Opportunities............................................................................................................................... 7

Threats......................................................................................................................................... 7

Emerging Market ............................................................................................................................ 7

Africa .......................................................................................................................................... 8

Japan ........................................................................................................................................... 8

China ........................................................................................................................................... 8

Egypt ........................................................................................................................................... 9

Qatar............................................................................................................................................ 9

Market Selected .............................................................................................................................. 9

Political ..................................................................................................................................... 10

Economic .................................................................................................................................. 10

Social......................................................................................................................................... 10

Technology ............................................................................................................................... 11

Strategy Adopted .......................................................................................................................... 11

Porters Forces............................................................................................................................ 11

Ansoff Matrix............................................................................................................................ 12

Justification of Strategy ................................................................................................................ 13

Practical Application ..................................................................................................................... 13

Conclusion .................................................................................................................................... 14

References ..................................................................................................................................... 15
Introduction
Number of changes have taken place in today’s business environment where technology
has made great advancements enhancing globalization bringing people from various corners of
the world closer to each other. In such an environment, opportunities have increased greatly for
business where they can now gain access to any market around the world for which reach has
increased (Bebbington, Larrinaga &Moneva, 2008). Focus will be on expansion of Crown Plaza
Hotel to a new emerging market where analysis will be made of various factors in order to
determine feasibility of expansion. Company selected for expansion is Qatar.

Analysis will be made of global hotel industry highlighting current trends keeping it in
line with development in tourism industry. Description will be provided of crown plaza hotel
which we plan to expand in a new market highlighting its main features through SWOT analysis.
Overall industry conditions will be analyzed around the globe followed by selection of emerging
market where crown hotel wishes to expand. PEST analysis will be carried out to determine
current condition of the market along with specific strategy that will be adopted for entering into
the selected emerging market. Justification will be provided to the best method for entry along
with plan for the coming decade as to how the company is to operate in the target country.

Global Hotel Industry

Travel and tourism industry is gaining increased importance in today’s time where it is
recognized as an opportunity for creating jobs, generating prosperity and increasing export for
the country. Importance of this sector can be realized by the fact that it accounts for 10.4% of
global GDP and has provided more than 313 million jobs making up 9.9% of global employment
(Gazzoli, Kim &Palakurthi, 2008). Exact definition for hotels are not present but it is often
defined as establishment which provides meals, accommodations and other services which are
designated for travelers and tourists who are staying the night. It is difficult to measure the exact
size of the hotel industry where it may range from small family owned businesses, which are
operating in certain corners, to large multinational corporations who have rooms ranging in
thousands. Demand for hotels are growing rapidly with time where total number of rooms being
dedicated to this industry exceed 20.1 million where it has been growing at a rate of 2.2% each
year.
 Previous conditions of tourism seemed to be on the decline due to number of factors such
as stall in global economic conditions, natural disasters which hit main countries such as Japan
and somewhat improvement in global security conditions which led to promotion of tourist
movement around the world. Sharpest increase in tourism was seen for developed countries
where increase in number of tourists exceeds 6% such as in Europe whereas the increase in
developing countries is around 3.8% such as in Asia and North Africa (Buhalis&Crotts, 2013).
Tourism is considered an important part of economy of a region where it carries both direct and
indirect economic impact where its contributions are much greater. Several major changes can be
seen occurring in the global tourism industry such as greater spending due to positive economic
conditions where increase was seen in spending around 2 to 2.5%. Movement around the glove is
increasing where lower airline pricing and low cost of entry is the major contributive factor.
Increasing competition among various airlines is expected to further bring down prices.
Spending on recreation and travel is increase where people seem to be spending more on durable
goods.

Crown Plaza Hotel

Crown plaza hotel commonly referred to as Crowne plaza is a chain of services which
offers hotels are resorts to customers around the world. It is a UK based company which is
catering in several areas such as business travelers, meetings, conventional markets etc.
Currently the company operates in more than fifty-two countries where total number of hotels
owned exceed 400 which are mostly located in city centers, coastal towns, near main airports and
around resorts. Hotel is seen as part of a larger group called international hotel group which is
basically a group of hotels who tend to serve customers in their own distinctive way where they
tend to maintain their own unique image along with incorporating features from the local culture.

Foundations of the company were laid down in 1983 in Rockville, Maryland where it
grew rapidly in just a few years through which it established its name as an independent chain.
International growth started in 1999 when the company opened its first resort in Madeira,
Portugal. It was purchased by InterContinental Hotels Group as a holiday Inn family where its
portfolio includes luxury brand hotels and resorts, suites, stay brand candlewood hotels, club
vacations, EVEN hotels, midscale service brand holiday inn express and many more (Yaguang,
2010). International presence and quality of service has allowed the company to establish a
positive image around the world and earn a strong position in the hotel industry. This reputation
will play valuable part for the future expansion into new emerging markets in tourism.

SWOT Analysis
Strengths
 Business model less dependent on fixed assets which gives the company stronger
financial standing allowing it to undertake growth projects in a more rapid manner
 Wide geographical presence as the company is operating in several main markets around
the world give it access to large variety of customers
 Customer focused approach where more focus is put on experience of customers and
building relationship with them which leads to loyal customers of the company
 Wide wage of product portfolio being offered to customers which adds to greater value
for customers catering variety of needs
 Strong employee engagement focused on training and development in such a manner that
skilled and experienced workforce can be retained
 Strong financial performance as indicated by financial statements of the company
indicating stronger growth in the future
 Long term standing in the market which has allowed it to gather considerable fame and
gain strong position in the international tourism industry

Weaknesses
 Services of the company many relate to luxury category where no services are being
offered which would be considered on economic level for which the hotel brand seems to
be lacking in economic services
 Security system of the company seems to be out of date where physical security may be
adequate but data security still needs improvement which could leak secrets of the
company (Lewin, Massini&Peeters, 2009)
 Overall ranking of the organization is decreasing on global levels where it is losing rank
as compared to competitors where it indicates that more emphasis needs to be put on
maintaining competitive advantage
  Working in various geographic locations puts the company at risk of diverse legal
regulations where overall profitability is effected

Opportunities
 Increase in international tourists due to ease of travel across various borders where
services can be offered in such a manner which would be appealing for customers of the
company
 Technological changes brought about which can help the company greatly increase
quality of service being offered to customers increasing customer value along with giving
competitive advantage
 Various types of niches markets present in hospitality sector due to diversity of visitors
using which the company can target specific set of customers giving less competition and
allowing them to increase profitability
 Number of emerging markets present around the globe which the company can tap into
and capture market share such as markets present in Asia and middle east

Threats
 Working across number of markets around the globe puts it at risk of changing factors in
microenvironment which can pose a threat for the company
 Occurrence of events which were not expected before which could lead to more
complications such as nature disasters of war breaking out in developing countries
 Decreasing position of the company in the global market which shows that competitors
are working in a more efficient manner taking away market share from the company
where global ranking decreased to third position (Zigan&Zeglat, 2010)
 Changing trends in tourism where position of the company may be effected in the current
environment where they are dealing with
 Increased competition between various companies working in the hotel industry which is
expected to drive down profitability

Emerging Market
Number of trends can be seen changing in the tourism industry which is carrying impact
on global business environment where emerging economies can be seen around the world
presenting healthy option for expansion. This presents opportunity for companies working in the
hotel industry where new markets are presenting ripe opportunities. Number of reasons can be
highlighted for growing trend in emerging markets where increased competition between various
airlines have brought down pricing of tickets making it easier to travel (Khanna & Palepu, 2010).
Global economic trend also seems to be stabilizing overtime which will lead to greater prosperity
and stability making new markets more accessible and desirable for tourists. Technological
environment is adding towards the competition where companies more effectively applying
growth strategies are able to take up market share.

Africa
Economic backwardness and political instability made it difficult for the tourism industry
to develop in these areas for which it took remained under developed for quite some time but
positive trend can now be seen in tourism industry where large number of hotels are being built
in this region in order to accommodate large number of visitors arriving which are expected to
increase in the future. Natural beauty and rich culture are the main aspects which are serving to
attract tourists where growing economic activity and more peaceful conditions are expected to
increase number of visitors in this region. Properly developing accommodations at strategic
localities such as resorts in the jungle will allow hold greater appeal for visitors. Cape Verde,
also referred to as the African Caribbean, can be targeted which offer wide range of plants and
animals along with beautiful scenery along the coastline.

Japan
Japan is an economical developed country which holds special appeal to tourists due to
its rich culture, friendly people and different environment. Japanese people hold a welcome
approach towards tourists where several cities and localities often remain crowded with tourists
such as Tokyo and mount Fuji. This opportunity should be availed since large number of visitors
are not only expected for the Olympics event but would increase overall appeal of Japan for
tourists bringing about greater number of visitors in the coming years (Kelly & Brownell, 2011).

China
China has undergone significant development over the recent years allowing it to emerge
as an economic superpower in today’s world where it holds strong competitive position as
compared to other countries. Influx of tourists is seen more commonly in main cities such as
Beijing, Guangzhou and Shanghai where business tourists make up large part of visitors.
Limitations were put on number of visitors coming to this region but removal of such restrictions
is expected to smooth out adding towards number of visitors in this region.

Egypt
Tourism industry is already an integral part of market in Egypt where great pyramids are
a historical sight holding appeal for tourists who wish to visit rich culture of the country.
Tourism industry is key part of Egypt’s economy where it makes up around 12% of total
employment in the region. Mix of activities are being offered to the community which are a
combination of culture, adventure, tourism and relaxation. Number of tourists visiting the
country are increasing with time where number of visitors are expected to increase by 40% in
2018 exceeding eight million customers in the country (Ibrahim, 2013). Commented [U2]: There was no need for this, simple examples
about these nations would have been fine (too large)

Qatar Commented [IS3R2]: I shortened it

Qatar has undertaken considerable development as other countries present in this region
did where main element which fueled rapid growth is its vast oil reserves which gave significant
boost to economy of the country. Most attractive point for tourists is the Mathaf which is an Arab
museum showing modern art along with technical inventory of contemporary Arabs. Doha is
another emerging destination where the city holds special character owning to number of
features which it possesses such as distinctive and unique landmarks. New additions being made
are making the country more receptive towards tourists such as the launch of cruise service
which will make experience of holiday goers more memorable.

Market Selected
Qatar has been selected as the target market for expansion of Crown plaza hotel where
number of features were identified which made it more suitable. Overall condition of middle east
seems to be shifting towards diversification of economies where oil reserves are declining at a
rapid rate which means that other state of revenue needs to be created which will help sustain
growth in the future. Neighboring countries present in middle east can be seen readily adopting
such strategy such as in Dubai where it has become an important point for tourists all around the
world. Job opportunities are further increasing in the region where people are looking to take part
in the developing tourism industry for which it would relatively become easier to find employees
for Crown plaza hotel.

People around the world were more hesitant to step into this region where Muslims
present in the middle east were seen from terrorist point of view (Rao, 2008). Now change can
be seen in this perspective where westernization has occurred in many regions where foreigners
can feel more welcome. This would be seen as discover as a new place for most westerners
where they will be more willing to visit such sites. Presence of crown plaza hotel in the Qatar
would present appeal for new tourists where they may be feeling doubtful regarding their visit
before but seeing that international brand holding strong reputation around the globe is present
here then they would feel more comfortable.

PEST Analysis

Political
Qatar currently has an emirate type government which seems to support constitutional
monarchy but does not have parties or hold elections where expatriates are not given nationality.
Whatever kind of biasness may be present towards foreigners; foreign businesses are shown a
welcome view which is also need of the nation for which political conditions are expected to be
welcoming. Workers will also be readily available due to large number of immigrant workers
present.

Economic
Current GDP of the country stands at 71.2 billion which seems to be improving with time
where annual growth rate of 14.2% was witnessed. Strong economic conditions mean that
buying power of people present in this region is increasing through which people will be
spending more or travelling and tourism (Almfraji, Almsafir& Liu, 2014). Strong potential is
present for growth of hospitality sector in the country presenting a strong opportunity.

Social
Arabic is main language of the region but English is widely spoken which means that
working in the country would be relatively easy due to less language barriers. Being based on
Islamic principles, dressing of foreign tourists may be somewhat issue where foreign tourists
may be discouraged to come to this region.
Technology
Money being derived from oil allowed the country to make strong progress in
technological sense where IT services market was slow in the start but future growth is strong
where spending on technology is expected to exceed 151 billion. Gap can be used by Crown
hotel by bringing about stronger technological advancements and gaining advantage as compared
to other hotels present.

Strategy Adopted
Porters Forces
Porters competitive strategies shows overall strategy which can be adopted by the
company for gaining competitive advantage in this country where four options are available
including cost leadership, differentiation, cost focus and differentiated focus. Commented [U4]: Image and small explanation on the strategies
in short and then relate to the hotel
Commented [IS5R4]: Added a few lines, check

Differentiated focus will be adopted by the company where services being offered will be
targeted as certain upper class of tourists where unique image shall be formed by presenting
quality of services holding appeal for high end customers. Special needs of customers will be
catered for in this sector leading to greater satisfaction resulting in higher revenue. Differentiated
focus will allow the company to hold up its traditional approach where quality services are being
offered to high class customers where services will have unique differentiated view in from of
customers allowing them to see it as unique as compared to other services avaialbe.

Ansoff Matrix
Ansoff matric provides valuable insight as to how one can approach a new market where
four categories have been placed with four approaches which include market development,
diversification, market penetration and product development. Current market of hospitality in
Qatar seems to be a new emerging market since number of tourists visiting this region are bound
to increase with time. Hence, viewing it as a new market already having products and services
present, market penetration strategy should be taken up which involved selling more of the same
thing which the market has. Commented [U6]: Need to talk about the hotels plan to
implement strategic growth based on one of the 4 strategies also
related to porters generic strategy
Market is new where service being offered in already present using which product Commented [IS7R6]:

differentiation strategy would be the most suitable to apply in the current scenario. Services Commented [IS8R6]: Added a part

being offered by Crown plaza hotel will be more superior as compared to what other competitors
are offering allowing it to set itself out as superior to current competitors present.

Numbers of risks are present while entering this market where political and security
situation may shift dramatically in a small duration where number of tourists coming to this
region may decline rapidly causing fall in revenue. Social outlook towards tourists may change if
Islamic principles are enforced more strongly where tourists would be deterred. Market
development would make some space for crown plaza hotel to take up part of market. Commented [U9]: Also need Nykiel’s fourteen hotel strategic
growth options, but since I could not find the table online you may
ignore it for now.

Justification of Strategy Commented [IS10R9]: I couldn’t find it either… links to only

paid books

Differentiation strategy will follow on the basis that services being offered by Crown
Plaza Hotel is superior as compared to other companies working in the hospitality sector. Strong
position around the globe allowed it to be recognized as a company that offers quality rather than
keeping prices at an economic range. Hence, differentiation strategy will be more appropriate in
the current scenario where it will allow customers to know that Crown Hotel is a well renown
international brand that makes no compromise on quality and will hold up its image in line with
international reputation. Ansoff market provides clear categorization of markets where
hospitality industry in Qatar is developing slowly with time which can categorize it as a new
market. Service being offered of hotels is already present which mostly catered for business
tourists or local tourists in this region. Hence, market development approach is most suitable in
this regard where differentiation will be set out by quality of service being offered by the
company along with its strong reputation which it has already developed in the market.

Practical Application
Year Strategy
Year 1-2 Gaining permits to work in the country after creating proper feasibility plans
and getting approval from board
Year 3-4 Setting up hotel which will involve leasing land setting up hotel with
facilities which live up to brand name
Year 5-8 Start providing services in main city of the country and build appeal
Year 9 Look for potential opportunities for expansion targeting new areas where
hotel can be set up
Year 10 Building strong position in the market
Conclusion
Travel and tourism industry is gaining increased importance in today’s time where it is
recognized as an opportunity for creating jobs, generating prosperity and increasing export for
the country. Previous conditions of tourism seemed to be on the decline due to number of factors
such as stall in global economic conditions, natural disasters etc. Crown plaza hotel commonly
referred to as Crowne plaza is a chain of services which offers hotels are resorts to customers
around the world. It is a UK based company which is catering in several areas such as business
travelers, meetings, conventional markets etc. Currently the company operates in more than fifty-
two countries. Number of trends can be seen changing in the tourism industry which is carrying
impact on global business environment where emerging economies can be seen around the world
presenting healthy option for expansion. This presents opportunity for companies working in the
hotel industry where new markets are presenting ripe opportunities. Qatar has been selected as
the target market for expansion of Crown plaza hotel where number of features were identified
which made it more suitable. Overall condition of middle east seems to be shifting towards
diversification of economies where oil reserves are declining at a rapid rate which means that
other state of revenue needs to be created which will help sustain growth in the future. Qatar has
been selected as the target market for expansion of Crown plaza hotel where number of features
were identified which made it more suitable. Overall condition of middle east seems to be
shifting towards diversification of economies where oil reserves are declining at a rapid rate
which means that other state of revenue needs to be created which will help sustain growth in the
future. Ansoff market provides clear categorization of markets where hospitality industry in
Qatar is developing slowly with time which can categorize it as a new market. Service being
offered of hotels is already present which mostly catered for business tourists or local tourists in
this region.
 Commented [U11]: Always start the reference in a new page
References
Commented [IS12R11]: It’s a new page
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Commented [U13]: Year in bracket
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Source:https://www.emeraldinsight.com/doi/abs/10.1108/10867370810879429

Yaguang, Y.U.A.N., 2010. Design of the Composite Frame-Tube Structure in Shaoxing Crown
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Source:http://en.cnki.com.cn/Article_en/CJFDTOTAL-JGGC201003006.htm
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