Hyatt's International Expansion: Is India a potentially profitable market?

|24 pages |30-06-2010 | | Not evaluated |
Price : €5.40

Presentation

Global Hyatt is a hotel corporation that is well-known and recognized worldwide. Its success began on September 27, 1957 with the opening of its first hotel “Hyatt House” (after owner Hyatt R.Von Dehn), near Los Angeles airport in the USA. By 1969, thirteen hotels had already opened in the USA under the name of Hyatt Corporation, while the group decided to launch out into the other continents by creating Hyatt International. The Hyatt Regency in Hong Kong was the first hotel to open outside of American territory (1969). Later on, Hyatt Corporation and Hyatt International merged under the name of Global Hyatt.

Today the American group has today 470 hotels established in 45 countries throughout the world, and classified under three main categories, proposing standards of services adapted to the customers, and corresponding to the following markets:

- Hyatt Regency: main market of the group, it is focused on business clients, offering restaurants and also relaxation and fitness centres
- Park Hyatt (since 1980): it is dedicated to customers who ask for personalized discretion and services
- Grand Hyatt (since 1980): proposes, contrary to Park Hyatt, volume and larger hotels.

Hyatt is currently continuing its expansion by entering new markets. It has chosen to be present in India, which was a real opportunity to seize. I found it interesting to study this luxury hotel group's entry into the Asian market and more particularly in India with its fast growing market.

This essay starts by presenting the current situation of the hotel group and details its strong international presence. Hyatt's management is then analysed in order to gain an understanding of its competences and particular know-how. In the second part of the essay a SWOT analysis is provided, followed by a PEST analysis in part three.

Extract

2.1.1 Hyatt’s mission statement and hierarchy pyramid:
Mission Statement
"Hyatt [India] aims to be Indian's leading conference and leisure resort. It is through our superior customer driven approach that we will deliver the guest dream! Our employees, as our principal asset, are highly trained service-oriented professionals working together as a team to provide the Hyatt Touch. These combined efforts will ensure we maximize positive returns for our Owners and Hyatt International".

Vision: “Working together as a team to provide the Hyatt Touch”
Hyatt consists a whole homogeneous of goods and services, intended for the hotel market which tends to extend more and more, having given and clearly identified competitors, and for which it is possible to formulate a strategy. Thus, Hyatt can develop a competitive advantage by putting in place tactics and using its resources in an opportunist way, by creating new markets, and extending internationally.

Strategy & values
Strategy has been defined as the way organizations or individuals set about achieving their goals. It defines the high-level objectives for the organization: To focus on company-wide diversity initiatives. Thus, Hyatt has some core values that evolve linked to these initiatives: Commitment, Accountability, Training, Measurement and Communication, which maintain and enhance Hyatt’s image as an Employer of Choice, Business Partner, and Community Ally throughout the communities it serves.
It leads to TRUST, a key value of the company and its environment.
Hyatt's goal for Diversity is "To lead the industry by being an employer and hospitality company of choice for an increasingly diverse population."

Business
The business plan should at least integrate the expansion plans and the business forecasts in order to explain how Hyatt can answer to the market needs, and requests the client delight. The objective is to show how the company can reach its strategy while working towards a common goal.(...)

Hyatt's International Expansion: Is India a potentially profitable market? Hyatt's International Expansion: Is India a potentially profitable market?
Price : €5.40

Table of Contents

Introduction
1 Short description of the company’s activities and international scope
1.1 Global Hyatt, the American hotel corporation since 1957
1.2 International scope
2. Analysis of Hyatt’s management
2.1 Assessment of Hyatt’s competences and know-how
2.1.1 Hyatt’s mission statement and hierarchy pyramid
2.1.2 Hyatt’s distinctive competences
2.2 SWOT Analysis
3. Global Market Planning: Strategy to enter the Indian market
3.1 External Audit
3.1.1 PEST Analysis
3.1.2 The Demand Profile
3.1.2 The competitive environment
3.2 Internal Audit
3.2.1 Marketing Mix
Conclusion
References

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