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Strategic Analysis of the Budget Hotel Shandong Silver Plaza Hotel

Author: FangAiHua
Tutor: GongPu
School: Huazhong University of Science and Technology
Course: Business Administration
Keywords: Budget hotel PEST Analysis Five Forces Model SWOT Analysis
CLC: F719
Type: Master's thesis
Year: 2011
Downloads: 43
Quote: 0
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Abstract

With the vigorous development of domestic tourism and the ever-increasing number of mass tourists, China’s hotel industry has developed rapidly, while traditional starred hotel cannot be able to meet the market’s various demands. In 1990s, budget hotel emerged and has become the hot area of China’s hotel industry in recent years. In the rapid development process of budget hotel, the pattern of white-hot oligopoly competition is becoming explicit. The competition between budget hotels evolves from the past individual hotel competition to the brand competition and strategic competition.By analyzing budget hotel’s development、present situation and business pattern at home and abroad, this paper explored external and competitive environment of budget hotel. Taking Shandong Silver Plaza budget hotel as an example, this paper introduced the status of this company and further analyzed its condition using SWOT analysis and five forces model, found the problems influencing its development, put forward some suggestions which is benefit to the h development of the hotel. So the paper provides more ways for it to expand rapidly.In fierce competition surroundings, brand construction is the core competitiveness of budget hotel. Silver Plaza budget hotel is supposed to enforce brand construction, crystallize brand orientation, spare no efforts to be“the best budget hotel”, gradually transform from individual hotel operation to brand construction and chain-store management. In order to expand its market share and enhance its competitive ability, Silver Plaza budget hotel should speed up the development of exhibiting stores. relying on its direct-sale stores’good brand basis, Silver Plaza budget hotel should adopt the expanding strategy of asset-light & low cost to enroll more chain stores. With the help of franchisee’s superior resources, Silver Plaza Budget hotel can reach the aim of rapid expansion, getting a higher yield ratio. To ensure the quality of chain stores, the paper proposes the idea of building an administration school. This school can provide personnel security for the rapid development of Silver Plaza budget hotel by implementing systematic and standard training.

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