Strategic Threats Faced by the Hospitality Industry

This presentation discusses the strategic threats faced by the hospitality industry, including disruptive innovation and changing customer preferences. It focuses on the case of Accor S.A., a French multinational hospitality organization, and explores the major threats it faces, such as disruptive technologies, political turmoil, and market risk. The presentation also suggests possible strategies to address these threats and highlights the importance of strategic management in identifying and managing threats.

Industry Based Case
Study

Introduction
Strategic management is the concept with the help of which the organisation
determine the actions that they have to take for ensuring the accomplishment
of the goals and objectives of the organisation. For this the analysis of the both
internal and external market is done so that the competitive environment as
well as the influence of other factors can be analyzed in this presentation
various aspects related to strategic threats faced by the hospitality industry are
discussed which are disruptive innovation, changing preferences of the
customers etc.

Introduce the organisation
The Accor S.A. is a French multinational hospitality organisation which has been managing
the franchises hotels, resorts and vacation properties. They have been operating in almost
100 countries which imply that they have better strategies and plans with a large number of
employees and capacity of rooms. The secret to success of the organisation is that they have
been targeting people from different segment such as luxury segment, premium segment,
midscale segment and economy segment through various hotels. The value proposition of
Accor hotels is to be more curious, connected and assertive for the choices of the customers
so that their experience can be satisfied with more authenticity, simplicity and emotionally.

Major threats faced by the
organsiation
The strategic threat that is faced by the organisation which has impact on the
objectives of the organisation includes:
• Disruptive Technologies: The competitors have been adopting various
innovating for the ways in which they offer services to the customers in
their rooms, creating new sources for the supply of the material with the
use of artificial intelligences etc. Due to this the strategic plan of growth
through expansion gets affected as it increases the demand of funds for
incorporating the innovating within the organisation for meeting the level
of competition.

Major threats faced by the
organsiation
• Political Turmoil: The strategy of the organisation is to ensure better profitability by
minimizing the cost and by ensuring better value and experience to the guests but it gets
affected by the political changes such as changes in taxation policy, increase in the social
security fees, and other taxes on the supply of the material etc. affects the profitability of the
hotel.
• Market risk: The hotel industry is highly influenced by the market risk which is related to
the development of the domestic factors and the purchasing power of the customers. Due to
this planning of various business strategies get affected as they have to modify their
strategies such as pricing strategies, ensures the capacity as per the market scenario and
demand for the rooms etc.

Possible strategies
addressing the identified
threats
• It is crucial for the organisation to take various steps with the help of which they
can ensure that the impact of the identified threats can be managed by the Accor
hotels are given below:
• The workplace of the culture of the organisation must be made comfortable and
capable enough for the employees by enhancing their competence so that they
can easily adopt the changes which are taking place.
• The trainings must be provided to the management and the staff so that they can
efficiently determine the impact of market trends on the business operations.

Concepts related to
strategic management and
threat identification
Strategic management facilities the large organisation such as Accor hotels
in harmonizing the efforts of functional departments, ensuring interrelation
among all the departments etc. so that the overall performance of the hotel
can be improved. Along with this various models and concepts are used
with the help of various threat can be identified such as for analyzing the
threats from internal environment SWOT, VRIO framework is used while
for analyzing the external environment PESTLE framework is used along
with competitors analysis, Porter’s five force analysis and many more.

CONCLUSION
It is concluded from the above presentation that the organisation has to take
into consideration various factors that can affect the business operation by
analyzing both internal and external environment with the help of various
strategic management concepts and models so that better strategies can be
formulated and they are managed well.

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