SWOT Analysis of Inter-Continental Hotels Group

This report provides a SWOT analysis of Inter-Continental Hotels Group (IHG), including its strengths, weaknesses, opportunities, and threats. It also discusses the background of the hotel, the strategy adopted by the hotel for its growth and profit, and the Ansoff's Matrix and Porter Generic Strategy Model used by the hotel.

International
Hospitality
Management

Contents
INTRODUCTION.......................................................................................................................................3
MAIN BODY..............................................................................................................................................3
Background of Hotel...............................................................................................................................3
A. SWOT analysis of Inter-Continental Hotels Group............................................................................3
Background of emerging market.............................................................................................................5
PEST of IGH...............................................................................................................................................6
Strategy that is adopted by the Hotel for its growth and profit....................................................................7
Ansoffs Matrix........................................................................................................................................7
Porter Generic Strategy Model-...............................................................................................................8
Nykiel’s model........................................................................................................................................9
CONCLUSION.........................................................................................................................................12
REFERENCES..........................................................................................................................................14

INTRODUCTION
Tourism is move of guests structure there living spot to other for investigating new things
and spots for fulfillment of their needs and appreciates life. Global Hotel Industry is that part of
axiom industry which is identified with convenience of guests for vacationer place. Lodging
industry assume a significant function in firm tourism business as it gives foundation office to
business and have as significant impact of tourism ventures.. IHG in Royal Victoria Dock is a
lodging network with settle in London, UK. It is a chain of lodgings which is working in excess
of 100 countries with in excess of 3000 inns and 118000 dabs. This inn is recorded in star class
with piece of the pie is an over 10% in entire tourism industry. The principle goal of inn is to
give a-list administration to its clients and give most extreme fulfillment from the side of
lodging. In this report, This lodging will be consider as the base where the SWOT and bug will
be examine for knowing effect of inner and outside variables individually. Here the key modals
will likewise remember for which dynamic and systems will be examination. Watchmen Generic
Strategies, Ansoffs grid and Nykiel’s will be utilized to help lodging in development and
advancement.
MAIN BODY
Background of Hotel
Intercontinental Group Hotels Plc. (IHG) is a multinational hotel corporation with
headquarters in Denham, UK. Via subsidiaries worldwide with 4,480 hotels in about 100 nations
all over the world, it is interested in ownership, management, renting or franchise business hotel
chains. Its products involve Plaza Crowne, Holiday Inn, InterContinental Suites, and Staybridge
Suites. Registered on the London Stock Exchange (LSE) with a separate listings on the New
York Stock Exchange (NSE), IHG was ranked 72nd in the FTSE 100 index only at end of 2011,
with such a market cap of £3.4bn.
A. SWOT analysis of Inter-Continental Hotels Group
SWOT investigation is that structure which is utilized by firm for checking it inside
variables which can affect on firm execution. In this system qualities, shortcoming, opportunity
and dangers of firm will be assessed for improvement of capacity and use them for plan of
procedure as per this. The SWOT analysis of IGH company is as:

Strength Weakness
 Global presence is significant quality
of IHG as it help inn in getting is
tasks at worldwide level , it increment
the odds of benefit as client will get
inn administrations in each nation
where there is enormous number of
administrations and can visit the
travel industry objective which it
need to visit (Li, 2018).
 Employees likewise go about as the
quality of this lodging on account of
enrollment and choice cycle. lodging
follow a severe cycle for enlistment
of worker from various sources this
will likewise help firm in getting
qualified representatives and
furthermore lead in accomplishment
of firms objective on time with
increment execution.
 Major quality of lodging is that it
centers around building relationship
with client which will help firm in
relating client and will likewise leads
in increment piece of the pie of firm.
This additionally help client in full
fulfillment.
 Week data and innovation framework
went about as the shortcoming of firm
this is on the grounds that there is
absence of refreshing in this field by
the executives. This can be improved
by firm with the assistance of
specialized help and redesign.
 Lack of input detailing is likewise a
significant issue in inn as there is
delay in reacting inquiries and
protests of client, this is on the
grounds that there are number of
client and staff isn't as per this so
some time lodging need to experience
the ill effects of this issue and it go
about as there shortcoming
(Cavagnaro and Losekoot, 2019).
Opportunities Threats
 Hotel get the opportunity to build its
advertising activity more as there is
proceeds with improvement in the
 Large number of contender can go
about as danger of firm this is on the
grounds that huge number of

travel industry. This will help inn in
set up its branches where there is
more guests. This will help it in
expanding its piece of the pie and
increment framework for greater
benefit and improvement.
 Bring innovative changes in firm is
additionally an open door for IHG as
it can utilize web based booking
director and can show itself on
different stage like Trivago and some
more. This will help lodging in
expanding the fulfillment of client
and limiting weight from
representatives with booking rooms
on the web. This will likewise help in
the executives of work
contenders will diminish the benefit
capacity of firm, and in inn industry
there is large range if lodgings which
are selling same kind of item
additionally everything rely on the
brand estimation of inn.
 Legal prerequisites are changing
persistently and confirm from country
to country which firm need to use to
change its strategies. This is quick to
the point that firm need to which it
constantly however some time is
slack visually impaired this all will
stuck between legitimate liabilities
(Horner, 2017).
 Changing trade rates will likewise
affect on firm as it need to adapt to
them and can make gigantic
misfortune it.
Swot will help IHG in gaining admittance to its number of capacity which are identified with
qualities and shortcoming which can facilitated for plan business techniques.
Background of emerging market
To explain the emergence of ICH in developing economies, they are able to extend their
company of that designated location in China. China is a developing country which has a low
stage of progress compared with advanced countries. The country has diverse effects on cultural,
social , political, and cultural considerations on the islands. China has started promoting of
international tourism; the culture is entering by managing employees and unravelling towards an
industrial society.

PEST of IGH
It is that examination which is utilized to distinguish the outside powers which can affect on
IHG. This incorporates the investigation of political, economic, social and technical factors
which can affect lodging execution from outside. These all will be distinguished regarding IHG
Political factors: It incorporates those factors which are identified with government and polices
identified with business in country where firm is working. This has direct effect on firm choice
and system plan. For instance in UK there is political agitation in type of BREXIT which have
direct effect on firm as after it there will be tremendous changes in government approaches
which can likewise affect on firms strategies and methodology so this must be investigation by
IHG to get customary updates with respect to this and define polices as indicated by it (Cabral
and Jabbour, 2020).
Economic factors: in this, those factors are incorporated which are identified with economic
condition of country here firm is working. It comprise of trade rates, GDP development, and so
on which are straightforwardly identified with firm benefit and smooth progression of activities.
In setting of IHG, there are different factors which can affect on firm gainfulness like great
economic development will likewise help inn in become quicker and help in expanding number
of clients which will likewise leads in increment benefits and profitability.
Social factors: these are those which are lying in the public eye or emerge as a result of society
where business is working. These are likewise a significant piece of firm and will impact
working of firm. It incorporates number of factors like patterns, convictions and culture which is
going in the public arena. This have no immediate effect on IHG however it sway by implication
as social patterns choose the travel industry in country or the zone where firm is working and
IHG is reliant on the travel industry since its significant clients are the individuals who stayed
with specific site (Gannon, Rodrigo and Santomà, 2016). The general public of UK is rich and
affluent so it pull in an ever increasing number of clients in UK which help IHG in getting
advantage of this so social factors have great effect on this lodging.
Technical factors: these are those which remember the mechanical updates for business
condition of inn industry. There are relatively few mechanical refreshing in this industry yet
framework advancement id identified with innovative improvement in lodgings for instance

there are number of inns which are utilizing sound and light office in there inns and visitor
houses . They are likewise utilizing credit only offices, exposition look at in and check work with
all capacities which are identified with consumer loyalty. IHG ought to likewise utilize these
things which can help it in developing its business and get improvement firms business.
Strategy that is adopted by the Hotel for its growth and profit
Ansoffs Matrix
The Ansoff grid is a vital arranging framework that offers a structure which helps the
chief in expanding the development and development of business association in future
timeframe. There are four procedures which is utilized for boosting development and recognize
hazard related with every technique. In setting of IHG lodging, the director make powerful
methodology, strategies and systems for quickening the achievement and development in future
timeframe. In this way, there are four techniques which are embraced by IHG which will be
referenced beneath:
Market Penetration: Hereby, the business firm spotlights on expanding deals by offering
accessible products in existing market. There are various administrations which is given by the
staff individual from IHG, for example, reminder, stopping offices just as solid food
administrations to its client so as to expand the income and benefit in future timeframe. They
offer top notch administrations to its client so as to fulfill their need and needs. It helps in
boosting the brand picture and altruism of lodging before client (Kenyon, Robinson and
Musgrave, 2020). It causes them in holding the client for a more extended timeframe.
Product Development: In this methodology, the firm need to build up another product in the
current market so as to extend the class of product inside marketplace. What's more, the director
has an information with respect to introduce strategies of market and they acquire the novel
thoughts request to fulfill the current need and prerequisite of client. In setting of IHG, the
supervisor centers around offering inventive administrations to its client whichincludes Free Wi-
Fi, Laundry, cleaning offices so as to build the income and benefit of the organization.
Market Development: Herein, the business association take entrance in new marketplace with
their common products. In reference of IHG, the chief offer existing administrations so as to pull

in the plentiful of client in new marketplace. Likewise, at that point fundamental object is to
expanding income by offering winning types of assistance to its client. Aside from this, they
extend the working of their business at worldwide level. It encourages them in expanding the
deals and gainfulness level in future timeframe.
Diversification: In this technique, the firm take entrance in the new market with creative
products. In setting of IHG lodging, the chief offer the inventive types of assistance, for example,
Bar, pool just as wellness focus offices to its client (Dev, 2020). They acquire novel thoughts
request to pull in enormous number of client. It encourages them in growing the income and
benefit in future timeframe.
From the previously mentioned systems, it has been broke down that following long term the
supervisor of IHG lodging offer the creative types of assistance as per the need and needs of
customer. It causes them in extending their business at both public just as global level.
Porter Generic Strategy Model-
In this day and age, rivalry is ascending at fast level and new business visionaries are
going into the market with inventive thoughts just as considerations. In pertinence with IHG
Hotel, promoting group of the firm consistently stay dynamic and mindful about drifting and
changing exercises of market which help to execute powerful systems now and again. They can
execute strategies just as methodologies with assistance of Porter Generic Model which is
instrument utilized by association to exploit by utilizing strategies (Manoharan and Singal,
2017). As per this system, undertaking generally utilize four kinds of procedures which are
talked about underneath
Cost Leadership-The first is cost leadership which portrays that each element wishes to become
maker of best cost in market. This outcomes in obtaining of clients at more extensive and more
extensive level. In setting to Crown Plaza, costs of rooms in four star or state three star is lower
when contrasted with The Ritz London wherein cost of room are costly and not reasonable by
everybody. This methodology is utilized by IHG so lower, center, and upper degree of clients are
pulled in towards the business and their administrations are convey to each prospect.
Cost Focus- Further comes the cost focus system where items are administrations are dispersed
at lower cost however inside a little or specific section so deals income doesn't get influenced. In

connection with Crown Plaza, gear administrations are free and in certain regions they accuse a
few charges yet of minimal effort (Ali, and et al., 2019). This technique influences the altruism
of firm at more extensive level.
Differentiation Focus- In this, firm attempt to separate itself from contenders and opponents.
Each business ought to have USP, so objectives and goals are accomplished in appropriate way.
IHG Hotel, ha additionally has substantiated themselves not quite the same as different
contenders by making clients their main goal and giving them customized administration from
register to look at measure. This expands altruism of firm and furthermore prompts positive
verbal.
Differentiation Leadership- In this, huge market is focused by element with intention to
accomplish upper hand by offering item with premium costs. This procedure is less secure if not
done in legitimate way. In setting to Crown Plaza, they embrace this differentiation leadership
methodology by directing suitable statistical surveying and publicizing just as limited time
devices. This is on the grounds that when selling significant expense of items, clients just focus
on nature of administration on that item and are prepared to follow through on the cost. Along
these lines, inn convey nature of merchandise and ventures and which help them in creating
benefit through premium costs (Kabii and et al., 2019).
After brief examination of above model, it is expressed that utilizing Porter Generic Strategy
device help business in extending their both practical just as operational exercises at public and
global level. In future situation state about following five to ten years this methodology will
helps lodging to turn into the premium and sumptuous neighbour lines industry.
Nykiel’s model
The fourteen strategy of Nykiel is used by companies until starting a new business to assess and
define conditions and devise market strategies. Considerations as follows-
 Horizontal Expansion- ICH Group is seeking to extend its market in emerging regions
with its existing product range from one category of hospitality industry to that other.
 Geographic expansion- The business with sufficient preparation will expand from a
comparatively tiny perimeter to a larger particular region to reach China's new business.

 Product Hybridization- Extending the product selection across a wide variety of facilities
and mixing and matching goods, e.g. car rental, cruise liners, flights.
 Specialisation-specialist- Specialized skills is also synonymous with the luxury growth of
both the quality and performance rendered, or the financial services that are mindful of
small or expenditure.
 Product Tiering- Exists to allow the restaurant business to tackle factors factors such as
population expansion, segment of the population and also political shocks and larger
personalization of economies.
 Product Re-Branding- Because of their brand tiering, franchise system, in which the
goods of a business venture become too nowadays by.
 Non-Franchising- Although firm wishes to retain control over their retail service and
name, quality ownership and systems engineering, no franchisors are provided
 Franchising- Inside the hospitality sector a fairly widespread business strategy developed.
Whereby understand-how of brand and service is licensed primarily to the owner-
operators.
 Brand collection: Investor-driven firms aim to take benefit of comparatively low
inventory or purchase rates to acquire branded activities or franchises which were
perceived to have growth opportunities – mostly by franchise.
 Management Contracts- Businesses that specialise in the management of holders'
properties or institutions including such banks, insurance companies , pension funds, trust
or persons.
Justification of strategy:
For investment research purposes, InterContinental Hotels is expected to analyse the
current and future competitive problems. To this end, the hotel is expected to understand the
purchasing power of customers, vendors, rivals, the threat of alternatives, the risk of competitive
market research from new entrants. Market bargaining power is the ability to force the service's
price down. The customers have every authority to seize the buying decisions in the case
of InterContinental Hotels Group. It comes about because of local and global competitors in the
hospitality sector in UK.

Hotel management should set potential customers including international tourist, top
class businessman to diminish customer negotiating power (Kandampully, Zhang and Jaakkola,
2018). Rivalry pricing policy plays a key role in minimizing the incidence. The administration is
more able to meet consumers' needs and desires than it is worthy of minimising the risk. So the
InterContinental Hotels Category has moderate type of risk.
InterContinental Hotels should apply the Ansoff growth strategy to service creation. In
this scenario, inside the respectable industry, the hotel should offer free internet facilities, bar
facilities and game service. This approach isn't tailored to UK's new investment. From the other
hand, InterContinental Hotels is in the circumstance of applying a plan for company diversifying.
The company is expected to recognize both the residential and non-resident consumer packages
for diversification purposes. For InterContinental Hotels, it is also a risky policy. However this
strategy, together with the risk, can produce a lot of monetary as well as non - monetary
compensation in the future and consumers can make use of new service through InterContinental
Hotels’ investment.
IHG is able to implement market development growth strategy for its venture in UK after
evaluating all of the approaches. By using such strategy, IHG able to maximise their customer
base and with helps of fulfilling their customer’s needs and desires, hotel able to achieve their
business goals & objectives.
Practical application of strategy:
After considering the Porter generic model, it could be said that this would be the most
suitable strategic for InterContinental Hotels Group. This concept is beneficial for the hotel in
reducing policy evaluation, focused differentiation and advertising niche strategy for users of the
international tourist and premium economy (King, 2017). Taking into account all of these
problems, an entity's management is an approach to both cost leadership strategies and price
differentiation policies. Strategy formulation is nevertheless a challenging task for
InterContinental Hotels (IHG). The structure, mechanism and method of the interactions should
be regarded for strategic managerial execution. The hotel management must be absolutely sure of
leadership style.

Even by the application of Porter's generic methods, it is anticipated that IHG will be able to
achieve strong market position in upcoming five or ten years. By using strategy of differentiation
IHG will be able to attain competitive advantage. Lowest expense policy will help IHG hotel to
attract a huge amount of customers, and those are sensitive to price. Like UK, it is well establish
itself in the crowded place. In the near future, IHG will thus be able to acquire all visitors of the
business or first class. (Della Corte, 2016) (Gehrels and Suleri, 2016)
CONCLUSION
From above perception it very well may be reasoned that swot examination can help
lodging in getting positive for its quality and shortcoming which can be utilized to shape
powerful system and management, this will likewise help firm in knowing chances and beating
its dangers with assistance for qualities. Pestle will help firm in distinguishing outer variables
which can affect on its efficiency, benefit and long presence. Lodging can utilize watchman
nonexclusive technique for making great business system for working together and its upper
hand. This all will help firm in powerful administration in firm and will build the odds of better
execution of firms work.

REFERENCES
Books and Journals
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experiences: Transitioning from international students to New Zealand
residents/citizens. InCritical Hospitality Symposium II: Hospitality IS Society.
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International Hospitality Research Conference, Leeuwarden, Friesland, Netherlands,
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Horner, S. ed., 2017. Talent management in Hospitality and Tourism. Oxford: Goodfellow
Publishers Limited.
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management. International Journal of Hospitality Management. 88. p.102389.\
Gannon, J., Rodrigo, Z. and Santomà, R., 2016. Learning to work interculturally and virtually:
Developing postgraduate hospitality management students across international HE
institutions. The International Journal of Management Education. 14(1). pp.18-27.
Kenyon, A., Robinson, P. and Musgrave, J. eds., 2020.Managing Hospitality Experiences.
CABI.
Dev, C. S., 2020. The Future of Hospitality Management Programs: A Wakeup Call. Journal of
Hospitality & Tourism Research, p.1096348020945373.
Ali, F., and et al., 2019. 30 years of contemporary hospitality management. International Journal
of Contemporary Hospitality Management.
Kabii, F., and et al., 2019. ANALYSIS OF THE SKILLS GAP IN TOURISM AND
HOSPITALITY INDUSTRY IN KENYA. ASEAN Journal on Hospitality and
Tourism. 17(2). pp.95-105.
Manoharan, A. and Singal, M., 2017. A systematic literature review of research on diversity and
diversity management in the hospitality literature. International Journal of Hospitality
Management. 66. pp.77-91.
Della Corte, V., 2016. The strategic environment of hotel chains. In The Routledge Handbook of
Hotel Chain Management (pp. 83-94). Routledge.
Gehrels, S. and Suleri, J., 2016. Diversity and inclusion as indicators of sustainable human
resources management in the international hospitality industry. Research in Hospitality
Management, 6(1), pp.61-67.
Kandampully, J., Zhang, T. and Jaakkola, E., 2018. Customer experience management in
hospitality: A literature synthesis, new understanding and research agenda. International
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King, C., 2017. Brand management–standing out from the crowd: A review and research agenda
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