International Hospitality Management: Market Entry Strategy for IHG in Brazil

International
hospitality
management

Table of Contents
INTRODUCTION ..........................................................................................................................3
Overview of industry and company............................................................................................3
SWOT analysis............................................................................................................................4
Background of Emerging market................................................................................................5
Pestle analysis.............................................................................................................................5
Hotel strategy to be developed....................................................................................................7
Justification...............................................................................................................................11
Practical application of strategy in past years...........................................................................11
CONCLUSION..............................................................................................................................11
REFRENCES.................................................................................................................................12
Books and Journal.....................................................................................................................12

INTRODUCTION
Travel and tourism is the place and scenario in which people want to live their life
beyond their jobs and working environment. Travel is essential part of an individual life which
provides them an opportunity to explore new things. In order to execute these opportunities into
a well experience, international travel industry makes it possible by providing high quality stays
and hotel services. This industry include hotels and travels supporters who enable bookings and
packages for travel seekers. Internal continental group is one of the multinational hotel sector in
tourism industry also known as IHG. It is a British chain of hotel group which has established in
Denham, England. The hotel serving its five star facilities since 17 years around from 2013 and
still counting. The hotel has high class services into around 100 countries and looking forward
for its growth and expansion into emerging market. This report will be covering factors of
internal and external market to understand its potential in order to enter into the market. IHG
plan to enter into Brazil market where, there are lot of opportunities for tourism sector by
assessing all the ways (Johnson, and Park, 2020). IHG decided to enter into Brazil market with
the aim to establish luxury footprints by acquiring new hotels into smart cities. This expansion
will be result in delivering services through digital sources. This will be done through SWOT
and PESTLE analysis to get an accurate image of the hotel. Moreover, to conduct decision
making strategies, effective model will be used like Ansoff matrix, porter's generic and Nykiel's
Overview of industry
Travel and tourism industry are both significantly interconnected. Travel involves roaming to
one place to another in relation to exploring new cities or for work reason. Travel has become an
essential part of human survival to see the world from different view and enjoy to full extent. In
this context, tourism industry play a critical role in attaining people expectation into a lifelong
experience. The industry includes services like transportation, accommodation, campaign,
hostels, entertainment and visits. Customers get all these services at reasonable rates and
attractive facilities like casino, bars and clubs, gaming zone, room services are provided.
Overview of company
IHG Intercontinental hotel group has a main aim to provide their clients with high quality
services experience as per their respective demand (Martín-Rios, and Ciobanu, 2019). The hotel
has expanded largely with 889,582 rooms and 36,643 human resource. The hotel group has

worldwide coverage into different brands consisting crown plaza, Regent hotels, six sense hotel,
hotel Indigo and many others. The hotel group is mainly popular in its dinning, multi cousins
area and a great interior view that attract number of trespassers reason being is in central located
area. IHG group specialised in its luxury services over the past 17 years. The company take
advantage of all the market opportunities to rise up their growth and be a worldwide provider
into tourism industry.
SWOT analysis
This model is effective in analysing internal factors of the company which helps in
ascertaining strength, weakness, opportunities and threats in relation to expand new market by
understanding main areas and positive existence of company. These factor in relation with Hotel
IHG are described below:
Strength: this factor shows the strong area of an organisation which makes them
potential to stay into competitive market. Strength reflect good area of their internal
environment through which an organisation has maintained its growth. Intercontinental hotel has
highly qualified employees. As the hotel group always focus on providing effective training
session for the aim to maintain effectiveness into organisation services (SWOT analysis of
InterContinental Hotels Group Plc, 2021). Along with this, due to high competence into the
market, hotel has achieved high scale of economies that makes positive influence into its
expansion (Van Niekerk, 2017). This strength will help in providing luxury services by the
engagement of professional and skilful employees into Brazil market.
Weaknesses: weakness are the factors which consist weak area that hinders the growth
of organisation. These weak points needs to be addressed effectively. Weakness becomes the
main hurdle in the organisation performance. They are the only cause that needs to be resolve
within specified period of time. IHG does not have effective promotional activities that hinders
their speciality into product and services (SWOT analysis of InterContinental Hotels Group Plc,
2021). Their products are highly qualitative but that does not represent unique selling point.
Through which they could not take advantage stand against competitors. In order to successfully
implement strategies into Brazil market, they aim to convert their services into digital
technologies to overcome with these weakness by adopting digital source of promotion.
Opportunities: This reflects market opportunities into a concise manner, organisation
needs to adopt and evaluate market analyse so that they could easily grab new scenario,