Strategic Management in Global Context for Armani Hotel in Maldives

STRATEGIC
MANAGEMENT IN
GLOBAL CONTEXT

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
Presenting external and internal analysis ....................................................................................3
Modes of entry in market.............................................................................................................5
To what extent the business can be adapted or standardized.......................................................7
Apply Porter's generic strategy to gain competitive advantage...................................................8
Strategic Business Plan..............................................................................................................10
CONCLUSION .............................................................................................................................12
REFERENCES................................................................................................................................1

INTRODUCTION
The global strategic management is a process of expansion which overlook the
possibilities of every location and source of competitive advantage to meet the goal of extension
(Dimitrios and et.al., 2020). Armani Business Solutions Ltd is a company having diverse
business strategy is planning to enter a new country with their kind of business unit. Armani
Group was founded by Giorgio Armani in the year 1975 and being headquartered in Italy. The
quoted company has its own brand variety in areas of luxury fashion which includes leather
goods, premium watches, jewellery, shoes, accessories, cosmetics. Armani in collaboration with
the Emaar properties established a chain of luxury hotels & resorts in several metropolitan cities
like Paris, New York, Dubai, LA, Shanghai, Seoul and Hong Kong. The report will recommend
a country where the given company can expand its business by analysing the internal and
external factors with the help of SWOT analysis. The project will further critically discuss the
modes of market-entry which can be suitable for the selected business. It will describe to what
extent the chosen business unit be standardized the selected country. The case study will apply
Porter's generic strategy so the ABS Ltd could gain competitive advantage and produce a
strategic business plan to measure the success in the chosen market.
MAIN BODY
Presenting external and internal analysis
Armani is one of the most famous brand which is well known for its fashion industry but it is
now trying to expand the business in hotel sector in order to attract customer as well as to
increase the overall growth. Along with this, the company has been available in more than 31
countries and it should now open their new business in country like Maldives. Moreover, before
introducing the business it is essential for the organization to analysis external and internal factor
present in business environment.
SWOT Analysis:
Strength: Armani has good brand image in the market area as it is one of the luxury brand in
retail sector. Although it has good customer base which has contributed in enhancing overall
growth of firm in positive manner as well as it has enhanced their revenue. Moreover, another
major strength of Armani is that it has vast business sector like fashion industry, Florist, food and

beverages, furniture and home collection (Nasi and et.al., 2022). Due to its expansion in various
business sector it is able to cover large area of market sector as well as increased overall growth.
Weakness: The company major weakness is limited global business presence as it is available
in 31 countries whereas its competitors like Dior and Dolce are covering market area of 50
countries. Due to limited market organization is not able to gain competitive advantage
(Voukkali and Zorpas 2022). Another weakness is company have higher price products thus it is
available to ultra-chic crowd and due to that it is losing out many customers which is affecting
growth pattern of brand. Although organization has been criticised by PETA for using animal fur
in clothing line and it has affected brand name of firm.
Opportunity:
The company have an opportunity to expand in new market area in order to improve their
customer base and it will lead in enhancing their customer loyalty. It also means that it need to
decrease their price of services and products in large volume (Meza and et.al., 2022). Moreover,
the market area of Maldives will be beneficial for firm as it tourist country and opening hotel
their will contribute in increasing sale of company. Although it can make use of innovative
services like it can add travel package in their hospitality services as it will contribute in
enhancing overall growth of company in effective manner. Moreover, there is a scope to tie up
with more corporate and other celebrities as it is ever growing sector.
Threat:
One of the major threat that company is facing is Covid -19 as it has affected economic growth
of many country and due to that income of customer has also been decreased (Almutairi and
et.al., 2022). That has affected taste and preferences of consumer and due to that it is targeting
low price quality services and product. Another factor that company is affecting is brand
duplicity which lowers down sales as well as brand value of company.
PESTLE
It is also known as strategic tool that helps in analysing macro factor of business environment.
Political:
This is known as policies made by government such as in time of pandemic most of the country
public authority has implemented policy like restriction on trade and due to that hotel industry
was immensely affected (Kolios and Read, 2019). There was decline in sales of this sector as it