SWOT Analysis of Grand RACV Golf Resort

This study focuses on the strategic management, competitive advantage, and SWOT analysis of Grand RACV Golf Resort in the hospitality industry. It discusses the strengths, weaknesses, opportunities, and threats faced by the resort and how it is dealing with competition. The study also includes competitor analysis and stakeholder identification.

SWOT analysis

Table of Contents
INTRODUCTION ...........................................................................................................................3
Strategic Management and Significance......................................................................................3
Competitive advantage and significance......................................................................................5
SWOT analysis ............................................................................................................................6
Competitor analysis......................................................................................................................9
Direct competitors of RACV golf resort hotel ..........................................................................10
Indirect competitor of RACV golf resort hotel .........................................................................10
Internal issues.............................................................................................................................11
REFERENCES...............................................................................................................................12

INTRODUCTION
The study is about strategic management, competitive advantage and SWOT analysis regarding
hospitality industry. SWOT analysis is an important tool for gauging an organisation's strengths
and challenges poised in the market. The SWOT signifies Strengths, Weaknesses, Opportunities
and Threats which an organization faces and it has to overcome its weaknesses by catching on
the opportunities prevalent in the market. The study takes Grand RACV golf resort, Melbourne
as the organisation which is in Australia but the hotel is actually a part of RACV golf resort
Hotels Corporation which was founded in 1957 as an American global hospitality company. The
chain has a portfolio of around eight family friendly hotels of which Grand RACV golf resort is a
part of. The study includes theoretical presentation of concepts and also does competitor analysis
as well as stakeholder identification.
Strategic Management and Significance
Strategic Management signifies a process of planning, analysing the competitive environment
prevalent , monitoring the working within internal organisation and evaluation of strategies to
reach the business goals and objectives. The importance of strategic management can be stated
as follows:
a) It sets the direction for the managers and employees to follow a strategy defined which can
bring profitable results in the future.
b) Planning done in advance helps in taking details in consideration and minimize risks
associated (Hurdawaty and Pratama, 2019).
c) Tasks are pre-defined in the strategy for each section to follow thus it helps in increasing
operational efficiency and thus maximize profit.
d) The strategy made for an organisation concerns all its departments to come in action and
accordingly financial planning is done to increase the marketing and operational activities to stay
in competition and meet the goals.
e) It helps companies to anticipate changes in advance and act pro actively sometimes to
introduce new changes in the market.
Resource based theory is a form of strategic management. Resources in an organisation can be
differentiated in two parts: tangible as well as intangible resources. Tangible resources of an

organisation are those which can be seen or touched for e.g. fixed assets like land, machinery,
cash etc. Talking of intangible resources they are those which cannot be seen or touched having
no physical presence but can be felt and are of utmost importance like company's goodwill,
company's culture etc.
Resource based theory is sub categorized in four divisions- valuable resources, rare resources,
difficult to imitate resources and non suitable resources.
Valuable resources: They are those which help in improvement of efficiency and their
effectiveness on the operational activities of the organisation and help in decrease of threats of
outer competition and cashing on the opportunities available (Hurdawaty and Pratama, 2019).
Grand RACV golf resort has infrastructure which can be rarely matched. Its furniture,
luxury suites are very well designed. The hotel's interior decoration is done by experts that
tourists as well as in landers too appreciate it. The hotel has exclusive recreational facilities like
swimming pools and personal care centres to add to the customer experience.
Rare resources: These are resources which can be found rarely with other competitors thus
giving a competitive advantage to an organisation.
Grand RACV golf resort hotels are in the positioning in which they can offer scenic
beauty to its customers. Thus apart from luxury suites people also get to view the scenic beauty
of the country from their rooms.
Difficult to imitate resources: These are the resources which are copyrighted and are legal
patents of a company which cannot be produced in any form by another company.
Grand RACV golf resort reserves its right for its subsidiaries and giving franchisees of its
brand name. Also the trademarks of RACV golf resort Corporation and its affiliates are safe
guarded (Soler Sancho, 2018).
Non substitutable resources: There are certain resources which cannot be duplicated by some
other firm in competition and thus they serve as unique resources for the firm possessing them.

Grand RACV golf resort has exclusive facilities for its customers whether it is holding of
conferences or an event of marriage, the staff of the hotel provide dedicated services to help
make event a success. This also promotes investor relations from the customers of Grand RACV
golf resort.
Competitive advantage and significance
Competitive advantage refers to the factors which makes a company stand apart in competition
from its rivals. This factor may help a company in producing goods more cheaply like having
economies of scale or do a better market research for pricing, distribution etc. They can be
attributed to a variety of factors like cost structure, unique features of the product, intellectual
rights and way of customer service (Koch and Windsperger, 2017).
Importance of competitive advantage:
a) It helps a firm survive competition with rivals promoting the same category of products. For
e.g. a brand name developed can help differentiate its demand from new arrivals.
b) It helps in forming a brand image with unique features in product for customers and promote
selling.
c) It helps in determining market strategies for the company.
Pre Covid 19 Competitive advantage for Grand RACV golf resort
The customers at Grand RACV golf resort sought scenic views which is the most popular feature
of the hotel. This was a plus point of the hotel which is positioned in a way that customer gets to
see the city view, countryside and river view. These rooms are priced a little higher but
customers do not mind paying extra to get the scenic touch. Other advantageous points were the
rooms offered of variety sizes like King size rooms, grand king room, deluxe rooms etc. Grand
RACV golf resort uses world class furniture display in rooms with scenic paintings of the
countryside and art. It has fine bathroom accessories which customers appreciated and some
rooms are equipped with spa facilities. The rooms being equipped with free wi-fi was an added
advantage for customers (Leiber, Stensaker and Harvey, 2018). A significant ease for the
customers also serving as an advantage for the hotel was friendly booking policies in which
customers could cancel one day prior to the check-in date and no pre payment was being asked

for. Hotel has tie up with tourist cars and taxis to help outsiders go round the city at reasonable
rates.
Post covid 19 Competitive advantage for Grand RACV golf resort
Covid has changed the way of working at the hospitality industry and so has Grand RACV golf
resort made changes in its operations. Grand RACV golf resort has instructed its staff to wear
mask at all times at duty hours. Sanitizer stands have been made available at various points in the
hotel starting from the reception. The rooms are regularly cleaned and sanitised as safety
protection measures for its customers of which they are giving positive reviews. The bedsheets
and covers are being changed regularly which has given customers a sense of safety (Gürel and
Tat, 2017). The dining staff also are following hygiene and wearing masks while making and
serving food. The taxis for tourists are also being sanitised after every ride. These changes have
made Grand RACV golf resort acceptable and safety conscious for its customers.
SWOT analysis
SWOT analysis refers to organization's strengths, weaknesses, opportunities and threats. The
analysis helps a business to know its strengths and make use of opportunities to expand their
business. These factors help in making business decisions.
The people who invest in a company and form a certain ownership in form of shares.
There are common as well as institutional shareholders who form a part of the company and take
participation in company's decision-making regarding future investments, policy framing etc.
RACV golf resort investors are people who are interested in hospitality sector and think
of it as a growing option of investment in the future. The customers of a firm usually become the
investors too who have had a nice experience in receiving services from the company. They also
help in getting investment through word of mouth to other friends and relatives. As the company
builds in a brand over the years, institutional investors in form of other organizations like banks,
travel industry too join in. RACV golf resort has also experienced the same (Leiber, Stensaker
and Harvey, 2018).
A SWOT analysis of Grand RACV golf resort will help in decision-making which is as follows:
Strengths

RACV golf resort being a part of RACV golf has made a strong brand of itself within hospitality
industry. Not even tourists but also corporates have a charm for this resort which has separate
conference rooms apart from giving excellent service and modern of age facilities. The tourists
get to see scenic locations while having a comfortable stay in the luxurious suite.
RACV golf resort has free cash flows in abundance which shows a working capital
surplus and free up of cash flow not only for conduct of operational activities smoothly but also
helping in the cause of business expansion which has till now made a worldwide chain with
presence in many countries.
Weaknesses
RACV golf resort keeping its vision in mind needs to have a sound investment in technology
which are of-age to give customer new experience in hospitality. It thus needs to boost technical
power according to its business expansion across various geographies. As the resort have many
substitutes in the market so if the technologies are not adequate than they will lack behind (Gürel
and Tat, 2017).
The inventory has to be reduced in terms of days recorded which has been found higher
compared to other competitors, it can affect the required way of optimum utilization and hence
affect working capital in positive way if right measures are taken.
The business has to diversify from its relying on mostly one market of the world. It has to
do new extensive market researching to promote and expand its business in other parts of the
world.
The market share of the firm is smaller compared to its rivals and hence needs to be
increased which can be done in form of issuing public shares through IPO and being more active
on investment forum by issuing own corporate bonds.
The business has not diversified in sectors other than hospitality line which can pose a
risk to business due to unforeseen factors like the present COVID crisis which forced a lock
down.
Opportunities

The Resoprt chain can build an environmental sustainable image with plantation of saplings,
taking participation in environmental activities and also taking sponsorship of such projects. This
will help the environment as well as the firm in own way (Vlados, 2019).
The customers who have long been a part of the hotel group can be offered membership
plan of longer duration and can be offered discounts. New customers can be offered seasonal
discounts and their feedback should be taken and valued of the services received at the hotel.
Company can start employee retention measures and pay the salaries and incentives
timely. This in turn will induce faith of employees towards company and better will be the human
resource management.
Threats
In the hospitality sector there is intense competition to gain market share. Various types of
discounts and pricing strategies are made to lure customers. There are domestic groups of resort
who are giving apt services at lower prices. RACV golf resort will also have to promote
themselves on same lines and with a product differentiation strategy to turn attention of
customers towards themselves (Vlados, 2019).
As the business is spread over many countries, factors like currency fluctuations in
various countries can also affect the business in Melbourne as part of the working capital gets
affected. Company has to be varied of such global market factors and accordingly devise a
strategy which can minimize risks as may be in case of diversification in business which helps
reduce market risks.
Increase in research and innovation in hospitality offering exemplary services to
customers through use of technology by competitors is yet another threat posed to the Resort.
RACV golf resort will have to use the latest technology in innovation and with customer
demands and feedback provide them suitable services like it may be check points of vendor
shopping installed nearby, developing play stations for kids in a separate area of premises,
getting room theatres in auditoriums. These additional facilities may surely attract customers
towards the hotel.

Competitor analysis
This analysis is a approach by which any organization can know its competitors and
research their products, marketing strategies and sales. With the help of this analysis any
organization can understand the work style of its rival. The competitor analysis can be
understood through porter's five force it is a tool to inspect the particular industry and get the
levers of earning in that industry (Krupskyi And et. al., 2019). RACV golf resort's is using
Porter's five forces knowing how rivals forces have impact on profitability and help the RACV
golf resort to develop its competitive strategies. As RACV golf resort is a leading organization in
its area of business, it has redefined the way of running business which are in services
(Britchenko And et. al., 2019).
Threats of new Entrants: As the RACV golf resort is in hospitality industries and there are
many new entrants in the lodging market with their innovative ideas and ways of doing work
which create pressure on RACV golf resort with minimum price approach and providing fresh
value proposal to its buyers. This resort corporation managers uses to manage all these challenges
to measure its competitors edge (Garber, Boya and RACV golf resort, E.M., 2018). RACV golf
resort tackles the threats by innovating new product and services this will help hotel to sustain in
the market for long.
Bargaining power of Suppliers: The companies of lodging uses to buy their raw commodities
from various suppliers. Basically supplier can decrease the margin of resort are earning in their
marketplace. The major impact of bargaining power of the supplier is it lead to decrease the
revenue of lodging the RACV golf resort can tackle this with purchase its materials with different
suppliers and defined supply chain (Hesford And et. al., 2019).
Bargaining power of Buyers: Generally in the Britain market buyer are having various demands
and try to buy the best products at minimum pricing which can be possible by them and this
nature of customer's affect the profitability of the organization. The bargaining power of
customers are high as they can seek the discounts and offers so to deal with this RACV golf
resort uses to develop a favourable base of customer's so it helps to reduce the bargaining power
of local customer's and give opportunity to the organization to streamline its sales and production
method.

Threat to substitute products and services: RACV golf resort is also faced issue of substitute
product and services that are offered by some other and satisfy the customer's want in another
ways this has direct impact on profit of the company. RACV golf resort's tackle this issue by
being service oriented and try to understand the core wants of customer's rather on what they are
buying.
Rivalry among existing competitors: RACV golf resort is facing rivalry to its existing rivals in
the market. This problem is tackle with providing a sustainable and differentiate product to
customer's.
Direct competitors of RACV golf resort hotel
This is generally competitors of RACV golf resort as customer's can go their when they found
better deal in the same price level this are:
Bona-venture resort: This is an indirect competitor of RACV golf resort in America because the
Bona-venture is provided food facility, pool, as well as the rooms but RACV golf resort is
providing five star rooms and other facility that help the RACV golf resort hotel to differentiate
and make preferences more by customer's than its substitutes.
Aiimsudr central Cafeteria: is a restaurant in the America uses to provide quality of food to
peoples over there it is substitute of RACV golf resort food and beverages service people also
can go their then are having less disposable income, and they have motive to eat food (Spicer and
RACV golf resort, 2017).
Indirect competitor of RACV golf resort hotel
Hilton: Is a multinational hospitality organization who is substitute of RACV golf resort. It
provides same facilitates as RACV golf resort is giving in the market. RACV golf resort and
Hilton both have their hotel in different nation like Africa, Australia, Canada and many more but
Hilton have its hotel including New Zealand but RACV golf resort not having any hotel over
their which impact its profitability in the international market. Hilton is not uses to provide free
breakfast to its customer's whereas RACV golf resort is providing breakfast to attract its
customer's. The partnership chain of Hilton is basically bigger than RACV golf resort. Hilton is
five star hotels and RACV golf resort is five star and luxury hotels internationally.

Marriott: Is in hospitality industries providing hotel facilities and restaurant as well. The firm
has huge global presence as compare with RACV golf resort hotel. The Marriott is five star
category hotels and RACV golf resort is luxury five star resort. RACV golf resort is providing
free Wi-Fi facilitates to all the people over their whereas Marriott is provided this service to its
members only.
Ritz Carlton: Is an American international hotel providing hospitality facilitates across the
world. This has mainly luxury resort chain and RACV golf resort is having five star and luxury
both the category provides option to its customer's. The RACV golf resort is has cover more
countries than Ritz Carlton having good brand value.
Internal issues
This are issues which are affecting RACV golf resort from intrinsic side. The RACV golf
resort have to take necessary measure to deal with respective problems two of this issue are:
High employee's retention : As the RACV golf resort employees are not satisfied with their
management because they are not given importance in organization and their ideas are also not
used in the company's production, so they get demotivated by this (RACV golf resort and
Newman, 2020). The management is not getting the point of view of employee's working for
RACV golf resort hotel this is the key issue that employees in the RACV golf resort are not
rented for long-term. If the management try to make employee's analysis to find the issues faced
by employee will help to reduce the turnover of workers in RACV golf resort (Lowell, 2020).
Ineffective service: The services which are provided in the RACV golf resort are less effective
according to its customer's because the customer's needs can not be full fill on time, and they got
dissatisfied with the same. The stakeholder of the organization get affected with the same as the
customers are not being satisfied then its brand image also decline and customer's shift their
choice from RACV golf resort to its competitors. Organization should make needed action to
satisfy its customer's by serving them proper and on time (Jenkinson And et. al., 2018).

CONCLUSION
This can be inferred from the study that the business can get to learn a lot from the
internal and external environment factors affecting the organization. This not only helps in
making correct business decisions but also is profitable for the investors of the organization.

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