SWOT and PESTLE Analysis of Intercontinental Hotels Group

International
Hospitality
Management

Table of Contents
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
A. SWOT analysis of Intercontinental Hotels Group Plc................................................................4
B. PESTLE analysis.........................................................................................................................6
C. Hotel strategy to be adopt and to be implemented (using strategic model and frameworks)
within the entering market...............................................................................................................8
Justification of strategy.............................................................................................................10
Practical application of strategy................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Concept of hospitality management consists look over everything relates with operational
tasks and functions of a hotel. Effective management of services in a hotel help in offer positive
experience to customers and also support in encourage them to visit again (Gursoy, 2019). As
every organisation operates in a dynamic and flexible business environment so number of forces
are there which affect the process of their decision making and their implementation activity.
Proper identification of those elements is very essential for an enterprise in order to attract
number of customers. Intercontinental Hotels Group, that is a British global hospitality
organisation having it’s headquarter in England is consider in this report for analysis. External
elements that have an impact on operations on IHG is all explained in this report. Further,
various strategic options available to organisation and various strategies that could be adopted by
company in order to maintain its market share and to ensure future growth is all discussed in this
report.
MAIN BODY
A. SWOT analysis of Intercontinental Hotels Group Plc
Today, hotel industry is considered as one of the most growing industries, where companies
dealing in this sector earn high revenues and profitability, by offering high facilities and
accommodations to its customers. The Intercontinental Hotels Group Plc refers to one of the
leading firms in British multinational industries, which has headquartered its business in
Denham, England in 2003 (Law, 2019). It has maintained its dominant position not only in UK
market, but also in overseas by expansion of hotels in near about 100 countries, in just seventeen
years of launching. Today, it has launched a number of brands like Regent Hotels, Kimpton
Hotels & Resorts, Holiday Inn Express and more, to develop its competitive image in this sector.
To analyse its international performance and competitive image, SWOT analysis can be
conducted in terms of marketing, operations, finance, management information systems or
strategic planning, as explained below –
Strength
Profitability: In current business environment, intercontinental hotel group is
continuously developing its profitability where the annual growth of 4% can be seen within

profit of intercontinental hotel group which is around 1700 million dollar. This is the highest
number of growth and profitability to the intercontinental hotel group since it opening.
Global presence: It is also strength of intercontinental hotel group which is related to its
global presence where company. It is serving in hundred countries and a leading organisation in
the hospitality industry in relation to global presence. The allied brands of intercontinental group
is Kempton, crown plaza, hotel indigo, holiday Inn, holiday Inn express and many more which
helps organisation in providing the worldwide facilities for different kind of inn, resorts, hotels
and club vacation (Morgan and Pritchard, 2019).
Weakness
Improper it security: One of the major weaknesses which is faced by intercontinental
hotel group in recent time is related to improper it security within the organisation. This is
because there are various cases registered from the side of intercontinental group regarding the
theft of information related to its customers about their credit cards and malware practices
miscreants. This directly impact on the IT security of the organisation and become a reason for
the weakness within the IT security related to its customer.
Dissatisfaction in customer: This is the weakness of the organisation which is also
related to the satisfaction with the customer. This is because there are various situations where
customer provided negative reviews to the facility organised by the form related to holiday inn
priority club and intercontinental hotel group reward club (Chan and Hsu, 2016). This is because
of improper management as well as improper allocation of points which are promised to
customer.
Opportunities
New geographic markets: In the current market there is trend to expand the business
which is already adopted by the intercontinental hotel group. No organisation can move to
different geographical locations where it can partner with different organisation. This will help
company in implementing its expansion strategy more effectively as well as increasing
profitability of firm but different mergers and joint ventures.
Threats
Competition: In relation to hospitality industry, become level of competition is
continuously increasing where intercontinental hotel group is facing tough competition from
various competitors like Marriott and Accor hotel group. For dealing this competition