Crown Plaza Hotel's International Expansion Strategy: A Report

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INTERNATIONAL HOSPITALITY MANAGEMENT
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Table of Contents
Background to International Hotel Industry (and tourism)........................................................3
Background to Hotel Organisation.............................................................................................4
The SWOT analysis of selected hotel organisation:..................................................................4
Background to Emerging markets..............................................................................................5
PEST of selected emerging market............................................................................................6
Hotel strategy to be adopted and to be implemented (using strategic model and frameworks)
within the entering market:........................................................................................................7
Justification of strategy..............................................................................................................9
Practical application of strategy.................................................................................................9
Conclusion:................................................................................................................................9
Reference:................................................................................................................................10

Background to International Hotel Industry (and tourism)
The word hospitality is defined as the way in which there can be welcoming of visitor or
guest. In this process basically, the guest or visitor is treated with generosity and kindness.
The industrial definition of hospitality is the supply of good and services taking economic
way as a concern. Hospitality is basically defined as the establishment under the standard
industrial classification. In hospitality management includes providing meals, light
refreshments, accommodation, drink. Hospitality management is combining both overnight
accommodation and eating of food away from home. The word hospitality basically comes
from the French word known as "hospice". The first element of hospitality is derived from
Iraq. In between 2000 – 4000 B.C the early civilisations of Europe, Egypt, India and China
had some of the elements of hospitality offerings which are like taverns and inns along the
roadside. In Rome and Greece, hospitality management came in around 1700 B.C. The trade
and travel increased as they needed overnight accommodation due to the journey being slow.
This problem was basically for the roman personals and the government and the couriers. In
the countries, there are many landowners who started building their own Inns and Taverns.
In, the medieval times on the European continent, there were rest houses for the pilgrims
established in the eighteen century. This rest houses provided hospitality for the pilgrims who
were going from their route to worship God. There were rest houses and abbey at the
Roncesvalles. They basically advertise the services which were provided like a warm
welcome at the entrance door, free bread would be given, a barber and a cobbler was also
there, cellars full of almond and fruit. There were beds for the sick also and also there was a
consecrated burial ground. The origin of the restaurant was introduced after the French
revolution by M.Boulanger who is also known as the father of modern restaurant. The start of
hotel industry basically started from 16 – 17th century. At the beginning time of the 15th
century, there was a law implemented in France which states that there would be a register

kept in the hotel. Also, similar law was passed for the English hotels also that is the inns.
Around the 16th century, more than 600 inns got registered in England. The technology
started to make an impact in the year 1990s, the impacts were basically:
 In the marketing big chains, the conservation of energy and environment became very
much important
 To foster customer loyalty through a database system which consist of the record of
guest's, the reservation system became more sophisticated.
The hospitality sector basically includes all business that provides food, accommodation
services, and beverages. This business also includes a restaurant, bars, pubs, clubs, contract
catering, hotels and hospitality services. The total turnover of the core hospitality is estimated
to be 90 billion. This hospitality sector contributes to over2.44 million job opportunities. This
sector gives 46 billion to the UK's economy in terms of GVA. There is a total of 1.2 million
jobs through the multiplier effects. The characteristic of the hospital industry is that in this
industry all the products are intangible and also perishable. There is no such thing that is
business hours. In this industry, the business operates 24 hrs basis throughout all the year. In
this industry, all the things are characterized by the shift work.
For achieving the globalisation there are many strategies made by the hotel groups. There are
many high – tech systems used by the hotel groups for making the hotel more develop. For
protecting the environment there are many measures taken. The strategies made by the hotel
groups to achieve globalisation are:
 There should be direct foreign investment
 There should be proper management contracts
 There should be joint ventures made
 Implementation of franchise

 Making of strategic alliances
Background to Hotel Organisation
The Crown Plaza Hotel in Royal Victoria Dock is a hotel which offers 4-star accommodation
in of the fastest growing districts of London. In London, this hotel is the perfect place to stay
in. this hotel is chosen to be the number one choice of the customers and has made their
choice for the London city airport hotel connection. This hotel is a moment walk from Royal
Victoria. It has a railway station which connects the personals to the underground network
and all of the family-friendly tourist sites of London with a travel time of 15 mins only. The
corporate travellers who are staying in the hotel will find all their beneficial need for business
success in this particular hotel. There is a total of eight modern conference room with having
windows from floor to ceiling (Filimonau and Brown, 2018). There are 210 rooms which
contain high-speed internet, flat screen televisions, and also air conditioning system. All this
room comes with a Crowne Plaza Sleep Advantage that includes the features like high-
quality bedding and linens and guaranteed to wake up call having a snooze time of just five
minutes. Also. The prior night stay is free. The hotel contains designated quiet zones on each
floor of the hotel. The quiet zone contains 6 rooms in total on each floor. There is no ground
floor room in this hotel. This hotel comes with a facility for booking from the house. By this
process, the customer or the corporates who want to book a hotel and want to stay can easily
book from office or from the house. Cancellation policy is also available in the app. There is
a facility of online payment.
The SWOT analysis of selected hotel organisation:
1. Strength for Crown Plaza hotel – This plays a major role in the organisation at the time
of marketing. An organisation's strength can be determined by the advantages of an
organisation that persuades in the marketing competition. The strength of an organisation

is basically the organisation's name, the brands, the highly efficient working staff and also
the patents introduced by the organisation (Gursoy, 2018). Also, location and specialist
knowledge are also the strength of the organisation. The strength of the organisation is
that it has a very good quality served. All the services provided are done with a good
gesture, the brand is a trusted brand. It has a wide range of rooms. It is expanded in the
growing district of London. This organisation is the UK's leading brand, having good
service provider tag in it. The organisation serves quality management which can be
trusted by the consumers. Huge variety of products, ranging from kitchen to laundry and
car care. Has a successful expansion in the USA and is available both offline and online.
2. Weaknesses for Crown Plaza hotel – This term is defined as the absence of certain
strength. This absence includes lack of the protection of the patent, the organisation is
situated in a bad location is also a major factor for the weakness. However, producing
good quality will also be the weakness of the organisation (Harrington et al., 2019). Some
other weakness can be poor reputation, lack of some expertise employees, lack of access
to distribution. There are similar products available on the market from the competitors.
There is one location where the product is produced, creating a major weak point for the
organisation. It has a single manufacturing unit in the North of England. Various other
brands of the hotel are coming up with similar features in the market.
3. Opportunities for Crown Plaza hotel – This is an external factor for a strategic plan.
For making strategy opportunities create a lot of impacts. Opportunities include new
technology, building up of new hotels branches, the gap in the market. In this analysis,
the evaluation of potential opportunity should not be completed (Buhalis and Leung,
2018). Companies opportunities are unrelated to product development. It has the
opportunity for expansion in Europe. It develops child-friendly rooms. Expansion of their

market in other states like Europe. It utilizes its strategy to develop and expand more
related hotel groups
4. Threats for crown plaza hotel – When an organisation introduces a new branch of the
hotel, the competitor of that organisation produces a product having new technology. The
organisation hence ensures threat as the competitor introduces a good product with new
technology. For running the organisation threats can be many like the taste of the
customer, it means that the customer taste changes with the time. Some other threats are
like the implementation of new regulation or taxes, trending fashion, wars, price. The
major threat is that there many more competitors producing the same product like for
example are all the hotels which are the same the crown plaza hotel etc (Altin et al.,
2018). The customers can replace the rooms at low cost. Consumers have a lot of options
to choose from and at affordable low prices.
Background to Emerging markets
Hospitality is a term which consists of any groups of industries including travel, lodging,
catering, leisure, attraction and convection. This is one of the oldest profession and is termed
as the powerful economic activity that covers all the aspects of human life. For many national
economies, it is an important industry. This sector is known as the largest industry
worldwide. This sector is a part of the board service industry in which service is a vital part.
All the emphasis is done on the dimensions of the service which is very different from the
other service sectors (Martinez-Martinez et al., 2019). This sector is changing quite
significantly in response to the changing demand and the expectations of consumers. The
industry’s segment also matters a lot as there are many clear differences in the genuine
hospitality degree that is offered. In 1981 world bank discovered the term emerging market.
There are different criteria according to which different organizations and authorities get to
be qualified. In the world economy, the emerging markets are playing an increasingly

significant role. In all sectors of the hospital industry, the emerging market is expanding its
share. The major emerging markets like China, Brazil, India are expected likely to become
the world largest economies by 2050. The world's 30% of land area is significantly covered
by the three countries. Also, these markets boast a combined GDP of 30 trillion US dollars. A
rapidly growing middle class in emerging markets is Khanna and Palepu. This two countries
leads to a very huge demand for all types of products and also services in the hospitality
sector. Many major emerging markets despite the growth and downtown are currently
undergoing a transformation structurally which will lead the growth by exports and also by
investment to growth grounded on domestic consumption. With the enormous domestic
demand and the rapid economic growth together make the markets increasingly attractive for
all the academic research and business activities. The hospital industry has some most
representative sectors which are the hotels and the airlines (Kasim et al., 2018). In cultural
development and global economic, these two sectors play a very important role. Airlines and
hotels are getting improved and there is faster growth in this particular emerging markets.
There are many luxury hotels built up in Asia in the past few decades. The number of star
rated hotel has grown in China from 137 to more. In the hospital industry, the marketing
strategy plays an important role. In the hospital management, without proper marketing plans,
no job can be persuaded. By developing the strategies an organization can grow efficiently
and can make the consumers coming to them feel good.
PEST of selected emerging market
1. Political factors- In the hospitality industry, political factors plays an important role.
When an organisation wants to expand its business, political factors always come as an
opportunity for them. There are many political factors and those are tax policy,
environment law etc. along with that international distribution cost and the trade barriers
also mentioned as political factors (Mariani et al., 2018). In the world, all countries have

their own laws for business. Therefore, when it comes to joining the international market,
the organisation should know all the rules and regulations of a particular country to avoid
all the legal issues. In addition, these factors can help the Crown Plaza hotel to increase
its areas in the international market.
2. Economic factors- These are those factors which help to improve the economic condition
of the organisation and country. These factors consist of the economic growth inflation
rate, interest rates etc.
3. Social factors- The social factors are those factors which help to create a better
relationship with the customer and create a better brand image in society. These factors
consist age distribution, various cultural aspects, health consciousness etc. these factors
also help to know the need of the particular market and enhance the productivity of the
organisation.
4. Technological factors- in this modern era, technological factors are the most vital part of
the success of any organisation (Peters and Kallmuenzer, 2018). With the help of
innovation in technology, organisation are creating tuff competition in the marker.
Therefore, to stay in the competitive market for long the Crown Plaza hotel should use
new technology to improve their performance and provide a better experience to their
customer.
Hotel strategy to be adopted and to be implemented (using strategic model and
frameworks) within the entering market:
Porter’s five forces is a very powerful tool for understanding the competitiveness of the
organisation’s environment. This tool was introduced by Michael Porter who was assigned as
the professor of Harvard Business School. It is a very popular tool and is regarded as an
important business tool. The five forces of porters are as follows:

1. Competitive rivalry- it plays an important role in business. Competitive rivalry is
known as the rivalry in which the same organization gets in the competition with the
organization (Hermannsdottir et al., 2018). In this process, the service produced is the
same for getting more fame one organisation make the fare low by which the
consumer comes toward the organisation and the organisation's sales get increased. If
the competitive rivalry is less then there is no competition in the market in which the
organisation is only one who is providing the services and the profit margin also gets
increased. The organisation is very advanced and there are many competitors at the
same level as the other hotels (Starks and Carroll, 2018). They are bringing the same
services having better technology and improvement to meet the customers need and
this way rivalry continues
2. Supplier power- in this force that the supplier needs to require raw material to the
organisation. Supplier power means nothing but how much supplier does the
organisation has. Without the supplier, no organisation can get raw material and
without a proper supplier, the organisation cannot run.
3. Buyer power- this the power which is very much needful for the organisation.
However, for gaining profit and selling product more in the market the organisation
has to introduce services to the customer and make them convinced for taking the
service in large and huge amount (Abdullah et al., 2018). In the organisation, the
customers possess the bargaining power as a result of a very large number of
competitors in the market
4. The threat of substitution- it means that if services of the organisation are not so liable
and if another organisation is giving the same service with satisfying all the
customer's priorities then customers go to that organisation and hence this

organisation gets substituted. So, the organisation should make all the priorities
fulfilled of the customer by keeping the most suitable.
5. The threat of new entry- this a great threat of the organisation as when same product
at low cost and good quality and good technology is produced by another organisation
then the organisation gets to extinct as the position of the organisation is taken by the
other organisation (Adams and Velarde, 2018). The organisation has low barriers to
get enter in the market. The organisation has a trusted brand and the main access to
the distribution pathway may be a threat to the Crown Plaza hotel.
Whether the organization is big or small the strategy plays a very important role. At the
making a strategy there are many factors which are taken into account. The strategies are
basically internal or external (Amiridis, 2018).
The smart objectives can also be described by the Ansoff matrix which states that:
It is also called the product or market expansion grid. To analyse and plan the strategies for
growth this tool is basically used by the firm (Cesaroni et al., 2018).
The main four stages of Ansoff matrix are as follows:
Market penetration- It basically focuses on the increment of sales of the existing product to
an existing market.in this strategy, the organisation uses its products and introduce to the
existing market (Badura et al., 2018). This is a process which aims to increase its market
share with an effective marketing strategy. The strategy can be done by following ways
 For attracting existing and new customers the prices should be decreased
 The efforts of distribution and also the promotion should be increased
 Having a competitor in the same market place

Product development- It mainly focuses on introducing new products to an existing market.
This development strategy is implemented when the organisation has a strong knowledge of
the current knowledge and then they are able to make creative ideas and satisfy customer
needs (Doherty et al., 2018). The product development strategy can be done in various ways:
 By developing new products by investing in R&D and then cater to the existing
market
 Getting access to each partner's brand by the strategic partnership with the other
companies
 Creating a new product by the combination of the competitor's product and own
resources
Market development- It is a strategy which focuses on entering a new market using existing
products. This strategy is more successful when the organisation has its own proprietary
technology by which it can make products and deliver into the new market (Abdullah et al.,
2018). The consumers in the market are profitable. The consumer behaviour in the new
market doesn't change so much from the existing markets. This strategy is done by the
following process:
 Customer segment should be different
 By expanding regionally
 By expanding into the international market
Diversification- With the introduction of new products, it focuses on entering a new market.
This strategy is the riskiest strategy as both market and product development is required
(Bongiorno et al., 2018). There are basically two types of diversification an organisation can
employ: