International Expansion Strategy for The Dorchester, London Hotel

This report provides an analysis of the internationalization and globalization strategies of The Dorchester, London, focusing on its potential expansion into the Barcelona market. The report begins with an introduction to the concept of internationalization and globalization, followed by an examination of the key challenges and opportunities The Dorchester faces, including Brexit and the presence of European brands. It then explores strategies for overcoming these challenges and leveraging opportunities, recommending a joint venture as the most suitable mode of entry. The report also details the target market segmentation, targeting, and positioning strategies, emphasizing the importance of attracting high-income tourists. Finally, it outlines a comprehensive marketing mix, including product (hospitality services), pricing (premium), place (physical facility and online presence), and promotion (digital and social media). The report concludes with a summary of the key findings and recommendations, supported by relevant references.

Digital Brand Story

 INTRODUCTION
 Key challenges and opportunities
 Overcoming Challenges and Utilizing Opportunities
 Target Market
 Marketing Mix for The Dorchester, London
 CONCLUSION
 REFERENCES
Table of Contents

 Internationalization of the brand can be defined as developing the brand in
such manner that it can serve in international markets and is suitable for
international market. Globalisation refers to operation of business activities and
function out of boundaries of home country of the company. This study will discuss
about internationalization and globalisation of The Dorchester, London. This is a
five star hotel located in London, the hotel was opened in 1931 and the luxury hotel
is owned by Brunei Investment Agency. The hotel still retains its furnishing and
ambiance as 1930 even after being modernised. This was also considered as safest
building of London because of its strength during second world war.
INTRODUCTION

Barcelona is a city in Spain and audit of Spain outlined
some of the opportunities and challenges that The
Dorchester, London can experience. This is important
to identify in order to take proper measures to utilize
opportunities and overcome challenges. Summary of
these challenges and opportunities is as follows-
Key challenges and opportunities

Increasing international Visitors
Increasing international visitors are one of the important opportunity for hotel because visitors
are more likely to use services of the hotel.
Domination by European Brands
This is another opportunity for The Dorchester, London as European brands are dominating
the hospitality industry in Barcelona and this is why The Dorchester can succeed in its
operations at Barcelona.
Special Emphasis of tourism
This is an attractive opportunity for The Dorchester because Barcelona is not just attraction
for tourist and visitors but country also place special emphasis on the tourism industry.
Opportunities

Brexit
Because of Brexit relations of UK has affected with other European
countries and Spain being an EU member has also affected from Brexit.
Lack of Skilled Labour
Skilled labour is important to carry out functions of business effectively
and efficiently and this is why, this is also a challenge for The
Dorchester that there is lack of skilled labour in Barcelona.
Challenges

For success of business it is important that both the
factors are given equal attention and importance. This
is because if company focuses more on challenges it
will lose available opportunities and if it focuses more
on opportunities in such case challenges might have
negative impact on the success of the functions.
Overcoming Challenges and Utilizing Opportunities

Mode of entry refers to way through which The Dorchester, London can start its operations in
Barcelona. The Dorchester, London is operating in hospitality industry and this is some of the options
which are available for it are;
Joint venture
This is a mode of entry in which two or more organisations together can start their new venture which
is known as joint venture. For The Dorchester, London and another hospitality industry from Barcelona
can start new venture together. Such organisations often has name of both the companies.
Franchising
This means giving license to operate and use name and resources of The Dorchester, London by a party
in Barcelona. This is also common mode of entry which is used by hospitality industry. The Dorchester,
London can also use this mode of entry in Barcelona by looking for a suitable franchisee in Barcelona.
Mode of Entry in Barcelona

Merger and Acquisition
Merger means mode of entry in which two companies starting operating as
one company and acquisition refers to buying ownership of the
organisation in another country for international expansion.
Wholly owned subsidiary
This is another mode of entry through which The Dorchester, London can
enter into Barcelona for its hospitality business. This will require The
Dorchester, London to set up a completely owned subsidiary in Barcelona.
Cont..

Among all available option for The Dorchester, London to enter in Barcelona best option for entry
considering its challenges and opportunities is Joint Venture. Rationale for this are;
 Well developed and equipped hospitality industry’s assistance will help The Dorchester, London to
succeed in Barcelona. Hospitality industry has some of the favourable situations and joint venture
will allow getting these favours.
 Joint venture at Barcelona with local brand will also require less efforts in order to establish in local
market and grow there.
 This will also help in avoiding any negative impact that The Dorchester, London because of Brexit.
This is because one of the companies in joint venture is local.
 This will also ease availability of resources in Barcelona because local company’s knowledge can be
utilized for best procurement of resources at Barcelona.
Cont..

Target marker refers to that customer group of a market which is addressed
by the company to provide its services. In simple words, target market is
the market and group of customers for which organisation develops its
products and services and marketing efforts of the company are also made
in direction that company can attract customers from that target market.
This is one of the important task before company starts its operations as
The Dorchester, London it also has to target a market at Barcelona in order
to attract them so that can buy services of The Dorchester, London.
Target Market

This is first step of targeting customers and market. This
stage involves segmentation of customers on the basis of
their varied characteristics. The segmentation usually is
done on the basis of demographic and psychographic
characteristics. Demographic characteristics involve
segmentation of customers on the basis of age, gender,
education, ethnicity, income and profession.
Segmentation