Fourseasons Hotel: A Comprehensive Business Strategy Analysis Report

This report provides a comprehensive analysis of the business strategy of Fourseasons Hotel, examining its internal and external environments. It utilizes tools such as SWOT, PESTEL, VRIO, and Porter's Five Forces to assess the company's competitiveness. The report begins with an overview of Fourseasons Hotel, including its vision, mission, and corporate objectives. A detailed SWOT analysis identifies the company's strengths, weaknesses, opportunities, and threats. The PESTEL analysis assesses the political, economic, social, technological, environmental, and legal factors impacting the business. The VRIO analysis evaluates the resources and capabilities of the company in terms of value, rareness, imitability, and organization. Porter's Five Forces model is used to analyze the competitive forces within the industry. The report concludes with recommendations for sustaining competitive advantage and a discussion of the key findings, supported by relevant references.

Running head: MANAGEMENT
Management
Name of the Student
Name of the University
Author note

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Executive Summary
The report has thrown light on analysing the overall business strategy of Fourseasons Hotel
which is situated in Canada, and they have their branch in Singapore. Furthermore, the
SWOT and PESTEL analysis have been conducted which provided a brief overview on the
different strengths, weaknesses along with threats and opportunities which can affect the
overall business of the company in both positive or negative manner. Additionally, it has
been noticed that the VRIO analysis was conducted which provided a brief overview on the
different kinds of the competitive aspects which helps the company in gaining
competitiveness in the overall market and become the most luxurious brand.

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Table of Contents
Overview of Fourseasons Hotel.............................................................................................4
Vision.....................................................................................................................................4
Mission...................................................................................................................................5
Corporate Objective...............................................................................................................5
SWOT Analysis.........................................................................................................................5
Strength..................................................................................................................................5
Weakness................................................................................................................................6
Opportunities..........................................................................................................................7
Threats....................................................................................................................................8
PESTEL Analysis.......................................................................................................................8
VRIO Analysis.........................................................................................................................14
Porter five forces......................................................................................................................16
Bargaining power of suppliers.............................................................................................16
Bargaining power of customers...........................................................................................17
The threat of substitute.........................................................................................................17
The risk of new entrants.......................................................................................................17
Industry rivalry.....................................................................................................................18
Recommendation......................................................................................................................19
Conclusion................................................................................................................................21
References................................................................................................................................23

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Introduction
The report throws light on the overall analysis of the business strategy of Fourseasons
Hotel with the proper identification of the external and internal environment which can create
a significant effect on the business in both negative or positive manner. With the
implementation of different tools such as SWOT, PESTEL, Porter's Five Forces Model
analysis along with VRIO analysis have been considered which will help manage the overall
competitiveness of the organization. Proper recommendations are required to be provided
which will assist in sustaining the business in the long run and gain competitive advantage.
Overview of Fourseasons Hotel
Fourseasons Hotel Limited is one of the international luxurious hospitality
organization which is headquartered in Toronto, Ontario based in Canada and they have the
branch in Singapore. The hotel tries to operate in more than 100 hotels worldwide. The hotel
was founded in the year 1961 on 21st March, and the key people who are involved in the
foundation of the hotel is Isadore Sharp. The revenue which has been earned by the
organization until 2015 is US$ 4.3 billion. Furthermore, the number of employees who are
employed in the organization is 45000, and from the year 2007, Bill Gates along with
Cascade Investment and Al-Waleed bin Talal are the principal owners of the company
(Fourseasons.com 2019).
Vision
The primary purpose and vision of Fourseasons hotel are to create different impressions for
the different customers which will be staying with them forever. Furthermore, the hotel aims
to become the premium service provider along with facilitator of the vacation along with
leisure experiences to the customers and gain competitive advantage (Fourseasons.com
2019).

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Mission
On the other hand, the purpose of Fourseasons Hotel is to enhance the lives of the different
customers through proper creation and enabling leisure experiences effectively. Furthermore,
at Fourseasons hotel, the company believes in recognising the familiar kind of face along
with welcoming the new guests and similarly treating all the individuals as we would want to
be treated (Fourseasons.com 2019).
Corporate Objective
 To take care of the different associates along with taking care of the various
customers
 To pursue excellence wherein the significant dedication of the company is on
providing a positive experience to the customers
 To act with integrity as the central aspect of performing business is to gain
profitability through the implementation of different techniques which are ethical
SWOT Analysis
Strength
Fourseasons Hotel has more than 50 years of experience in the industry of the hotel,
and they have well-earned prestige along with the reputation as one of the top luxury brands
in the entire world.
The two different hotels which are being perceived by Fourseasons Hotel in Mexico
are regarded as the top hotels. Any event which is organized at Fourseasons Hotel tries to
provide the guests with the proper prestige, and it increases the overall brand image of the
company (Akter et al. 2016).

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The hotel is well-positioned among the different other travel agencies which are
recommended by them to the privilege clients. The main motto of the hotel is to provide the
customers with the luxury and best service which is available to the clients to satisfy the
requirements of the clients effectively. Furthermore, the respective hotel is being sought by
the different top travellers' scale for the various business and personal trips (Albrecht,
Holland and Peters 2016).
Weakness
There is no such presence of PR of the Fourseasons hotel brand in Mexico in terms
of the local media. Furthermore, the respective hotel is being perceived as the most expensive
brands among the customers which can affect their brand image and sales negatively (Boyd et
al. 2017).
There are different perceptions of the customers in the market as they feel that the
various products and services which are being offered by them is undifferentiated and there
is no such innovation in the services which are provided to the customers (Chang 2016).
Fourseasons Hotel is termed as a most luxurious hotel, and there is no such
innovation or favorite kinds of stuff inclusion which can affect their overall effectiveness
negatively. It is expected that the Fourseasons hotel is required to provide the different types
of premium services, however, when they are not meeting the standards, the travellers and
media overly demand critics (Chatzoglou et al. 2018).

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Figure 1: SWOT Analysis of Fourseasons Hotel
(Source: Created by author)
Opportunities
The brand of Fourseasons Hotel is a well-known brand in Mexico. However, it is not
available in other countries which can be an opportunity for them to become more
competitive. Additionally, to acquire more loyal clients with the help of word of mouth, the
respective hotel can gain immense profitability, and their image will be improved (Chrisman
et al. 2016).
Additionally, some of the other luxury brand hotels do not have their presence in
the Mexico market; therefore this can be an opportunity for Fourseasons hotel to become
more popular and it can become the most wanted hotels by the customers (Das 2016).
In the present scenario, it can be seen that the travellers prefer the unique
experiences which will be different in terms of countries and places which can be offered
by Fourseasons Hotel and gain the competitive advantage in the market of Mexico.
Strengths
More than 50 years of experience
It provides the guests with the proper prestige and it
increases the overall brand image
Well-positioned among the different other travel
agencies
Weaknesses
No such presence of PR of the hotel in the
media
Most luxurious and costly hotel
There is no such differentiation of the products
which are offered to customers
Opportunities
Spread in the other countries except Mexico
which will be beneficial
There is no other hotel in Mexico and it can be
a huge advantage for Fourseason hotel
Threats
The other competitors use aggressive
communication techniques
Other competitors are copying the different
designs of the company which can affect
their brand image
SWOT

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Threats
The other brands which are the competitors of Fourseasons hotel can reinforce the
different kinds of communication campaigns which are aggressive, and it can be a threat for
the respective hotel which will be affecting their sales (Evans et al. 2017).
As there is easy kind of access in the global media, it can be seen that the even the
brands which are not making any social efforts, the customers can reach to such hotels and it
can be a significant threat on the profitability of the company.
There are few competitors which are the luxury brands and competitors of
Fourseasons hotel, which has already copied the different designs of the services and
products and they are equally sophisticated which is a huge threat for them.
PESTEL Analysis
Political Aspects- The major political issue which can affect the Fourseasons Hotel is
the danger of terrorism, international relations along with the different laws related
employment which can affect the business of the hotel. However, Singapore is one of the
democratic countries with a stable political environment which will be beneficial for the
overall growth of the company (Export.gov 2019). It is one of the safest countries in the
world as there is a low rate of crime and reliable policing services. Singapore has tried to
position themselves as one of the best places for tourism and business growth.

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Figure 1: Emergent Economy
Source:
Economic Aspects- In the case of the economic aspects, the major economic factor
which can affect the business of Fourseasons Hotel is slowing growth in Singapore and
Canada and the ongoing turmoil. Due to the debt crisis, the GDP of the entire country has
fallen, and it is 32,390.72 crores USD (2017) which can reduce the buying capacity of the
individuals, and their ability to travel can decrease (Heritage. Org 2019). The long-term
economic kind of threat is the growing inequality in the income that will reduce the overall
ability of the individuals. The change in the French economy can affect the global GDP
growth of the country negatively (Higgins, Omer and Phillips 2015).

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Figure 2: GDP Growth
(Source: Higgins, Omer and Phillips 2015)
Social Factors- The different social factors help in making the future of Fourseasons
Hotel look good as the number of individuals who are planning to travel internationally has
increased to a considerable extent by more than 15% between the years 2013 and 2014. From
the statistics, it can be analyzed that most of the individuals prefer travelling and pay more
for gaining the most excellent service. However, the different cultural changes which could
impact the growth of Fourseasons Hotel is the number of travellers from the other countries
such as China and the United States (Madhavaram, Hunt and Bicen 2017). The different
population from Canada, the United States and Singapore prefer luxurious experiences of
travel such as the packaged tours and the luxury resorts that can be helpful for them to gain
competitive advantage.

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Figure 3: Inflation Rate
(Source: McDONALD 2016)
Technological Factors- The technological aspects can have the massive impact on
the business of Fourseasons hotel which can be seen in the form of the providing different
rental services such as Airbnb that will help in letting private individuals rent rooms or the
homes directly. However, the significant potential threat which can affect the growth of
Fourseasons Hotel is the telecom boom as there are other substitutes available in the market
which can affect their growth as the customers will prefer similar services from other hotels
at a lower rate (Mellahi et al. 2016). The inclusion of cloud software which has been
introduced by Fourseasons Hotel can help manage the overall growth as it will attract more
customers as the customers will prefer to receive premium services when they are paying the
huge amount for their stay.

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Figure 4: Technology Advancements
(Source: Peng 2017)
Legal Factors- The major legitimate factor which impacts the future business of the
Fourseasons Hotel is the right of the employees to just and fair termination which will be
helpful for the overall growth of the firm. Furthermore, there is the inclusion of the different
health and safety laws which will be beneficial for the growth of the company positively.
Moreover, the increase in the minimum wage will help result in the high cost of the labour
along with reductions in service (Straittimes.com 2019). The legal aspects of the Fourseasons
hotel have created a positive impact which will be beneficial for the overall growth of the
firm positively.