Crown Plaza Hotel Strategic Analysis: SWOT, PESTLE, and Growth Models

This report provides a comprehensive strategic analysis of the Crown Plaza Hotel, examining its strengths, weaknesses, opportunities, and threats through a SWOT analysis. It also explores the external factors influencing the hotel via a PESTLE analysis, considering political, economic, social, and technological aspects. The report delves into strategic models like the Ansoff Matrix, Porter's Generic Strategies, and the BCG Matrix to evaluate growth strategies, competitive positioning, and portfolio management. The analysis highlights the hotel's global presence, customer relationships, and the impact of market dynamics and technological advancements. The report concludes with recommendations for the hotel's future development and strategic decision-making within the international hospitality industry.

International
Hospitality
Management

Table of Contents
INTRODUCTION.................................................................................................................................3
SWOT analysis......................................................................................................................................3
SWOT analysis of Crown Plaza Hotel...............................................................................................3
PEST Crown Plaza Hotel......................................................................................................................5
Hotel strategy to be adopt and to be implemented.................................................................................6
Ansoffs Matrix..................................................................................................................................6
Porter Generic Strategy Model-.........................................................................................................7
BCG Matrix.......................................................................................................................................8
Justification...........................................................................................................................................9
CONCLUSION...................................................................................................................................10
REFERENCES....................................................................................................................................11
Books and journals..........................................................................................................................11

INTRODUCTION
Tourism is transfer of visitors form there living place to other for exploring new things and
places for satisfaction of their wants and enjoys life. International Hotel Industry is that part
of truism industry which is related to accommodation of visitors for tourist place. Hotel
industry play an important role in firm tourism business as it provides infrastructure facility
to business and play as major part of tourism industry (Kozak and Kozak, 2016). Crown
Plaza Hotel in Royal Victoria Dock is a hotel chain with headquarter in London, UK. It is a
chain of hotels which is operating more than 100 nations with more than 3000 hotels and
118000 beads. This hotel is listed in star category with market share is a more than 10% in
whole tourism industry. The main objective of hotel is to provide world class service to its
customers and provide maximum satisfaction from the side of hotel. In this report, This hotel
will be consider as the base where the SWOT and pest will be analyse for knowing impact of
internal and external factors respectively. Here the strategic modals will also include in which
decision making and strategies will be analysis. Porters Generic Strategies, Ansoffs matrix
and BCG Matrix models will be used to help hotel in growth and development (Grobelna
and Marciszewska, 2016.
SWOT analysis
SWOT analysis is that framework which is used by firm for scanning it internal
factors which can impact on firm performance. In this framework strengths, weakness,
opportunity and threats of firm will be evaluated for development of function and use them
for formulation of strategy according to this.
SWOT analysis of Crown Plaza Hotel
Strength Weakness
 Global presence is major strength of
Crown Plaza Hotel as it help hotel in
getting is operations at global level , it
increase the chances of profit as
customer will get hotel services in
every country where there is large
number of services and can visit the
tourism destination which it want to
 Week information and technology
system acted as the weakness of firm
this is because there is lack of
updating in this field by management.
This can be improved by firm with
the help of technical assistance and
upgrade.

visit.
 Employees also act as the strength of
this hotel because of recruitment and
selection process. hotel follow a strict
process for recruitment of employee
from different sources this will also
help firm in getting qualified
employees and also lead in
achievement of firms objective on
time with increase performance.
 Major strength of hotel is that it
focuses on building relationship with
customer which will help firm in
relating customer and will also leads
in increase market share of firm. This
also aid customer in full satisfaction.
 Lack of feedback reporting is also a
major issue in hotel as there is delay
in responding queries and complaints
of customer, this is because there are
number of customer and staff is not
according to this so some time hotel
have to suffer from this problem and
it act as there weakness.
Opportunities Threats
 Hotel have the chance to increase its
marketing operation more as there is
continues development in tourism
industry. This will help hotel in
establish its branches where there is
more visitors. This will aid it in
increasing its market share and
increase infrastructure for more
profitability and development.
 Bring technological changes in firm is
also an opportunity for Crown Plaza
Hotel as it can use online booking
manager and can list itself on various
platform like Trivago and many more.
This will help hotel in increasing the
satisfaction of customer and
minimising burden from employees
 Large number of competitor can act
as threat of firm this is because large
number of competitors will decrease
the profit ability of firm, and in hotel
industry there is big range if hotels
which are selling same type of
product also it all depend upon the
brand value of hotel (Chang and
Busser, 2017).
 Legal requirements are changing
continually and verify from nation to
nation which firm have to use to
change its policies. This is so fast that
firm have to which it continually but
some time is lag blind this al will
stuck between legal liabilities.

with booking rooms online. This will
also help in management of work
(Buhalis and Leung, 2018).
 Changing exchange rates will also
impact on firm as it have to cope with
them and can cause huge loss to it.
Swot will help Crown Plaza Hotel in getting access to its number of function which are
related to strengths and weakness which can coordinated for formulate business strategies.
PEST Crown Plaza Hotel
It is that analysis which is used to identify the external forces which can impact on
Crown Plaza Hotel. This includes the analysis of political, economic, social and technical
factors which can impact hotel performance from outside. These all will be identified in
terms of Crown Plaza Hotel (Yoon, Jang and Lee, 2016).
Political factors: It includes those factors which are related to government and
polices related to business in nation where frim is operating. This has direct impact on firm
decision and strategy formulation. For example in UK there is political unrest in form of
BREXIT which have direct impact on firm as after it there will be huge changes in
government policies which can also impact on firms policies and procedures so this have to
be analysis by Crown Plaza Hotel to get regular updates regarding this and formulate polices
according to it (Min, Park and Kim, 2016).
Economic factors: in this, those factors are included which are related to economic
environment of nation here firm is operating. It consist of exchange rates, GDP growth, etc.
which are directly related to firm profitability and smooth flow of actions. In context of
Crown Plaza Hotel, there are various factors which can impact on firm profitability like good
economic growth will also help hotel in grow faster and help in increasing number of
customers which will also leads in increase profits and productivity.
Social factors: these are those which are lying in society or arise because of society
where business is operating. These are also an important part of firm and will influence
working of firm. It includes number of factors like trends, beliefs and culture which is going
in society. This have no direct impact on Crown Plaza Hotel but it impact indirectly as social
trends decide tourism in nation or the area where firm is working and Crown Plaza Hotel is
dependent on tourism because its major customers are those who came to visit particular site.
The society of UK is rich and wealthy so it attract more and more customers in UK which

help Crown Plaza Hotel in getting benefit of this so social factors have good impact on this
hotel.
Technical factors: these are those which include the technological updates in
business environment of hotel industry. There are not many technological updating in this
industry but infrastructure development id related to technological development in hotels for
example there are number of hotels which are using sound and light facility in there hotels
and guest houses . They are also using cashless facilities, essay check in and check out
function with all functions which are related to customer satisfaction. Crown Plaza Hotel
should also use these things which can help it in growing its business and bring improvement
in firms business (Baker and Magnini, 2016).
Hotel strategy to be adopt and to be implemented
Ansoffs Matrix
The Ansoff matrix is a strategic planning system that offers a structure which helps
the manager in increasing the growth and development of business organisation in future time
period. There are four strategies which is used for boosting growth and identify risk related
with each strategy. In context of Crown Plaza hotel, the manager make effective strategy,
policies and procedures for accelerating the success and growth in future period of time.
Therefore, there are four strategies which are adopted by Crown Plaza Hotel which is going
to be mentioned below:
Market Penetration: Hereby, the business firm focuses on increasing sales by
offering available products in existing market. There are different services which is provided
by the staff member of Crown Plaza Hotel such as wake up call, parking facilities as well as
healthy food services to its customer in order to increase the revenue and profit in future
period of time. They offer high quality services to its customer in order to satisfy their need
and wants. It helps in boosting the brand image and goodwill of hotel in front of customer. It
helps them in retaining the customer for a longer period of time (Park and Park, 2017).
Product Development: In this strategy, the firm want to develop a new product in the
existing market in order to expand the category of product within marketplace. In addition to
this, the manager has a knowledge regarding present tactics of market and they bring the new
ideas in order to satisfy the current need and requirement of customer. In context of Crown

Plaza Hotel, the manager focuses on offering innovative services to its customer which
includes Free Wi-Fi, Laundry, dry cleaning facilities in order to increase the revenue and
profit of the company.
Market Development: Herein, the business organisation take entrance in new
marketplace with their prevailing products. In reference of Crown Plaza Hotel, the manager
offer existing services in order to attract the ample of customer in new marketplace. In
addition to this, then main purpose is to increasing revenue by providing prevailing services
to its user. Apart from this, they expand the functioning of their business at global level. It
helps them in increasing the sales and profitability level in future period of time.
Diversification: In this strategy, the firm take entrance in the new market with
innovative products. In context of Crown Plaza hotel, the manager provide the innovative
services such as Bar, swimming pool as well as fitness centre facilities to its customer. They
bring new ideas in order to attract large number of customer. It helps them in expanding the
revenue and profit in future period of time.
From the above mentioned strategies, it has been analysed that after 5 10 year the
manager of Crown Plaza hotel provide the innovative services according to the need and
wants of consumer. It helps them in expanding their business at both national as well as
international level.
Porter Generic Strategy Model-
In today’s world, competition is rising at rapid level and new entrepreneurs are
entering into the market with innovative ideas as well as thoughts. In relevance with Crown
Plaza Hotel, marketing team of the firm always remain active and aware about trending and
changing activities of market which help to implement effective strategies from time to time.
They are able to implement tactics as well as strategies with help of Porter Generic Model
which is tool used by organisation to take competitive advantage by using tactics (Gursoy,
2019). According to this framework, enterprise mostly use four types of strategies which are
discussed below-
 Cost Leadership- The first one is cost leadership which depicts that every entity
wishes to become producer of most effective cost in market. This results in acquiring
of customers at broader and wider level. In context to Crown Plaza, prices of rooms
in four star or say three star is lower as compared to The Ritz London in which cost

of room are expensive and not affordable by everyone. This strategy is used by
Crown Plaza so that lower, middle, and upper level of customers are attracted
towards the business and their services are deliver to every prospect.
 Cost Focus- Further comes the cost focus strategy in which products are services are
distributed at lower cost but within a small or particular segment so that sales revenue
does not get affected. In relation with Crown Plaza, luggage services are free and in
some areas they charge some fees but with low cost. This strategy affects the
goodwill of firm at wider level.
 Differentiation Focus- In this, firm try to differentiate itself from competitors and
rivals. Every business should have USP, so that goals and objectives are achieved in
proper manner. Crown Plaza Hotel, ha also has proven themselves different from
other competitors by making customers their first priority and giving them
personalized service from check in to check out process. This increases goodwill of
firm and also leads to positive word of mouth.
Differentiation Leadership- In this, large market is targeted by entity with motive to
achieve competitive advantage by offering product with premium prices. This strategy is
riskier if not done in proper manner. In context to Crown Plaza, they adopt this differentiation
leadership strategy by conducting appropriate market research and advertising as well as
promotional tools. This is because when selling high cost of products, customers only focus
on quality of service on that product and are ready to pay the price. So, hotel deliver quality
of goods and services and which help them in generating profit through premium prices
(Chan and Hsu, 2016).
After brief analysis of above model, it is stated that using Porter Generic Strategy tool
help business in expanding their both functional as well as operational activities at national
and international level. In future scenario say about after five to ten years this strategy will
assists hotel to become the premium and luxurious hospitality industry.
BCG Matrix
This is a framework used by firm to implement effective strategy and to analyse
market and product growth rate. BCG is also known as Boston Consultant Group and is used
widely in the business. This matrix is divided into four quadrants and are discussed below-
Cash cows- The first quadrant is cash cow which states that profit is generated but
with slow speed. In other words, enterprise invests in this strategy but only to stabilise the

business or support to survive in market. In context to Crown Plaza, valet service is not so
used by customers and money is invested in manpower in this section just to support the
service. In this, market and product growth rate is low.
Stars- Further comes the stars in which market and product/ industry growth is high
as compared to cash cows. Firm invests in in stars with motive of earning profit and
increasing sales revenue in the market. It is also possible that fluctuation of market situation
might convert star into cash cows but with positive outcome. In relation with Crown Plaza,
firm services like personalized service is emerging and positive relationship is maintained
through this service.
Question Mark- In this, proper consideration and focus is needed to decide to invest
or not. In this, firm have the chances of being converted into both cash cows as well as dogs
depending upon the market situations. In relevance with Crown Plaza, they use this quadrant
by proper market research so that losses do not occur in business.
Dogs- In this market and product share growth is low as compared to other quadrants.
In dogs, firm protect themselves from being bitten and does not invest in such situations so
that all the resources are saved from being exploited. Crown Plaza, during current lockdown
of country does not invest in market or the product. High level of knowledge as well as skills
is required in this tool so that suitable option is selected and firm are able to operate their
business in proper manner (García-Lillo, Úbeda-García and Marco-Lajara, 2016).
After a brief analysis of above tool, it is seen that market situation is dynamic and
deep understanding and market research is necessary to deal with rivals. With help of this
framework firm is able to deal with uncertainty and risk associated with each investment in
market. Also, new ideas and thoughts are generated to prevent business from getting into
losses.
Justification
After a brief analysis of above strategy models it is stated that to survive in market it
is essential to make effective decision making while adopting strategies in business. Ansoff
and BCG matrix has been used because they provide knowledge about entities situation and
assist them in to deal with competitors in proper manner. Further, Porter Generic strategy tool
has been adopted by Crown Plaza so that after five to ten years, business remains stable for

longer period of time and relationship between enterprise as well as customers become strong
and trustable. Thus, using these models will lead to survival of business sin market and
acquisition of customers.
CONCLUSION
From above observation it can be concluded that swot analysis can help hotel in
getting favourable to its strength and weakness which can be used to form effective strategy
and management, this will also help firm in knowing opportunities and overcoming its threats
with help for strengths. Pestle will help firm in identifying external factors which can impact
on its productivity, profitability and long existence. Hotel can use porter generic strategy for
making good business strategy for doing business and et competitive advantage. This all will
help firm in effective management in firm and will increase the chances of better
performance of firms function.

REFERENCES
Books and journals
García-Lillo, F., Úbeda-García, M. and Marco-Lajara, B., 2016. The intellectual structure of
research in hospitality management: A literature review using bibliometric methods
of the journal International Journal of Hospitality Management. International
Journal of Hospitality Management, 52, pp.121-130.
Chan, E.S. and Hsu, C.H., 2016. Environmental management research in
hospitality. International Journal of Contemporary Hospitality Management.
Gursoy, D., 2019. A critical review of determinants of information search behavior and
utilization of online reviews in decision making process (invited paper for
‘luminaries’ special issue of International Journal of Hospitality
Management). International Journal of Hospitality Management, 76, pp.53-60.
Park, S.B. and Park, K., 2017. Thematic trends in event management research. International
Journal of Contemporary Hospitality Management.
Baker, M.A. and Magnini, V.P., 2016. The evolution of services marketing, hospitality
marketing and building the constituency model for hospitality
marketing. International Journal of Contemporary Hospitality Management.
Min, H., Park, J. and Kim, H.J., 2016. Common method bias in hospitality research: A
critical review of literature and an empirical study. International Journal of
Hospitality Management, 56, pp.126-135.
Buhalis, D. and Leung, R., 2018. Smart hospitality—Interconnectivity and interoperability
towards an ecosystem. International Journal of Hospitality Management, 71, pp.41-
50.
Chang, W. and Busser, J.A., 2017. Hospitality employees promotional attitude: Findings
from graduates of a twelve-month management training program. International
Journal of Hospitality Management, 60, pp.48-57.
Grobelna, A. and Marciszewska, B., 2016, April. Work motivation of tourism and hospitality
students: implications for human resource management. In Proceedings of the 8th
European conference on intellectual capital (pp. 95-103).
Kozak, M. and Kozak, N. eds., 2016. Tourist behaviour: an international perspective. CABI.
Yoon, D., Jang, J. and Lee, J.J., 2016. Environmental management strategy and
organizational citizenship behaviors in the hotel industry. International Journal of
Contemporary Hospitality Management.