Developing Competitive Strategy: Change and Leadership at Oaks Hotels

This report provides a comprehensive analysis of Oaks Hotels and Resorts, focusing on its competitive strategy, change management, and leadership approaches. It includes a SWOT analysis, PORTER analysis, and STEEPLE strategy to assess the firm's current position and future plans. The report critiques core competencies and HR practices, offering recommendations for future strategies, such as creating flexible property spaces, enhancing guest control over the brand culture, and focusing on mobile optimization. The analysis aims to improve Oaks Hotels and Resorts' competitive position in the hospitality industry by adapting to market volatility and leveraging technological advancements. Desklib provides a platform for students to access this and similar solved assignments.

Running Head: Strategy, Change and Leadership: Oaks Hotels and Resorts
STRATEGY, CHANGE AND LEADERSHIP: OAKS HOTELS AND RESORTS
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Strategy, Change and Leadership: Oaks Hotels and Resorts 2
EXECUTIVE SUMMARY
Technology advancement and the increased success in globalization, has led to the development
of industries through increasing their market outreach and capabilities. As a result, it has led to
increased competition in the markets which are a major threat to the success, growth, and
development of firms in their industries, basically, there is increased volatility of the business
environments in the long run Therefore, firms must have effective strategies that are able to
adapt efficiently to the volatility in their business environment and to achieve this, quality
leadership or managerial skills is required to drive a firm towards achieving its goals and
objectives. Therefore, to put this into a clear perspective, this report will design and develop a
competitive strategy for Oaks Hotels and Resorts which will improve its competitive position in
the industry.

Strategy, Change and Leadership: Oaks Hotels and Resorts 3
Table of Contents
Strategy, Change and Leadership: Oaks Hotels and Resorts...........................................................3
Introduction......................................................................................................................................3
Oaks Hotels and Resorts SWOT analysis........................................................................................3
Strength........................................................................................................................................3
Weakness.....................................................................................................................................4
Opportunities................................................................................................................................4
Threat...........................................................................................................................................4
PORTER analysis (competitive position)........................................................................................5
Threat of new entrants..................................................................................................................5
Bargaining Power of Suppliers....................................................................................................5
Bargaining Power of Consumers.................................................................................................6
Threats of Substitutes...................................................................................................................6
Competitive power of rivalry players..........................................................................................6
STEEPLE STRATEGY (current and immediate future).................................................................7
Social impact................................................................................................................................7
Technological...............................................................................................................................7
Economical...................................................................................................................................7
Environmental..............................................................................................................................7
Political........................................................................................................................................8
Legal-...........................................................................................................................................8
Ethical..........................................................................................................................................8
Critique of Core competence and HR practices..............................................................................8

Strategy, Change and Leadership: Oaks Hotels and Resorts 4
Operations....................................................................................................................................8
Competitiveness...........................................................................................................................8
application of strategy and future plans.......................................................................................9
Future Strategies recommendation..................................................................................................9
Creations of flexible and unique property spaces for long-term guest or consumer...................9
Give guest control the Oaks Hotels and Resorts brand culture....................................................9
Mobile optimization focus...........................................................................................................9
Conclusion.....................................................................................................................................10
References......................................................................................................................................11

Strategy, Change and Leadership: Oaks Hotels and Resorts 5
Strategy, Change and Leadership: Oaks Hotels and Resorts
Introduction
Established in 1991in Melbourne, Oaks Hotels and Resorts has grown to be among the largest
and luxurious self-contained accommodation providers in the 4.5-star market. Its success in the
Australian market has given it a strength for expansion internationally where it has managed to
expand into four countries: India, New Zealand, United Arab Emirates, and Thailand. Moreover,
Including Australia, the firm is comprised of fifty-six properties with more than six thousand
guest room under its management. The firms focus on providing luxurious spaces with
magnificent designs and quality furniture which contributes to their quality product service
delivery targeting the higher middle-class consumers to the top of the pyramid (Bloomberg,
2018). However, for Oaks Hotels and Resorts to continue on a success path, it has to maintain a
competitive advantage in the long run which will be designed and developed in this report
Oaks Hotels and Resorts SWOT analysis
Strength
Oaks Hotels and Resorts has over two decades of experience in the industry regardless of the
global economic meltdowns such as the financial crisis (Lopes,2016). Thanks to its effectivity
management and leadership of the board and the management team. Additionally, the firm has
had successful social media campaigns where they are able to advertise their products and
services globally to loyal and prospective consumers over the years, increasing their revenue
through digital media (Connell, Agarwal, and Dhir, 2018). Its vast expansion to other countries
where its 56 properties are spread, managing over 6000 guest room strengthens the brands well
as increasing consumer loyalty when they travel to those countries moreover it offers loyalty
packages through its award-winning loyalty program (Mohamad, et al,2017). The firm has over
thousands of employees who are skilled contributing to the quality products service deliverer in

Strategy, Change and Leadership: Oaks Hotels and Resorts 6
the long run. It accommodation packages focus on the higher middle class to the top of the
pyramid additionally, these properties are based in strategic cities which will contribute to the
luxurious experience for the consumers (Luo, Yang and Law, 2014).
Weakness
The firm has a higher dependency on tourist which is highly vulnerable to the political and
economic sensitivity which affects the revenue generation from time to time such as the current
India currency crisis. It focuses on the high-end market gives it the incapability of competing
with the small-scale market as the standards of the hotel do not match with that market, therefore
the low pricing in that market is expected (Feili,et al ,2017). Though this mismatch might be the
major weakness in the current situation of economic slowdown nevertheless Oaks Hotels and
Resorts don’t feel motivated to compromise on its quality.
Opportunities
Increasing globalization has led to a significant increase in tourists and traveler especially for the
emerging economies is a big opportunity boost for the firm in the industry. Nevertheless, Oaks
Hotels and Resorts can take advantage of the emerging economies and expand into the market as
there is a significant increase in the standards of living as well as infrastructures development.
This would open a new market for the firm, however through merging and acquisition of smaller
hotel chains and converting them into the Oaks Hotels and Resorts brand is essential in
dominating the industry both in developing and emerging economies. Partnership with travel and
marketing agencies will increase brand awareness as well as the growth of the business in the
long run. The unregulated increase in population growth developed and emerging economies are
providing an opportunity to increase consumers for the industry where hotels such as Oaks
Hotels and Resorts can bet upon(Köseoglu et al, 2018).

Strategy, Change and Leadership: Oaks Hotels and Resorts 7
Threat
A significant trend that affects the growth and stability of the firm in the industry in the
unpredictable terrorist activities which has taken a toll in both developed and emerging
economies. Tourist and traveler are usually the main targets in the radical campaigns which
deeply affect arrivals in countries that have been stricken by terror attacks, furthermore,
government all over the world will issue or ban flights to such country’s impacting the industry
negatively. Natural disasters such as hurricanes and earthquakes lead to the destruction of
property where firms would have to incur losses as well as rebuilding or repairing the
infrastructures. The economic slowdown will hit the firm finically where individuals will limit
their traveling and opt to stay in the far cheaper accommodation. The advancement of technology
has led to the emergence of new firms in the hotel and hospitality industry which allow the
constructions of ingenious remarkable structure that surpass the luxurious packages offered by
Oaks Hotels and Resorts both locally and internationally, a good example is in the United Arab
Emirates where the high-end consumer who is the top of the pyramid will opt to go to more
luxurious paces that Oaks Hotels and Resorts which have been made possible through the
advancement of technology
PORTER ANALYSIS (competitive position)
Threat of new entrants-the hotel and hospitality industry is prone to the emergence of new
firms to tap the growing opportunities spearheaded by the tourism industry. This has led to the
increasing competition where firms provide quality products and services to consumers.
However, its is able to counter this through merger and acquisitions, such as the acquisitions of
Oceans Resort and Spa this year as a move to limit and increase their competitive advantage.
Bargaining Power of Suppliers- This is not a significant threat to the industry as supplier
normally have limited power when it comes to pricing of their goods and services in the long

Strategy, Change and Leadership: Oaks Hotels and Resorts 8
run. Although the supplier power may be stronger in the region where they are limited or one
player owns a supply chain where the ability to regulate their prices would affect the revenue
generation in the industry. Oaks Hotels and Resorts is able to maintain a competitive advantage
through choosing their suppliers eg. acquiring food products directly from the farmers which
limited the man and they are able to choose farmer who is able to meet their prices.
Bargaining Power of Consumers- the industry has a constant increase in uniform services
which gives a consumer a considerable amount of power where he/she is able to choose the
service provider in regards to pricing of their products and services. consumers who want
exclusive luxury services are able to choose different firms while consumers who want low
priced services are able to choose their firms too. Oaks Hotels and Resorts focuses on the higher
middle class to the top of the pyramid., through product differentiation, consumers of this
demographic are able to choose the type of services they want depending on their spending
power.
Threats of Substitutes- there is a growing trend of tourists and travelers eating in restaurants or
to go meals and ordering rooms later especially in Australia and New Zealand. Oaks Hotels and
Resorts maintain a competitive advantage with such a growing trend by providing all these
services in a single package and allowing the flexibility of the taste and preferences of the
consumers.
Competitive power of rivalry players- this basically describes the intensity among the players
in the hospitality in regions like India and Australia where competition is high which forces the
price margins to reduce. Small players in the market are taking advantage of the trend where
tourists and travelers are eating in restaurants or having to go meals and ordering rooms. This has
caused a repo effect affecting profitability in high-end firms as such consumers, who are growing

Strategy, Change and Leadership: Oaks Hotels and Resorts 9
in number will opt for such packages. However, Oaks Hotels and Resorts focuses on the higher
middle class to the top of the pyramid., through product differentiation, consumers of this
demographic are able to choose the type of services they want depending on their spending
power. Additionally, the firm provides quality service packages which are flexible to meet the
taste and preferences of the consumers
STEEPLE STRATEGY (current and immediate future)
Social impact- The management team, as well as the market team, need to research on the
social-cultural change in the regions where they are based since they are the culture trend in
India is different from New Zealand and Australia. This often-required effective marketing
research where a focused-on age study population growth, consumer attitudes, age structure, or
lifestyle changes when analyzing the social environment.
Technological-studying ad understands the technological changes will increase competitive
advantage for the firm since it will ab able to adapt to these changes which in the long run is able
to create new market opportunities in the hospitality industry. Therefore, Oaks Hotels and
Resorts should study the technological changes in both its local and international market and
adapt their products to the change
Economical -economic situations maybe sometime volatile especially due to the current rising
trade tensions between US and China which have drawn Russia, India, and Iran to the now
commencing ‘cold war’. Through studying the market and the economies Oaks Hotels and
Resorts should initiate adaptive pricing strategies and quality product service delivery while
mitigating the potential risk that may arise from the economic changes
Environmental-the success of the hospitality industry also relies on the state of the environment
as traveler and tourist are more aware of the environmental benefits and consequences (Molina-

Strategy, Change and Leadership: Oaks Hotels and Resorts 10
Azorín,et al 2015). Oaks Hotels and Resorts should focus on environmental conservations for the
prosperity of their properties in the five countries as well as go green through the use of clean
energy such as use of solar power their properties which reduced costs significantly, additionally
proper waste management strategies could be deployed through the use of technology
advancement and educating the staff member on how to dispose the waste efficiently (Chen, et
al, 2018)
Political-Government intervention is crucial and affects the rate of revenue and profit generation
in a variable region. including taxes and interest rate policies. therefore, the management team in
consequences Oaks Hotels and Resorts should study the political scene in the country and predict
how to adapt to the new changes e.g. increase in interest policies will result to the hotel in
passing the burden to the consumers in order to maintain a competitive advantage (Moutinho,
and Phillips,2018).
Legal- Oaks Hotels and Resorts should ensure in maintaining the regulated international
standards as well as obliged to the laws of the country where the properties are based regardless
of the differences involved. The firms should retain law firms in each region that will ensure that
no legal obligations are broken by the firm and amend or control the damage caused by
breaching them
Ethical. The management team needs to ensure that the business does not erode the ethical
values of the society which is prone in the tourism and hospitality industry. Therefore, the team
must ensure that the values of the firm align with societal and cultural values for consistent
prosperity in the region.

Strategy, Change and Leadership: Oaks Hotels and Resorts 11
Critique of Core competence and HR practices
Operations. -the Oaks Hotels and Resorts is vested in providing quality product service delivery
to it consumers in order to maintain loyalty and increase prospective consumers to the brand.
Through hiring skilled workforce and monitoring their performance in the firm ensures quality
product service delivery and achieving customer satisfaction in the long run which leads to
increased loyalty to the Oaks Hotels and Resorts brand (Kanwar, 2016). It consumer target the
high-end middle class to the top of the pyramid and they offer products and services that are
flexible enough to suit their target consumer (Tang, et al,2018)
Competitiveness. The firm currently focuses on the high-end market where it offers 4.5-star
luxurious services. Although there is a fair competition in the position market the firms seem to
be performing on the right track regardless of a few hiccups from countries such as India where
there are an economic slowdown and a rising political tensions that may affect its revenue
generation, in the long run, it has managed to limit the competition through acquiring of various
competitors such as Oceans Hotel and Spa (Singh, 2018). The firm is, however, oblivious of the
growing trend where consumers are opting to have to go meals or eat in restaurants and order
rooms which are very cheap which as a growing concern.
application of strategy and future plans- the firms continued success over the last couple of
decades illustrate it effective in implementing the strategy which is flexible in adapting to the
volatility of the business environment such as economic slowdown and political stability in the
countries where it has expanded to. Moreover, in the coming future through the merger with
Minor international Oaks Hotels and Resorts plans to expand further in emerging economies
which is a promising market opportunity (Andreu, Claver, and Quer, 2017).

Strategy, Change and Leadership: Oaks Hotels and Resorts 12
Future Strategies recommendation
Creations of flexible and unique property spaces for long-term guest or consumer. There
are those loyal consumers who are mostly business travelers or families who book frequently and
for longer periods. targeting such consumers and tailoring their product packages according to
their need will increase the firm competitive advantage (Pereira-Moliner et al ,2015)
Give guest control the Oaks Hotels and Resorts brand culture -instead of illustrating what
guest will experience, it would be better for them to shape their experience and also inquire
recommendations on the luxurious spaces which will facilitate positive interactions. This helps in
improving the brand's reputation
Mobile optimization focus- mobile is growing to be a strong streaming revenue for the hotel
and hospitality industry. It will be effective for the firm to ensure it web optimizations is at its
best and secure enough for the consumer to access booking service efficiently (Roper and
Hodari,2015).
Conclusion
The hotel and hospitality industry has grown tremendously over the last couple of decades due to
the growth and development of tourism due to the increases success of globalization. Therefore,
this has led to an increasing in the rivalry the industry where a firm is required to have a
competitive advantage in order to remain relevant in the industry. This report has demonstrated
the importance of competitive advantage trough Oak Hotel and resorts perspective which has
contributed to the firm’s success in other countries. SWOT, STEEPLE and Porter 5 analysis have
been discussed the report through the firm’s perspective. Additionally, a justification of the core
competencies has been discussed too worth an emphasis on the importance of the HR practices
in skilled labor and performance monitoring towards quality product service delivery. strategic