Mandarin Oriental Business Strategy: PESTEL, SWOT, and Marketing

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Added on  2023/01/09

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This essay provides a comprehensive analysis of Mandarin Oriental's business strategy. It begins with an introduction highlighting the brand's reputation and competitive advantages, followed by a PESTEL analysis to assess external factors influencing the hotel. A SWOT analysis identifies strengths, weaknesses, opportunities, and threats. The essay then delves into marketing strategies, including the product life cycle, Boston matrix, and Ansoff matrix, to inform strategic decisions. It examines the target market, emphasizing the importance of innovation and understanding consumer trends. The essay concludes with recommendations for the future, emphasizing the company's commitment to luxury hospitality and sustainable practices. The analysis considers factors like political and economic influences, cultural standards, technological advancements, environmental concerns, and legal regulations. The study also discusses the company's marketing strategies, including the product life cycle, the Boston matrix, and the Ansoff matrix, to inform strategy analysis and recommendations, the target market(s).
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MANDARIN ORIENTAL BUSINESS STRATEGY
Introduction 200
“Mandarin Oriental" would be a worldwide recognised "Asian luxury hotel brand" that
competes on traits such as quality reputation, premium quality, distinctive Asian originality,
plus premium hotel sites to deliver extraordinary client journeys among all interactions. The
Fan Campaign for Mandarin Oriental is well-known, with notable celebrities endorsing the
company. “Political, Economic, Social, Technological, Environmental, and Legal (PESTEL)”
elements were acronyms for “Political, Economic, Social, Technological, Legal, and
Environmental aspects”. A PESTEL study is an abbreviation for a tool that is used to identify
an organisation's macro (external) forces. A PESTEL analysis seem to be a strategic way to
assessing a mandral oriantal operating environment. This Swot analysis seem to be a
method for assessing these four components of a company. SWOT is a strategy for
identifying "strengths, weaknesses, opportunities, and threats". Its Case study SWOT is a
method for evaluating mondral oriantal competitive position plus formulating planning. Its
essay goes on to describe marketing strategies as well as tactics, including using the "product
life cycle, the Boston matrix, and the Ansoff matrix to inform strategy analysis and
recommendations, the target market(s)" – highlighting which marketplaces the business must
be aiming with rationalisation, as well as the National Strategy goals – a clear suggestion for
organization's future outlook to sponsoring substantiation.
Main body 1300
A PESTEL analysis studied the significant external elements which influence an institution
“(political, economic, sociological, technological, legal, and environmental)”. It also
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investigate main 6 external effects on a Mandarin Oriental hotel: “Tax policy; environmental
laws; trade limitations and reform”;
P: P is referred to as a politically related factor that has been decided. The “Mandarin
Oriental” is the largest hospitality industry in the word. The hotel faces many problems
related to the local government political issue.
E: Growth and fall in the economy; interest, inflation, and wage rates of the mandarin hotel.
S: Cultural standards and expectations; health and safety are all sociological topics of the
mandarin hotel has been discribed.
T: New technologies emerge regularly, and the rate of development is accelerating.
Pandemics and other calamities;
E: climate change and the rising need to switch towards sustainable materials of the mandarin
hotel.
L: Changes in the law affect employment, availability of raw materials, quotas, and
resources. For example - This Act 1979 governs contractual agreements involving the sale of
commodities. Organizations can evaluate and make educated decisions by analysing any
hazards specific to their industry and organisation.
SWOT analysis
Strength: “Mandarin Oriental" seems to be
the world's leading luxury hotel firm, with
33 luxury hotels plus seven villas spread
over 23 countries, each reflecting the brand's
Asian heritage. There are eight freestanding
hotels, ten hotel-plus-residence projects,
including two villas in the pipeline across
the world.
Weakness: The weakness of the company is
the In October, the corporation also hosted a
global Workmate Wellness Few to
encourage its workers to live healthier,
better, and much more peaceful lives.
Operatunity: As per the strength of the
company it can analysed the mandarin has
Thread: the company thread is the several
hotel brands, like Shangri-la, Hyatt, as well
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many opportunity related to the business.
Two residences are in the works throughout
the world, with plans to open within the next
five years. This is among the most well-
known but well-known hotel chains in Asia,
including over 13,500 employees.
as Ritz Carlton, give significant, elegant
hotel options within today's luxury hotel
sector. Because of high competitor the hotel
business thread is also high.
Marketing strategy
The time between when a product would be first offered to customers and when it is forced
out of business is referred to as the "product life cycle". A powerful brand is distinguished by
a distinct brand promise (customer orientation) with exceptional brand delivery (the
organisational system as well as performance promise). For establish and maintain great
brand equity, overall brand promise with brand delivery should be continually balanced.
Mandarin Oriental has built a reputation for outstanding service by focusing on "completely
delighting and gratifying its customers." Its Mandarin firm was created on the purpose of
offering exceptional customer service by combining "Asian traditions with international
standards". It may be regarded as "21st-century luxury" with a distinct oriental flavour.
Guests Delighting: The Group has been dedicated to meeting as well as exceeding guests'
standards by predicting as well as fulfilling customer requests. Company bars as well
as restaurants were also serving Sakura-themed drinks along with foods, demonstrating how
everything anticipates consumer demands that during period when many visitors go to Japan
to see the blossoms.
Colleagues Delighting: The Company is providing a caring, motivating, and rewarding
environment for all of its employees, enabling for a satisfying career, through extensive
studies and professional advancement. Mandarin Oriental, for example, provides a variety of
retirement alternatives to its employees based on the length of time they have worked there.
The corporation annually hosts a "global Colleague Wellness Week" to encourage its workers
live healthier, happier, as well as more balanced lives.
Becoming the best:
Its Group is dedicated to become a creative market head hotel business by continuously
increasing service performance, product quality, including facility amenities. This has
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announced plans to invest through its company’s core features of excellent architecture along
with design, dining & bars, plus spa and wellbeing in its most recent powerful brand
performance assessment. This fact because Mandarin Oriental boasts 14 restaurants having
21 Michelin stars, like no other hotel brand, becomes a outstanding illustration of where it
aspires being the finest in the business.
Acting responsibly:
Company Group is dedicated to keeping promises, fairness, respect honesty in both its
internal as well as external interactions, as well as supporting activities that benefit the
sustainability of the environment. " Mandarin Oriental" is devoted to sustainable as well as
promotes the Sustainability Objectives of United Nations (UNSDGs). This Organization has
implemented a structure of sustainable policies as well as programmes that address issues like
decent labour, economic growth, renewable technology, and resource depletion.
Its Boston Matrix would be a tool for determining a Mandarin Oriental's restraint as well
as brand portfolios. It Boston Matrix seems to be a commonly used advertising as well as
organizational planning method. A Mandarin Oriental's variety of services is a compilation of
the hotel business. On either side, possessing a brand portfolio might be difficult for a
business. It has to make a decision about how to spend all across board. This Boston Matrix
posits that advertising expenditures will grow market share, since share price increases would
always result in money reserves, or that money surplus funds will be produced whenever the
item reaches adulthood.
This Ansoff Matrix seems to be a two-dimensional matrix used by managers including
researchers to plan as well as evaluate growth initiatives. This tool, in example, assists
participants in identifying the risk associated with Mandarin Oriental's different expansion
strategies. This Matrix has been used to analyse the comparative appeal of existing vs
innovative product as well as market growth approaches, as well as the associated risk.
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Innovation: Innovation appears to be a catchphrase which is abused by both the mainstream
media and numerous businesses. Because even though advancement could be defined in a
range of methods, are used in one such sense to refer to a constant, organizational-wide
framework that helps corporations to make iterative changes to existing goods as well
as services even while making investments in the advancement of major advance as well as
considerable inventions. Owing to the nature of invention, this is a crucial component of
famous brands. Brand names include an intrinsic strategic aspect of innovation into their
company strategies. Several property companies, like "Shangri-la, Hyatt, and Ritz Carlton",
give significant, elegant hotel choices in history's luxury hotel sector. Mandarin Oriental
believes that innovation must not be confined to introducing new premium customer
experience, while should also include numerous internal operations such as language to
transfer innovation.
Understanding trends as well as the changes in customer tastes: Mandarin
Oriental must continually keep current, analysing data to foresee potential consumer wants as
well as catering to such demands through re-calibrating their user experience to meet as well
as surpass those new client criteria. These following are among some of the tendencies that
really are steadily shaping global global luxury industry:
Personalization as well as customization
Meaningfulness along with wellness
The Airbnb effects
The company's target market appears to include every kind of premium consumer. Its high-
end amenities, including Michelin-starred eateries and spas, represent this. According to the
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Mandarin Oriental Global Limited Annual Report 2014, frequent flyers have lately had
stronger demand than business travellers, with” rising spending leisure consumers now
accounting for close to half of the Group's hotel nights." Furthermore, the corporation should
increase its investment in Tokyo, Hong Kong, and other Asian locales.
Mandarin Orienta main goal is not only to become the largest hotel group around the world,
but to become identified as one of the best in “luxury hospitality”. From the start, the
organisation decided on a specific brand goods competitive edge. Its Singapore Airlines
identity was to be driven by innovation, cutting-edge technology, authentic quality, with good
customer service. As per the aim the company objective is
To become the best luxury hospitality of the mandarin oriental hotel
To decide on a particular brand's competitive advantage of the Mandarin oriental
hotel brand .
To be driven by innovation, cutting-edge technology, authentic quality, with good
customer service
An exception is opening many hotels all over the globe within the next five year.
Conclusion 200
This is an essay which summarises that “Mandarin Oriental" would be a worldwide
recognised "Asian luxury hotel brand" that competes on traits such as quality reputation,
premium quality, distinctive Asian originality, plus premium hotel sites to deliver
extraordinary client journeys among all interactions. The Fan Campaign for Mandarin
Oriental is well-known, with notable celebrities endorsing the company. In total, 45
celebrities have endorsed the company which has brought a huge profit for the company. This
essay is a strategic Review for Mandarin Oriental for next year, where there are some
proposals about the direction Mandarin Oriental should go in. The above proposals decide the
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way or the path that Mandarin Oriental would take in the future which would lead their
company to huge profits later. This essay includes a brief background of the situation, a brief
definition of PESTEL AND SWOT, “product life cycle, Boston matrix and Ansoff matrix”,
target markets - a strong suggestion for upcoming strategy of the firm with verifiable data – a
clear suggestion for future vision of the project with accompanying proofs.
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