Strategic Analysis of Ramada Island and Crown Resort (MAN707)

This report provides a comprehensive strategic analysis of Ramada Island Resort and Crown Melbourne, focusing on their vision, mission, resources, and capabilities. The analysis includes an examination of key industry forces, external environmental factors through PESTLE analysis, and competitive dynamics using Porter's Five Forces. The report highlights the importance of understanding political, economic, social, technological, legal, and environmental factors, along with demographic influences, to assess the competitive landscape. It concludes that while competition in the hotel industry is intense, both hotels possess strengths to compete effectively, particularly through innovative products and services. The report emphasizes the need for hotels to adapt to changing consumer preferences and technological advancements to maintain a competitive edge.

Running Head: STRATEGY DEVELOPMENT 0
Strategy Development
Ramada Island and Crown Resort
(Student’s Details)

STRATEGY DEVELOPMENT 1
Strategic Analysis of Hotels
Ramada Island Resort is a leading resort in Phillip Island which offers high class stay and
relaxed atmosphere to the patrons (wyndhamhotels, 2019a). On the other side, Crown Melbourne
is largest integrated resort of Australia which has largest casino of Australia. Crown Melbourne
is an award winning restaurant (crownresorts, 2019a). Both hotels are serving luxurious stay at
high cost.
The following essay will discuss about the vision, mission, and approach of the hotels,
current resources and capabilities, key industry forces and external environment. To analyses the
external environment of the hotel industry, essay will describe about the PESTLE analysis.
Ramada Island's mission is to provide pleasure to all travelers. The special thing about
Ramada's mission is that Ramada pays special attention to the welcome of the patrons. Apart
from this, the vision of Ramada is that all the travelers who come to their hotel should explore
the luxurious places and provide high-quality stay (wyndhamhotels, 2019b). The mission of
Crown Melbourne is to make the traveler feel the joy of the holiday and let the traveler
remember the experience of that trip. The vision of Crown Melbourne is to make a happy
holiday experience for customers and to be a key driver of the leisure sector (crownresorts,
2019b).
Ramada Island is a big name in the hospitality market; it makes a presence for service
and guest satisfaction. Not only customers but its shareholders, employees, corporate owners are
also satisfied with Ramada's services. It shows that Ramada is on the right track to marching
towards its goal. Crown Melbourne has a successful distribution network and a successful record
of developing new products. Crown Melbourne's core resources are satisfied customers.
With the help of Porters five forces analysis, hotel can develop a strategic position and
explore opportunities in the particular market (Bischoff, 2016). New competitors are always a
threat in hotel industry but Crown Melbourne and Ramada Island both are very established in
this industry and both are capable to compete with new entrants with innovative products and
services (Johannes , 2013). In this sectors, mostly the prices are fix, thus both hotels can take
advantage of this fact. With building efficient supply chain, both hotels can reduce their supply

STRATEGY DEVELOPMENT 2
cost. By being high service oriented, hotel can give a strong competition to new and existing
customers.
Political factors make an impact on the economy of any country and these factors play a
major role in the economy of the country. With the help of luxury hotels, the government collects
a lot of tax. Hence the hotel industry is the backbone of any government (Berry, 2017). In the
context of economic factors, there are important roles of taxation changes, interest rate,
economic development, and exchange rates. The economic changes of any company or firm
affect the behavior of the firm. Whenever a tourist comes to a country, it does not come for the
purpose of just walking, some tourists come for their business trip and some tourists come to
those new places to explore those places. Whenever tourists come, they stay in the hotel and due
to this; the hotel industry makes an economic profit (Wallis, 2017).
Whenever changes are seen in society, the changes can also be seen in the products and
services of the firm and the company. It is also necessary to pay attention to the wishes of the
individual. To run any commercial hotel, it is important to take care of the need and opinion of
society. The hotel should also keep in mind the requirement of the group as well as the
individual. Just like, women prefer individual rooms when going to any hotel, on the other hand,
twin bedrooms are included in men's choice. All these social effects affect the hotel industry
(Perera, 2017).
Technology has greatly affected the hotel business. Whenever any technology is used in
the hotel industry, it should be beyond the standards. In today's time, hotel bookings have started
done through mobile application or software. Therefore the mobile application software should
meet all the requirements of the customers and hotel staff members.
The hotel industry is mainly based on weather and environment, that is, the hotel industry
has a direct impact on the environment and climate change. As for where the weather is more
severe, there is some reduction in taxes and on acclimatizing to the weather there is an extra
demand for some taxes which can be seen directly on the profitability of the hotel business.
Flood, earthquake, storm or heavy rain affects the hotel business. To avoid all these weather-
related bad effects, the hotel owner or manager has to make arrangements. The hotel business

STRATEGY DEVELOPMENT 3
sector would, therefore, be seen that has depended on the environment and weather
(50MINUTES.COM, 2015).
It is necessary to follow the law to run any business. Similarly, the legal base is essential
for the hotel industry. Safety law and health law is the most important laws for hotel industry.
Whenever there are changes in the law, those changes have a direct impact on the business as
well. Every hotel business is required to follow the age law. Apart from the current legal
complexities, the circumstances of war also affect the hotel business.
Demographics are also seen in the hotel industry. Where customers of different
nationalities go to visit, then their direct impact can be seen on the benefits of the hotel industry.
What kind of customers come to the hotel also affect their profit such as children, women, men,
they all affect the hotel industry, i.e. gender and age all affect the hotel industry. In today's time,
the trend of international hotel is increasing. All the international hotels expanding their chain
extend to the foreign countries as well as the international hotel industry extends from the five
stars to the seven-star, these stars attract travelers. These international hotels follow franchise
management.
From the above discussion, it can be concluded that competition is very high in the hotel
industry but Crown Melbourne and Ramada Island both have strength to compete with other
hotels. Both hotels can expand the business with the help of innovative products and services.

STRATEGY DEVELOPMENT 4
Reference List
50MINUTES.COM. (2015). PESTLE Analysis: Understand and plan for your business
environment. Belgium: 50MINUTES.
Berry, E. (2017). Pestle Analysis Essntials. South Carolina: CreateSpace Independent Publishing
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Bischoff, A. L. (2016). Porters Five Forces. Innovation through Business, Engineering and
Design: How does rivalry in a market as well as customer expectations influence the
process of a design concept from a business perspective? Munich: GRIN Verlag.
crownresorts. (2019a, August 29). About us. Retrieved August 29, 2019, from
https://www.crownresorts.com.au/about-us/crown
crownresorts. (2019b, August 29). Crown Melbourne. Retrieved August 29, 2019, from
https://www.crownresorts.com.au/Our-Resorts/Crown-Melbourne
J. W. (2013). A Critical Evaluation of Michael Porter's Five Forces Framework. Munich: GRIN
Verlag.
Perera, R. (2017). The PESTLE Analysis. South Asian Paradise: Nerdynaut.
Wallis, G. (2017). Pestle Analysis Jump Start. South Carolina: CreateSpace Independent
Publishing Platform.
wyndhamhotels. (2019a, August 29). About us. Retrieved August 29, 2019, from
https://www.wyndhamhotels.com/ramada/about-us
wyndhamhotels. (2019b, August 29). Mission, Values, And Vision. Retrieved August 29, 2019,
from https://development.wyndhamhotels.com/mission-values-and-vision/