The Hotel Industry Of United Arab Emirates Tourism Essay

The Hotel Industry Of United Arab Emirates Tourism Essay First of all we will be analyzing the Hotel Industry of United Arab Emirates (UAE) using Industry Life Cycle Model. Then after deciding the stage in which the industry is, we will be analyzing the threats and opportunities associated with the industry using Michael Porters Five Forces model. Then after deciding the threats and opportunities respectively, we will be deciding the business level strategies that will be best for our growth and development. This selection of business level strategy will be on the basis of Michael Porters Generic Business-Level Strategies. Then we will be analyzing the areas that can prove to be our strength and then we will be deciding the functional strategies accordingly. The selection of the functional strategies will be according to the Value Chain Model. After that we will be having the internal analysis of our capabilities in order to mark our presence in the industry. Then the suitable business model will be proposed according to the resources avai lable and constraints. Further we would be focusing on our mission, vision and our goals and finally the conclusion. 2. External Analysis: Industry Life Cycle: The life cycle of an industry is very similar to a persons life cycle. Just as a person takes birth, then grows, matures and finally dies, similarly the industry also experiences such phases. The various stages of industry life cycle are: i. Early  Stages Phase   It is the first stage when any industry comes up. The main focus is this phase is design of the product i.e. the different firms try to attract as many customers as possible to create the domain and boundaries of the industry. ii. Innovation Phase In this phase the main focus is on the process design rather than on the product design. The competitors try to sustain the customers by providing attractive services or adopting creative processes. This phase also helps in designing energy efficient practices. iii. Cost or Shakeout Phase   Here the dominance of the major players in the industry is clearly shown. The established firms force the smaller players to leave the industry by acquiring them or by achieving economies of scale which makes it difficult for a smaller firm to survive in the market. iv. Maturity   Once the industry is established the focus shifts from growth to market share. Companies try to earn as much profit as they can. Market share becomes the main attraction for a company. v. Decline   After seeing the happy days, the industry has to face this phase also. There comes a significant decline in the sales of the firms, they no longer are able to attract new customers but also the older customers are also decreasing. The hotel industry in UAE is in its maturity phase definitely. A number of facts and figures support this. UAE is being famous for organizing a number of events (sport events, trade fairs, business meetings etc.) due to its profound infrastructure and world class facilities in terms of transportation, hospitality. This has attracted a large number of people from countries all over the world including Europe, Asia, and America for the last many years. Definitely this is possible when there is an established Hotel Industry having world class facilities in UAE. Dubai has also been voted as one of the top ten desirable places to be visited by the people all over the world. This clearly shows that the hotel industry in United Arab Emirates is established and is in a healthy state. It has been estimated that about 500,000 new staff will be required in the hotel industry in UAE over the next five years. Thus hotel industry will help in the economic development of UAE as it will be providing employment to a large number of people in the upcoming years. Also a handsome amount of foreign currency will be earned that will further help in the development of United Arab Emirates. Michael Porter Competitive Forces model analysis: The threat of the entry of new competitors: Since the hotel industry is an established industry in UAE there is very little threat for any established player from new entrants. On the other hand it is definitely a challenging task for a new entrant to enter and keep the pace up with the already established players, as they have an upper hand in adopting new strategies. Thus for a new entrant in the Hotel Industry in UAE it is better to enter through merger or acquisition with an already famous brand name. Alternatively in order to survive, the new entrant can come up with some innovative idea that has not been implemented by the existing players. In terms of legal issue, there is no major barrier being established by the law and regulations. However there are laws when a new player (including foreign player) wants to enter the industry. The intensity of competitive rivalry: Definitely there is a very strong competition among the established rivals like Burj Al Arab, Sheraton Dubai Creek, and Dubai 7 Star Hotel etc. Thus this is definitely a threat for a new entrant as the customer loyalty is one of the major factors in the hotel industry. The customers prefer to stick to the hotels they used to visit unless and until some other hotel is providing something exceptional. Thus this can be considered a major threat because even if a new player is able to make entry in the industry, it will be very difficult for him to survive in such a competitive environment. The threat of substitute products or services: The threat of substitute products or services is somewhat low in this case as the substitutes of hotels and restaurants cannot be much. The alternatives will again be some hotels with different specialties or features that make it stand alone from the rest. Thus it can be considered to be an opportunity for any new player as UAE is organizing a number of events in 2011 and subsequent years. Some of these events are Dubai International Parachuting Championship and Gulf Cup, Dubai trade fair and conference, Dubai Shopping Festival etc. This will attract a large number of people to Dubai. Thus it can be considered as an opportunity for a new entrant as well. The bargaining power of customers (buyers): Here in UAE customers do have the bargaining power with them as there are a large number of hotels with similar facilities available. The customers can anytime switch to another hotel whenever they feel dissatisfied with a particular hotel. Thus bargaining power of customers can prove to be a threat for a new entrant. The bargaining power of suppliers: The bargaining power of suppliers comes into light when there are many buyers or customers for the product they produce or they are limited number of suppliers of a particular item. Here in the Hotel Industry the suppliers can be the real decorators, real state builders, raw material suppliers, crockery suppliers etc. There are a large number of suppliers of all these basic requirements. Thus the suppliers do not have a very significant bargaining power and hence do not provide much threat to the Hotel Industry in United Arab Emirates. Thus some of the forces of the Michael Porters model appear to be a threat for a new entrant whereas others provide opportunities and new prospects for the new entrants. 3. Business- Level Strategy Michael Porter has laid down several Generic Business-Level Strategies to neutralize the threats and at the same time exploit the available opportunities. He has basically categorized the Business- Level Strategies in basically three broad heads. These are used by different business people to have a competitive advantage over others. The three categories are Cost Leadership strategy, Differentiation Strategy and Focus Strategy. The strategies are based on two dimensions: namely strategic scope and strategic strength. Strategic scope is a dimension that is based on the demand whereas strategic strength is a dimension based on the supply side. Strategic scope deals with the composition and the size of the targeted market whereas strategic strength looks at the core competency of the business. Cost Leadership strategy: This strategy aims at producing the products and services at the minimum possible rate. Then the firm sells its products at either the average market price or sometimes even less than the average market price. Selling at average price helps a firm to make profits while selling at a price even less than the average price helps a firm to acquire market share. The cost leadership strategy is applied in a wide market where there are a large number of buyers and sellers. The cost leadership is achieved by improving the efficiency of the various processes involved, by acquiring the materials at a lower rate, vertical integration and minimizing the wastage. Here in the Hotel Industry of United Arab Emirates (UAE) outperforming the established players on the basis of price is definitely a very challenging task because all the major hotels are into existence for a very long time. Thus they know how to deal or change strategies. Thus for a new hotel venture cost leade rship is quite difficult to achieve and can only be implemented with some new innovative plans. Differentiation Strategy: This strategy focuses on developing unique products and providing unique services. This allows business firms to decide their own prices which can be more than that what is charged by the competitors. This helps the firm to capture a large market share and that too with making handsome profits. Here in the Hotel Industry, product differentiation strategy can play a crucial role in making a hotel distinguish from others. Thus a new entrant can come up with a differentiation strategy that will make him stand distinguished from others. The new entrant can specialize in particular area, this will him to attract the customers. c) Focus Strategy: This strategy focuses on a narrow aspect that is either on differentiation or on the cost advantage. The new entering Hotel should better focus on a narrow segment of the industry. This will help in gaining the new loyal customers as the services being provided to them will be better. The firms having focus strategy are likely to have lower market share as they are targeting a particular section of the industry initially. Thus the new Hotel entering in UAE hotel industry should initially focus on a particular section of the industry and should then expand itself. Thus it will be best for the entering Hotel to adopt differentiation strategy as it will attract the customers. 4. Functional-Level Strategies Michael Porters Value Chain Model divides the activities at either support activities or primary activities. The primary activities include: Inbound logistics: It includes transportation scheduling, storing, inventory control etc. These are basically the requirements that are necessary for the production of any product or service. Operations (production): It includes assembling, packaging, maintenance of equipment, testing and packaging. These are associated with all the process from product (service) design, manufacturing, quality testing. Outbound logistics: It includes all those areas which are required to transfer the finished goods to the customer like warehouses. The manufactured products are transferred from the store of the company to the warehouse or store of the retailer so that he can further transfer the goods to the customers. Marketing and sales (demand): The activities covered in this step are the product value enhancing techniques like advertising, promotion, pricing, selling. Depending on the aim or objective of the organization the money spent on marketing strategy can vary significantly from a very small amount to very large budgets. Services (maintenance): It includes services like customer support, selection, management, training, upgrading etc. Some of the services can be on-site while in some the customer is required to come at the office of the organization itself. The support activities include: Administrative infrastructure management: Includes planning management, accounting, public affairs, quality management etc. Human resource management: The activities being focused here are related to the human labor management like recruiting, educating, compensating, Technology (RD): Focuses on the involvement of technology to support the activities of value chain, like process automation, process up gradation etc. Procurement: Activities related to procurement of items like raw materials, servicing, spare parts, machines etc are covered in this. Therefore the smart selection of the primary and support activities for the Hotel entrant in the United Arab Emirates (UAE) Hotel industry becomes very crucial. The one of the most important activity here for new entrant in the Hotel Industry is a proper selection of the Human work force as it plays a very significant role in this industry. A proper selection of Hotel managers, chefs, workers will help to attain new heights easily. Another important activity includes a very effective management which includes planning, organizing, leading and controlling of the workforce. This management plays a significant role in reducing the cost associated with any service provided by the hotel. The other primary activity that should be given appropriate focus is the services that are being offered that are aimed by the Hotel entering in UAE hotel industry. The services should be such that the consumers feel completely satisfied. The use of technology can ease the work of hotel management departm ent. Some of the work that can be easily managed with use of technology is the maintenance of a database system providing information regarding the rooms occupied, employee database, the information regarding the people coming to the hotel, automated billing system etc. This will help the hotel to provide quality and fast services which will further help the managers to focus their attention on other tasks as well. A proper strategy for the advertising of the hotel is also very important because that is something that will force the customers to leave their regular hotels and try the new one. Thus a proper and adequate amount of resources should be dedicated for the marketing purpose.    5. Internal analysis: The various capabilities for the new entrant (including having technologically advanced management, proper procurement, advertising, focused perspective etc.) can be a real bliss for the new entrant. For instance if the new hotel which is coming up in the industry has a proper planning of how to implement the automated system in all the activities (maintaining database of employees and customers, billing etc), it will be much easier for it to implement as compared to an existing hotel as its system has been designed in that way for many years and it will be difficult to shift to the technology. Other capability of the new Hotel that cannot be easily copied by the competitor is the innovative interior design of the rooms, reception, dining hall and other outdoor structures like swimming pools, lawns, parking etc. These better designs cannot be immediately imitated by the competitors because the change will require the redesigning and reconstruction which in itself is definitely a time taking process. Also the specialization in a particular type of food or beverages cannot be immediately copied by other rivals because for that new workers and chefs are required to be recruited which by any means is not an easy task. Also, as UAE is organizing a lot many events in the upcoming years a lot many tourists will come to UAE therefore having a proper advertising plan (online, magazines, newspaper, hoardings etc) will also be very beneficial for the new hotel. Also the hotel can provide some attractive packages like free city tour, or some discount on the hotel rates and food rates. This will help the hotel to make a beginning in the industry where already there are a number of established hotels like Burj Al Arab, Le Royal Meridien Resort, etc. 6. Business Model: The various components of a perfect business model are: Value proposition It is a complete picture of the problem of the customer, the process or the method that should be used to solve that problem and the values that should be taken into account while actually solving the problem. Here in UAE hotel industry the problem or objective is the hotel services to the customers. The process involved in providing those services includes clean and maintenance of the hotel, proper food facilities, proper lightning and water supply in the rooms. Market segment This component selects which segment of the market should be targeted according to the need or requirements in the market and then selecting which customers to target, so that the firm can acquire a large proportion of the market. Also focus on different segments of the market help the organization to create innovative processes as different strategies have to be adopted in different areas. The hotel industry of United Arab Emirates (UAE) is also divided into a number of segments. Sometimes need for expensive hotels come while at some other time cheap hotels may be in demand. Generally the expensive hotels are in demand for arranging business meetings whereas cheaper hotels may be preferred during some fair. Value chain structure It evaluates the position of the firm in the industry and how can the firm capture a major part of the value created by the firm. It can be a very important factor in the deciding that which hotel has how much share of the market and how the new entrant can vary its plans in order to capture the same. Revenue generation and margins This figures out the ways in which the revenue can be generated. The different steps could be support, sales, annual subscription etc. The firm always tries to maximize the revenue generated by the operation of the firm like selling products, or providing services. Here the upcoming hotel will try to find out the areas where the revenue generation possibilities exist. It is basically the exploration of the market areas which are still unexplored by the other competitors. Position in value network In this step the complementary firms and industries are identified. These complementary firms also need to be as competitive because since both industries are interdependent they need to be moving at the same pace. This will help in deciding that which hotels will be rivals and which other industries are must for the existence and the progress of the hotel industry. Competitive strategy Making profits only for the one time is not the motive of any firm. Every firm tries to sustain its profits making processes over larger time so as to prosper at a regular pace so that they can be at par with the major rivals. The new hotel will try not only to make one time profit, but the profits margin should increase steadily with time. The business models itself are very important factor in the success and profits of an organization. Thus the implementation of the above mentioned steps in a pre decided sequence is very important for the progress of a new hotel like us. We intend to enter the hotel industry of UAE by first opening a hotel and then expanding it as a chain in all the Emirates of Arab while at the same time providing the world class facilities in terms of hospitality, infrastructure, recreation, food, service and all the areas that befall under a hotel. As far as the business model is concerned we would mainly focus on the differentiation strategy that will attract the loyal customers of other hotels as well as the new customers also. This differentiation strategy includes all those things that are not focused by the established hotel names in United Arab Emirates. The functional strategies include adoption of a proper procurement process, effective management of all the resources (human, material etc), and moreover a separately focused advertising plan to spread to whole of UAE. As far as the core or the distinct competencies are considered, our main focus will be on the quality of service to the customers. We will be having the qualified managers and workers and most of them having past experience. This will help us serve the customers in a better way. 7. Mission, Vision, Values, and Goals: Our mission is to make an impressive entry in the Hotel Industry of the United Arab Emirates with quality customer service as our priority. It also includes attracting the tourists that will be arriving in UAE to attend events like Dubai Shopping Festival, Dubai International Parachuting Championship and Gulf Cup, Dubai trade fair and conference and many more. First of all we look forward to come up with a single but unique Hotel in the industry. As far as our vision is concerned we hope to have a chain of hotel all over the Emirates of Arab and become a famous name in the Hotel Industry of UAE. We value the customer as our main area of focus because customer satisfaction plays a very important role in long term run. Also our employees are a big asset for us and hence we value their satisfaction as one of our other priority. Without proper human resources it is not possible to survive in this industry. Our goal is to provide the tourist all the facilities that can ever think of. Some of these include providing best possible service, providing as many types of food types that can be possible, proper hospitality so that the tourists coming from all over the world should feel like A home away from home. 8. Conclusion Based on all the above mentioned strategies and plans we expect to make significant progress both in the short as well as the long term. Although we know that are a number of established players in the market which have their presence in every single area of the area, but we are quite positive about are plans and the strategies. It may be a bit difficult in the initial startup but the things will definitely work our way once we get a start. Also the initial profits may be somewhat less but in the long run we will definitely be able to outperform the existing major players. Our main focus as already mentioned above will be the Customer Satisfaction that will become an asset for us in the sustainable growth and development in the Hotel Industry of United Arab Emirates (UAE). This will help us in attracting the local as well as foreign visitors, tourists, business delegates etc to our hotel. Therefore the prospects of making huge success are quite bright, thus a properly planned and eff ective implementation of the strategies decided above will help us to achieve new heights in the Hotel Industry of United Arab Emirates (UAE). Diagrams: 1.Porters Generic Business Strategies: E:documentsgeneric-strategies-porters-mbaknol.jpg 2. Porters Five Forces ModelE:documentsPorter_Five_Forces1.jpg.png 3. The Value Chain Model E:documentsporter-value-chain.png 4. Business Model: E:documentsbusinessModel.jpg

Genre and artist case study

Most Post-Punk music tends to keep that British essence about it, bands use their accents to help shape their music, and this is very much the case with the Arctic Monkeys. Now a days Post-Punk incorporates electronic sounds or dance music instead of the dated ass's disco. The original Post-Punk movement was influenced by Crackpot, Dub and Disco Of the sass's. But now Post-Punk revivalists like Interpol, Editors, and White Lies tend to edge toward a more atmospheric Post-Punk sound optimized by Echo and the Funnymen and Joy Division. Issues which commonly affect this genre are typically mild.I don't think that Post-Punk Revival has a major problem, unlike Hip-Hop or Dance genres. Post-Punk Revival is more of an artistic genre, where artists are more unconcerned with re-creating music from the past and so forth. Although I think that the more recent bands Post-Punk Revival bands such as The Bravery, Arctic Monkeys and Franz Ferdinand tend to have more problems with attitude. This laid back uncaring attitude comes across and the dress styles they bring with them affects people in our everyday lives, fashion is based around these types of music, and at the moment in particular.Shops like River Island and Tops all portray the music sound. And with the style comes the attitude which I personally think a lot of people are adopting. It's ore of a culture thing, as with all types of music, Indies has become a lifestyle. ‘The Indies spirit has been commodities and re-envisioned as a marketable lifestyle just like punk, Alternative, and Grunge before it†¦ ‘ Sean McCabe www. Edition. CNN. Com Post-punk is appealing to people because of the straight forward lyrics and catchy melodies.The lyrics are often about everyday life, and is seen as something that a lot of people can link to, this is another reason that it is part of our lifestyle, it talks about our lifestyle. When is comes to working relationships in the genre the key issues are cackles and unprof essional artists. One great example of an artist like this is Pete Doherty, who at one point was arrested twice in a matter of days. His manager was involved in a hit and run incident where he was using Doherty car. The singer being charged with supplying illegal drugs and other events such as rehab. Drug problem like his can also mean gig's being cancelled or ruined.And these sort of people can be hard to work with in this industry. ‘The best relationships are nurtured over the years and have been built on mutual trust and respect for different gifts we have as musicians and music equines professionals. ‘ Christopher Knap. Independent Music Consultant. Agree with this and think that this IS a common mistake in this genre, artist's come to the music industry thinking that they are in once their name gets big, but really they need to build a working relationship with colleagues. And the working relationship means that, now that they are in the spotlight they can't just do whatever they like.A history about the Arctic Monkeys The band the Arctic Monkeys are a Post-Punk Revivalist band from Sheffield, England. The Band is made up of front man Alex Turner, fellow guitarist's Cook, Bassist Nick Anomaly and Drummer Matt Holders. Bassist Andy Nicholson was the bassist of the band when the band shot to fame in 2006. Incision's reason for leaving the band was that he was suffering from fatigue. But it is now known that Nicholson was paid off by the band after they had found themselves being more of a band with Nick Maloney.We sorts found ourselves in a situation where we wanted to move forward† Alex Turner – Arctic Monkeys on Split NAME Interview The Arctic Monkeys shoot to fame – The Arctic Monkeys where one of the Auk's biggest bands in the New Millennium. Their rise began in 2005, when hey started getting offers from major labels. However the band were sticking to the Post-Punk/linden attitude of a smaller independent music label, as they tended to give the artist creative freedom with their music. â€Å"l like you, but I'm not sure about this bit, and that song could do with this changing†¦ And we never listened† – Alex Turner Arctic Monkeys Biography 2006 Seam's Craig think that this was a housewives for the Arctic Monkeys, as if they has of been signed up by a major up fading out. Also their music wouldn't have been original. ‘The market tempts bands to follow the record industry money. Those that adopt the success formula may well make it but, whatever the returns, it will be in the knowledge that they sold out their talent Seam's Craig Arctic Monkeys Biography 2006 As the Arctic Monkeys had declined offers from major labels, you would think why didn't etc remain an underground band.

The Effects Of Global Warming On Our Environment - 1595 Words

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How Conformity Plays A Big Part Essay - 1708 Words

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This movie is900 Words   |  4 Pageswould be group influence, the fifth would be the concept of conformity, and the last one was the concept of prejudice. The first topic I am going to be discussing is the self- fulfilling concept. I spotted this in the movie 12 angry men in the beginning. The men started talking about how they all thought the boy is guilty. One man asks why he thinks that. The other gentlemen responds along these lines with the boy lives in the wrong part of town and is a no good person. In chapter 3 it talks aboutRead MoreEmerson’S Opinion Of Social Media. Ralph Waldo Emerson1691 Words   |  7 Pagesindividual self. Considering what Emerson writes about these topics, we can imagine how he would react to some of our modern inventions, such as social media. Social media is defined as â€Å"forms of electronic communications through which people create online communities to share information, ideas, personal messages, and other content† (â€Å"Social Media†). Social media plays a big part in many people’s lives today, and pondering how Emerson would react to this new and fascinating innovat ion is interesting. Emerson’sRead More Solomon Asch Conformity Experiments (1951) Essay1526 Words   |  7 PagesIn 1951, Solomon Asch carried out several experiments on conformity. The aim of these studies was to investigate conformity in a group environment situation. The purpose of these experiments was to see if an individual would be swayed by public pressure to go along with the incorrect answer. Asch believed that conformity reflects on relatively rational process in which people are pressured to change their behaviour. Asch designed experiments to measure the pressure of a group situation upon an individual