Analysis of Indian hotel industry and Hotel Blueberry international Research Paper

Analysis of Indian hotel industry and Hotel Blueberry international - Research Paper Example In terms of five star high standard hotels, there is limited competition among the suppliers as there are limited substitutes of Spa and other five-star hotel services. On the other hand, the two star and three-star hotels have several options of suppliers who used to provide services in low cost. Therefore, it is feasible that threat of suppliers’ bargaining power is moderate for Hotel Blueberry International. Buyer’s Power The metro cities and developing towns of India are very much competitive for the two and three-star hotel industry. Blueberry is entering in this kind of market segment. The target market will be very much price-sensitive and hence the newly developed hotel has to face high bargaining power of customers. Threat of Substitute In India, the substitute of low-cost two and three-star hotels are several guest house, motels and dormitories. If price-sensitive people find that the price of hotel room night crossing their budget then they can switch to those substitutes. Therefore, it can be feasible that the threat of substitute is moderate for Hotel Blueberry International. Several international hotel chains are entering in India and are tying up with the Indian hotels in order to reduce the initial cost. Moreover, high brand image and customer brand loyalty of The TAJ, HHI, Leela Palace and ITC will make the thing difficult for the new entrants who are thinking to enter in this competitive industry. Therefore, it is feasible that threat of new entrants for Hotel Blueberry International is high. ... If price-sensitive people find that the price of hotel room night crossing their budget then they can switch to those substitutes. Therefore, it can be feasible that the threat of substitute is moderate for Hotel Blueberry International. Threat of New Entrants Several international hotel chains are entering in India and are tying up with the Indian hotels in order to reduce the initial cost. Moreover, high brand image and customer brand loyalty of The TAJ, HHI, Leela Palace and ITC will make the thing difficult for the new entrants who are thinking to enter in this competitive industry. Therefore, it is feasible that threat of new entrants for Hotel Blueberry International is high. Industry Rivalry Indian low cost hotel industry is full of several potential two and three star hotels. Moreover, day-by-day due to economic slowdown and price hike in several products has made the people very much price sensitive. Therefore, it is feasible that threat of industry rivalry is high for the H otel Blueberry International. General Environment The general environment analysis will determine the impacts of external environmental factors on the Indian hotel industry. Political Several environment related regulations has restricted the business operation of this industry in India. Several difficulties in getting travel visas to India can affect the industry. Moreover, several terrorist activities and political dilemmas may create a negative impact on Indian hotel industry. Economical India is economically developing country and the Indian hotel industry is contributing a major role on the country’s GDP growth. Tourism and Hospitality sector of India is very much potential business sector. India was among those few countries that have