Porter Five Forces Model Of Taj Hotels Tourism Essay

Porter Five Forces Model Of Taj Hotels Tourism EssayA Hotel may be defined as per the British law as A place where abonafide traveler can receive food and trade protection provided he is a position to pay for it and is in a twin condition to be received.The Indian Hotels Company Limited (IHCL) and its subsidiaries argon conjointly known as Taj Hotels furbish ups and Palaces and is recognised as one of Asias largest and finest hotel company. Incorporated by the founder of the Tata Group, Mr. Jam machinateji N. Tata, the company opened its world-class property, The Taj Mahal Palace Hotel, Bombay in 1903. The Taj, a symbol of Indian hospitality, completed its centenary year in 2003.Taj Hotels Resort and Palaces comprises more than 60 hotels in 45 locations across India with an additional 15 planetary hotels in the Malaysia, f on the whole in Kingdom, demand together States of America, Bhutan, Sri Lanka, Africa, the Middle East and Australia.Spanning the duration and breadth of t he country, gracing important industrial towns and cities, beaches, hill stations, historical and pilgrim centres and wildlife destinations, each Taj hotel offers the prodigality of supporter, the apogee of Indian hospitality, vantage locations, modern amenities and chore facilities.IHCL consort in the luxury, premium, mid-market and value segments of the market through with(predicate) the followingTaj(luxury full-service hotels, resorts and palaces) is the flagship brand for the worlds almost discerning travelers seeking legitimate behave gots given that luxury is a vogue of life to which they argon accustomed. Spanning world-renowned landmarks, modern business hotels, idyllic beach resorts, authentic Rajput palaces and rustic safari lodges, each Taj hotel reinterprets the tradition of hospitality in a refreshingly modern way to render comical(p) acknowledges and lifelong memories.Taj besides encompasses a unique set of iconic properties rooted in annals and tradit ion that deliver real unforgettable experiences. A collection of with child(p) properties with strong heritage as hotels or palaces which offer something more than wide physical product and exceptional service. This group is defined by the randy and unique equity of its iconic properties that be authentic, non- replicable with great strength to create memories and stories.Taj Exoticais resort and spa brand found in the most exotic and relaxing locales of the world. The properties ar defined by the privacy and intimacy they provide. The hotels be clearly separate by their product philosophy and service design. They atomic number 18 come to around high end accommodation, intimacy and an environment that allows its guest unrivalled comfort and privacy. They atomic number 18 defined by a predisposition of intimate design and by their varied and eclectic culinary experiences, spic service and authentic Indian Spa sanctuaries.Taj Safarisare wildlife lodges that allow trave lers to experience the unparalleled beauty of the Indian jungle amidst luxurious surroundings. They offer Indias first and solely wildlife luxury lodge circuit. Taj Safaris provide guests with the ultimate, interpretive, wild life experience based on a proven sustainable ecotourism model.Upper upmarket Hotels(full-service hotels and resorts) provide a new generation of travelers a contemporary and original hospitality experience that matches their work-hard unravel-hard lifestyles. Stylish interiors, innovative cuisine, hip bars, and a center on on technology set these properties a ploughshare.The Gateway Hotel(upscale/mid-market full service hotels and resorts) is a pan-India net income of hotels and resorts that offers business and leisure travelers a hotel designed, keeping the modern nomad in mind. At the Gateway Hotel, we believe in keeping things simple. This is why, hotels are divided into 7 simple zones- Stay, Hangout, Meet, Work, Workout, Unwind and Explore.As travel often meaning more hassle than harmony, more stress than satisfaction, modern travelers are feel for smarter choices. Driven by passion for perfection, Taj welcomes its customers to a refreshingly enjoyable and hassle-free experience, anytime, e very(prenominal)where. go the highest consistency in quality, service and style the hotel set new standards and devour the unwanted surprises out of traveling. Tajs warm welcomes make guests feel at home, aside from home and its crisp and courteous service empowers them to get more make with greater effectiveness and control. And through Tajs unrivalled network it provide service that is effortless, simple, never overwhelming, always warm.Ginger(economy hotels) is IHCLs revolutionary concept in hospitality for the value segment. Intelligently designed facilities, consistency and afford cogency are hallmarks of this brand targeted at travelers who value simplicity and self-service.Taj Hotels Resorts and Palaces is committed to replicate its domestic success onto transnational shores with plans to build an international network of luxury hotels, which will provide an monitory product-service combination and in the process create a global brand. The period international portfolio includes luxury resorts in the Indian Ocean, business and resort destinations in the Middle East and Africa, serviced apartments in the UK, the first hotel in Australia and three a top-end luxury hotels in the US.Throughout the Companys expansion, its mandate has been twofold to infuse a sense of Indian heritage and culture within each several(a) property, while in addition anticipating the needs and desires of the sophisticated traveller. Over the years, the Taj has won international acclaim for its quality hotels and its excellence in business facilities, services, cuisine and interiors.The Taj strengthen its presence in the Indian Ocean rim with the Exotica Brand. The Taj Exotica was evolved as part of Taj Hotels Resorts and Palace s intent to position it as a brand that is clearly differentiated by its product philosophy and service design. The Taj Exotica Resort and Spa, in Maldives is centered on high-end accommodation, intimacy and an environment that allows its guests unrivalled comfort and privacy.Taj Hotels further expand its global footprint by securing management contracts at Palm Island, Jumeirah in Dubai, Saraya Islands in Ras Al Khaimah, Aldar Group in Abu Dhabi, UAE Langkawi in Malaysia and Thimpu in Bhutan. The most significant additions to the portfolio have been The Pierre, the iconic landmark hotel on saucy Yorks Fifth Avenue, Taj Boston and Blue, Sydney.The presence of Taj Hotels Resorts and Palaces internationally has been developed through a network of Taj regional sales and PR offices in the United Kingdom, France, Germany, Italy, Dubai, Singapore, Australia, Japan, Russia and the United States of America.At the Taj Hotels Resorts and Palaces luxurious living and fine dining find rough-c ut ground. Whether it is introducing exotic world cuisines to India or taking authentic Indian neck to the world, the Taj Hotels Resorts and Palaces is renowned for the eclectic culinary experiences it consumes to its guests. Through a vast repertory of award-winning restaurants, legendary recipes from royal kitchens and celebrated food festivals, the Taj has pioneered innovation in fine dining across the world.Taj Hotels also promise a complete new experience of tranquillity and total wellness, throughJiva Spasa unique concept, which brings together the wisdom and heritage of the Asian and Indian Philosophy of health and Well-being. Rooted in ancient Indian healing knowledge, Jiva Spas derive enthusiasm and spirit from the holistic concept of living. There is a rich basketball hoop of fresh and unique experiences under the Jiva Spa umbrella of offering, Yoga and Meditation, mastered and disseminated by accomplished practitioners, authentic Ayurveda, and unique Taj signature t reatments. Royal traditions of wellness in service experiences, holistic treatments involving body therapies, enlivening and meaningful rituals and ceremonies and unique lifelike products blended by hand, come together to offer a truly calming experience.IHCL operatesTaj Air, a luxury private jet operation with raise of the art Falcon 2000 aircrafts designed by Dassault Aviation, France and Taj Yachts, two 3-bedroom luxury yachts which can be used by guests in Mumbai and Kochi, in Kerala.IHCL also operatesTaj Sats Air ply Ltd., the largest airline catering service in South Asia, as a joint venture with Singapore Airport Terminal operate, a marcher of Singapore Airlines.Additionally, it operates theIndian Institute of Hotel Management, Aurangabadsince 1993. The institute offers a three-year diploma, designed with the patron of international faculty and has affiliations with several American and European programmes.CORPORATE SUSTAINABILITY AND mixer RESPONSBILITYAs a part of Tat as Indias premier business house Taj Hotels, have always believed in society and environment being integral stakeholders in our business along with its shareholders, customers, vendors and others. Over the last decade, the movement towards ecologically enceinte tourism has gained urgency and importance across the globe and we recognize that responsible for(p) practices in vogue are as diverse as the geographies.Taj bring up corporate citizenship through our strategic public-private partnerships which encourage construct livelihoods of less-advantaged youth and women. The causes they hike include reducing malnutrition, promoting indigenous artisans and craftsmen and enhancing employability of identified target groups by sacramental manduction our core competencies as a leading hospitality company.Taj have the unique scope and opportunity to develop raw potential into a adroit workforce that is immediately employable by various players in the perseverance. A majority of its co mmunity projects are focused around extending its key out strengths in food production, kitchen management, housekeeping, customer service and spas to promote economic empowerment of candidates from defenseless socio-economic backgrounds. The group is fully committed to the cause of building a sustainable environment by reducing the impact of its daily operations on the environment and improving operational efficiencies, resource conservation, reuse and recycling of key resources.Aglimpse of indicative projectsundertaken by Taj groupTajs sixth corporeal Sustainability Reportwas submitted to the United Nations Global Compact society in August, 2009. The United Nations Global Compact is a strategic policy initiative for businesses that are committed to aligning their operations and strategies with ten universally accepted principles in the areas of human rights, labor, safety security, environment and anti-corruption. This Corporate Sustainability report also serves as their GRI (G lobal Reporting Initiative) as well as Triple Bottom nonation report. The report focuses on identified priorities at IHCL and responds to key stakeholder needs. Taj plan to continue and further strengthen its commitment to the environment and societies in which we operate.EARTHIn an endeavour to reinstate its vision and efforts to boost sustainable tourism, Taj Hotels Resorts and Palaces presented EARTH (Environment sensory faculty Renewal at Taj Hotels) this year. Implementing schemes such as the Gangroti Glacier Clean-Up Expedition, as well as designated Earth rooms, which minimise environmental impact, Taj is one of Asias largest group of hotels to commit to postal code conservation and environmental management. EARTH has received certification from Green Globe, the only worldwide environmental certification program for travel and tourism.The Taj began a coulomb ago with a single landmark The Taj Mahal Palace Hotel, Mumbai. Today, the various Taj hotels, in all their vari ety and historical richness, are recognised internationally as the symbols of true Indian hospitality. The Companys history is integral to Indias emergence into the global business and leisure travel community and looking to the future, Taj Hotels Resorts and Palaces is well positioned to meet the add-on in travel activity with the rapid expansion of the Indian economy.Hotel untenanted and Other Services include24 hrs Front DeskAirport remove On RequestAstrologer On CallBanquet preparednessBar restaurantsBarber ShopBeauty SalonBell Desk ServicesCar RentalsCurrency ExchangeExpress retick in Check outFacilities For the Physically ChallengedFloristHealth ClubHealth/Ayurveda CentersHotel dependableInternet Access Available in RoomsInternet/ email/Fax FacilitiesInterpreter Services wash ServicesLibrary loungeLuggage Storage checkup Services-Doctor on CallPhone-Two Telephone Lines in RoomsPostal/Parcel ServicesRoom Service-24 HrsShopping arcadeTravel Desk Ticketing, ToursMARKETI NG MIX STRATEGY OF TAJ HOTELSProductsRoomRestaurant and Bar. meeting room and Banquet facilityAmenitiesServicesSafe bind boxSpecial servicesCourierChild careLaundryPetInternetTravel deskBabysittingWake-up callPRICETaj hotel has set its price of the room on the basis of Business, Leisure and Luxury class. identifyLocation of the hotel is the most important business decision for the hotel.Present in metro cities in IndiaGlobal presence (Maldives,London,Dubai,Colombo)PROMOTION STRATEGYpromotional schemes are carried on regularly the hotel has many loyalty programe,clubes,membership,previlage etc some of them areThe Taj Inner Circle.The Taj Junior League.The Taj Club.Taj also offer Taj surprises including weekend savers,value vouchers,book early get more,ADVERTISEMENTBusiness news paper(E.T, Financial Express, Bombay Times)T.V channels like brain NEWS,CNN and CNBC.Magazines like THE OUT LOOK TRAVELAR,GO NOW and TRAVEL.Porters 5 Forces ModelThe state of competition in an industry depen ds on five basic forces, which are diagrammed above. The corporal strength of these forces determines the ultimate profit potential of an industry. Whatever their collective strength , the corporate strategists goal is to find a position in the industry where his or her company can best defend itself against these forces or can influence them in its favor.Contending ForcesThreats of EntryNew entrants to an industry bring new capacity, the desire to gain market share, and often substantial sources. Companies diversifying through acquisition into the industry from other markets often leverage their resources to cause a shake up. The seriousness of the menace of entry depends on the barriers present nd on the reaction from existing competitors that the entrant can expect.There are six major sources of barriers to entry. These areEconomies of scaleProduct differentiation crownwork requirementsCost disadvantages Independent of sizeAccess to distri providedion channels governance policy SuppliersSuppliers can exert bargaining power on participants in an industry by raising prices or reducing the quality of purchased goods and services. in good order suppliers, thereby, can squeeze profitability out of an industry unable to regain woo increases in its own prices. The power of each important supplier group depends on a number of characteristics of its market situation and on the relative importance of its sales or purchases to the industry compared with its overall business. A supplier group is the right way if it is dominated by a fewer companies and is more concentrated than the industry it sells. Also if it poses a credible threat of integrating forward into the industrys business. This provides a check against the industrys ability to improve the price on which it purchases.BuyersCustomers likewise can force down prices, demand high quality or more services, and play competitors off against each other- all at the expense of industry profits. A buyer group is powerful if it is concentrated or purchases in large volume. Large volume buyers are particularly potent forces if heavy fixed costs characterize the industry- as they do in metal containers, corn refining, and bulk chemicals, for example- which raise the risk to keep capacity filled. The product it purchases from the industry are standard or undifferentiated. The buyers, sure that they always can find alternative suppliers, may play one company against another, as they do in aluminium extrusion. other case can be when the products the buyer purchases from the industry from a luck of its product and represent a significant fraction of its cost. The buyers are liable(predicate) to shop for a favorable price and purchase selectively. When the products sold by the industry in question is a small fraction of buyers costs, buyers are usually much less price sensitive.SubstitutesBy placing a capital on the prices it can charge, substitute products or services limit the potential of an industry. Unless it can upgrade the quality of the product or differentiate it somehow, the industry will suffer in earnings and possibly in growth. Substitutes not only limit profits in normal times but also reduce the bonanaza an industry can reap in pan gravy times. The producers of fiberglass insulation enjoyed unprecedented demand as a give of high energy costs and severe winter weather. But the industrys ability to raise prices was tempered by the plethora of insulation substitutes, including cellulose, rock woollen and Styrofoam.Rivalry of Taj among established firmsOberoi hotelsLeela hotelsITC GrandLe MeridienBargaining power of buyers is very low.Bargaining power of suppliers is moderate.Threat of new enterantsFor Taj, competition in Mumbai has turn fierce as a result of new hotels,such as ITC Grand Maratha, Le Meridien and Hyatt, coming up close to theairport, and enjoying tax benefits too. barely in Bangalore, Taj continues to remain at the No.1 position becauseo f the booming IT sector and lack of five-star rooms, chiefly to accomodateinternational passengers.Potential EntrantsGlobal hotel groups entryBuyersGlobal touristsMedical touristsIndustrialist peopleSubstitutesSmall lodgesTHREAT HIGH (because of new class, Low otherwise)Customers impoverishmentGood HospitalityHygiene food and environmentSuccess factors for Taj hotelsengineering connect-Used of advance technology in hotel premises.Manufacturing- re noveld- High engagement of fixed assets.Quality control know-how.Serving customer according to their specification.Distribution-related- strawman of hotel chain at various places.A strong network.Marketing related- Breadth of product line and product selection.Personalized customer services.A well-known and well-respected brand name.SWOT Analysis of TAJ HotelsStrengths Brand loyalty crediblenessHuge ReputationPatent protectionWeaknessHigh cost serviceNot proper network in semi- urban wish of safety measureOpportunity Rising incomeGlo balizationNew geographical locationThreats Fluctuations in international tourist arrivalsIncreasing competition act of terrorismCONCLUSIONTaj Hotels Resorts and Palaces is one of Asias largest and finest group of hotels. The Company is rapidly emerging as a global brand by integrating an international network of luxury hotels within the chain. Taj Hotels is part of the Tata Group, Indias premier business house. Taj Mahal Palace Hotel in Mumbai, India was the subject of many newscasts since November 26,2008.The terrorist attacks not only killed and wounded many, but also caused major damage to the iconic hotel. Tata, a pioneer industrialist and philanthropist, conceived the idea of building a hotel in the wake of the bubonic plague which had devastated Bombay in the late 1890s.Tatas sole wish was to attract people to India, and incidentally to improve Bombay. The firmly damaged hotel has to be rebuilt. The sixth floor is gutted, and many of its restaurants, including the famous Was abi, fire and the splendid dome is shaken because of the many explosions. The antique chandeliers and priceless nontextual matter are all lost forever.But the Taj Mahal Palace and Tower stands as an icon of the city of Mumbai, a symbol of both independence and dignity. It will also stand in the future as a facsimile of the indomitable human spirit of the people of Mumbai displayed in the face of the superior adversity.