Last updated: September 22, 2019
Topic: BusinessCompany
Sample donated:


the hotel industry of Singapore is suited and adoptable for sort of clients holding right from the minimal budget to star rated. The challenges exists in the Sing htl ind is strictly based on the monetary value, location and convenience because all the installations are largely provided by all the hotels so it is really hard for the clients to distinguish the service provided by the hotels.

Since it is tough to distinguish the service rendered by the hotels, many hotels are involved in making a niche market, like supplying alone installations to the clients for illustration honeymoon bundles, specializers holidays, etc.The Singapore hotel industry experiences a really high growing rate in luxury travel market, high -end travellers market and household travel market in the past months.The recent economic system reveals the eating house sector has market Growth rate of 16 per centum because of the addition in the consumer disbursement on sit – down repasts. The eating out wont has become a life manner for the young person and even for the center aged married twosomes with their kids and these facets emphasiss on the importance of healthy nutrient. Nowadays, the consumers are anticipating different manners of nutrient and drink from the assorted parts of the universe and all these shows if the hotel provides a assortment and healthy nutrient and drink, it will be able to pull more clients in the hereafter.The Singapore travel and touristry market shows a high growing by holding the tenancy rate of 90 % in the past one twelvemonth.

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The Singapore authorities ‘s attempt in supplying low cost service air hoses and its attempts to treble the tourers to Singapore in the coming up old ages. The 30 % addition in the trade conferences and exhibitions conducted in Singapore has besides revealed that the hotel industry in Singapore has really good concern chances in the coming up old ages and if proper, good development schemes are adopted by the hotels, they will be able to gain a big market portion in bend more net income.


. The MHCCH is located in three estates of esteemed land in Singapore. The hotel is really nigh to the tourer attractive forces like a subject park, a museum, etc. The direction has made many alterations in the substructure installations of the hotel by adding luxury sleeping rooms, a bistro ; a beauty salon.The hotel has besides purchased a land near to that for enlargement and modernized the hotel for making new concern chances.

In order to give a epicurean visual aspect for the hotel, the direction has created a new broad anteroom and the hotel has besides started a beauty salon to offer beauty interventions to its clients.

Problem of the instance:

By analysing the scenario of hotel industry, one undertake SWOT analysis of the hotel MHCCH and assist the freshly joined spouse of MHCCH to choose the best scheme out of the below mentioned schemes viz. sell the hard currency cow, undertake no serious stairss or undergo variegation in concern so that he will be in a place to convert the other spouses of MHCCH.In this instance, the challenges in the external and internal environment industry and the analysis sing the Strengths, Weaknesses, Opportunities and Threats of the MHCCH is to be done.In the 2nd portion of the survey, with the aid of using Ansoff matrix and Porters Grid, how the direction can better the net income in the following two old ages and for that what strategic determinations it has to take are discussed.

Challenges in the micro and macro environment:

Business environment is classified into three environments viz.

Internal environment, Market environment and External environment.Many variables which are bing in the internal and external environment affects the company ( MHCCH ) either positively or negatively. So before taking strategic determinations, it is of import to analyse these environments to happen out the factor which extremely influences the clients of the hotel industry.The following table focal points on the cardinal factors of the three environments.MicroEnvironmentMarket EnvironmentMacroEnvironmentVision, Mission, Objectives of the HotelClimateAssetssCapability of the directionConsumersSuppliersRivalsMediatorsSocialTechnologicalLegalPoliticalEconomicPhysicalThe chief challenges which need to be assessed in the internal and external environment are that hotel has to concentrate on different type clients like corporate invitees and other sort of invitees like nature lovers, household oriented and pull offing the hotel to please these clients becomes a ambitious work in the field of selling. So in order to please these consumers, the hotel should supervise the altering outlooks of these clients and should seek to please them.

The employees of a hotel drama a major function in pulling the clients. The hotel should seek to enroll skilled individuals because the quality of service rendered by the employees acts as an of import factor in pleasing the clients. So acquiring skilled and qualified employees is another challenge in the hotel concern environment.The hotel should seek to hold good providers ( Electricity, soft drinks & A ; carbonated H2O, Perfumes, cosmetics & A ; other lavatory readyings, different sorts of spiritss, Soap and detergents, etc ) who provide products/ services with good quality and good mediators who are in direct contact with the clients before they enter into the hotel.Apart from these challenges, the hotel should besides concentrate on the socio- cultural alterations ( alterations in the penchants of the clients ) , political alterations ( alterations in the jurisprudence ) , and technological alterations ( supplying assortment nutrient, visual aspect of the hotel, presenting bundles, etc, ) .

SWOT Analysis:

Before choosing a strategic option for the selling program of MHCCH, the hotel should make SWOT analysis to happen out its strengths, failings, chances and menaces.

Strength trades with the hotel ‘s nucleus competences and the failings of the hotel trades with the present drawback which has to be rectified in order to capture the clients in the hereafter. Strengths and Weaknesses chiefly focus on the factors which are to the full under the control of direction but the chances and menaces focal points on the concern environment. Opportunity deals with the market which yields more net income to the hotel that is the country to be covered by the hotel to gain more clients in bend more net income. Threat trades with the factors which are to be considered earnestly before taking any concern determination. SWOT analysis of MHCCH is discussed below.

Strengths of MHCCH:

The employees of the hotel are holding good experience in client attention in order to supply quality service ; the MHCCH has invested a batch in altering the visual aspect of the hotel and in supplying different manners of nutrient and besides already the MHCCH is holding satisfied clients ( revealed in the table non-business invitees occupancy rate ) . The hotel is situated really near to other amusement locations.The recognition worthiness of the hotel is high that we can take the fund from bank in order to make the successful public presentation of the hotel.

Failings of MHCCH:

Corporate and household non – concern invitee ‘s tenancy rate is low and so the company has to put a batch in adding installations to the hotel.

Opportunities of MHCCH:

Nowadays consumers like to eat outside in eating houses instead than earlier and they do n’t waver in disbursement more money savoring different assortments of nutrient. Eating out manner of the childs and middle aged married people has become really common.

Singapore authorities ‘s determination to treble the investing in the touristry industry shows that there are big chances for MHCCH to capture more clients and in bend to better net income.

Menaces of MHCCH:

Rivals are the major menace of MHCCH. Due to the deficiency of distinction in the hotel industry, the competition is to the full based on the monetary value, location and convenience. The hotel has to confront competition from the hotels of same substructure and besides from motels. The hotels which are covering with niche markets will besides acts as a good rival for MHCCH. In order to pull the clients of different age group, the hotel has to concentrate on altering the visual aspect of the hotel, supplying nutrient of different states, etc costs more but still the hotel has to put and at the same clip the hotel can non repair a high monetary value for its services because the competition chiefly focuses on the monetary value.

The hotel has to concentrate on the bundles excessively because the little hotels may capture the market by supplying specialised installations in one country entirely like for illustration honeymoon bundles entirely.


Therefore the challenges in the micro, market, macro environments of hotel industry are discussed. The SWOT analysis revealed that the MHCCH has more strengths and chances when compared to failings and menaces. Since the chances are high, revealed by addition in the market growing rate and the capacity of the MHCCH to raise fund from the Bankss and the handiness of infinite for farther enlargement activities to be carried out by the MHCCH is good and with this strength, the MHCCH has more power to capture the market portion. The MHCCH need non worry about the menaces posed by the rivals if MHCCH have an oculus on rival ‘s monetary value and assortment of services provided by them.

So with the aid of its strengths, the MHCCH can travel frontward to pull more clients.

B ) Ansoff ‘s Matrix:

The Ansoff matrix is a technique that aids people in the concern field to take determinations sing merchandise development and market growing scheme.Ansoff matrix focuses on the new merchandises and the merchandise already in the market in order to increase the net income of the concern.The Ansoff ‘s 3* 3 box grid or matrix:


Market DevelopmentPartial DiversificationDiversificationMarket ExpansionLimited DiversificationPartial DiversificationMarket PenetrationMerchandise ExpansionMerchandise Development


The major four boxes are Market Development, Market Penetration, Product Development and Diversification.

Market Penetration:

It suggests the concern people to concentrate on bing clients and on their ain merchandises what they are bring forthing presently.

If the concern individual adopts this scheme so his major aims will beBetter the market portion of current merchandises by repairing lower monetary values when compared to the rivals, advertisement and gross revenues publicity, etc. There are many advantages in presenting low monetary values, they are capturing more market and the low net income earned by the bing participants makes the new entrants to hold fright in get downing the concern in that sector. The MHCCH can travel for presenting lower monetary values for the services but it should non incur any loss. The monetary value decrease scheme to be adopted by MHCCH will non give any benefit because already the hotel is holding good tenancy rate in the instance non concern invitees.

And besides the hotel is be aftering to put a batch in the betterment of the hotel, so all these costs will be reflected in the monetary value of the services rendered by the MHCCH. Even though the monetary value war exists among the participants of the hotel industry, for MHCCH, since it is holding loyal clients, it is better to travel for presenting new bundles for the clients, instead than cut downing the monetary value.

Market Development:

It suggests the concern people to concentrate on new clients and the bing merchandises. Finding out new clients for the merchandise. The MHCCH can besides travel for placing the new clients like honey Moon bundles, etc.

Merchandise Development:

It suggests the concern people to concentrate on the bing clients and new advanced merchandises.( MHCCH ) can concentrate on this facet.

it can choose the last option specified in the instance, expand the concern by puting in purchasing an external belongings that means the enlargement of a saloon or eating house to capture the clients. By supplying healthier, tasty and assortment nutrient manner and drinks to the different state people, the MHCCH will be able to capture more clients ( corporate invitees ) fromdifferent states.And besides the tabular array revealed that the corporate invitees tenancy rate is really low and so by implementing the above mentioned installations, it will be able to capture more corporate invitees and if they are satisfied, the corporate invitees will come and remain with their household, net income will be improved.


It suggests the concern individual to concentrate on the new clients and the new merchandises that is come ining into an wholly different field. Business people will take up this scheme when they want to diversify the hazard of loss in the bing concern.

This instance revealed that the competition is more and there are more chances to gain a really high net income.Selling a hard currency cow and come ining into variegation is non good because this hotel concern itself has batch of chances which is revealed by the Singapore authorities ‘s determination to pass more than $ 4 billion in order to pull more and more figure of tourers to singapore. So it ‘s good for the MHCCH to be in the concern instead than variegation.

Porter ‘s Grid:

Menaces of New Entrants:

More figure of concern conferences and meetings are being held in Singapore.

the tenancy of hotel room rate being every bit high as in the past few months, Government of Singapore attempt to better the touristry industry attracts more participants into this field. Infrastructure installations, graduated table of economic systems and distinction of merchandise may move as entry barriers and so the MHCCH has to concentrate on these facets.

Dickering Power of Buyers:

Presence of more rivals in the Singapore hotel industry makes the consumers to demand more from the hotels sing monetary value, quality and advanced ( assortment of nutrient, other installations, etc ) merchandises. From the instance, it is revealed that a tough competition occurs in the Singapore hotel industry, monetary value dramas a major function and its root cause is the client ‘s outlook sing quality and monetary value and this strengthens the purchaser ‘s power.

Dickering Power of Suppliers:

The hotel industry is holding a really high relationship with the other industries and so the provider bargaining power is high in the hotel sector but if the competition is more in the other industries excessively so the provider dickering power can be reduced in the hotel industry and it is indispensable to analyze still more sing the prevalence of competition in the provider ‘s industries.

Menace of replacement ‘s merchandises / services:

The economic hotels and motels may be the menace for the merchandise of the replacement to MHCCH but concentrating on factors like fast nutrient constitutions which includes the surrounding environment, services provided by the catering section at the low-cost monetary value.


Since the corporate invitee ‘s tenancy rate is really low, the MHCCH can concentrate on the country of comfortss and services provided in order to capture more clients and in bend to better net income.

The MHCCH can travel for supplying different manners of nutrient in order to pull the clients from foreign states.Harmonizing to my positions, I suggest the MHCCH to choose the last option – expand by puting in external belongings and after acquiring some returns it can easy travel on to the 3rd option -expand by puting in the site. The MHCCH can transport out the study in order to seek new installations expected by the clients and besides what the MHCCH ‘s rivals are making to pull the clients and based on the consequences the MHCCH can make up one’s mind the scheme to be adopted by the hotel in future.Since there are a batch chances in the hotel industry, the MHCCH can travel for doing investings in order to gain net income in future. The MHCCH can convert the other spouses by explicating the payback period of the investings to be made by it.