Essays on Situational Analysis of Accor Hotels Case Study

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The paper "Situational Analysis of Accor Hotels" is a perfect example of a marketing case study.   Accor hotels are a French group of hotels. Its headquarters are in Paris, and it owns 3600 hotels on five continents (Russell Arthur Smith, 2011). It represents several brands that range from budget lodgings to luxurious accommodation sites in exotic locations. It is a hospitality and tourism sector industry founded back in 1967. The CEO of the hotels is Sebastian Bazin and it operates on an income of approximately euro 536 million. The employees are approximately 160000 in number. Statement of the level of analysis Accor groups of hotels are composed of multiple SBUs (Gerard Burke, 2010).

They dwell in the provision of products and services to its customers and maximizing on profits. The SBU’ s are part of the main corporation that is located in Paris, France. Each SBU is responsible for its own profitability, with a set-out plan, competition analysis and creative marketing campaigns to attract more customers across the five continents. These strategic business units are responsible for the parent corporation. Situational analysis 2.1 external analysis 2.1.1market/industry To view the definition, size and growth structure, the industry’ s life cycle is used.

It analyzes the life cycle of Accor groups of hotels in a global view. As a result, the lifecycle shows how the industry has grown and predicted an appropriate growth rate in future (Woodside & Martin, 2008). Phases of the life cycle of the industry pioneering phase Back in 1967, Paul Dubrule and his co-founder Gerald Pelisson founded the SIEH group of hotels. By then, the industry was characterized by low demands for the services and high starting costs. They recorded a few numbers of customers then due to the fact that they were at the initial stages of starting the business.

Thus, the business was still young and small. Growth phase After a short period of time, the business began to grow. First, in 1974, the co-founders launched an Ibris brand. Later they acquired the Coutepaille and Mercure brands (Sak Onkvisit, 2009). They continued to expand and changed its name to Accor groups of hotels in 1984. This time around, the hotels were characterized by some competition, and their sales accelerated.

They had successfully survived the first phase and were beginning to recognize the growth of their sales. The mature phase of growth At this phase, the group of hotels began experiencing stiff competition from their competitors. As a result, their profits began declining and they had to come up with a strategy to prevent the business from falling in the process. Thus, in 2010, they sold forty-eight of their hotels to come up with 367 million euro to liquidate some of their real estate plans. The intended sale occurred in the next three years cutting any debt they had by euro 282 million (Scheyvens, 2012). Stabilization phase In this phase, their growth remained at an average level.

Their return on profits is stabilized despite the competition they face. This is one longest phase for the industry considering how far the industry has come. Their market at this phase is wide considering the number of their SBU’ s. It has the most number of hotels in all price brackets across the five continents. As a result, it attracts customers from all walks of life, thereby stabilizing its return on profits.

It also has some creative strategies to ensure its competitive advantage against its competitors.

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