Management

Mission :

- Propose the most extraordinary chain of hotels

- Image of the mythical jeweler

- Houses with different architecture

- Personal service

Vision :

- Become a leader

- Become the most fashion place

- Communicate the emotion of the brand

c

Political : Brexit

Economic : Pound has decreased

Social: Famous and tourist city

Technologies : technologies are frequently developed (transport, advertising)

Environmental : Reduce energy and water consumption, encourage sustainable development

Legal : laws are very flexible and focused on the security

-Political factors: referendum organized on 23 June 2016 by former Prime Minister David Cameron, 51.9% of Britons chose to leave the EU, calling Brexit. Consequences on the free movement of people will be created, they remain to be defined in the course of negotiations.

(the country is two years old to prepare for its exit, as are members of the EU March 2019, ).

-Economic: Following the Brexit the pound has decreased, a positive point for tourists who will gain in purchasing power and for the United Kingdom that welcomes more and more tourists. However, for the British, their purchasing power has decreased even though the British economy has not suffered any serious damage for the moment,

-Social: London is one of the European capitals, famous for its culture, tradition and festivals. There are historic buildings in London. Which attract tourists. The city is also famous for its attractions, museums and galleries. Tourists are young, It's a famous and tourist city

- Technological: London is engaged in technological developments frequently. Innovative technologies are available to satisfy potential customers. technology progress makes it easy to get benefits and easy access for users. Use high technologies (flat screen, cinema in this hotel bvlgari london, billboard, transport, picaddilly circus)

- Legal: London's laws are very flexible and focused on the security of the organization's stakeholders which improves their productivity.

- Environmental: There is a collaborative approach among Londoners for their common goals and objectives

Reduce energy and water consumption, encourage sustainable development, purchase organic food and responsible for origin,

London develop green neighborhoods with green mobility and energy reduction

Power of suppliers:

-The BVLGARI has many suppliers in very diverse products, depending on the service of the hotel they supply swapping for another supplier would’t be hard nor difficult. Except for the the F&B department, changing the supplier of certain food products might decrease the quality. Overall the suppliers don’t have enough wiggle room to start bargaining their prices, the hotel also has partnerships with most of the decoration/furniture/fixture/bedding suppliers so for them to try and up their prices would be counterintuitive and counterproductive

Threat of a new entry:

-Entering the market of luxury designer boutique hotel’s in London isn’t an easy task, especially when there is so few of them. The cost, time and effort it would take to open up and start being serious competition for the BVLGARI would be too long. Still competition might be lurking up the corner. As of now the hotel isn’t threatened by any new hotel opening up in the sector/market.

Power of buyers:

-As for the suppliers, the buyers can’t really make the price change, unless the hotel is facing a low occupancy percentage. There are also cases where customers might bargain the price, but these occasions are rare and do not have a sufficient impact to say that the buyers have “power”.

Threat of substitution:

-On the substitution part, the BVLGARI isn’t the only luxury designer boutique hotel in town, there are more reasonable/cheaper ones. BVLGARI is a staple in the luxury market in London. The customers that come there have the means to book a room and enjoy the excellence, prestige and exclusivity of the service. There are cheaper alternatives in the Knightsbridge area that might threaten to take our guests.

Competitive rivalry:

-As said before there is a large selection of hotels in the area, although they don’t share the same quality/service as the BVLGARI. Although there are many luxury hotels in Knightsbridge (Lanseborough, Mandarin Oriental…) as well as the proximity with Park Lane and the famous Dorchester collection hotels, the Four Seasons. There is quite a lot of competition in the vicinity of the hotel, but again these luxury hotels don’t have the same clientele targeted nor the same type of service and exclusiveness as the BVLGARI.

Conclusion: As of now the BVLGARI isn’t threatened heavily by suppliers or buyers, the threat of a new competitor is low, however threats of clients seeking other alternatives or going to the competition are high.

Strategic planning technique used to help a person or organization identify the Strengths, Weaknesses, Opportunities, and Threats related to business competition or project planning. It is intended to specify the objectives of the business project and identify the internal and external factors that are favorable and unfavorable to achieving those objectives.

• Potential Resource Stegths
• Potential Resource Weaknesses
• Potential External Opportunities
• Potential External Threats

See the next slide

Invironmental Factors

External Opportunities :

The pound has dropped down (value) since Brexit → encourages exporting / tourism

Pound sterling lost 15 % towards the euro and towards the dollar since the referendum on Brexit (They stay the sixth world economic power)

External Threats :

Terrorisme

Brexit (difficult to enter the country)

Unstable exchange rate

Own Specific Factors

Own Strengths :

Brand reputation (luxury brand most known to make jewelry and watches)

Joint venture with Marriott hotels (combines Bulgari style with The Ritz-Carlton legendary service)

The hotel has an awarded spa (Bulgari spa), the most dramatic private pool complex in central London

More policeman and security guards (also London is known to have a lot of CCTV → security), more bodyguards in the hotel

For European people it’s easier to enter the country than non-European people so maybe trying to attract more European people or helping foreigners at the borders

Strategies to make use of Opportunities through our Strengths:

We use the opportunity of the decrease pound value to acquire more guest due to our brand reputation: it’s cheaper so people came more to London

Ritz is well known for its luxury hotels and exceptional guest service, recognition among other hotels: Have the well-known Ritz Carlton “savoir-faire” and have a partnership with a huge hotel chain so they know what they are doing and where they go

Own Weaknesses :

New in the hotel business

A lot of luxury hotels in London

Strategies to make use of Opportunities to minimize Weaknesses:

Use the pound drop to develop voucher and online gifts voucher

Good location (near Hyde Park and the famous Harrods store)

Center of the city near shops (spend money)

Strategies to minimize the potential dangers lying in sectors where our Weaknesses meat Threats:

Attract UK people?

Talk about the partnership between a luxury jewellery brand and a luxury hotel chain (services + quality + design)