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Strategic Management Accor Hotels

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Cécile Guilbault

on 4 January 2013

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Transcript of Strategic Management Accor Hotels

Accor Hotels One of the world’s largest hotel operators: 92 countries, nearly 3,500 hotels, approximately 440,000 rooms, around 160,000 employees. SWOT Analysis Strengths Porter's Five Forces PESTEL Political Our recommendations - Large geographic coverage

- An extensive offer

- A franchising strategy

- Strong HR policies that allows employees' commitment and loyalty Weaknesses - Over dependence on European market

- Issues about a global brand image and identity Opportunities - Adapting to consumers' habits

- PLANET 21: A commitment to sustainable development

- Changing Trends on the Travel Market

- Strong Development Opportunities in Emerging Countries Threats Luxury and up-scale brand:
- Higher barrier for entry(scale & experienced workforce)
- Loyal customer(bargain power of buyer)
- Luxury hotel chain, e.g. Hilton Budget brand:
- Lower barrier for entry (competitive rivalry)
- substitute like hostel, motel and family-hotel
- Differentiation: location, and price strategy- - Key effective element: on-line booking system - The VAT has increased from 5% to 7% this year and could reach 10% in 2014
- Project of an additional tax for hotel nights > €200
- Socialist government in France
- Demonstration and war in Middle East affect tourism
- Difficult situations in some countries in Pacific Asia and in Middle East
- Recent political troubles in Ivory Coast Economical - Economic crisis lead to a decreased in hotel-nights demand, especially for budget hotels
- Tourism is one of the first job creator in France Social - Development of hotels in listed historical buildings
- Families are keener to go on holidays for a shorter time and closer to their homes
- Development of franchised hotels
- Tourism in emerging countries
- Asia, the new "hit" destination
- Camping is increasingly popular Technological - Importance of new technologies in hotel rooms
- Implementation of interactive terminals Environmental - Trend of the "eco-friendly"

- Development of this idea in businesses

-Nuclear catastrophe in Japan has reduced tourism in this area Legal - Changes in French hotels-rating system to match the international one - Competitive rivalry

- Fluctuation in exchange rate and International regulation Distribution of its hotels portfolio:
- France: 1,502 hotels
- Europe (excluding France): 1,018 hotels
- Asia Pacific: 534 hotels
- Latin America and Caribbean: 201 hotels
- Africa and Middle-East: 164 hotels
- North America: 17 hotels 44% of these hotels are owned and leased, 31% are managed and 25% are franchised. Source: Accor.com History through Ansoff's matrix Accor is a successful company with great strategies. But...
Issues about brand image and identity To enhance its brand image & identity, Accor should:
- Issue an ad that summarizes the companies' successes and different brands
- Create loyalty cards that focuses on Accor's hotels in same or close market segment to make the customers discovering the other Accor's brands
- Keep focusing on its direct relationship with its customers even if it develops online services
- Keep in touch with all its customers via mailing system regardless the hotels they checked in. Thanks for your attention...

Any questions ?
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