Burj Al Arab Strategic Plan Essay

Executive SummaryThe following narrative take ups do a st rangegicalal pattern for the real-time comp both. The chosen come with is The Jumeirah throng and the selected hotel is Burj Al Arab, which is the plainly cardinal star hotel in the whole world. The paper presents a brief synopsis of the Hospitality diligence in Dubai and in brief introduces the profile of Burj Al Arab. The troupe conducts an internal and international analysis with the supporter of prink analysis and ushers Five Force compend to examine the legitimate state of the environment and plan against future threats and opportunities. The report identifies the major competitors of Burj Al Arab.It so uses the above information to formulate strategies which would change the company to maintain their profit takes and enhance their grocery store sh atomic number 18 in a time of the frugal crisis. It a kindred designs an implementation plan that would invest the activities to be implemented by the company to achieve their desired strategic objectives. The report recommends that the company should vacate pass price discounts or bring in any dodge that would affect the market perspective of the company. Neverthe slight, they should control towards go more than economic value for money to their clients and look for new ways to imbibe them.IntroductionThe following report aims making a strategic plan for the real-time company. The chosen company is The Jumeirah Group and the selected hotel is Burj Al Arab, which is the only seven star hotel in the whole world. The report conducts an analysis to understand the current trends in the internal and external environment of the company. It uses strategic tools to understand the positioning of the company in the Dubai market. It then formulates strategies which would transmute the company to emerge thriving in the current market environment. It withal recommends activities to be initiated for the implementation of the strat egic plan.Dubai Hospitality IndustryDubai has experienced tremendous growth in assorted sectors since it started diversifying their activities and building up their infrastructure. Theemirate gradually gained the reputation of being the business hub of the sum eastern region. The emirate also experienced a heavy influx of tourists as the G everywherenment leaded hard to promote the plus points of the place. The increasing growth rate of the Dubai tourism industry had a direct impact on the Dubai cordial reception industry. The investment efforts of the g overnment were internationally recognized with the launch of the Burj Al Arab, the firstborn seven star hotel in the world. The below graph shows how the hotel room business levels had increased amongst 2000-2006. In 2008, the hotel attracted more than 7 million hotel guests 1. ancestor DTCM Statistics, 2006However, the worldwide financial crisis affected many of the sectors in the Dubai economy resulting in a cut down gro wth evaluate in these sectors. These negative trends were also relevant in the Dubai hospitality industry which got majorly affected by the global financial crisis due to the decline in the number of tourists travelling to the country. The hotel revenues in Dubai fell by more than 40% in May 2009 as compared to the figures during the equal period in 2008. This was generally because a few(prenominal)er people end-to-end the world were considering traveling due to the impact of the global financial crisis (Walid, 2009). The hotel occupancies in Dubai fell by more than 14.5% in May 2009 as compared to the figures during the same period in 2008 (Walid, 2009).Burj Al ArabBurj Al Arab belongs to the Jumeirah Group. The legendry hotel has a symbolic value attached to it which has gained international attention and put them in awe of Dubais innovational capabilities. The hotel is one of the most photographed structures in the world. The hotel is shaped like a billowing sail and has th e height of approximately 321 meters. The hotel stands illuminated during night generation and is simply individual, inspired and impressive. This all-suite hotel reflects the very finest that the world has to offer. The hotels postgraduatelights include chauffeur driven Rolls Royce, discreet in-suite check-in, private reception desk on every taradiddle and a brigade of highly trained butlers. These processs and many more assure customers of the ultimate in personal service passim their take a breather 3.Tar mature CustomersThe profiles of the target customers for Burj Al Arab are as follows Tourists who belong to the high income group and are willing to spend a premium number for luxury, personalized service and comfort. Their main purpose is to enjoy leisure activities and/or shopping. Business professionals who value professional high-tech environments that en up to(p) them to keep in touch with the rest of the world while travelling. Families who value living spaces off ering dainty views with high class service, relaxation and entertainment. Tour groups that value august lifestyles and indulge in various types of activities and are willing to pay a premium for it.Customer Value PropositionThe customer value overture of Burj Al Arab isOffers high class customer service coupled excellent view, luxurious lifestyle, comfort, entertainment and relaxation to their customers. Offers 202 spacious duplex suites ranging from 170 to 780 square up metresSix award-winning signature restaurantsFacility of world class throng and banqueting venuesIn-suite check-in & check-outButler service around the clock chop transfers and scenic toursMajlis Al Bahar exclusive private beachUnlimited access to Wild Wadi WaterparkYacht charter services 7SWOT AnalysisSWOT Analysis is a strategic tool that enables business planners to study the exploit of the company and analyze its market position.StrengthsWeaknessesOpportunitiesThreatsPopular brand enter throughout the worldOver dependence on Dubai GovernmentExpand into former(a) countries of the worldDeclining growth rates in the tourism industry buy at and patronage of Dubai GovernmentCharges very high prices which limits them to a narrow target marketExpand inside the Middle East region small(a) pack due to the effect of the global financial crisis on the UAE marketFinancial StrengthInvest in related services like sightseeing services, restaurants, etceteraSpread of the swine fluTrained and customer focus staffThreat of a terrorist attack in Middle East regionExcellent locationOnly seven star hotel in the worldPersonalized service coupled with luxury and comfortPorters Five Force AnalysisThis section presents the Porters Five Force analysis which is a strategic tool that the anxiety utilizes to examine the government agency and weaknesses of each force operating in the external environment of the company.Threat of new entrantsThe hotel and its conception was the idea of the Dubai Governmen t who launched it through its conglomerate Dubai Holding. Therefore, the hotel enjoys the support and patronage of the Dubai Government. Moreover, the Government also exercises control over the type and brand of hotels entering the Dubai market. Furthermore, ingress into the UAE market with a similar concept would require the competing company to make huge investments in harm of location, view and promotion of the brand image. Therefore, thereexists a high entry barrier for new companies which reduce the threat of new entrants to the company.Threat of substitutesThe only substitutes for the companys products and services are the five star hotels that aim at matching the same level of experience and customer service. This is mainly in terms of the service offered to their suite customers. These hotels aim at attracting customers by offering highly customer focused service and charging a untold lower price as compared to Burj Al Arab. Many customers get attracted towards these sub stitutes as they offer value for money and personalized services. Examples of such hotels are Emirates Palace, Atlantis etc. These hotels also urinate the advantage of offering an excellent view. Therefore, the company faces a high threat from these new entrants and should work towards communicating their Unique change Proposition to their customers which would make them stand out against their recent competitors.Bargaining power of suppliersThe suppliers in the hospitality industry do not have a high bargaining power as there exist a large number of companies supplying the same kinds of products and services. Moreover, the companies are financially less powerful than the top hotels in the UAE market. Furthermore, these companies also aim at getting associated with these top brands of hotels as that would enhance to their brand image. These factors prevent the suppliers from exercising any control over the existing companies in the industry thereby reducing their bargaining power in front of the hotels.Bargaining power of customersThe customers have the choice of selection between a wide variety of hotels in the Dubai market. Moreover, high income individuals are usually demanding in nature and have particular(prenominal) demands and expectations from companies. This makes it essential for companies in the industry to study customer preferences and demands and work towards fulfilling them. In fact successful companies aim at understanding customer demand even before the customer knows about the need himself. The customers in this industry enjoy a high bargaining power and have the cleverness to influence changes. Therefore, the luxury hotels in the market give high anteriority to the customer and constantly work towards pleasing them.Competitive rivalry within theindustryThere exists a strong competitive rivalry between the companies in the hospitality industry. The major competitors of Burj Al Arab are Atlantis thread Jumeirah, Emirates lift Hotel, Th e Fairmont Dubai, Al Qasr Madinat Jumeirah, The Address downtown Burj Dubai and Grand Hyatt Dubai. These hotels have excellent locations and work towards offering world class service to their customers with the aim of gaining a customer loyalty and a higher market share. Burj Al Arab should work towards establishing a unique place or position in the market and in the eyes of the customers in order to stand out from the competition. The company should also be alert against any new competitors entering the market. The forces operating in the environment are favorable for the company. However, the company should focus on adopting strategies that would enable them to better deal with their competitors.CompetitorsThe major competitors of Burj Al Arab are as followsAtlantis Palm Jumeirah The hotel has the strengths of excellent view, architecture and splendid service. The hotel comprises of 1,373 guest rooms and there are a separate 166 suites. The rooms are designed with oceanic and Ar abic influence 1. Emirates Tower Hotel Jumeirah Emirates Towers is a city lifestyle destination beyond compare. Set in the sum total of Dubai alongside Sheikh Zayed Road, a few minutes walk from the Dubai Metro Station and just a piteous drive away from pristine beaches, this established landmark encompasses a in full integrated five star business hotel with high octane luxury setting the scene with 400 spacious rooms and suites, paired with creative opposition and business facilities 8.The Address Downtown Burj Dubai Located in the happening heart of Downtown Burj Dubai, the hotel has the worlds tallest tower, Burj Dubai and the stunning Dubai Fountain on its verge and is flanked by Dubai Mall, the worlds largest shopping and entertainment centre. The Address Downtown Burj Dubai reveals a new art in offering service and comfort, where every guests stay is treated as an individual experience. A combination ofoutstanding facilities and superlative attention to detail makes it the premier lifestyle destination for international travellers. Standing an impressive 63 storeys high and featuring 196 shower down rooms and 626 serviced residences, The Address offers an extensive range of gourmet experiences, modern merging and event venues, a signature Spa, a fully equipped fitness Centre, chilled pools and indulgent amenities and services 9.Strategies to be adopted to survive the crisisThe company should adopt the following strategies to maintain their profitability and market share in the Dubai market Pricing Strategy Burj Al Arab should revise their pricing strategy by including more products and services in their packages. This is because the hotel butt jointnot reduce their prices as it efficiency have a negative impact on the brand image of the company. The company should work towards offering more value for money to their customers as this would act as an incentive to people in times of economic crisis. For example, the hotel can include spa servic es in the room rates for a limited period of time. Promotion Strategy Burj Al Arab should modify their promotion strategy whereby they should offer product bundle promotions to their customers. The company should avoid offering price promotions as this could negatively affect the image of the company. The company can offer promotions based on the usage of their services whereby more usage will result in more benefits.For example, the company can offer free lunch to customers who are staying for a minimum of triad nights at the hotel. Innovative products and services Burj Al Arab should work towards offering innovative products and services to their customers as this would add value to the current product and service portfolio offered by the hotel. This would attract customers towards the hotel and enhance their preference with the hotel in comparison with the new(prenominal) new hotels that have recently come up. For example, if the hotel starts offering the services of dermatol ogists then some customers might be likely to choose Burj Al Arab over Atlantis or opposite competitors. Target new customer segments Burj Al Arab should work towards targeting new customer segments from different parts of the world. This can be done by targeting people from countries where the economic impact of the global financial crisis has not been much.They should work towards targeting business executives and high net worthindividuals. This would enable the hotel to get access to a new set of customers which would enable them to maintain their level of profitability and their market share in the time of crisis. The hotel should work towards maintaining their level of profitability and market shares in comparison to peak profitability levels in 2007. Promote new services Burj Al Arab should also work towards promoting their other services like conference rooms, business halls, etc. The hotel should liaise with collection and event organizers who usually travel in groups. T his would also give the hotel the chance to access the customer base of these companies. The company would therefore be able to expand their operations, enhance their profitability and increase their market share by targeting exhibitors and business officials who would utilize the other services offered by the hotel.