Accor Group-Research Proposal Writing Help
Swot analysis of Accor Group
Strengths
·
Wide range geographically –
Accor has a broad geographic spread for its services. It is not reliant on one
single region and this provides it with security against any specific
downturns. The company is less reliant on the US than some of its major
competitors.
·
Range of services – the company
does not solely rely on its hotel business, and has been actively expanding its
other services in 2007, including spending over EUR341 million in acquisitions
in this area.
·
Diverse hotel portfolio – Accor
covers all segments, ranging from economy to luxury and so can adapt to any
changing patterns in consumer spending when necessary.
·
Brand refocusing – the company
has been repositioning some of its brands and improving their media profile.
·
Well positioned in emerging
markets – Accor has focused on markets with strong growth potential, such as
China, Russia and India, and is well placed to take advantage of the benefits
available there.
·
Local market focus – Accor has
also adapted to the local market, e.g. Brazil's Mercure Apartment brand.
·
Restructuring – the company has
been divesting lower-potential businesses in order to strengthen its ability to
react to changing market conditions.
Weaknesses
·
Reliance on France – Accor is
still reliant on the French market for a significant portion of its revenue,
accounting for 30% of revenue in 2007. This places it at risk if the French
market were suddenly to deteriorate.
·
Economic downturn – the impact
of the economic downturn on key source markets to France e.g. the US and UK
will have an impact on revenue, as will the effect of a strong euro.
·
Lack of presence in North
America – Accor has been reducing its hotel stock in the US, through selling
its Red Roof Inn chain. The company is ranked 10th in the properous North
American market (the second largest region globally).
·
Hotel focus – Accor remains
reliant on its hotel business, accounting for 72% of income in 2007, and is
therefore at risk from fluctuations in this market. The economic downturn will
have a significant impact on revenues from hotels.
·
Luxury market – Accor is
exposed to volatile market conditions in its upscale operations.
Opportunities
·
Technological innovation –
Accor remains committed to developing technology in order to boost sales.
·
Rapid expansion in emerging
markets – significant growth in emerging markets such as India, Brazil and
China is being driven by increased tourism, improved economic conditions and
development of infrastructure. Accor has identified these regions as key focus
for development.
·
Strong partnerships – Accor has
developed strong partnerships to enhance its marketing.
·
New traveller – the company has
been focusing its re-branding on the changes in demand from travellers for
services with more emotional impact.
Threats
·
Macroeconomic difficulties –
currency fluctuations and economic downturns will have a significant impact on
the tourism market.
·
Economic downturn – there will
be a significant reduction in revenue due to the impact of air capacity cuts
and falling consumer demand leading to declines in hotel guests, occupancy and
revpar.
·
Consolidation of industry –
Accor remains at risk as a result of the increasing consolidation of the
industry. Larger rivals remain better placed to take advantage of a diverse
range of businesses.
·
Refocus on luxury segment –
there may be a threat if business travel and luxury segment decline.
·
Reduced business clients –
there is a threat to the success of the new business-oriented Pullman brand in
the changed economic climate due to falling business demand.
If you want Dissertations, Thesis, Case Studies on Accor Group, Project Report on Travel and Tourism Industry, Research Proposals, Term Papers, Research Projects, Assignments,
Coursework, PowerPoint Presentations and Synopsis, than contact
Mahasagar Publications, Mumbai, India by calling +91 9819650213 or +91
8081344446 or visit website www.projectspapers.com
No comments:
Post a Comment