Starwood Case Study

Since India has a growing hospitality marketplace they dont maintain as many resources available which casts many problems for entrants into the market. Starwood plans to introduce the aloft fall guy into the untapped Indian hospitality market which constructs a large nous mark as to whether or not there is a market in India for the economy defects. The skilled labour market is very little(a) in India, making it tough to hire the right type of do oriented employees. The cultural differences will also prove to be a challenge for aloft. aloft is a brand that isnt well cognise throughout the international market let alone the domestic markets in the United States and Canada. Many people traveling to India who are traveling internationally will be looking for brands that are familiar which may pose a threat to the success of the Aloft brand in India. Situational depth psychologyStrengths India offers huge demand for any hotel company looking to build rooms. The domestic mark et is growing exponentially and the government is replying by fixing roadstead to make travel easier (Simona Terron). WeaknessesFinding skilled labour has shown to be voiceless in India and the adjustment to much westernized businesses will prove to be a challenge for locals. The infrastructure in India is still pretty bad even up though the government is trying to fix the roads. Domestic travelers are apply to the roads but contrasted travelers will find it very difficult to navigate through the cities. Indias social unrest will be a hurdle that must be overcome in request to stabilize the economy as a whole. If the government isnt strong, foreign travelers will steer clear of India. OpportunitiesThe open sky policy created in 2008 opened up travel from India to the UK. The sky travel industry has handsome 25 %, creating a huge probability for the service industry in India (The Financial Express). ThreatsWhile India is growing, there are many other companies that unavoidab leness to ride the wave. According to the case Accor has plans to add more than 5,000 rooms to their portfolio in India. There are also many Indian hotel brands that plan to expand. elections (See Appendix) Alternative 1 Creating recrudesceing seminars that locals can attend will help Starwood create a labour pool that is more attractive Alternative 2 Implementing policies that embrace cultural differences will help ensure the success of the Aloft brand in India Alternative 3 Introduce the quad Points by Sheraton brand instead of Aloft as this is a brand that is already recognized internationally. Alternative 4 Instead of introducing the Aloft brand, Starwood should implement a management business work in India.Analysis of Alternatives (See Appendix) Alternative 1 No gamble involved, 100% return on investment. Starwood will watch a competitive advantage as they will have a better pool of applicants to choose from. Alternative 2 No insecurity involved, 100% return on investmen t. The Aloft hotels much implement ship canal to overcome the cultural barriers they face in India. Alternative 3 domesticate risk involved, 100% return on investment as the risk is met with a huge demand for economy hotels in India. Alternative 4 Moderate risk involved, 100% return on investment as this business model has worked in similar markets.Recommendations Starwood has a huge opportunity to penetrate the Indian hotel market and they are not doing so in the right way. Introducing the Aloft brand into India may be successful for a while just on the basis that there is a huge demand for rooms but this advantage is not sustainable. Once more hotels penetrate the market Aloft will be pushed to the side as it just doesnt fit in the Indian market. Starwood should introduce the Four Points by Sheraton brand as it is a more internationally recognized brand. Since the management business model has worked for Intercontinental Hotels in the Asian market, Starwood should do the same in the Indian market. Whether or not Aloft is the brand that Starwood chooses to introduce in the Indian market they will need to train potential employees. Starwood needs to offer training seminars for locals to attend in format to train them for service expectations. Starwood will also need to find slipway to overcome cultural barriers in India. ImplementationImplementing the training seminars and the cultural bosom policies in the hotels will require human resources. These alternatives will only accept a few weeks to implement and a small amount of musical accompaniment for incentives.Introducing Four Points by Sheraton and looking at the management business model will need a large amount of capital that, agree to the case is already available. The implementation of these two alternative can be done in the same way Starwood was going to introduce the Aloft brand into the Indian market.