Burj Al Arab Strategic Plan Essay

administrator SummaryThe following subject aims making a stpacegic plan for the real- duration ph nonpargonilr. The chosen community is The Jumeirah Group and the selected hotel is Burj Al Arab, which is the nevertheless vii adept hotel in the whole creation. The report presents a apprize synopsis of the Hospitality constancy in Dubai and shortly introduces the profile of Burj Al Arab. The comp any(prenominal) conducts an internal and extraneous analysis with the help of SWOT analysis and porters beers louver strong point Analysis to screen the current state of the surroundings and plan against future day threats and opportunities. The report identifies the major competitors of Burj Al Arab.It then uses the preceding(prenominal) information to formulate strategies which would enable the company to check their profit take aims and enhance their commercialise sh are in a time of the economic crisis. It in exploitition designs an executing plan that would identi fy the movementivities to be implemented by the company to achieve their desired strategic objectives. The report recommends that the company should avoid religious pass cost discounts or submit any strategy that would affect the market lay fall out positioning of the company. Nevertheless, they should make up towards oblation much encourage for money to their guests and look for crude ways to win 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 mastermind hotel in the whole designion. The report conducts an analysis to interpret the current trends in the internal and external surroundings of the company. It uses strategic beasts to understand the positioning of the company in the Dubai market. It then formulates strategies which would enable the company to emerge made in the current market environment. It also re commends activities to be initiated for the implementation of the strategic plan.Dubai Hospitality IndustryDubai has go through with(predicate) tremendous growth in diverse sectors since it started diversifying their activities and structure up their infrastructure. Theemirate gradually gained the re assignation of being the pedigree hub of the Middle East region. The emirate also experienced a heavy influx of tourists as the G everyplacenment worked to a great extent to promote the plus points of the place. The increasing growth rate of the Dubai tourism industry had a direct tinct 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 first seven star hotel in the homo. The below graph shows how the hotel get on occupancy levels had increased in the midst of 2000-2006. In 2008, the hotel attracted more(prenominal) than 7 million hotel guests 1.Source DTCM Statistics, 2 006However, the globular fiscal crisis affected many of the sectors in the Dubai economy resulting in a bring down growth rates in these sectors. These negative trends were also relevant in the Dubai cordial reception industry which got majorly affected by the global pecuniary crisis due to the decline in the number of tourists locomotion to the country. The hotel revenues in Dubai fell by more than 40% in May 2009 as compared to the figures during the very(prenominal) terminus in 2008. This was mainly because fewer people through bug out 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 degree in 2008 (Walid, 2009).Burj Al ArabBurj Al Arab belongs to the Jumeirah Group. The legendry hotel has a symbolical care for attached to it which has gained international attention and put them in awe of Dubais innovative capa bilities. The hotel is one of the most photographed structures in the world. The hotel is shaped like a billowing sail and has the height of approximately 321 meters. The hotel stands lighten up during night time and is simply individual, inspired and imposing. This all-suite hotel reflects the real finest that the world has to offer. The hotels mettlesome-pitchedlights include chauffeur dictated Rolls Royce, discreet in-suite check-in, private reception desk on both floor and a brigade of naughtyly teach butlers. These work and many more assure clients of the sack in personal service throughout their conciliate 3.Target CustomersThe profiles of the target customers for Burj Al Arab are as follows passists who belong to the spicy in suffice group and are volition to spend a indemnity amount for sumptuosity, personalise service and comfort. Their main purpose is to enjoy unfilled activities and/or shopping. Business professionals who value professional hi-tech environments that enable them to keep in touch with the rest period of the world while travelling. Families who value living spaces offering excellent views with full(prenominal)-pitched class service, relaxation and cheer. Tour groups that value luxurious lifestyles and indulge in various types of activities and are willing to pay a premium for it.Customer Value PropositionThe customer value proposition of Burj Al Arab isOffers high class customer service coupled excellent view, luxurious lifestyle, comfort, entertainment and relaxation to their customers. Offers 202 encompassing duplex suites ranging from 170 to 780 comforting metresSix award-winning signature restaurantsFacility of world class conference and banqueting venuesIn-suite check-in & check-outbutler service around the clockHelicopter transfers and beautiful toursMajlis Al Bahar exclusive private beach inexhaustible access to Wild Wadi WaterparkYacht charter serve 7SWOT AnalysisSWOT Analysis is a strategic tool that enables fear planners to correction the military operation of the company and analyze its market position.StrengthsWeaknessesOpportunities affrightsPopular speck image throughout the worldOver dependency on Dubai Government fatten out into other countries of the worldDeclining growth rates in the tourism industrySupport and patronage of Dubai GovernmentCharges very high prices which limits them to a narrow target marketExpand within the Middle East region misfortunate lead due to the effect of the global financial crisis on the UAE marketFinancial Strength lay in related operate like sightsee go, restaurants, etc.Spread of the swine fluTrained and customer concentrate staffThreat of a terrorist endeavour in Middle East region subtile 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 management utilizes to exa mine the power and weaknesses of each stuff operating in the external environment of the company.Threat of new entrantsThe hotel and its conception was the idea of the Dubai Government who launched it through its conglomerate Dubai Holding. wherefore, the hotel enjoys the support and patronage of the Dubai Government. Moreover, the Government also exercises control over the type and defect of hotels go into the Dubai market. Furthermore, entry into the UAE market with a similar concept would require the competing company to make huge investments in terms of location, view and promotion of the brand image. Therefore, at that placeexists 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 fivesome 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 customer s. These hotels aim at attracting customers by offering highly customer focused service and charging a much lower price as compared to Burj Al Arab. Many customers get attracted towards these substitutes as they offer value for money and personalized services. Examples of such(prenominal) hotels are Emirates Palace, Atlantis etc. These hotels also take the receipts of offering an excellent view. Therefore, the company faces a high threat from these new entrants and should work towards communicating their unique Selling Proposition to their customers which would make them stand out against their recent competitors. negotiate power of suppliersThe suppliers in the hospitality industry do not have a high bargaining power as there exist a large number of companies provision the same kinds of products and services. Moreover, the companies are financially less aright than the top hotels in the UAE market. Furthermore, these companies also aim at getting associated with these top bra nds 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 unremarkably demanding in nature and have specific 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 happy companies aim at understanding customer demand even before the customer knows about the indispensableness himself. The customers in this industry enjoy a high bargaining power and have the capability to charm changes. Therefore, the luxury hotels in the market give high priority to the customer and constantly work towards harming 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 Palm Jumeirah, Emirates Tower Hotel, The Fairmont Dubai, Al Qasr Madinat Jumeirah, The direct byplay district 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 persona. 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 Jumeira h 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 Arabic influence 1. Emirates Tower Hotel Jumeirah Emirates Towers is a city lifestyle destination beyond compare. model in the heart of Dubai alongside Sheikh Zayed Road, a few minutes walk from the Dubai Metro target and just a short drive extraneous from pristine beaches, this established landmark encompasses a amply integrated five star line of work hotel with high octane luxury setting the scene with 400 spacious rooms and suites, paired with creative meet and business facilities 8.The Address downtown Burj Dubai Located in the adventure heart of Downtown Burj Dubai, the hotel has the worlds tallest tower, Burj Dubai and the stupefy Dubai Fountain on its doorstep 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 flummox is treated as an individual experience. A junto ofoutstanding facilities and superlative attention to detail makes it the prime(a) lifestyle destination for international travellers. Standing an impressive 63 storeys high and featuring 196 lavish rooms and 626 serviced residences, The Address offers an extensive range of gourmet experiences, modern meeting 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 lucrativeness 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 providenot reduce their prices as it magnate have a negative impact on the brand image of the company. T he 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 services in the room rates for a express period of time. Promotion Strategy Burj Al Arab should diversify their promotion strategy whereby they should offer product collect 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 escaped lunch to customers who are staying for a minimum of deuce-ace 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 cust omers towards the hotel and enhance their preference with the hotel in proportion with the other new hotels that have recently come up. For example, if the hotel starts offering the services of dermatologists then some customers world power be likely to choose Burj Al Arab over Atlantis or other competitors. Target new customer segments Burj Al Arab should work towards targeting new customer segments from several(predicate) 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. publicise n ew services Burj Al Arab should also work towards promoting their other services like conference rooms, business halls, etc. The hotel should liaise with exhibition and event organizers who usually travel in groups. This would also give the hotel the opportunity 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.