Marketing analysis for Shangri la Hotels and Resorts

A Shangri-la hotels and Resorts is founded in 1971 which is the first deluxe hotel in Singapore by the Malaysian-Chinese tycoon Robert Kuok. The name was encouraged by British writer James Hilton's book "Lost Horizon". The meaning of Shangri-la is ethnic youth, peace and tranquility.

Shangri-la hotels and Resorts is the first enter to a Chinese hotel market as a foreign trader and built its headquarters in Hong-Kong.

From 1982 to 2002 the business went through intense enlargement in Asia pacific region specially focus on Chinese market. During extending period Asia has a rapid economic development and a high demand of the luxury hotel for business travelers and international vacationers' needs in Asian. Therefore, the business was growing swiftly and save more money for future development. Also the business is the major luxury hotel string in mainland China. From 2002, the company continues to grow of brand globally with a strong foundation and great reputation in Asia.

Today, the business is a global category deluxe Asian hotel chain and its business throughout Asia Pacific, North American and the center East. In addition, by 2010 the business owned or operated 69 hotel and resorts and 29 under development of new hotels throughout the world. Because of its famous service, Shangri-la hotel received many international honours from the publication and hotel industry. As the result, Shangri-la hotels and Resorts is the leading player in the Luxury hotel industry.


"To please our guests each time by creating participating experiences direct from our hearts"

It identified the business's main task is attractive more customers to be able to attain the business goals of broadening to be a innovator in global hotel industry.


"To be the first choice for guests, co-workers, shareholders and business partners". The company states it places its customers to be the first choice to draw in more customers in order to increase the business revenue. The employee, shareholders and business spouse are certain to get more benefit from the business. Moreover, due to excellent services to customers, the trustworthiness of company will increase.

Core Value

Respect, humility, courtesy, helpfulness, sincerity

This five central value is produced by Shangri-La Hospitality. It involves the positive affects to successfully working the business. And the key value creates a marriage between customer satisfactions and employees' behaviours.


Shangri-La Hospitality from a caring family.

It means the hotel provides the great services and allow customer feel like being home

Marketing Mix

Shangri-la got 4 main businesses segments

Hotel ownership and operations

Property development, it includes commercial building and services

Hotel management services to group managed and third party hotels

Spas at Shangri-La provides private spa collection and help the traveler relaxing and restoring the balance to mind and body

It offers five star and four legend hotels in four different brands. Matching to company's custom logo "S", it reveals unique Asian architectural types of the hotel location coming up with. It means hotel just like a majestic hill and the lake or ocean should surround it. The almost all of 5 star Shangri-La hotel and resorts offer an sea or lake view to their customers.

Also the company specially helps bring about Asian hospitality for high quality services to meet the customer needs in different hotel brands. You will discover three main brands of hotel in the business to target different customers' needs.

The brand of Shangri-La hotel is a five star luxury hotel and typically marketplace comes from the higher income busy travelers. It is located in top city.

Shangri-La resorts are a 5 star luxury hotel concentrate on high income travelers and people. It offers a soothing environment for customer vacation. It is found in some of the world's most exotic destination.

Trader hotel is a four celebrity luxury hotel and the price of the hotel is mid-range. It provides an efficiency and useful environment for the budget-conscious travelers. It usually mainly target market is business traveller who can afford to buy service and their expenses are given by their companies. It really is located in business centers

Basic strategy

Differentiation strategy in market market

The company offers different branding hotels to meet different specific niche market sets of customer expectations with a unique Asian hospitality services model such as spa branding hotel and investor hotel.

Moreover, it divided the business into different sections. It offers various services with their niche marketplace such as commercial and service apartment market and management agreements of operating business for other parties.

There is a definite about profitable of company' earnings and a competitive advantage of expanding business globally by using of concentrated differentiation strategy.

External analysis

Industry overview

Economic factors: in Asia area, GDP is development faster than others, but inflation rate is increasing swiftly; in North America, the monetary is recession now. In additional, as a global business, exchange rate and rates of interest directly affect the cost and revenue of the business.

Socio-cultural factors: because of global business arising, there is certainly more business people need to go to overseas or other locations. Moreover, holiday on travelling are more popular than before in Asian country. Asian consumers income increasing and has a solid consuming abilities. In NA and Western courtiers, most people still like journeying during the holiday. Cultural dissimilarities in each area have an impact on the company's quality services.

Environment and legal factors: inexperienced issues and federal regulations in each country influence the company's procedures changes and company's positive public responsibility.

Industry life cycle

The company is a rise market stage, because the buyer has brand awareness upon this company and potential market is very competitive environment for new local hotels entering and existing global company in hotel industry. The business should continue on differentiation strategy to boost the market share. In addition, the company has to raise the customer loyalty and brand image to obtain a high ratio on customer come back. Also aggressive campaign and functions expend can appeal to more customers. As these strategies, company can achieve the goals of growing faster than market average.

Five makes analysis

Bargaining electric power of suppliers: low

Controlling the quality of the supplies

As a partnering or cooperation with preferred suppliers

Switching cost to choice provider are low

Bargaining power of clients: high

Customers switching cost are low

brand differentiation has increased market base

price and value of hotel is important to customer

The risk of potential new entrants: moderate

economies of size is certainly going down

few volume of investor enter the industry

fastest growing industry throughout the world

The threat of substitutes: high

Difference of alternative products is low

Improvement of substitute performance is low

Rivalry: high

Large quantity of competitors offer the same high quality services

Driving forces

Changes in an industry's long-term expansion rate: in asian market, even though economical growth is certainly going up, development of asian market is a top of business, it affects the company growing slowly but surely and force the company entrance new market in North American and Euupean.

Growing customer tastes for differntiated products rather than standardized product: because of competitors increasing and different group customer needs, the company forces to develop different main brands of hotel to gained the dedicated and increase marketing basic.


Shangri-La hotel and resorts as one of the top luxurious hotel in Asia, still faces a solid competition with many other top global hotel companies and demestic hotel companies. The most notable of five competitiors of this company are:

Hong Kong and Shanghai Hotels Ltd: they have more than 24 deluxe hotels, commerical and home properties in Asia, Austrailia, Europea, and THE UNITED STATES.

Mandiarin Oriental Hotel Group: it performs over 42 hotels in 30 countries.

New World Development: it provides a borad differetatian service lines to catch the attention of a width range of costomers. Its business includes rentals, office buildings, hotels, department stores, roads and power crops in Hong Kong, mainland China and Southest Asia.

Mrriott hotel String: it opertes different brands of hotels which includes Ritz-Carlton, Renaissance and Courtyard. Also you can find large market talk about in UNITED STATES hotel industry and the business began expanding in Asian over 100 hotels by end of 2010.

Four conditions hotel resorts: it runs by high level quality service hotel, private residual proptery booking in 35 countries and is the owner of over 84 five star hotels.

Strategic Map

In Appendix 1, by way of a proper group map software, it shows the close opponents is Mandiarin Oriental Hotel Group and Four season hoter and vacation resort. Both of these hotels contain the almost same business strategies with Shangri-la. Also four conditions hotel and resorts has the higher percentage of market show than Shangri-La hotel and resorts in over the world. Furthermore Mandiarin Oriental Hotel Group has the highest price level than other competitors.

Key success factors

Offered high quality of services increase brand image and customer satisfaction

Differentiated products and services to give attention to different target marketing

Culture training program in every day performance specifically

Loyalty program to please customer

Choose the good Location to match the customer needs on each hotel

Effective on promotion and Special offer to catch the attention of the customers' attention

Effective process management to fast delivery services

Effective advertising on general population commercial

Compensation and compensation growth: praise employees for a higher performances standard and making worker more valuable by reimbursement motivation.

Internal Analysis

Finacial performances

" Fit " strategy analysis

The company's targeted differentiation strategy complementing the resources and functions of the firm and comes up the opportunities from the external environment. It includes advantages of competitive leisure industry and is also competent to fit the economical trends. Moreover, Shangri-La has a proper management of its economic climate, even though, its revenue is lower than last year, and the business still keeps expansion for income in each year. In addition, there's a the large investment to increasing of new hotels and new assignments in next 2 12 months, which it believes the company will add more value to the shareholders and be stronger on its financial performance in next couple of years. Therefore, the business still needs to be increased to increase its profits and profits, however the current financial performance is demonstrating positive.

The company may consider the next qualitative efforts to match success factors.

The company must focus differentiation strategy and is constantly on the raise the brand awareness and loyalty to attractive more customers

The company should execute the human learning resource management by training employees and unique high quality services.

In order to boost the revenues, the business should offer low budget brands of hotel to charm more customers

Innovation some unique high quality services to against strong competition such as partnership with Flight Company or car Hire Company.

Due to products competition, the company should put more investment on the employee's payment to be able to inspire their high shows.

Summary of SWOT

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