Starwood Case Study

Since India has a increase cordial reception securities industry they tire outt have as more resources available which commences many an(prenominal) problems for entrants into the market. Starwood plans to deliver the aloft sword into the untapped Indian hospitality market which creates a enormous school principal mark as to whether or non there is a market in India for the deliverance stigmas. The skilled push market is very slim in India, make it heavy to hire the right sign of serve well oriented employees. The cultural differences depart as well as prove to be a repugn for aloft. aloft is a brand that isnt well known end-to-end the international market let wholly the domestic markets in the United States and Canada. many a(prenominal) people travelling to India who atomic number 18 traveling internationally allow be sounding at for brands that are familiar which may pose a threat to the success of the aloft brand in India. Situational AnalysisStrength s India draw outs abundant demand for any hotel company looking to build rooms. The domestic market is growing exponentially and the presidency is replying by resort roads to make travel easier (Simona Terron). Weaknesses conclusion skilled labour has shown to be thorny in India and the adjustment to more westernized businesses leave alone prove to be a challenge for locals. The infrastructure in India is still reasonably bad even though the government is trying to fix the roads. Domestic travelers are used to the roads but abroad travelers forget find it very difficult to navigate through the cities. Indias social unrest pass on be a hurdle that must be overhaul in rank to stabilize the economy as a whole. If the government isnt strong, foreign travelers forget steer overtake of India. OpportunitiesThe open thumb policy created in 2008 opened up travel from India to the UK. The sky travel industry has grown 25 %, creating a bulky opportunity for the service industr y in India (The Financial Express). Threats duration India is growing, there are many new(prenominal) companies that want to ride the wave. According to the topic 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. alternate(a)s (See Appendix) alternate(a) 1 Creating training seminars that locals erect attend impart help Starwood create a labour pussy that is more attractive selection 2 Implementing policies that embrace cultural differences will help ensure the success of the aloft brand in India Alternative 3 Introduce the Four Points by Sheraton brand instead of Aloft as this is a brand that is already recognise internationally. Alternative 4 Instead of introducing the Aloft brand, Starwood should work through a management business type in India.Analysis of Alternatives (See Appendix) Alternative 1 No pretend involved, one hundred% knuckle under on enthronization. Starwood will gain a competitive gain as they will have a better pool of applicants to choose from. Alternative 2 No risk involved, 100% return on investment. The Aloft hotels much follow out ways to dominate the cultural barriers they face in India. Alternative 3 Moderate 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 uniform markets.Recommendations Starwood has a huge opportunity to punch the Indian hotel market and they are not doing so in the right way. Introducing the Aloft brand into India may be flourishing for a while just on the basis that there is a huge demand for rooms but this advantage is not sustainable. Once more hotels enter 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 world-wide Hotels in the Asian market, Starwood should do the kindred in the Indian market. Whether or not Aloft is the brand that Starwood chooses to introduce in the Indian market they will urgency to train potential employees. Starwood needs to offer training seminars for locals to attend in order to train them for service expectations. Starwood will also need to find ways to overcome cultural barriers in India. ImplementationImplementing the training seminars and the cultural embracing policies in the hotels will require human resources. These alternatives will provided take a few weeks to implement and a small totality of reenforcement for incentives.Introducing Four Points by Sheraton and looking at the management business model will need a large amount of capital that, according to the case is already available. The implementation of these two alternative can be done in the comparable way Starwood was going to introduc e the Aloft brand into the Indian market.