Advani Hotels Resorts India (ADHO) SWOT Analysis / TOWS Matrix / MBA Resources
Hotels & Motels
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Advani Hotels Resorts India (India)
Based on various researches at Oak Spring University , Advani Hotels Resorts India is operating in a macro-environment that has been destablized by – technology disruption, increasing commodity prices, customer relationship management is fast transforming because of increasing concerns over data privacy, central banks are concerned over increasing inflation, banking and financial system is disrupted by Bitcoin and other crypto currencies, there is increasing trade war between United States & China, increasing household debt because of falling income levels,
there is backlash against globalization, cloud computing is disrupting traditional business models, etc
Introduction to SWOT Analysis of Advani Hotels Resorts India
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Advani Hotels Resorts India can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Advani Hotels Resorts India, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Advani Hotels Resorts India operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Advani Hotels Resorts India can be done for the following purposes –
1. Strategic planning of Advani Hotels Resorts India
2. Improving business portfolio management of Advani Hotels Resorts India
3. Assessing feasibility of the new initiative in India
4. Making a Hotels & Motels sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Advani Hotels Resorts India
Strengths of Advani Hotels Resorts India | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Advani Hotels Resorts India are -
Learning organization
- Advani Hotels Resorts India is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Advani Hotels Resorts India is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Advani Hotels Resorts India emphasize – knowledge, initiative, and innovation.
Ability to recruit top talent
– Advani Hotels Resorts India is one of the leading players in the Hotels & Motels industry in India. It is in a position to attract the best talent available in India. The firm has a robust talent identification program that helps in identifying the brightest.
Ability to lead change in Hotels & Motels
– Advani Hotels Resorts India is one of the leading players in the Hotels & Motels industry in India. Over the years it has not only transformed the business landscape in the Hotels & Motels industry in India but also across the existing markets. The ability to lead change has enabled Advani Hotels Resorts India in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Cross disciplinary teams
– Horizontal connected teams at the Advani Hotels Resorts India are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
High switching costs
– The high switching costs that Advani Hotels Resorts India has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Digital Transformation in Hotels & Motels industry
- digital transformation varies from industry to industry. For Advani Hotels Resorts India digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Advani Hotels Resorts India has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Operational resilience
– The operational resilience strategy of Advani Hotels Resorts India comprises – understanding the underlying the factors in the Hotels & Motels industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Innovation driven organization
– Advani Hotels Resorts India is one of the most innovative firm in Hotels & Motels sector.
Low bargaining power of suppliers
– Suppliers of Advani Hotels Resorts India in the Services sector have low bargaining power. Advani Hotels Resorts India has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Advani Hotels Resorts India to manage not only supply disruptions but also source products at highly competitive prices.
Effective Research and Development (R&D)
– Advani Hotels Resorts India has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Advani Hotels Resorts India staying ahead in the Hotels & Motels industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Training and development
– Advani Hotels Resorts India has one of the best training and development program in Services industry. The effectiveness of the training programs can be measured in – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
High brand equity
– Advani Hotels Resorts India has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Advani Hotels Resorts India to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Weaknesses of Advani Hotels Resorts India | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Advani Hotels Resorts India are -
Slow to strategic competitive environment developments
– As Advani Hotels Resorts India is one of the leading players in the Hotels & Motels industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Hotels & Motels industry in last five years.
Products dominated business model
– Even though Advani Hotels Resorts India has some of the most successful models in the Hotels & Motels industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. Advani Hotels Resorts India should strive to include more intangible value offerings along with its core products and services.
High cash cycle compare to competitors
Advani Hotels Resorts India has a high cash cycle compare to other players in the Hotels & Motels industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Skills based hiring in Hotels & Motels industry
– The stress on hiring functional specialists at Advani Hotels Resorts India has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Workers concerns about automation
– As automation is fast increasing in the Hotels & Motels industry, Advani Hotels Resorts India needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Increasing silos among functional specialists
– The organizational structure of Advani Hotels Resorts India is dominated by functional specialists. It is not different from other players in the Hotels & Motels industry, but Advani Hotels Resorts India needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Advani Hotels Resorts India to focus more on services in the Hotels & Motels industry rather than just following the product oriented approach.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Advani Hotels Resorts India is slow explore the new channels of communication. These new channels of communication can help Advani Hotels Resorts India to provide better information regarding Hotels & Motels products and services. It can also build an online community to further reach out to potential customers.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Advani Hotels Resorts India supply chain. Even after few cautionary changes, Advani Hotels Resorts India is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Advani Hotels Resorts India vulnerable to further global disruptions in South East Asia.
Low market penetration in new markets
– Outside its home market of India, Advani Hotels Resorts India needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Capital Spending Reduction
– Even during the low interest decade, Advani Hotels Resorts India has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the Hotels & Motels industry using digital technology.
Ability to respond to the competition
– As the decision making is very deliberative at Advani Hotels Resorts India, in the dynamic environment of Hotels & Motels industry it has struggled to respond to the nimble upstart competition. Advani Hotels Resorts India has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Advani Hotels Resorts India Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Advani Hotels Resorts India are -
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Advani Hotels Resorts India to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Hotels & Motels industry, but it has also influenced the consumer preferences. Advani Hotels Resorts India can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Advani Hotels Resorts India can use these opportunities to build new business models that can help the communities that Advani Hotels Resorts India operates in. Secondly it can use opportunities from government spending in Hotels & Motels sector.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Advani Hotels Resorts India is facing challenges because of the dominance of functional experts in the organization. Advani Hotels Resorts India can utilize new technology in the field of Hotels & Motels industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Using analytics as competitive advantage
– Advani Hotels Resorts India has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Hotels & Motels sector. This continuous investment in analytics has enabled Advani Hotels Resorts India to build a competitive advantage using analytics. The analytics driven competitive advantage can help Advani Hotels Resorts India to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Developing new processes and practices
– Advani Hotels Resorts India can develop new processes and procedures in Hotels & Motels industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Creating value in data economy
– The success of analytics program of Advani Hotels Resorts India has opened avenues for new revenue streams for the organization in Hotels & Motels industry. This can help Advani Hotels Resorts India to build a more holistic ecosystem for Advani Hotels Resorts India products in the Hotels & Motels industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Leveraging digital technologies
– Advani Hotels Resorts India can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Manufacturing automation
– Advani Hotels Resorts India can use the latest technology developments to improve its manufacturing and designing process in Hotels & Motels sector. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Advani Hotels Resorts India to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Advani Hotels Resorts India to hire the very best people irrespective of their geographical location.
Low interest rates
– Even though inflation is raising its head in most developed economies, Advani Hotels Resorts India can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Changes in consumer behavior post Covid-19
– consumer behavior has changed in the Hotels & Motels industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Advani Hotels Resorts India can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Advani Hotels Resorts India can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Loyalty marketing
– Advani Hotels Resorts India has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Threats Advani Hotels Resorts India External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Advani Hotels Resorts India are -
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Advani Hotels Resorts India will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Environmental challenges
– Advani Hotels Resorts India needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Advani Hotels Resorts India can take advantage of this fund but it will also bring new competitors in the Hotels & Motels industry.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Advani Hotels Resorts India.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Easy access to finance
– Easy access to finance in Hotels & Motels industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Advani Hotels Resorts India can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Advani Hotels Resorts India business can come under increasing regulations regarding data privacy, data security, etc.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Advani Hotels Resorts India can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate Advani Hotels Resorts India prominent markets.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
High dependence on third party suppliers
– Advani Hotels Resorts India high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Advani Hotels Resorts India needs to understand the core reasons impacting the Hotels & Motels industry. This will help it in building a better workplace.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Advani Hotels Resorts India in the Hotels & Motels sector and impact the bottomline of the organization.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Hotels & Motels industry are lowering. It can presents Advani Hotels Resorts India with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Hotels & Motels sector.
Technology acceleration in Forth Industrial Revolution
– Advani Hotels Resorts India has witnessed rapid integration of technology during Covid-19 in the Hotels & Motels industry. As one of the leading players in the industry, Advani Hotels Resorts India needs to keep up with the evolution of technology in the Hotels & Motels sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Weighted SWOT Analysis of Advani Hotels Resorts India Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Advani Hotels Resorts India needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of Advani Hotels Resorts India is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of Advani Hotels Resorts India is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Advani Hotels Resorts India to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Advani Hotels Resorts India needs to make to build a sustainable competitive advantage.