Development strategy

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Prepared by Ekaterina Bachurina
I year student of the Master course
International business
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Plan of the presentation
 Introduction
 Relevance
 Research
of the topic
methods and tools
 Company’s
 Global
profile
marketing strategy in practice
 Conclusion
+ Introduction
The topic of my thesis is:
“Modern development strategies of hospitality business :
example of the hotel operator Accor Group.”
Plan of my dissertation:
1. Marketing development strategies
2. Functional marketing strategies
3. Management development strategies
4. Development strategies Accor Group resorts
to and relevance of international hospitality
business expertise for Russia
+ Relevance
2002:
Direct contribution to world GDP - 2.1 trillion $
Direct contribution to employment - 101 million jobs.
Direct, indirect and induced impact :
6.6 trillion $ to world GDP 9% of total economy GDP in 2012
260 million in jobs1 in 11 jobs
760 billion $ in investment 5% of total economy investment
1.2 trillion$ in exports5% of world exports.
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Relevance
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Shift in the ‘world order’ of Travel& Tourism as
Asia, Latin America and Sub-Saharan Africa has
been among the fastest growing markets;
Meeting demand of savvy clients;
Russia has become a member of WTO and formed
the Custom Union with Belorussia an Kazakhstan.
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Research methods and tools
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Qualitative methods :
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Observation methods,
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Document review,
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Literature search;
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Quantitative methods :
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Talking with people,
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Questioning,
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Email surveys and internet surveys.
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Accor: company profile
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Accor: Brand Portfolio
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One of the strategies in practice
This strategy mainly contains of the following
components:
 Consolidation
of capitals through M&A
 Franchising, management
 Diversification
and integration
 Global, multination
strategy
and alliances
strategy and partial adaptation
+ Consolidation of capitals through
M&A
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2012: the Group added 266 hotels (38,085 rooms) to its
portfolio through acquisitions and organic growth.
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Cementing the Group’s leadership in Europe and swiftly
developing its presence in emerging countries;
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Demergers
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Franchising, management and alliances are more preferable
Hotel portfolio by ownership
structure
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
Franchising and
management
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
Topline and marginal
growth
Risk diversification
Excess to foreign
markets
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Alliances and partnerships
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This type of cooperation is concerned with business
segments that offer a potential for synergies or that target the
same customer base known for its mobility: transport,
leisure activities, information and travel-related services.
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Cost cutting;
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Increase of visibility and recognition of their brands;

Creating value for customers.
Diversification
Accor
Service
Complementary
activities
Hotels
Ticket
restaurant
Other
products
Training
services
and
consulting
Accor
Academy
Apartments
Aparthotels
Adagio
-The Sebel
Davidso
n
Trahaire
Restaurants
Motivan
o UK
Surf
Gold
Thalassa
sea & spa
Casinos
Groupe
Lucien
Barrière
SAS.
Asset-management program aimed at
reducing its hotel portfolio’s capital
intensity and cash-flow volatility.
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Integration
Integration forward  clients –
developing
Integration backwards supplier –
doesn’t exist – only sustainable
development request and partnerships
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Globalization and
standardization
Globalization and standardization
Development strategy:
Tailoring its brands more closely to local
preferences and enhancing their flexibility
Standard
Adapted
Standard
Ibis
Mercure
Adapted
Advertising campaign
Services
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Sofitel
Mei Jue (Grand Mercure)
+ Pure adaptation
MGallery brand
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Conclusion
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Global strategy is vitally important for Accor group
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M&A:-relevant for emerging markets
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Harnessing external growth opportunities, i.e. partnerships or
acquisitions, to consolidate the Group’s leadership in the most
attractive markets with asset-light operations.  Prevailing
importance of operating by franchise agreements;
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Ramping up franchise development in the midscale and economy
segments
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Investing selectively in high-margin projects in prime locations,
especially in the economy segment in Europe,
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Partnerships- as the key component of sustainable growth;
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Tailoring its brands more closely to local preferences and enhancing
their flexibility.
Thank you for your attention!
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