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Name: Soura Shankar De Date: 02/08/2011

Course: Hospitality Management Code: MHT 708

ITC Sonar Bangla


Strengths: 1) Established player in Kolkata since a few years, so expansion project will be easier to handle and execute than a new establishment. 2) Easy access to airport and to various parts of the city. 3) Strong brand image in India, also known for its customer pampering service. 4) ITC Sonar is the 1st 5Star hotel in the world to earn carbon credits. The expansion project will ensure it will earn even more carbon credits, thus lead to increase in assets which can be encashed later. 5) Reputation to have hosted various State guests and celebrities. 6) Kolkata Municipal Corporation has already taken up construction of Rs 7 crore road on the western side of the hotel.

Weakness: 1) A 738 room inventory might be difficult to sell during off seasons. 2) Huge capital investment. 3) Location of the Milon Mela grounds just behind the hotel might be a cause of distraction to the guests and cause dust pollution.

Oppertunities: 1) Expected rise of industrialization in and around Kolkata will help ITC get more customers. 2) After addition of the 500 room new complex ITC Sonar will have an inventory of 738 rooms, which will be highest in Kolkata. Therefore, will be better equipped to handle bulk deals ( like during IPL) than its competitors. 3) A 500 room new complex will have even wider and exotic spread of F&B outlets attracting customers to stay in ITC Sonar over its competitors and will also appeal to customers who visits the hotel only for these F&B outlets.

Threats: 1) Sudden change in economic and political scenario of Kolkata. 2) Marriot coming up on the adjoining plot as well as other 5 star properties coming up in the city.

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