Analyse whether OYO has a Sustainable competitive advantage using

We have used Tetra thread framework for sustainability analysis of OYO. This thread framework explains the four threats to sustainability as
the tetra threat framework well as responses to them as competitive strategy has been to outperform its competitors by being
a global hospitality industry in the world to invest in innovative and advanced technology to a for excellent customer experience and drive a
sustainable business for asset owner.
the focus on technology being the core tool for growth and to build the competitive advantage for them in hospitality industry. They are the
first hospitality company in the world to invest in innovative and advanced technology, to offer excellent customer experience and drive
sustainable business for estate owners. They use innovative technology solution end-to-end to facilitate standardization of services and
duties and in room experiences thereby helping maintain service standards.
Positioning of OYO has been chosen to be standardized budget hotels in greater spread across the nation which provides the value for money
and no compromise on quality it has positioned itself as a brand which cares about the customer
Responses to imitation –

• Scale Economies - scale economies and marketing power was brought in by OYO and also used an effective online mobile platform to reach out to a large segment of consumers to
reduce the inability to reach out to more customers and decrease the lower occupancy rates.
• Switching costs/Relationships - OYO has forced partnership with other aggregators who operated and complementary business to build a strong ecosystem like, Ola cabs was chosen
for travel services, Zomato - restaurant finder, contributed services related to food and MobiKwik was used for easy online payments.
• Upgrading – Apart from spreading vast in the field of technology, OYO had more than 4000 budget hotels by December 2015 and further pursued the
international expansion with three newly acquired properties in Malaysia, OYO became the largest branded hotel network in India by taking over
Indian hotels which was previously owned by the multinational conglomerate Tata group.
• Business Model/Design Management - with the goal of changing the way people stay away from home OYO relied on three pillars of standardization, affordability and technology
driven experience. Oyo also added exponential value through standardizing the facilities, training staff for efficient operations and improving customer experience and above all
excellent marketing.
• Learning/Private Information – OYO have analyzed Indian market and Indian customers they know the behavior of Indian customers who has played in all over India they know India
from death they know how to get the best employers and retain the customers and how to manage them
Responses to Substitution –

Copying OYO’s business model, many copycats were seen turning vicious for the company,
The online hotel aggregation the sea was flooded by start-ups like Fab hotel Vista rooms Treebo hotels, these startups sense the opportunity and entered the market with a lot other
activity.
These new launches posted threats to OYO.
Company has invested heavily in technology in order to keep pace with the competition company. Machinery learning and artificial intelligence is introduced to disrupt the hospitality
sector. A new development Centre was planned to be launched in Hyderabad to revamp the company’s tech arsenal.

Responses to Holdups –

• Contracting - Booking confirmation, location, navigation details, and cancellation can be managed through communication platform such as WhatsApp. Electronic payment services
such as Paytm. Taxi service providers such as OLA. Dinner Reservation Services such as Dineout. GPS services with Google maps. In-room entertainment services with Netflix

• Integration – at OYO they have an extensive demand network where one can reach OYO’s loyal customers and get direct demand from the toprated OYO app, website and call-center.
Be seen 24x7 across their expansive network of corporate channels, micro-markets, call-center sales and promoter channels looking after 500K+ travellers.
Apart from this the on-demand service business would cater to the housekeeping and service operations we also offered a new keyless check in.

• Bargaining power - Powerful buyers could flip the side of the powerful supplies by forcing the prices to move downwards and by demanding high quality and services by creating a
competition between the participants in the industry on the basis of price and quantity. Oyo customers are deemed strong if they contain negotiating leverage specifically if the industry
is sensitive to price, the buyers can pressure suppliers for further price reductions.
• Building Relationships/developing trust - at OYO they claim that the consumers check into their rooms to escape the extreme heat, and sometimes
enjoy the affordable hotel with their parents, as the cost was the lowest in the industry. OYO demonstrated that they were able to retain and convert the
first-time users to repeat customers and approximately one third of its total customers were repeat customers and the adopted this price as a
competitive advantage to build customer relationships and trust.
Self-Serve Platform – Oyo has self-serve website and app, which is a primary tool for customers to access Oyo services. It has over 10 million+ app downloads so far.
Hotel accommodation Staff – the hotel staff interacts with customers at the time of check-in and provides hotel services.
Customer Service Support – It maintains 24/7 active customer support to respond to customer queries. Moreover, to ensure customer loyalty and increase their trust, Oyo tracks their
Net Promoter Score metric thoroughly. And that’s its why customer repeat rate of Oyo is highest in the industry.
Social Media – It does brilliant digital marketing and social media networking to reach customers.
Responses to Slacks –

• Gathering Information - At OYO auditing is done by monitoring customers feedback and ratings at the time of the check out this
feedback was integrated with customer support systems hotels are required to upload the information including the images through the
app and these results were compared to the customers feedback to make sure that the feedback was entered correctly and the auditing
was done right the owners were advised to improve the material and the service quality based on the inspection result.

• Monitoring Behaviour - At OYO, every decision they take is to drive a stellar end-to-end customer experience. They do this by leveraging
technology to drive efficiency, reduce friction, and even predict customer behaviour. This is where data science plays a critical role. The
data science team constantly gathers insights and feedback to make the OYO experience more personalized and consumer-centric. The
idea is to understand what exactly the customer wants and how can we best deliver it to him/her.

• Mobilizing for change - After acquiring a property OYO implements service quality through standard technology operations,
infrastructure and customer experience. The transformation involves exhausted checklists, negotiating and amenities vendor and hands-on
management of the transition.
• Bounding Resources - Hi-tech app architecture, leased and franchised hotel properties with over 1.2 million+
rooms. Customer Database – Oyo has a large database of loyal repeat customers. Employees with
technical knowledge like programming, development, and maintenance, and other staff for business management.
Venture Funding – Oyo has secured funding from many venture capital firms such as Sequoia Capital, SoftBank’s Vision Fund, etc.