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Effectiveness of OYO company in China market

China market is one of the world’s most difficult markets to enter for Global players. As we could see
players like Amazon, Uber and Google have a tough time penetrating the Chinese market. Mainly
their markets are dominated by local players. OYO had a different launch strategy, they treated
China as its home market and used a hyperlocal approach to do so. Only 19% of hotels in China were
controlled by large hotel chains rest were operated by local owners. The China market was open to
those who focused on the quality of its service and offerings to differentiate themselves from its
competitors. The next strategy they used where they hired their staff locally and they did not give
importance to their staff in knowing English proficiency. In 2019 only 20 out of 6000 staff in China
spoke English. The fundamental models the company adopted were stringent décor and
convenience standards established before they were fully operational. OYO first targeted first-tier
cities and later planted their roots in second- and third-tier cities for the middle class.

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