INDIAN HOTEL COMPANY LIMITED (IHCL)

Founded by Jamsetji Tata in 1868, the Tata group is a global enterprise, comprising over 100 independently
operating companies. The group operates in more than six continents with a mission to improve the quality
of life of the communities it serves globally. Through long-term stakeholder value creation based on
‘Leadership with Trust', the Tata brand stands as a lasting promise behind its businesses, many of which are
industry leaders. IHCL is honoured to be one of the first of those timeless and tireless initiatives.

IHCL is reimagining itself by leveraging its strong brand equity to multiply its portfolio while aligning with
high-growth segments. This include manoeuvering excellence while reinvigorating its portfolio across all
brands.

 
SWOT Analysis of Indian Hotels Co.

Strengths
Strengths are the firm's capabilities and resources that it can use to design, develop, and sustain competitive
advantage in the marketplace

- First mover advantage in the increasingly crowded market place. The new products are rapidly increasing
Indian Hotels Co. market share in the Hotels & Motels industry.

- Market Leadership Position - Indian Hotels Co. has a strong market leadership position in the Hotels &
Motels industry. It has helped the company to rapidly scale new products successes.

- Talent management at Indian Hotels Co. and skill development of the employees - Human resources are
integral to the success of Indian Hotels Co. in Hotels & Motels industry.

- Success of new product mix - Indian Hotels Co. provides exhaustive product mix options to its customers.
It helps the company in catering to various customers segments in the Hotels & Motels industry.

- Track record of innovation - Even though most players in the Services strive to innovate, Indian Hotels
Co. has successful record at consumer driven innovation.

- Brands catering to different customers segments within Hotels & Motels segment - Indian Hotels Co.
extensive product offerings have helped the company to penetrate different customer segments in Hotels &
Motels segment. It has also helped the organization to diversify revenue streams.

Weaknesses
Weaknesses of Indian Hotels Co. can either be absence of strengths or resources of capabilities that are
required but at present the organization doesn't have. Decision makers have to be certain if the weakness is
present because of lack of strategic planning or as a result of strategic choice.

- High turnover of employees at the lower levels is also a concern for the Indian Hotels Co. . It can lead to
higher salaries to maintain the talent within the firm.

- Low investments into Indian Hotels Co.'s customer oriented services - This can lead to competitors gaining
advantage in near future. Indian Hotels Co. needs to increase investment into research and development
especially in customer services oriented applications.

- Business Model of Indian Hotels Co. can be easily imitated by the competitors in the Hotels & Motels
industry. To overcome these challenges companyname needs to build a platform model that can integrate
suppliers, vendors and end users.

- High cost of replacing existing experts within the Indian Hotels Co.. Few employees are responsible for the
Indian Hotels Co.'s knowledge base and replacing them will be extremely difficult in the present conditions.

- Extra cost of building new supply chain and logistics network - Internet and Artificial Intelligence has
significantly altered the business model in the Services industry and given the decreasing significance of the
dealer network Indian Hotels Co. has to build a new robust supply chain network. That can be extremely
expensive.
- Gross Margins and Operating Margins which could be improved and going forward may put pressure on
the Indian Hotels Co. financial statement.

Opportunities
Opportunities are potential areas where the firm chan identify potential for - growth, profits, and market
share.

- Lower inflation rate - The low inflation rate bring more stability in the market, enable credit at lower
interest rate to the customers of Indian Hotels Co.. This will increase the consumption of Indian Hotels Co.
products.

- Opportunities in Online Space - Increasing adoption of online services by customers will also enable
Indian Hotels Co. to provide new offerings to the customers in Hotels & Motels industry.

- Increasing government regulations are making it difficult for un-organized players to operate in the Hotels
& Motels industry. This can provide Indian Hotels Co. an opportunity to increase the customer base.

- Lowering of the cost of new product launches through third party retail partners and dedicated social
network. Indian Hotels Co. can use the emerging trend to start small before scaling up after initial success of
a new product.

Threats

Threats are factors that can be potential dangers to the firm's business models because of changes in macro
economic factors and changing consumer perceptions. Threats can be managed but not controlled.

- Competitive pressures - As the new product launch cycles are reducing in the Services industry. It has put
additional competitive pressures on players such as Indian Hotels Co.. Given the large customer base, Indian
Hotels Co. can't respond quickly to the needs of the niche markets that disruptors are focusing on.

- Changing political environment with US and China trade war, Brexit impacting European Union, and
overall instability in the middle east can impact Indian Hotels Co. business both in local market and in
international market.

- Competitors catching up with the product development - Even though at present the Indian Hotels Co. is
still leader in product innovation in the Hotels & Motels segment. It is facing stiff challenges from
international and local competitors.

- Commoditization of the product segment - The biggest challenge for Indian Hotels Co. and other players in
the industry is the increasing commoditization of the products in Services industry.

- Shortage of skilled human resources - Given the high turnover of employees and increasing dependence on
innovative solution, companyname can face skilled human resources challenges in the near future.

- Distrust of institutions and increasing threat of legal actions for Indian Hotels Co. - As the WTO
regulations and laws are difficult to enforce in various markets. Legal procedures have become expensive
and long drawn process. It can lead to less investment into emerging markets by Indian Hotels Co. thus
resulting in slower growth.