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• Prashant
• Rohan
• Prasad
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• Prajwal
• Kushal
• Datta
• Mahesh
• Banti Raja
• Sandeep. P
•Hospitality Industry
Our Mission
Porter’s five forces analysis
• High initial investment and first
mover advantage ensures high
entry barriers.
• Threat of substitutes is low.
• Bargaining power of supplier and
customers is low.
• Exit barriers are very low as fixed
investments (land and building)
are easy to recover.
Swot Analysis
Strengths Weakness
First mover advantage. Differentiation is low, easy to
Stable returns. imitate.
Exit barriers are low. Availability of required land.
Few growth avenues.
Entry barriers are low.
Opportunities Threats
Market size. Unorganized players.
Tie ups with hospitals in Hospitals may venture into
metros. this field.
Franchise Demand is derived from
hospitals.
Marketing & Sales
• Tie-up with NGOs /social workers
• Branding & Awareness:
- tie ups with hospitals (in metros), and franchises
if possible
- Occupancy in Aashray’s cannot be expected to
be very high in the initial phase of the launch. As the
service is new and in its introductory phase,
awareness will definitely add to the customers base.
Financial Planning & Financing Needs
• Revenue:
- Revenue will be mainly contributed by the rentals of the
rooms.
• Costs:
Fixed costs included:
• Administrative and general expenses (a small portion is variable)
• Property taxes
• Insurance
• Payroll
Semi-fixed expenses include:
• Energy costs
• Operation and maintenance expenses
Business Risks
Competition:
• The idea is simple and easy to initiate.
competition can be from the following-:
---- Big players may enter the fray.
---- Competition from unorganized and
domestic players (Dharmashala’s, paying
guest services and rented flats) may intensify.
---- Few hospitals may find it profitable to start
their own accommodation facilities
Demand:
• Competitions may results in price reduction and
fall in occupancy.
Construction:
• Rise in cost of raw materials (overshooting of
budgeted cost).
• Delay in construction due to various factors like
labor strike force, major change in government
policies, and irregularly in supply of Raw material.
Measure To Counter Risks
• Judiciously identify lucrative locations and try to
leverage on first mover advantage. Thus
discouraging the big players to enter competition.
A 125
B 150
C 175
The total capital required to build these five Aashrays
depends on:
Phase 2:
• This is the expansion phase. Using flows from
existing Aashrays get into newer locations.
• Having achieved learning curve; explore the
possibility of venturing into metros.
• Possibility of building Aashrays in areas located centrally
between big hospitals in the metros to carter to all of
them simultaneously.
• Explore the possibility of catering to ‘medical tourists’.
• Keep the options for franchising open.
Phase 3:
• The industry is in maturity phase.
• Choose between milking the cash cows and venturing into
new avenues.
• Learning curve may help in venturing into
following-
Identifying educational centers without
hostels and providing dormitory for students.
Working women hostel.
Residential facility for BPO employees.
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