Tune Hotel,

Hanoor Annisa Amir

 Tune Hotel, Bali
 Tunes hotel Bali, open in Legian
and Kuta Beach.

 Tunes hotel star at room rate Rp.

98000 ($ 10.5)

 The budget hotel follows closely

AirAsia's model by offering rooms
for accommodation at attractive
prices.
 Balance Score Card
 Vision

 To be hotel chain that offer high

quality rooms with low price.

 ( 5 Star Sleeping experience with 1

Star price )

 Mission

 To provide hotel service resulting

long term satisfaction of our
stakeholders.
 Tune Hotel Product
 Limited Service

 Low Price, Low Service

 Omitting conventional full Service

 Additional amenities and services like

toiletries, air-conditioning, TV and in-room
Wifi are offered as “pay as you use” extras.

 Hotel space is also available for rent to

advertisers (indoors, outdoors as well as
whole floors) also on room walls, on room
keys, in hallways and in the lobby.

 Major Brand that have advertisement =

 Nestle, CIMB Bank, King Koil

 Unit Selling Point
 Tune Hotel design its hotels, rooms and business for guests who
are more likely to spend most of their time out and about during
the day time.
 Its five unique selling propositions are:
 5-star beds
 Heated, high-pressure Power Showers
 Central and strategic locations
 Clean environment
 Safe and secure environment with 24-hour security guards on
duty and extensive CCTV coverage
 SWOT
 Strength  Opportunity

 Low price in the market.  High Tourism market in Bali.

 High market in the Air Asia  There is a lack of hotel that are
Customer. cheap and good quality rooms.

 Weakness  Threats

 Low Quality Workers.  Indonesia Economic and Political

Crisis
 PESTEL
 Risk of Political Instability, 2010 Country Rating1

Political =  Australia 9.24

 Singapore 8.78

Instability from
 New Zealand 8.76

 Germany 8.49

 France 8.46

government 


United States 8.16

Hong Kong SAR 7.49

Uncertainty of United Kingdom 7.41



 China 7.12

government changing
 India 7.08

 Malaysia 6.90

 Taiwan 6.42

Developing Taxation 


Korea

Japan
5.72

5.40

 Indonesia 4.94

Security Issues  Philippines 3.50

 Thailand 1.75

 Footnotes:1: 0 = very high, 10 = very low

 Economic
 Instable Economic Policy
 Global Financial Crisis
 Increasing in hotel competitive in the hotel industry
 PASTEL, cont
 Social  Technology
 Low minimum income for labor
 Challenges of Technology in
 Low Level of Education Indonesia.
 The high gap between low and medium to high
income.

 High Consumerism  Law and Regulation

 UMR ( Minimum wages by

regulations )
 Environment
 800.000,0 ( $ 79 )
 Natural Disaster

 National Security  Instable Regulations.

 Porters 5 Forces Model
 Threats of new Entrants  Threat of Substitute

 Capital Requirement, the start up  There are number of low price

cost for making investment are hotel in this area.
better compare to other country.

 Experience, Tune Hotel recruit

Indonesian employee and
shareholder.

 Cost Competitive, Tunes hotel are

the cheapest hotel in the area.
 Porters, cont
 The bargaining power of buyers  The Bargaining Power suppliers

 Low degree of dependency  High variations of distribution

channels
 High buyer information
availability  High substitutes but quality
questionable.
 Unique of our hotel product.
Porters Generic Strategies
 Tunes Hotel is Cost Leadership for Hospitality, not just
one specific market can be family, business etc
 They have the lowest price in the hotel industry in Bali,
but they have profit from cost effective and efficiency.
 COMMENTS
 Good background
 Identification of cost leadership strategy
 The PEST should have come first giving more structure
 Think of the S and its effect on E and the environment
and then link to business implications
 SWOT identified and utlised, develop criticality
 Use of P 5 Forces could have been more critical
 Fair attempt.
 Reference List
 harp, Byron; Dawes, John (1996), "Is Differentiation Optional? A Critique of Porter's
Generic Strategy Typology," in Management, Marketing and the Competitive
Process, Peter Earl, Ed. London: Edward Elgar.
^ Speed, Richard J. (1989), "Oh Mr Porter! A Re-Appraisal of Competitive Stra
tegy," Marketing Intelligence and Planning, 7 (5/6), 8-11.
^ Yetton, Philip, Jane Craig, Jeremy Davis, and Fred Hilmer (1992), "Are Diam
onds a Country's Best Friend? A Critique of Porter's Theory of National Comp
etition as Applied to Canada, New Zealand and Australia," Australian Journal
of Management, 17 (No. 1, June), 89-120.
^ Allio, Robert J. (1990), "Flaws in Porter's Competitive Diamond?," Planning
Review, 18 (No. 5, September/October), 28-32
.
 "Indonesia: Country Brief".
Indonesia:Key Development Data & Statistics. The World Bank. September 2006.^
"Historical Exchange Rates". OANDA. 7 January 2010. Retrieved 28 April 2010.
 Indonesian Central Statistics Bureau (1 September 2006).
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the original on September 27, 2006. Retrieved 26 September 2006.
 "Indonesia". InterKnowledge Corp.. Retrieved 6 October 2006.