An analysis on Taj Hotels, Resorts and Palaces with the help of SWOT, PESTLE and PORTER's 5 Forces to understand the performance of the company in the business market and the way it tackles the Corona Virus situation to stay in business and keep the position that it holds in the market. The presentation also tells about the company, suggests a few ideas and offers a conclusion on the future of the company.
2. BY: ESHAN JAIN
ABOUT TAJ HOTELS
Taj Hotels is a chain of luxury hotels and a subsidiary of the Indian Hotels Company
Limited headquartered at Express Towers, Nariman Point in Mumbai. Incorporated
by the founder of the Tata Group, Jamsetji Tata, in 1903, the company is a part of
the Tata Group, one of India's largest business conglomerates. The company
employes over 20,000 people. As of now, the company operates a total of around
110 hotels and hotel-resorts, with 84 hotels across India and around 16 hotels in
other countries, including Bhutan, Malaysia, Maldives, Nepal, South Africa, Sri
Lanka, UAE, Taj Hotels UK, USA and Zambia.
MISSION
“To improve the quality of life of the
communities we serve globally
through long term stakeholder value
creation based on Leadership with
Trust”.
VISION
“25% of the world’s population will experience the Tata
commitment to improving the quality of life of customers and
communities. As a result, Tata will be amongst the 25 most
admired corporate and employer brands globally, with a
market capitalization comparable to the 25 most valuable
companies in the world.”
SERVICES OFFERED
Hotels
Taj SATS-Air Catering
Taj Luxury Residences
Taj Air-Private Luxury Jets
Indi Travel Pvt ltd.
Renting of Cars
Tourism services
GOAL
Their goal is to become the
largest hotel brand in Indian
a n d d e v e l o p i n t o
international hotel brand
representing its home
country.
3. BY: ESHAN JAIN
• Group comprises of around 110 hotels
across India and the world.
• TAJ structures are iconic in themselves
and the location are strategic.
• The hotel has the first mover advantage
and had an early global expansion.
• The company employs around 20000
people and all are loyal to the brand TAJ.
• It offers the perfect experience of Indian
luxury living and is considered to be the
most premium hotel chain in India.
• Has one of the most famous Brand
names.
• Due to increase in the promotion of
Incredible India, there is a sharp increase
in the number of tourists.
• The luxury market is slowly expanding in
India.
• Middle affluent class.
• There is a gateway to capture the middle
class segment of the customers.
SWOT
ANALYSIS
STRENGTH
OPPORTUNITIES THREAT
WEAKNESS
• Has a complex ownership structure.
• Due to the terrorist attacks on TAJ
Mumbai, question on security arises.
• Is slowly losing the emotional appeal
due to completion from market.
• The prices are high and does not appeal
to the middle class and below.
• There are other heritage properties in
India.
• Increase of competition from the local
players.
• Increase in competition due to the
increase of presence of International
brands in India.
• The market share is slowly dropping in
the upper class as they have many other
options to chose from.
4. BY: ESHAN JAIN
PESTLE
ANALYSIS
The rules and regulation imposed by
the political party or government of the
country in which the hotel is operating
influences the overall performance of
the brand. Taj Hotels ensures that it is
in accordance with these rules and
regulations and the country in which it
is operating benefits from it. It often
formulates its rules and regulation in
order to suit the place where the hotel
is and thus operates smoothly.
The Social factor influences any brand
as people of different places have
different culture and eating habit. Taj
ensures that the place where it is
operating meets the expectations of
the people of that place and offers
local and famous dishes of the place
and also, often celebrates festivals
popular in those places.
Economies play an important role in
determining how the particular
o r g a n i s a t i o n i s o r w o u l d b e
performing. The company needs to
publish its financial data so that it
keeps its investor well informed about
how the company is doing. In an event
of world recession, as can be seen in
COVID virus situation, the performance
of TAJ has also dropped down as the
traveller visiting have dropped.
Brands these days use the most
advanced technology in order to
ensure an edge over its competitors
and see that the customers are
satisfied. Taj Hotels uses the most
advanced form of technology available
to hospitality sector and offers wide
variety of online booking options along
with customer services and ensures
that its customers are satisfied and
hence has an edge over competitors.
Different nations have different laws
prevailing In that particular place and
the company operating must ensure
that it does not break any of those. Taj
Hotels ensures that it has properly
studied the laws of the place where it
is presently functioning or is about to
f u n c t i o n s o t h a t t h e r e i s n o
complications in the near future
because of the same. Taj Hotels also
stick to the taxation laws strictly.
Taj hotels presented the EARTH project
( Environment Awareness and Renewal
at Taj Hotels) which represent the
efforts of one of Asia’s biggest, leading
and premium group of hotels’
commitment for the conservation of
the energy and managing of the
environment.
POLITICAL ECONOMIC SOCIAL
TECHNOLOGICAL LEGAL ENVIRONMENTAL
5. BY: ESHAN JAIN
This is nothing but the level of
competition from the market from the
companies offering the same product
and services. Taj Hotels support open
market competition and continuously
checks what its competitors are doing.
According to that it introduces new
products and services for its customers
and sees that the customers it is serving
have maximum satisfaction. In this
manner Taj Hotels stays at the number
one position where ever they operate.
Suppliers are the ones that
provide the company with the raw
materials and in turn the company
produces the product. If the supplier
demands higher price, then the
profitability of the company will drop
down automatically. Taj Hotels, being a
part of The TATA Groups controls the
suppliers in the Indian market and faces
no issues but in international market it
still faces issues. To tackle the issues in
the international market it ensures to
partner with trusted suppliers only.
New entrant increases the competition
in that market and results in drop of
prices by the organisation in order to
attract customers. For Taj Hotels, the
risk of new entrants and threat from it is
quite high. Companies like Hyatt, Hilton,
ITC, Oberoi, etc are a huge threat to taj
Hotels and their presence is increasing
in the Indian market due to the
expansion of the tourist Industry in
India.
Substitutes are nothing but the
companies that offer the exact same
product as yours in same or lower
prices. For Taj Hotels, the substitutes in
Indian markets are Oberoi and ITC
hotels that give stiff competition to Taj
Hotels. In business hotels, it has come
up with brands like VIVANTA by Taj in
order to stay in the number one position
and compete with likes of Hyatt
Business hotels and ITC Business hotels.
There is no major competition to Taj
SATs group in the market.
Bargaining power of buyers are
nothing but the way in which the
buyers influences the rates of the
services being offered by the company.
A single buyer might not influence the
price so much but buyer as a whole
segment might because of the various
alternatives available in the market. For
Taj hotels, owing to its great customer
loyalty, the buyer does not have much
power in influencing its prices and
hence are not a big threat to the
organisation.
THREAT OF NEW ENTRANT
THREAT OF SUBSTITUTEBARGAINING POWER OF SUPPLIER
BARGAINING POWER OF BUYERS
RIVALRY AMONG EXISTING COMPETITORS
PORTER’S5FORCES
6. BY: ESHAN JAIN
YEAR2020ANDCORONAVIRUS
Year 2020 has not been the best year for the economy of the country due to the
Corona Virus spread. The company is in complete or partial lockdown since March and
the number of cases are increasing close to 50000 cases a day which is alarming in
itself. Owing to this development of Corona Virus and lack of any vaccine to fight the
virus in the market, almost all the industry are suffering losses. The economy of the
world is shattering day by day and there is a different level of unrest through out. One
can also see a dynamic shift in the working types, as work from home has become
more prevalent owing to the presence of the virus. There is no interstate movement
among the people of the country. The railways are operating in the minimal capacity
just to move the labourers from their working place to home town. Air travel is also
limited and is quite expensive these days. Almost no industry is spared from the wrath
of the virus and the implication it imposes on each company and sector.
The industries that has been
majorly affected by the virus are
as follows:
• Tech Industry
• Insurance
• Sports and Entertainment
• Hyper local markets
• Travels and Tourism
• Retail and e-commerce
• FinTechOut of the mentioned industries, the Travel and Tourism industry has suffered the
maximum owing to the fear of the virus spread and because of this Hospitality sector
has faced a major backslash in its performance. With most of the hotels going out of
business due to the losses being suffered or unavailability of the human resources. Taj
Hotels has also suffered major loss as it has remained non-operational throughout the
lockdown owing to the safety of the staff and its customers. It is after 2 months almost,
post which the lockdown has been lifted partially, that Taj Hotels has opened for the
customers again but with new measures and safety precaution.
7. BY: ESHAN JAIN
MEASURESTAKENBYTAJHOTELSAMIDSTTHECORONAVIRUSCRISIS
One has seen a dynamic change in which the companies have started
started operating amidst the corona virus. After the partial lift in lockdown,
travel industry has slowly resumed and one can see the mild increase in the
number of travellers maximum of which are travellers out due to work. Owing
to the on going virus, Taj Hotels have also taken up few of these mentioned
steps.
Indian Hotels Company (IHCL)
announced that hotels under its
brands like Taj Hotels, resorts and
Safaris, Vivanta, SeleQtions and
Ginger are now implementing safety
measures amid the COVID-19
pandemic for people availing their
services.
Mandatory temperature checks of all the guests
availing the services of the hotels along with the staff
and associates of hotels have to be done upon
entering.
G u e s t s a n d s t a ff
related to hotels have
t o s u b m i t h e al t h
declaration befogging
entering the hotel.
All the staff of the hotels have easy and quick
access to all the sanitation measures and also
have access to safety equipment in order to
keep themselves safe.
Surfaces, fittings, fixtures, furniture,
equipment, stationery, vehicles, cutlery,
crockery, linen and laundry are being
disinfected at regular intervals or upon
every use.
Menus are to be largely digital or for
single use, with more emphasis on
healthier foods for better immunity.
Layouts and movement guidelines
across common areas, lobbies,
elevators, restaurants, banquets and
service areas have been altered to allow
for physical distancing.
8. BY: ESHAN JAIN
Even during the pandemic situation caused due to the Corona Virus, the Brand Value of Taj Hotels haven’t
dropped. The reason being the goodwill that it has established over the years of its operation in the
industry. There are certain factors that have contributed to the on going value of the Brand Taj which have
been discussed further.
Taj Hotels haven’t fired any of its employs and hence ensure the
retention value of the employs in the company. It has also seen to the
fact that all its employs get payment as and when they are owed.
One can also see from the SWOT analysis that the strength and opportunities of the
company is way more compared to its Threat and weaknesses.
This shows that the company is to remain profitable and has better chances of doing
better than doing bad.
From the PESTLE analysis we come to know that the company has established its ground well and will
not face any complications due to political, economical, social, technical, legal or environmental issues
and hence can operate without any inconvenience in future and yield better profits.
From the PORTER’s 5 Factors it is clear to us that the Taj Group of Hotels have managed its competition
well and has an ability to stay at the number one position even after facing challenges from its competition.
This ensures that the future of the company is secured.
The way Taj Hotels is tackling the situation being
imposed due to the corona virus is commendable and
hence shows to us all the ability of the company to face
a crisis and deal with it properly.The charities of the Taj Hotels and the way it has offered its rooms to the government
to tackle the situation of the Corona Virus, has shown to the customers that Taj is a
brand that believes in giving back and hence captured the heart of its customers.
These points are a proof that the future of the company is not just safe but also quite bright.
FUTUREOFTHECOMPANY
9. BY: ESHAN JAIN
SUGGESTION:
Taj Hotels can offer more discounts in their prices in order to woo customers for the timing and see to it that
the costs of the Hotels are met. It can also see that more charitable runs are done by the company in order to
further improve the Brand Value of the company. It can ensure the safety of all the customers that are
availing the services of the hotels and do a documentary on the same to gain trust of the future and prospect
customers. Taj Hotels can introduce variety of future offers and membership for all those customers who are
planning to go on a trip in future after the virus situation is handle in order to increase the cash flow to the
company. The hotel can also take this opportunity of lockdown to renovate its existing structures, specially
those which require immediate attention or are old. The company can also take this opportunity to further
improve its technologies and find out more ways to see that the customer satisfaction is met and hence
continue to remain the industry leader that they are.
CONCLUSION:
One can easily conclude that Taj Hotels are adaptive in nature and when they sense a competition or a threat,
they come up with an immediate solution to answer it. They are launching various hotel chains in order to
successfully acquire customers from upper class to middle class and also trying to capture the business class
segment. By introducing new projects they are protecting the value of the share of the company and ensure that
the faith of the stake holders isn’t lost in the process. Taj Hotel is trying to have its presence globally and the
way that they are approaching the situation, it seems that it wouldn’t be as difficult for them. Taj hotels is also
backed by TATA Groups which gives them added advantage of surplus financial aids as and when required by it
and ensures the safety of the company’s future.