STRATEGIC-MANAGEMENT

Section: E
Group: BACKBENCHER

Arvind’s Case Analysis

GROUP MEMBER’S NAME ID

MST. SABRIN SHAKHA MIM 19-41144-2

RAFSUN RAHMAN(leader) 19-41134-2

SHAFAYET SHAFIN 19-40324-1

SUSMITA ROY SHOSHI 19-41094-2

SHAYAK ALAM SHAD 20-42658-1

Submitted to:

Dr. Mohammad Ali

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 ANSWER TO THE QUESTION 01
Arvind is a student. His parents want his son to do some work. But Arvind wants to enter a hotel
business. And after a discussion with his parents, he decides to follow his dream. So, he wants to
start a hotel business. Because of that, he was gathering information from two industries.
Somehow, got an offer but he was confused about how and where to break in.
The government started giving facilities like e-visas and specific funds for developing tourists’
circuits. These policies motivate him. He sees Indian need more hotels in most cities. Some high
segment customers choose five hotels, mid-segment three- or four-star hotels, and last normal
hotel. Also, lots of tourist service packages.
Whenever Arvind gets more information about industries, he gets more confused. At last, his
time is over and he needs to start a business. But he need help to understand where to start.

ANSWER TO THE QUESTION 02

An attractive industry has growth, profitability, and potential. An industry is attractive when that
industry follows Porter's five forces model of competition. To simplify the interpretation of
industry attractiveness these forces have some levels like, high, low, strong, and weak.
According to Porter's five forces model of competition, the industry will be attractive when,
 The potential development of substitute products is low.
 Rivalry among competing firms is low.
 Bargaining power of supplies is weak.
 Bargaining power of consumers is weak.
 Threats of new-comer in business is less.

ANSWER TO THE QUESTION 03

If we see the companies’ strategies then we can say that new entrants can easily enter if their
barricade is low or the market is open so potential entrants or new business companies can easily
involve in it. But if the capital requirement is medium then it needs the opportunity to open a
new business plan. In this case, it seems that it has already huge competition for them to manage
a new entrant so an unknown or not attractive entrant but they can easily enter the business as per
said as they can gain knowledge or strategic plan of business along with skilled or experience
themselves. But new entrants must require a capital budget or prize strategy advantage over
established rivals to order to succeed.

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  There are few entry barriers since it can take cost a large amount of cash to enter the market.
 There are no government restrictions on entrance because the government favors firms that
work for the service organization.

ANSWER TO THE QUESTION 04

Rivalry among competing firms: In the five-star and lower category of hotels the competition
is very high. But in the mid-segments like three starts and five starts, there is a shortage of hotels,
so the competition is low. But considering the increasing number of home-grown entrepreneurs,
the competition is also growing at a faster pace.
Potential development of substitutes: In the hotel business the threat of substitutes is very low
because people can’t stay anywhere else rather than a hotel during vacation or traveling.
Potential entry of new competitors: Hotel industry requires high capital to invest in building,
decor, furnishings, CT infrastructure, etc. So, this industry is not easy to enter. Therefore, the
threat of new entrants in the hotel industry is low.
Bargaining power of suppliers: There are many suppliers available for the hotel industry. Some
of them also went forward with integration and started farmhouse-based guest houses. As there is
a large number of suppliers available and Arvind can easily switch, the bargaining power of
suppliers is low.
Bargaining power of consumers: The bargaining power of consumers is high. Because
consumers have many options like five-star, local hotels, house guests, farmhouses, motels, 3-4-
star hotels. As consumers have many options to switch, they are in power.
Suggestion to Arvind: As we can see that, there are mid-segments of hotels in the industry and
people prefer a comfortable homely environment. So keeping this in mind, he can offer a mid-
level hotel with homely decorations backed with the latest technology and other facilities which
will provide him a competitive advantage.