PC Hotel and Porter's 5 Forces

Force 1) - Entry Barriers

The initial funding within the hotel industry is very high and creates a completely unique barrier

for new entrants. but the internet has decreased this entry barrier...substitute prices are normally

not to be had to clients. another obstacle can be lodges that group of workers are trained in

hygiene and guaranteed to offer a smooth surroundings with COVID free environment. For PC

hotel threat of New Entrants is very low because to enter into such market is very difficult

because it requires a very large amount of investment for the purchase of building and other

equipment to run the hotel with all the facilities like PC. And PC also has a very strong brand

that it is really difficult for new entrants to enter into the market and compete with PC. Another

difficulty for new entrants is the training of new staff like PC has. Those employees who have

proper training to how to follow the COVID 19 protocols . During the COVID 19 hotel and

tourism industry faces a downfall in their sales because of the restrictions imposed by the

government on the hotel industry as most of the hotels are closed and most of the people do not

visit hotels because of the fear of being infected so most of the hotels show a down fall in their

profits. As after the vaccination process situation is better but there is still time that everything is

get back to their normal condition.so during the pandemic it is very difficult for new entrants to

enter in to the market and to compete with such a big brand like PC.

Force 2) - Threat of competitors

PC hotel Rawalpindi has a strong competition with Serena & Marriott which also falls under a

category of five star hotels. Holiday Inn , Islamabad Club and hotel Shalimar falls under a
category of 4 star hotels which provide same facilities but under a reasonable price. According to

ranking PC hotels falls in the 2nd place after Serena. PC has a tough competition with Serena. The

revenue generation for Serena from Dinn Inn is more than PC because of the rich people lives in

Islamabad and they prefer Serena over PC because PC has a distance from Islamabad. But in

Carona as government implement the ban on the Dinn inn so both the hotels affected badly.

Room occupancy rate for Serena is also greater than the PC. PC has total rooms of 200 and

Serena has total rooms of 250. Occupancy rate for Serena is 70 % and for PC it is 50% per day.

PC also has a taugh competition with Marriott and Holiday Inn because they also provide same

type of quality . In Covid 19 both PC and Serena has a downfall in the room sales because there

are less number of tourists because of COVID 19.

Force 3) - Bargaining Power of Suppliers

PC hotel needs supplies related to food & beverages , Furniture , Electronic Equipment ,
Crockery and other supplies according to the need. As there are many suppliers of these products
and these products are also commonly available from the market because of these factors there is
no such bargaining power from the side of suppliers. The process of getting the supplies is PC
contact with different suppliers and ask them for their bids for the specific supplies whose bid
price is low and quality is good PC accept the supplier. So there is no as such bargaining power
of supplies because there are many suppliers related to the goods that PC hotel needs. But in the
COVID 19 the prices of every item related to hotel industry rises so suppliers also ask more
prices because factories are close down and there are no stock of supplies are available.

Force 4) - Bargaining Power of Customers

Customer has the bargaining power because there are more options are available for them with
similar type of quality and products like Serena & Marriott. So Customer has the power to switch
from one hotel to another where there is good quality is offer with a minimum price. For
Example when West indies team arrives in Rawalpindi to Play they need accommodation the
contract was initially given to PC but at the last movement the contract was snatched from PC
and given to Serena because they offer a minimum price.
In the COVID 19 the demand from the customers are much more that they provide the
environment which is more hygenic and implement the COVID 19 protocols in hotel.