OYO Rooms is a budget hotel startup founded in 2013 that has grown to over 4,000 hotels and 40,000 rooms across 165 cities in India. Using an asset-light model, OYO partners with small, independent hotels to standardize services and upgrades properties with technology to improve the customer experience. OYO aims to transform the unorganized budget hotel sector through operational excellence, mobile apps, and regular property audits. While facing threats from competitors and copycats, OYO's sustainable advantages include its large network, standardized approach, and focus on technology. To reach profitability, OYO is considering expanding services, building complementary networks, and pursuing focused or diversified growth in current and new markets.
OYO Rooms is a budget hotel startup founded in 2013 that has grown to over 4,000 hotels and 40,000 rooms across 165 cities in India. Using an asset-light model, OYO partners with small, independent hotels to standardize services and upgrades properties with technology to improve the customer experience. OYO aims to transform the unorganized budget hotel sector through operational excellence, mobile apps, and regular property audits. While facing threats from competitors and copycats, OYO's sustainable advantages include its large network, standardized approach, and focus on technology. To reach profitability, OYO is considering expanding services, building complementary networks, and pursuing focused or diversified growth in current and new markets.
OYO Rooms is a budget hotel startup founded in 2013 that has grown to over 4,000 hotels and 40,000 rooms across 165 cities in India. Using an asset-light model, OYO partners with small, independent hotels to standardize services and upgrades properties with technology to improve the customer experience. OYO aims to transform the unorganized budget hotel sector through operational excellence, mobile apps, and regular property audits. While facing threats from competitors and copycats, OYO's sustainable advantages include its large network, standardized approach, and focus on technology. To reach profitability, OYO is considering expanding services, building complementary networks, and pursuing focused or diversified growth in current and new markets.
Submitted to: Presented By : Dr. Vandana Bharti Manvendra Tomar (16) Chahat Batra (09) INTRODUCTION TO THE CASE.. • Founded in May 2013, by Ritesh Agarwal.. • A lean operation. • Mission: “ Our goal is to change the way people stay away from home”. • In dec 2015, Over 4000 Budget hotels and 40000 rooms across 165 cities.. • Partnered with Ola Cabs, Zomato, MobiKwik to build a strong ecosystem.. • In Dec 2015, OYO became the Largest Branded Hotel network in India. OYO’S BUSINESS MODEL • Focused on Standardization, affordability and Technology- Driven Experience. , They used ASSET-LIGHT MODEL.. • Acquisition of Inventory: • Targeted the Unorganized Sector. • Low Occupancy Rates. • Customer Experience, Pilferage of Hotel property by certain Undesirable Customer. • Transforming the properties to “OYO room” • Technology advancements: • Operational Excellence. • OYO Mobile app, Specially Designed Portal For Hotel Owners • Audits: 1 Auditor for every 600 Rooms, who Audits every 3rd Day. Cluster Manager ensured that each hotel should be monitored weekly.. If any hotel receive consistent rating of below 3 stars, OYO removes it from the Network • Yes, OYO classifies to be a Lean Start up.. What should OYO do regarding the threats of hyper competition and copycats? • Prominent Competitors : ZOSTEL, MakeMyTrip, Goibibo, Yatra.com.. • Other Competitors: Vista Room, Treebo Hotel, Zip Room. • Qualitative Approach must be preferred. • Must Upgrade with the Technological Advancements.. • Direct Customer Assistance. • Low pricing strategy. Analysis of OYO’s Sustainable competitive advantage using the tetra threat framework.. • Asset Light business Model.. • Policy of Standardization.. • Growing network. • Subsidizing Budget hotel stays. OYO’s strategic options to reach consolidation and profitability • Implementation of technology Solutions. • Indulging Cafeterias. • Complementary Services.. • Building Networks to augment their revenue. Should OYO pursue focused growth in current or new markets? Should it go for diversified growth? • Yes, OYO should expand into new market segments because of their unique business model. • Their quick development ability enabled them to broaden their market reach internationally. • Funding is the key to their performance. • It’s Overall brand Image THANK YOU..