Taj Five Forces
Business Environment
5.106
Porter’s five forces: Case study on Taj hotel Name: Mohammed Sakil Qurashi Student Id: 20151471
Contents
Business Environment 1
5.106 1
Taj Groups of Hotels 3
Introduction 3
Outline of the report 3
COMPETITIONS 4
Theory of competition 4
Substitutes 6
Power of Buyers 7
Theory of power of Buyers 7
Power of sellers 8
Conclusion 9
Introduction
The Indian hotels company limited (IHCL) and its subsidiaries also known as taj Groups of industries. The Taj group of hotels consider as one of the Asia’s largest company. It examined that the founder of Taj groups of company was Mr. Jamsetji N. Tata and he, was the person who establish the first Taj group of hotel that
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The theory of competition is one of the main forces in porter five forces model .By the help of porter’s analysis, a company can enhance their weakness, avoid making mistake and can get to know about their current competitor’s power in the existing market.
Five important forces determine competitive power in a business situation these are:-
1. Supplier power
2. Buyer power
3. Competitive Rivalry
4. Threat of Substitutes
5. Threats of New entrants
Application of Competition to Taj group
Competition in the hospitality sector is very common in every part of the world. It is much more intense in India as the tourism is growing very fast.
Today Taj groups of hotel consider as one of the most luxury hotel in India but even though taj has many competitors in India like Hilton Honors, Oberoi, IHG, Marriott etc which effects its economy.
(Competitors for Taj groups of hotels in India)
GROUP’S EXISTING HOTEL’S BY WHEN CATEGORY PLANNED NEW BRAND
IHG 12 2020 Mid Market Holiday Inn Express
Hilton worldwide
50
2016
Luxury/premium Hilton, Double tree, Hilton Garden
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For example, Sugar frees Company today the company is competing with the sugar company by making their product sugar free.
As same as the hotels Industry is doing now a day, today they are offering new style of service ,Launching their new policies in the market , or providing their rooms and meal in a cheap rate in compare to their competitors to interacts their customer more .
Application of Substitutes
A threat from substitute exists if there is substitute product with a reasonable price of better performance parameter for the same purpose. They could attract a significant portion of market volume and as a result it reduce potential sales for the existing players.
Competitors of Taj among established firms
• Oberoi hotels
• Hilton hotels
• ITC groups of hotel
• Marriott group of hotel
• IHG Group
Power of Buyers
Theory of power of
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