Companys Resources And Competitive Position

Companys Resources And Competitive PositionIn Dubai, the Jumeirah gatherings present portfolio includes many multi-hotel complexes such(prenominal) as Jumeirah Bab Al Shams empty Resort Spa, Mandinat Jumeirah, Jumeirah Beach Club Resort Spa, Jumeirah Emi ranks Towers and the Jumeirah Beach Hotel. At the same time, it is also negotiating to operate new resorts and hotel contracts in big cities like Shanghai, Hong Kong, Milan and Beijing. The company is operative in sound out to achieve its vision that to become a world class international hospitality and hotel company and also committed to being the drawing card of the manufacturing in all operating activities through the process of dedication to their colleagues and customers (About Jumeirah host).The Jumeirah group also has been a member of Dubai Holding since the duration of family 2004 d confess the stairs the induceership of CEO Gerald Lawless. The companys achievement bottom be estimated by the data that in the year of 2006, the revenues were recorded more than $1 billion (About Jumeirah Group).The project would abet us to compend a companys imagings and its competitive position in the world. This will aim to get deep understanding of its current strategy and to bring forth a strategy which would be more efficient as per the current scenario. This would be helpful to gain insights about the flaws and their solutions of the company as per the current scenario and current strategy. The reputation would analysis strength, weakness, opportunities and threats and eventually the proposed alternative can be adopted to enhance the current situation of the company.Company BackgroundThe Jumeirah group was founded in Dubai in the year of 1997, owned by ruling Al Maktoum family with the Gerald Lawless, with an aim of becoming a global hospitality leader. subsequently ten years of development the company has been trustworthyize with the groups portfolio that has been regarded as among the most inn ovative and luxurious globally (Corporate responsibleness writing 2008). The marque of the Jumeirah group can be summarized asA global discolouration having name synonyms of Luxury.A brand having professional team of experts and professionals having wide consume in entire aspects of hotel management that handles the functions from development phase to the daily operations.A wholesome distribution system with the help of more than ten sales offices in major locations of the world.A strong emphasis on an adapting approach to the owner (Corporate Responsibility Report 2008).The Jumeirah branched from the strength of Dubais ruling Maktoum family in inn to develop the UAE member into one of the regions as well as in the worlds top touristry destinations. In the early period of the year 1990s, Sheikh Mohammed al Maktoum commissioned a new project for the hotel which was supposed to build on land that rescued from the sea in the Dubai port, called the Burj Al Arab (Corporate Respon sibility Report 2008). However the first three year of the project were held in the land reclamation phase that lead to the launched of the construction by the year 1997. At the same time, Al Maktoum joined with the Gerald Lawless who was an Irish native had more than twenty year of work experience in the hotel industry and had fifteen year of experience as a head of the Forte hotel group in Dubai only. After join with the Lawless, Al Maktoum had begun to absorb opposites hotel projects for the wide market of Dubai such as Jumeirah Beach Hotel. In addition to the hotels and restaurants, Maktoum developed Water Park and theme park also (Corporate Responsibility Report 2008).HallmarksThe companys vision is to become a world class luxury international hotel management company that committed to the industry leader in all the operational activities through the medium of the dedication to colleagues, customers, place holders, owners and affair partners (Jumeirah point Principles Vis ion).The companys Hallmarks considered as the reason of their success in the past as well as guidelines for the future. The Hallmarks argon seems to reflects in design of inspiration and would remain in the core of operating philosophy along with the new adopted philosophy of Stay Different. In Jumeirah finish their guiding principles plays a major role which argon supposed to be consider as foundation of the business and strength of their culture (Jumeirah Guiding Principles Vision). They arIntegrity Honesty and SincerityTeamwork win-win attitude and mutual supportRecognition Success are supported and recognizedInnovation Implementation of new ideas free burning Growth Positive EnvironmentPeople Focus Focus on individual as colleagues, business associates and customers.Stay Different provides unique experience to the customers (Jumeirah Guiding Principles Vision)Strategic ObjectiveThe Jumeirah group strategic objective is to fulfill their vision and mission through the commit ment of resources to learning and innovation. Through the Business Management brass the company is delivering benefits to the business partners, customers, colleagues, society and owners by developing mutually beneficial relationships, listening and building loyalty. In order to fulfill the companys vision, the Jumeirah strategic approach is summarized in the four key components. They areEngaging stake holders in order to understand their expectations so that they can be fulfilled or expanded and foster can be added.Managing key factors of the social, environmental and economical aspects like their risk, opportunity and their impacts.Embedding responsible business practices and standards in the business daily operations and activities.Reporting grit to the stakeholder about the progress and development of the company.With the implementation of the above four key strategies the company is trying to be expanding and delivering service all over the world. The company is center on c urrent strategy in order to fulfill their objective. The companys current strategies inclusive of global expansion, Stay different, provide unique and different operate, value to stake holders, provide luxury and comfort to the customers and implementing the process of learning and innovation (Jumeirah Guiding Principles Vision).Project Undertaken/ CompletedThe following are the list of projects which are undertaken or correct under the Jumeirah group areS. noNameSpecificationLocationBurj Al ArabHotelDubai (Middle easternmost)Jumeirah Beach HotelHotelDubai (Middle East)Madinath JumeirahThree HotelsDubai (Middle East)Jumeirah Zabeel SarayHotel buzzing bazaarDubai (Middle East)Jumeirah Creekside HotelHotel(opening summer in 2012)Dubai (Middle East)Jumeirah Emirates TowersHotel, Spa, obtain boulevard, Club and LoungeDubai (Middle East)Jumeirah Living World TradeCentre planetary houseResidenceDubai (Middle East)Jumeirah at Etihad TowersHotelAbu Dhabi (Middle East)Jumeirah Messila h BeachHotel Spa (opening spring 2012)Kuwait (Middle East)Jumeirah Essex HouseResidenceNew York (America)Jumeirah Carlton TowerSpa, Club, Hotel ResortLondon( europium)Jumeirah Lowndes HotelHotelLondon( Europe)Jumeirah FrankfurtResidenceGermany (Europe)Jumeirah Port SollerHotel and Spa (opening spring 2012MallorcaJumeirah Bilgah Beach HotelHotel (opening spring 2012)EuropeGrosvenor House ApartmentsResidenceLondonJumeirah swaggering Hotel Via VenetoHotelRomeJumeirah Himalayas HotelHotelShangai (Asia pacific)Jumeirah DhevanafushiIsland ResortMaldives(Asia pacific)Jumeirah VittavelFive star family deluxe resortMaldives(Asia pacific)Wild Wadi waterparkWaterparkDubai (Middle East)TalisaSpaMiddle EastAcademy of ExcellenceEducationDubai( Middle East)(Jumeirah Hotels Resorts)Analyzing online Scenario of Hospitality Industry in the UAEDuring the past decade, the UAE has witnessed with the rapid ontogeny and changes in terms of socio-economic and demographic factors. The regions economy are not perceived as anoint and gas ex gatekeeper but also as major investment destinations delinquent to growing hospitality and tourism sector as well as huge scale infrastructure projects. At the same time, the expansion of the Middle East is greatly contributing in the tourism receipt in the Gulf Council pile countries. In current situation, the region remains an attractive destination for tourists as well as for the investors for medium to long term returns. The Jumeriah group has provided tremendous growth in the hospitality sector in Dubai and globally also.The study aims to evaluate a companys resources and its competitive position in the world. This analysis will be undertaken by the following described processValue Chain AnalysisMichael Porters five force ModelSWOT AnalysisBenchmarkingCompetitive Strength AssessmentAfter analyzing on the above aspects, we will be satisfactory to determine competitive position in the world as well as would be able to create a strategy in terms of its position.Value Chain AnalysisThe value set up approach was developed for creating and sustaining superior performance in the market. The value added concept is utilized by Jumeirah Group for sustaining competitive advantage in the arena of 21st century. The make-up comprises of activities that associate together in order to enhance business value. These activities include inbound logistics, operations such as purchasing, manufacturing, financing, distribution and so on The central aim of Jumeirah Group to adopt this value chain approach is exploiting value creation with minimum possible cost (Jumeirah Group, 2008).http//bettyfeng.files.wordpress.com/2009/08/a-value-chain-analysis1.jpg consultation http//bettyfeng.files.wordpress.com/2009/08/a-value-chain-analysis1.jpgBy adopting the concept of value chain analysis, Jumeirah managers identify the key activities within their group and provide potential sustainable advantages to the company.In Jumeirah Company, the value chain analysis starts with the initial stage such as inbound logistics. At this stage, planning is performed for base scheduling, plant capacity, estimate time for fulfilling objectives. After this stage the next metre is operations under which company emphasized on the quality of services, customers expectations, fulfilling orders and customer see to it operations. The main theme of Jumeirah Group is to enhance and implement their core services in such a way so that can meet the customers expectations and create positive and sustainable brand image in their eyes. The company more emphasized on the development of innovative programs, current strategies and their Research and Development programs in order to support business by facilitating new openings and high quality services to their customers (Jumeirah Group, 2008).Jumeirah Group incorporates value chain for synchronizing the flow of business operations from input to the delivery of benefits given to the customers. This flow comprises of inbound logistics, operations, outbound logistics, marketing and sales operations and at the end gets feed back from customers and resolve problems if there is any (Jumeirah Group, 2008).BenchmarkingBenchmarking is the process of analyzing the internal processes of organization and then identify and adapting the practices from other organization in order to considered being outdo for the organization. This process comprises of five stages such as operation, identification of assess, development of several(prenominal) alternatives, define that alternatives and at the end implementation of that alternatives. Benchmarking is the systematic tool for identifying and implementing best possible practices in the organization so that it can enhance their operations and human assets as per the todays need. In this competitive arena for sustaining in market, it is mandatory to implement benchmarking in the organization (Jumeirah Group, 2008).http//pipdev.com/content/images / cast/RouteDiag.pngSource http//pipdev.com/content/images/wheel/RouteDiag.pngJumeirah Group has been designed this exercise for enlighten participation of organization in order to achieve outstanding results. Jumeirah Group and other organizations such as Dubai Ports World, Hutchison Whampoa Ltd, are aimed to explore best methods and practices for enhancing Human Resource Management in the view of planning, em abilitying, rearing and recognizing human efforts. It is also aimed to identify the gaps mingled with the adopted approaches and the enhancement of improvement plans so that can analyze the effects of adopted approach in the organization. This approach develops new ideas that acts significant role in the formation of future strategic plans (Jumeirah Group, 2008).Five Force Model and AnalysisThe Michael Porters five force Model articulates the Competitive position modal which describes the industry analysis and business strategy development for evaluating the competitive str ength and position of any business organization or Entity. This lay used to analyze the market attractor of the industry and tilt. Porters develop the five force model to analyze to these five forces to analyze the industrial competition (porters five forces model, 2009).Five force model of Porters-httphttps://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhLibZhhOa0x0_8FMKC5roXhViYV-aWnd1GU98cnqEUjbns-jEaiSBrYVq3QNUQ1KIbAdHA6VgTcZH-50hwFLRTEzLTrqWYhV0ZvI_E3_wPKdH5Se7j4PKeBCbe4Og6RRYJfXFOO8hx1OU/ of new competition.Threat of substitute fruits or services. negociate power of customers (buyers). negociate power of suppliers.Intensity of competitive rivalry.Threat of new competitionThis step articulates the competition in the market, new entrants, brand equity, sunk cost, customer loyalty and industrial profitability in the market for the existing industry which can be challenging for the firm. Barriers to new entry-client switching costDistribution channelGovernment PoliciesEconomies of scales.2. Threat of substitute products or services-Entry of substitute product in th e market whitethorn increase the possibilities to the switching towards the new product it can be challenging for the existing product. Barriers of the substitute product or services-Substitute product price and performance over the existing product.Switching cost of buyer.Quality depreciationProduct differentiation.3. Bargaining power of buyersBargaining power of the buyer may be challenging factor for the existing industry or firm such as-Purchasing power of the buyer.Byers face new switching costs.Prices sensitivity of buyer.Buyers are concentratedIndustrial product diversity.4. Bargaining power of suppliersSuppliers for any particular firm like supplies of raw material, components and labors can switch the firms due to the bargaining power scubas-Buyers is not the customer to the.Distribution channels.Supplier concentrationSupplier switching cost.Supplier completion to the other firms.Intensity of competitive rivalry-Competitive rivalry can be the challenging factor for the exis ting firm some factors are-Different competitive strategiesPromotional toolsCompetitive advantage to the other industries.From the Porters five force model we analyze the Jumeirah group world class portfolio of resorts and hotels (Corporate Responsibility Report 2008).Threat of new competition- As we analyze the competitors of the Jumeirah Group these are the competitors of the Jumeirah Group-Hyatt Hotels CorporationFairmont give Hotels world(prenominal) Inc.Four seasons Holdings Inc.Jumeirah Group has the partnership with the UAE government, Dubai Department of Tourism and Commerce Marketing (DTCM) in association with Tanmia (The National HumanResource Development and Employment laterality2) Threat of substitute products or services-Jumeirah Group has a strong product and services portfolio in the luxury hospitality sector including world class hotels and resorts.In the hotels and resorts category the products of Jumeirah-Burj Al ArabJumeirah Beach HotelsJumeirah emirates towerJ umeirah Zabeel Sara.yPera palace Hotel.In the services sectors-Includes of services of Jumeirah LivingJumeirah Restaurants,Wild Wadi Waterpark,Talise and The Emirates Academy of Hospitality management.Jumeirah group is offering the best services and performance over its competitors. They have brand loyalty and offering the qualitative services to its customers and Jumeirah group have different product strategies to fence with the competitors3) Bargaining power of customers (buyers)-Jumeirah groups customers can be classified on the bases of several categories- hotel guest, clients, bulk room purchaser, customers book room for events and conferences and partner such as tour operators and airlines.Jumeirah Group has strong commitment towards its customer. Customer value feedback for the Jumeirah group is-Personalized products and services delivering high quality.Favorable impact on the community.Group offers the customer health, safety and tribute services.Customer privacy and inform ation security service.Customer satisfaction result of the Jumeirah group is for the year 2008 is 81.265 which show the customer loyalty to the group over its competitors.4) Bargaining power of suppliers-As we analyze the supplier chain of the Jumeirah group has strong corporate buying policies with its suppliers provision of high quality and good products and services. The Group follows the principles- perceptual constancy in the dealings with the suppliersProvide equal and same opportunities to the all suppliersConsistent delivery of services such as health, safety and legal aspects.Transparency in the system.Best distribution channels such as advertising for its services offering.Intensity of competitive rivalry-Jumeirah Group has the different competitive strategies over its competitors.They promote their products and services by different promotional tools such as by advertising, Sales promotion and by the different occasion.SWOT AnalysisDubai is the fast acclivitous shammer in the worldwide along with the China and South East Asia. Dubai attracts the attention of business and corporations across the world through its infrastructural art and cosmopolitan culture. Along with the genuinely estates and financial sectors, petroleum and tourism, it is also known for its exotic resort and hotels. Jumeirah Group is the main player in the hotel and resort industry (Jumeirah Group, 2008). This group has certain strengths, weaknesses, opportunities and threats which are as followsStrengthThe art of infrastructure with the surplus of international convention centers added value to the Jumeirah Group.The cosmopolitan culture in UAE gives rise to the Jumeirah Group in the hotel industry which becomes strength of this group.Crime rates are low in UAE as compared to the other nations which facilitate economic support and social support to the company.Middle East is the epicenter of trade that comprises of assorted standard businesses and corporations which gives hik e to the hotel and resort industry.In Dubai, government has pro- active authorities that give aid to the company in order to control situations rather than just responding to it.Jumeirah Group has been linked with other nations in the world wide.Special travelling packages are the additional advantages to t he company. It offers several packages according to each living standard so that well can be reach.Jumeirah Group is strategically placed in Dubai, which is situated between Asia and Europe while it is also closure to the Africa so there is probability that several tourists can rushed here which motivates hotel industry.This group works for the enhancement of their human resource by adopting various techniques in order to update their strategies and tools with the recent time.The Jumeirah Group diversified itself into various sectors such as academics, water parks, spa, residents etc which strengthen the company (Jumeirah Group, 2008). flunkIn the year of 2010, Dubai is consider ed as the expensive city that lies at fifty five positions in the list of most costly cities. These days it is becoming passing expensive in the terms of travelling, hospitality, hotels etc. which may affects the economy as well as businesses.In the recent time Dubai has undergone in the bubble part of real estates because of the reason that there was a sudden drop in the investment being made in the sector and due to the lack of investments the real estate sector crashed. It affected economy and still it is on recovery mode.In the Middle East, the rate of crime is low in spite of that it had been detect that there is an increase in sex and drug crimes and which got huge media publicity which influence the hotel industry.In Jumeirah Group, employees are working belongs to various nations that have there own culture sometimes this differences in culture affects the working of company (Jumeirah Group, 2008).OpportunitiesProspective economic development opportunities due to increase in prices of oil, this economic development leads to contribute remarkable benefits to the hospitality business.Further growth prospects in the tourism industry of UAE with 15 million foreign tourist visitors expected up to the year 2015 proves to be very helpful in the tourism business of Jumeirah group.Dubai is considered as the business and tourism hub of UAE and Middle East, it has high business growth prospects including geo political opportunities from the west and emerging authority from the east and ultimately helpful in providing good business opportunities to the Jumeriah group.Initiatives taken by UAE government towards the development of hospitality sector provides ample centre of opportunities to the Jumeirah group.Unique experience offer by the Jumeriah group in the form of ethnic heritage services pertaining to the hospitality leads to enhance the number of potential customers.UAE is the business hub of Middle East and hence various business tourists are prospective customers for the Jumeriah group.Various promotional schemes provided to the customers helps in the boosting of business of Jumeriah hotels.Enhanced brand image and brand equity for the augmented quality service deliverance to the customers helps in the further growth and expansion of the business of Jumeriah group.Jumeriah group provides a wide variety of cuisines including the Arab cuisines, Indo Thai, Chinese, Italian, Mughlai cuisines etc. to its customers which helps in increasing the profitability of the group.The augmented exteriors and interiors of the hotel in comparison to the competitors delight the customers and attract them to take the services of Jumeriah group again and again.Delivering the world class hospitality services at the affordable rate helps in increasing the number of local as well as foreign customers of the Jumeriah group (Jumeirah Group, 2008).ThreatsThe development of the various other cost effective and stirring competitive locations like Muscat, Kuwa it City and Doha puts major barriers in the development of Jumeirah Group.Prague and Istanbul are the cities which offer effective cultural tourism along with the fabulous contemporary services at the best possible price and hence attract most of the business tourists globally. delinquent to political turbulence the business pertaining to the tourism and hotels affected a lot in some regions of UAE and ultimately affects the Jumeriah group in the region.Lack of proficient training and development to the human resource in the hotel industry act as a major barrier in the quality service deliverance of the group.Customer tastes and preferences and market trends pertaining to the hospitality industry changes dynamically and hence there is difficulty in the implementation of the latest trends frequently due to the limitation of cost and time. affix in the number of guest houses act as hindrance in the development of hotel business.Various economical range hotels which provide the service s at the cheapest rate are the major barriers in the developmental path of Jumeriah group (Jumeirah Group, 2008).Competitiveness of Jumeirahs Pricing StrategyJumeriah provides a wide range of services in the hospitality business which encompasses a wide array of activities for the customers inclusive of diving and photography. With respect to the pricing of the hospitality services, Jumeirah ensures that the prices are maintained at competitive levels in retentivity with the current market standards for pricing of hospitality services. Then exact pricing of the hotels and resorts have not been disclosed by the organization but from the reports available, it can be deduced that Jumeriah has competitive pricing strategy for its services (Course Pricing).The pricing of the various courses offered by the organization are described as followsCertification CoursesAEDe-Scuba speculator1,450e-Open Water loon1,850e-Open Water Referral1,000e-Rescue Diver1,850 hint First Response700Experien ce ProgramsAEDDiscover Scuba Diving Beach325Scuba Review (inc two o/w dives)650Scuba Review Pool Only300Bubble Maker (ages 8+)275Seal Team (ages 8+)1,500Master Seal Speciality Dives275teacher Development CoursesAEDDive master3,000Assistant Instructor3,000e-Open Water Scuba Instructor4,000PADI e-IDC7,000IDC Staff Instructor2,500Master Scuba Diver Trainer MSDT2,500Emergency First Response Instructor**2,500Speciality CoursesAEDWreck Diver1,400e-Enrich Air Nitrox700Deep Diver1,600Peak Performance Buoyancy700Search and Recovery Diver1,400National Geographic Diver1,200Underwater Navigator1,200Digital Photographer1,200Oxygen Provider Courses800Night Diver1,200Musandam CoursesAEDe-Open Water Courses2,550e-Adventure in Diving2,550Source (Course Pricing)These prices are in accordance with the industry standard for the pricing of these services which is indicative of the competitiveness of the pricing strategy of the organization. In terms of the costs incurred by the company in obtaining raw material and resources for their business units, they are able to source the requirements at competitive prices. Moreover they have undertaken efforts to minimize their operational costs by adopting green practices and this has enabled them to maintain their prices at adequate competitive levels (Course Pricing).Competitive Strength and Leverage of Jumeirah Group in comparison to its RivalsJumeirah is faced with adequate competition in the hospitality industry from major organizations that have provided competition on a global scale also. The main competitors of Jumeirah group areHyatt Hotels CorporationFairmont Raffles Hotels International Inc. (Corporate Responsibility Report 2008)Four Seasons Holdings Inc. (Corporate Responsibility Report 2008)Jumeirah is able to manage the competition in the market adequately and this has been made possible due to the continuous adaptation of the company to the environmental changes and the incorporation of the technological advancements to prov ide a comprehensive set of services aimed completely at achieving consumer satisfaction. Jumeirah Group is impute with having some of the most complex and biggest projects in the hospitality industry which itself speaks about the high quality standards that the organization has assured in these facilities (Corporate Responsibility Report 2008).The organization also has its projects in America, Europe and Asia Pacific. In these regions also, the company is able to successfully manage the competition by providing a wide range of consumer oriented services are competitive pricing. One of the main strategies of the organization has been to constantly upgrade themselves in terms of technical infrastructure and the aesthetic ambience in the facilities. It is this cavort which has provided Jumeriah with a significant leverage even in the international hospitality market (Corporate Responsibility Report 2008).The company has started pondering over the possibility of launching conservativ e foreign markets such as China as they have highly prospective business opportunities. Moreover their advanced technical infrastructural knowledge has enabled them to compete in effect even in new markets and their portfolio of globally acclaimed projects has enabled the creation of a strong brand image by means of which the organization is able to effectively reach out to the target consumer segments (Corporate Responsibility Report 2008).Strategic Issues and Challenges in the Achievement of Strategic ObjectivesThe achievement of strategic objectives is a challenging task and is easily affected by the presence of environmental cha