Introduction

The hotel and resort industry offers a variety of services in advisory, medical hospitals and facilities, transports, leisure parks, lodges, restaurants, hotels, and tourism. The operations of hospitality firms contribute significantly to the profitability of the firm. The industry requires consistent and quality services to be successful. Customers has to be satisfied with the provided services. The global operations of hotels and resorts depend on various internal and external factors. The companies must be efficient and effective to cater to several customers around the globe. Continuous and consistent operations in the domestic market can lead to profitability, which prompts firms to seek expansion to new markets. This paper analyses the position of Shangri La Company in the global environment.

Shangri La Company Profile

Shangri-La Resorts and Hotels is a premier global hotel associated with management and ownership firms. Robert Kuok established the Kuok Group, which is among the largest equity holding in Shangri-La in Asia. The group not only deals with hotels but also shipping, logistics, beverages, real estate, commodity trading, as well as plantations and oil refining. The Kuok Group runs Hotel Jen and Traders, Kerry, and Shangri-La branded companies. Shangri-La operates as a five-star city hotel and resort. The city center hotels register close to 500 and more guestrooms. On the other hand, the resort assets are few. Kerry Hotels, for instance, are specially made to suit business traveler. These customers require a relaxed and vibrant environment, which the hotel offers. Without compromising quality, the hotel connects recreation, entertainment, and business. Hotel Jen, on the other hand, has a unique service delivery and brand of style and operates across various locations in the Asia Pacific. Shangra-Li hotel first opened in Singapore. The company offered excellent traditional services. Even today, the hotel has a standard of unique Asian style which is still exemplified by the hotel in various countries. Shangra-Li employees have knowledge and skills to offer quality services. The international resort and hotel have earned several recognition and awards from multiple customers around the globe. The company runs its operations in various marketing and dedicated sales in Dubai, Sydney, New York, Los Angeles, London, Seoul, Tokyo, Singapore, Guangzhou, Shanghai, Beijing, and Hong Kong.

Shangri La Group Macro Analysis

Macro analysis helps to determine the position of a firm in the business environment. It evaluates external forces that influence the operations of the firm in the industry. These features include legal, environmental, technological, economic, social, and political effects. Shangri-La is a global resort and hotel company. The firm operates in a dynamic surrounding affected by issues such as the evolving legal system, technological transformations, regulatory framework, consumer behaviors, as well as environmental factors. This paper evaluates three forces that influence Shangri La in the global market. These include, economic, social, and technological.

Economic Analysis

The exchange rates of different currencies influence the operations of Shangri La. Hong Kong presents volatile rates of exchange which may impact the plans of investment in the long term and the short time. Additionally, various countries present fluctuating exchange rates, which makes it difficult to predict the market patterns. The prices of inflation in Asia increases the liquidity of money, which can lead to a continuous rise in currency in the long run. The efficiency of markets in the world has the likelihood of improving the stability of Shangri La in the international market. The improvement of infrastructure around the world is a major decisive factor for the company. Countries like Australia, the U.S., U.K., and other countries have the best foundation around the world. These factors make it easy for Shangri La to intensify its operations in the global market. The gradual improvement of the global financial markets is a vibrant and efficient opportunity to expand services.

Social Analysis

Various societies identify with different ways of conducting trade. These factors can help foreign companies to fit in communities that are different from their own. The social issues include leisure interests, culture, traditions, roles and norms, gender roles, health and safety attitudes, entrepreneurial spirit, and demographics. The attitude towards safety and health around the world is becoming intense. People are aware of the need to keep safe and engage in healthy habits. Shangri La, therefore, needs to be keen on the provision of quality services to avoid failure. Additionally, consumers are more concerned with luxurious experiences rather than traditional experiences. Therefore, Shangri La should keep up with these new trends in the market. Besides, the firm should be knowledgeable about various societal norms and values across the globe. To achieve success in the global market, the firm has to build a team of employees who are trained to serve in different continents. The demographics in the world favors the aspects of entrepreneurship. A growing population of individuals who like to travel and enjoy luxurious experiences around the world is present in the globe. Young people are saving for the excellent hotel and resort experiences. Hence, Shangri La needs to take note of these trends to provide services to these categories of the world population.

Technological Analysis

Changes in technology are influencing organizations in various ways in the global business environment. These ways include; access to more excellent information, dissemination of mobile phones, innovations of products and services, disruption of the supply chain, and efficiency in cost reduction. Transformations in the technology sector have disrupted the supply chains in various organizations around the world. Innovations in technology are giving access to information and patterns of supply, and other systems have substantially changed. The mobile technology has brought changes to the business environment. Customers have new expectations and firms are expected to create new ways to beat the competition. Various states have laws that safeguard the protection of patent rights and intellectual property rights. These means that the firm has to invest in development and research. Besides, the latest technology has enabled the reduction of costs of production. The service sector is gaining from the decrease in production costs. Shangri La company requires to recruit its technology to ensure flexibility, which encourages the supply chain to fit the cost structures and customer needs.

Shangri La Hotel and Resorts SWOT Analysis

As mentioned earlier, Shangri-La Hotels and Resorts was established in 1979 by Robert Kuok as a hospitality chain. The firm’s salient selling point is its ambiance and quality services offered in a peaceful and serene environment. Shangri-La consists of extravagant guest rooms, spacious and landscaped gardens as well as a relaxed and vibrant atmosphere. The Hotel has around 38,000 apartments and 95 hotels across Australia, the Middle East, America, Europe, and Asia. Shangri La has a popular guest initiative called the Golden Circle. Additionally, it engages clients through flyer projects. A SWOT analysis is an evaluation that firms critically undertake to understand its internal strengths, weaknesses, opportunities, and threats in a business environment. The following study provide a framework to review Shangri La’s strategies, position as well as its direction in the hospitality industry.

Strengths

Strengths are the best practices and characteristics of an organization. These good qualities give a company an upper hand when competing in the business market. The various vital strengths of Shangri La Hotels and Resorts include the following:

Excellent branding strategies. Unlike other firms using amenities and features to lure clients, Shangri-La uses emotional requests. The firm’s campaign has been associated with nature and appeals to ways of getting rid of loneliness. The Hotel offers luxurious experiences and uses drives to advertise for its products and services.

Ownership of luxurious facilities. Shangri La Hotels and Resorts offers a variety of waterfronts, sky gardens, pool cabana massages, rooftop pools that give views of exciting scenarios, foreign exchange counters as well as available butlers.

Shangri-La has unique features that distinguish it from other hotels. For instance, Kerry Hotels has waterfronts at Kowloon. Additionally, the Traders Hotel has excellent functionalities for play and work. Shangri-La’s Hotel in Singapore has beautiful waterfalls.

Shangri-La Hotel has well related client loyalty projects. The Golden Circle is a popular plan around the globe. It offers recognition to frequent customers. These clients get added points each time they visit the hotels and resorts in various locations. The points are redeemed, and loyal customers win benefits such as luxury personalized meals, free stays, and room up gradation. This strategy builds a loyal client base in the hospitality market.

Quality service provision. Firm-Customer relations are excellent. The reason is that Shangri La give individual attention to its clients. The service delivery is of a standard quality and is consistent across all the enterprises. The inspirational architecture and imperial décor attract customers around the globe.

Shangri La’s core activities are centered on Asian values. The business is conducted with sincerity, selflessness, helpfulness, courtesy, respect, and humility. The values promote a conducive business environment where customers are treated with respect. Additionally, clients are accorded high significance while given quality services.

There is the availability of serene and ambient atmosphere for guests. The well-landscaped exteriors, spacious rooms, and the lush greenery are satisfactory to guests who need beautiful experiences.

Weaknesses

The weaknesses of an organization are areas that require transformation and improvement. The following are Shangri La’s weaknesses in the hospitality industry.

The costs of maintenances are high. Amenities and facilities require constant renovation and transformations. These maintenances are costly to the firm. Additionally, the regular training of employees is an expense factor that registers high costs.

Scandals involving ethical conduct in the business environment. The Hotel was recently involved in controversies regarding animal protection. Shangri La Hotel and Resorts was condemned for alleged killings of cats in a park neighboring the hotel.

The high cost of expansion. Over the past few years, Shangri La Hotels has been expanding its business to all parts of the world. The Hotel has numerous companies not just in Asia but also in various locations across the globe. The firm has invested in multiple high-end infrastructural developments to keep the global image abreast. These developments cost a lot of money for the firm.

Opportunities

Opportunities are those chances available in a business environment in which a firm can capitalize to improve its turnover. The following are Shangri La’s opportunities in the global market.

There are changing trends in the global market. The hospitality industry is experiencing transformation in the world business environment. Consumers are changing tastes and preferences according to the quality of services provided. Value-added services are critical in this environment because consumers capitalize on them. Clients are willing to pay more for attention and good relations. Therefore, Shangri La should focus on this strategy to stabilize in the international business environment.

There is enormous growth in the tourism sector around the world. Therefore, there are many opportunities for hotel and resort industries.

Shangri La is a famous hotel and resort brand not only in Asia but also across other parts of the world. Therefore, even with many international brands building their businesses in Asia and other locations, Shangri La can stand a chance as the leading hotel and resort firm. The company deals with Asian style provision of services, and it sets it apart from its competitors.

Threats

The factors that can be detrimental to the success of an organization the business environment are called threats. Some of Shangri La’s risks in the global economy include:

Presence of competitors. The key companies competing with Shangri-La Hotel include Intercontinental Hotels, Wyndham Worldwide, Hilton, and Marriot International.

Natural calamities and terrorist attacks are a threat to Shangri La operations. Natural disasters include natural fires, floods, tornadoes, hurricanes, and others.

In conclusion, it is evident that Shangri La can thrive in the global environment. The reason is that the firm has more strengths and opportunities. Besides, the company can eliminate its threats and can improve its weaknesses.

Shangri La’s Brand Positioning

Shangri La Resorts and Hotel is an iconic and robust leader in Asia’s hospitality management and hotel ownership industry. Among many factors leading to its success in the enterprise, the philosophy of brand positioning has placed the firm on top of the ladder. The company is globally known for its quality service and serenity. The guiding values emulated from the Asian culture is prominent in the operations of the firm. These values include humility, sincerity, selflessness, respect, helpfulness, and courtesy. These values of conduct have built Shangri La’s identity brand. The firm advocates treating strangers with the same manners as handling their own. These characters are consistent in the companies’ properties and brands across various locations.

Besides, the hotel’s brand is embodied through effective communication strategies. The communication team discovered that the firm’s restaurants, reception, rooms, interiors, and others were not enough to appeal to clients. Instead, value addition was also necessary. The value-added services included emotional appeals and heart to heart relations. The use of campaign initiatives is a powerful strategy setting apart the company’s communication brand. The experience from the hotel and resort industry is set out to the public through launching brand campaigns. The “Its In Our Nature” brand initiative gained popularity both on the television and on the print media. The experiences accorded to stranded people touched many hearts awakening kindness and humanity across the world.

Shangri La’s brand is also positioned on its culture and its people. The firm actively applies the workplace ethics. The top management understands that customers will be treated well if employees are handled with proper skills. The firm’s objective is to guide, instruct, and inspire the conduct of its workers. Training of staff is expected to attain the goals put down in the book manifesto. Workers are needed to learn about the culture of kindness and hospitality. The firm’s core values include selflessness, helpfulness, sincerity, humility, and courtesy. New employees are taught these values and other guiding principles. Shangri La Academy is a training location for employees in the Asian-Pacific. Workers are taught various lessons including housekeeping operations, front office structures, beverage and food service, and culinary art skills. Thorough training is conducted in hotels in Singapore and China.

Additionally, the training teaches the beliefs and customs of the Chinese and other Asiatic cultures. Positive opinions from employees boost the brand of the company. Internal surveys have highlighted the active roles played by a good worker and employer relationships in building the Shangri La’s brand.

Competition Analysis of Shangri La Hotel and Resorts

Competition influences the growth and existence of a firm. Shangri La is a leading hotel and resorts firm in Asia. However, other firms are threatening the place of Shangri La in the hospitality enterprise. Efficient operation of companies determines the market share each firm will get. The reason is that effectiveness in the operations system cuts on costs and reduces losses. Shanghai and Hong Kong Hotels Ltd compete with Shangri La company in North America, Australia, and Asia. This hotel and resort company deal in residential, commercial, and 24 deluxe hotel properties. Besides, New World Development, which invests and develops properties in Southeast Asia, mainland China, and Hong Kong is another competitor of Shangri La Hotel. Its infrastructural developments and properties include power plants, roads, water, department stores, hotels, office buildings, and apartments. The Mandarin Oriental Hotel Group operates in more than 25 countries. It competes with Shangri La in the provision of hotel services. The firm operates, manages, and owns close to 40 hotels in several locations.

During the 2008 Olympic Games Event, the position of Shangri La in Asia’s hospitality industry was affected. Premium hotels such as Sheraton, Hyatt, Ritz-Carlton, and Regent expanded in cities such as Shanghai and Beijing. Shangri La Company has a sustainable competitive advantage. The reason is that the firm has created a strong brand image. Its brand is based on Asian style methods of operations. However, the firm is facing intense competition since there are many luxurious and prestigious hotel chains in Asia. The expansion of these industries is attributed to a change in customer behavior and innovations in technology. Marriot International chain of hotels in the key competitor of Shangri Hotel. Marriot chain operates Courtyard brands, Renaissance, and Ritz-Carlton.

Even with the increasing competitors in the hotel industry, Shangri La still stands a chance at a global enterprise. The award-winning hotel and resort are famous for its gracious hospitality and quality service provision. The firm has robust strategies to claim its place in the business environment. To beat its rivalries, Shangri La hotel provides high-quality services to its customers. By maintaining its position in the hospitality business, the firm has few concerns on new market entrants. The firms threatening to substitute Shangri La Company fail to stabilize in the long run. The reason is that the firm consistently provides unique and high-quality services.

Shangri La’s Market Segmentation

Market segmentation refers to when a firm is choosing a target market for its goods and services. The selection of a target market comes after segmentation. The process of setting segments is to distinguish the whole market. After that, the firm can choose a section to focus on to get profitability. The Shangri La Group encompasses various brands targeting different customers with different price charges. Hotel Jen was founded in 2014 and is located in several locations in Asia. The company is focused on home-grown, fun adventures, and offers unexpected experiences to young travelers. The company provides value, comfort, and quality along with its significant services. Young urban adventurers get to enjoy pure sky gardens, pool cabanas and overlooking skylines as well as rooftop pools.

Traders Hotels are located in each city and targets business travelers. The hotels give professional settings while at the same time providing a vibrant environment in the business hubs. The services offered can integrate the required play, rest, and work time. The Abu Dhabi Traders Hotel offers a variety of services including travel counters, ticketing, foreign exchange counters, and IT butlers. Another high-end brand is Shangri La Resorts. This firm targets adventurous families. Moreover, the family provides pleasant and relaxing vacations in various fascinating locations across the globe.

Conclusion

The paper analyses various elements driving the to the success of Shangri La Hotel and Resorts in the hospitality industry. Factors such as competition, macro environmental features, market segmentation, strengths and weaknesses among others are catalysts to the success of an organization. A strong brand competes effectively in the global business environment. The Shangri La Company has shown that it can form a sustainable base in the globe. The locations of hotels are favorable for various travelers. Besides, the firm has capitalized in issues that ensure the confidentiality of its customers.