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Executive Summary
The organization operates within the larger framework of the external environment that
shapes opportunities and poses threats to the organization. The external environment is a set
of complex, rapidly changing and significant interacting institutions and forces that affect the
organization's ability to serve its customers. Environmental scanning is a concept from
business management by which businesses gather information from the environment, to
better achieve a sustainable competitive advantage. To sustain competitive advantage the
company must also respond to the information gathered from environmental scanning by
altering its strategies and plans when the need arises.
cnvironmental factors internal to the firm usually can be classified as strengths (S) or
weaknesses (W), and those external to the firm can be classified as opportunities (O) or
threats (T). Such an analysis of the strategic environment is referred to as a SWOT analysis.
The SWOT analysis provides information that is helpful in matching the firm's resources and
capabilities to the competitive environment in which it operates. As such, it is instrumental in
strategy formulation and selection.
The Indian Hotels Company Limited (IHCL) and its subsidiaries are collectively known as
TAJ Hotels Resorts and Palaces and is recognised as one of Asia's largest and finest hotel
company. It is one of India’s oldest service band owned by Tatas, which is nearly 100yrs old.
Value and luxury is associated with this brand. Its target segment is Luxury loving and high
income group. Its USP is – LUXURY.
This study is an attempt to study the strategies adopted by TAJ HARI HOTEL , identify the
opportunities and threats for Taj Hari Mahal in the market, and analyse its strengths and
weaknesses and to To generate/suggest an alternative course of action/strategies for the firm
using SWOT matrix analysis.
This information given in the project has been thoroughly analyzed & revised. The
researcher had tried to make an attempt collect the maximum possible data through various
sources. An attempt has been made to tabulate the complete data & analyze it in such a
manner that it accomplishes the three objectives of the project.
Statement of Objectives:
1) To identify the strategies adopted by Taj Hari Mahal.
2
2) To identify the opportunities and threats for Taj Hari Mahal in the market, and
analyse its strengths and weaknesses.
3) To generate/suggest an alternative course of action/strategies for the firm using
SWOT matrix analysis.
Research Methodology:
Since the research will be doctrinal and non-doctrinal in nature, therefore the data would be
collected both from secondary and primary sources of information. On the basis of the data
collected, a questionnaire will be developed, which would further help in field study and
collection of primary data. So, research would also follow empirical research. Therefore the
approach for research would be deductive approach.
3
Chapter: 1
MEANING:
An important part of any strategy planning would include identifying the environment and
understanding its aspects in a holistic sense. A scan of the internal and external environment
is an important part of the strategic planning process. SWOT analysis is an acronym for the
internal Strengths and Weaknesses of a firm and the environmental Opportunities and
Threats facing that firm. SWOT analysis is widely used technique through which managers
create a quick overview of the company’s strategic situation. It is based on the assumptions
that an effective strategy derives from a sound “fit” between internal resources (strengths and
weaknesses) and its external situation (opportunities and threats). A good fit maximizes a
firm’s strengths and opportunities and minimizes its weaknesses and threats. It helps provide
direction and serves as a basis for the development of business plans. It accomplishes this by
examining the strengths (what an operation does well) and weaknesses (what an operation
does not do well) in addition to opportunities (potential favourable conditions for an
operation) and threats (potential unfavourable conditions for an operation). Once completed,
the SWOT analysis can help determine if the information indicates something that will assist
the operation in achieving its objectives (a strength or opportunity), or if it indicates an
obstacle that must be overcome or minimized to achieve desired results (weakness or threat).
The SWOT analysis provides information that is helpful in matching the firm's resources and
capabilities to the competitive environment in which it operates. As such, it is instrumental in
strategy formulation and selection. 1
SWOT analysis came from the research conducted at Stanford Research Institute from 1960-
1970. The background to SWOT stemmed from the need to find out why corporate planning
1 http://competitive-intelligence.mirum.net/competitive-intelligence-methods/swot-
analysis-strengths-weaknesses-opportunities-threats_4.html
2
http://www.businessballs.com/swotanalysisfreetemplate.htm visited
5
failed. The research was funded by the fortune 500 companies to find out what could be done
about this failure. It all began with the corporate planning trend, which seemed to appear first
at Du Pont in 1949. By 1960 every Fortune 500 company had a 'corporate planning manager'
and 'associations of long range corporate planners' had sprung up. 2
The fact remained, despite the corporate and long range planners, that the one and only
missing link was how to get the management team agreed and committed to a comprehensive
set of action programs. The research carried on from 1960 through 1969. 1100 companies
and organizations were interviewed and a 250-item questionnaire was designed and
completed by over 5,000 executives.3 The system began by asking what is good and bad
about the present and the future. What is good in the present is Satisfactory, good in the
future is an Opportunity; bad in the present is a Fault and bad in the future is a Threat. This
was called the SOFT analysis. When this was presented to Urick and Orr in 1964 at the
Seminar in Long Range Planning at the Dolder Grand in Zurich Switzerland they changed
the F to a W and called it SWOT Analysis. SWOT was then promoted in Britain by Urick
and Orr as an exercise in and of itself.
As the SWOT analysis stands for the analysis of internal strengths and weaknesses of an
operation and external opportunities and threats to the operation. Below is a description of
each of these elements that should be considered while performing a SWOT analysis:
• Strengths:
The first element of a SWOT analysis describes the strengths of an operation. These
strengths include what an operation does well, and should be viewed from both the
organization’s point of view as well as the point of view of people with whom the
organization comes in contact. Strengths describe the positive attributes, tangible and
intangible attributes, internal to an organization.4 Strengths include the positive
attributes of the people involved in the business, including their knowledge,
backgrounds, education, credentials, contacts, reputations, or the skills they bring.
3 Ibid.
4 http://en.wikipedia.org/wiki/SWOT_Analysis
6
Strengths also include tangible assets such as available capital, equipment, credit,
established customers, existing channels of distribution, and other valuable resources
within the business. Strengths capture the positive aspects internal to a business that
add value or offer a competitive advantage. It is important to note that operations
that are in a bad position also have strengths. Whether or not these strengths are
adequate should be determined through further analysis.
• Weaknesses:
The other internal element of the SWOT analysis describes the weaknesses of an
operation. Examining weaknesses include identifying what an operation does not do
well. As with the strengths, weaknesses should be examined from both,
organization’s perspective and from the perspective of those outside the operation.
Weaknesses might include lack of expertise, limited resources, lack of access to skills
or technology, inferior service offerings, or the poor location of your business. These
are factors that are under your control, but for a variety of reasons, are in need of
improvement to effectively accomplish your marketing objectives. Weaknesses
capture the negative aspects internal to a business that detract from the value it offers,
or place it at a competitive disadvantage. These are areas that need to be enhanced in
order to compete with competitors. All operations, regardless of size or profitability
have weaknesses. How badly these weaknesses will affect the operation should be
left to further analysis.
• Opportunities:
The first external element of the SWOT analysis is opportunities. The opportunities
include any favourable situation in the business’s environment that the operation may
realize gains from. These opportunities reflect the potential one can realize through
implementing various marketing strategies.5 Opportunities may be the result of
market growth, lifestyle changes, resolution of problems associated with current
situations, positive market perceptions about business, or the ability to offer greater
value that will create a demand for services. External opportunities can include the
misfortune of competitors who are not performing well, providing you with the
opportunity to do better. These could range from diversification and the use of new
technologies to market trends and relationship developments. It is important to note
5 Ibid.
7
that all operations have some opportunities: identifying these opportunities is the sign
of a good analyst.
• Threats:
The final element of the SWOT analysis is the external threats that the operation
faces. Regardless of size or profitability, all operations face threats. Threats include
factors beyond your control that could place your strategy, or the business itself, at
risk a threat6 is a challenge created by an unfavourable trend or development that may
lead to deteriorating revenues or profits. Competition existing or potential is always a
threat. Other threats may include intolerable price increases by suppliers,
governmental regulation, economic downturns, and a shift in consumer behavior that
reduces your sales. These threats could range from lower international prices to key
relationships that are not going well. These are also external & you have no control
over them, but you may benefit by having contingency plans to address them if they
should occur. Whatever the threat, the operation should have a plan in place to
resolve the problem.7
PURPOSE:
A management system describes the organization and the set of significant interacting
institutions and forces in the organization's complex and rapidly changing environment that
affect its ability to serve its customers. The firm must continuously monitor and adapt to the
6 Ibid.
As SWOT analysis is a method of assessing a business, its resources, and its environment,
doing an analysis of this type is a good way to better understand a business and its markets,
and can also show that all options open to, or affecting a business at a given time have been
thought about thoroughly. The essence of the SWOT analysis is to discover what a business
does well; how it can improve; whether it is making the most of the opportunities around it;
and whether there are any changes in the market—such as technological developments,
mergers of businesses, or unreliability of suppliers—that may require corresponding changes
in the business.8 SWOT analysis can be used in many ways to aid strategy analysis. The
most common way is to use it as a logical framework guiding systematic discussion of a
firm’s situation and the basic alternatives that the firm might consider. What one manager
sees an opportunity, another may see as a potential threat. And also, strength to one manger
may be a weakness to another.9
MECHANISM:
The SWOT analysis provides information that is helpful in matching the firm's resources and
capabilities to the competitive environment in which it operates. As such, it is instrumental in
strategy formulation and selection. The objective of the analysis should always be to place
the business in a position where the manager can determine a strategy for the future to
improve its overall performance or maintain it if the results are favorable. It entails
monitoring the marketing surroundings internal and external to the company. It is a central
tool for auditing the overall strategic position of a business and its environment. The
intention of any SWOT analysis is to separate the key environmental factors that are
significant to the marketing plans of the business. It functions within an external
environment that is defined as all elements that exist outside the boundary of the
Organization that have the potential to affect the organization.10 On the other hand internal
8 http://competitive-intelligence.mirum.net/competitive-intelligence-methods/swot-analysis-
strengths-weaknesses-opportunities-threats
9 http://www.baserler.com.tr/onur/isletme/Management%20Skills-SWOT.htm
10 Ibid.
9
environment is described as all forces that exist within the organization and influence its
behaviour. SWOT clusters key portions of information into two main categories:
•Internal aspects - The 'strengths' and 'weaknesses' internal to the business, i.e., its strategies
and its position in relation to its competitors.
•External factors - The 'opportunities' and 'threats' caused by the external environment and
the competition.
The internal aspects may be considered as strengths or weaknesses depending upon their
effect on the company's positions. This means, they may symbolize strength for one
organization but a weakness, in relative terms, for a different.
However, the organization operates within the larger framework of the external environment
that shapes opportunities and poses threats to the organization. The external environment is a
set of complex, rapidly changing and significant interacting institutions and forces that affect
the organization's ability to serve its customers.11 External forces are not controlled by an
organization, but they may be influenced or affected by that organization.
11 http://ollie.dcccd.edu/mrkt2370/Chapters/ch2/2env.html
12 Ramaswamy & Namakumari, Marketing Management (Macmillan Business Books, New Delhi,
3rd edn., 2003) p.29
10
13 Kotler, Philip, Marketing Management (Prentice Hall of India, New Delhi, 11th edn., 2003) p.166
8) Suppliers: Suppliers are organizations and individuals that provide the resources
needed to produce goods and services. They are critical to an organization's success
and an important link in its value delivery system. If there is a breakdown in the link
between the organization and its suppliers, the result will be delays and shortages that
can negatively impact the organization's marketing plans.15
9) Marketing Intermediaries: Marketing intermediaries are independent organizations
that aid in the flow of products from the marketing organization to its markets. The
intermediaries between an organization and its markets constitute a channel of
distribution. These include middlemen (wholesalers and retailers who buy and resell
merchandise).
The above environment plays a decisive role in right fit between the firm and the Customer.
Thus an important part of any strategy or activity planning would include identifying the
environment and understanding its aspects in a holistic sense. External environment may be
divided into micro and macro and both are areas of concern in the present project. Before
jumping onto SWOT analysis one has to do Environmental Analysis first. The following
diagram shows how a SWOT analysis fits into an environmental scan:
Environmental Scan
/ \
Internal Analysis External Analysis
/\ /\
Strengths Weaknesses Opportunities Threats
|
SWOT Matrix
The SWOT analysis provides information that is helpful in matching the firm's resources and
capabilities to the competitive environment in which it operates. As such, it is instrumental in
strategy formulation and selection.
15 Ibid.
16 http://www.quickmba.com/strategy/swot/
12
SWOT Matrix:
After SWOT analysis is completed, alternative courses of action may be analysed by creating
a SWOT Matrix. SWOT Matrix is a tool of generating alternative courses of action by
identifying combinations of internal characteristics (i.e., strengths and weaknesses) and
external forces (i.e., opportunities and threats). Alternatives emerge from the combination of
strengths/weaknesses and opportunities/threats.17A firm should not necessarily pursue the
more lucrative opportunities. Rather, it may have a better chance at developing a competitive
advantage by identifying a fit between the firm's strengths and upcoming opportunities. In
some cases, the firm can overcome a weakness in order to prepare itself to pursue a
compelling opportunity. To develop strategies that take into account the SWOT profile, a
matrix of these factors can be constructed as shown below:18
SWOT Matrix19
Weaknesse
Strengths
s
S-O W-O
Opportuni
strategies strategies
ties
S-T W-T
Threats strategies strategies
18 http://www.quickmba.com/strategy/swot/
• Strengths-Opportunities: S-O strategies pursue opportunities that are a good fit to the
company's strengths. These “offensive/growth” alternatives tend to be the most
common and involve utilizing organisational strengths to address an opportunity.
• Weaknesses-Opportunities: W-O strategies overcome weaknesses to pursue
opportunities. These “turnaround” alternatives involve shoring up a weakness so that
the organization can take advantage of an opportunity.
• Strengths-Threats: S-T strategies identify ways that the firm can use its strengths to
reduce its vulnerability to external threats. These “diversification” alternatives involve
utilizing strength to eliminate or minimize the effect of threat.
• Weaknesses-Threats: W-T strategies establish a defensive plan to prevent the firm's
weaknesses from making it highly susceptible to external threats. These “defensive”
alternatives involve taking some corrective action to eliminate or minimize weakness
so as to minimize the effect of threat.
Opportunities
Weaknesses Strengths
Threats
14
Strengths: Weaknesses:
20 http://www.businessballs.com/swotanalysisfreetemplate.htm
15
The basic SWOT process is to fill in the four boxes, but the real benefit is to take an
overview of everything in each box, in relation to all the other boxes. This comparative
analysis will then provide an evaluation that links external and internal forces to help your
business prosper. The internal strengths and weaknesses, compared to the external
opportunities and threats, can offer additional insight into the condition and potential of the
business.21
Once all strengths, weaknesses, opportunities, and threats of operation have been listed, the
information should be combined so that strategies can be developed.22
21 http://marketingteacher.com/Lessons/lesson_swot.htm
Chapter: 2
The Indian Hotels Company Limited (IHCL) and its subsidiaries are collectively known as
Taj Hotels Resorts and Palaces and is recognised as one of Asia's largest and finest hotel
company. Incorporated by the founder of the Tata Group, Mr. Jamsetji N. Tata, the company
opened its first property, The Taj Mahal Palace Hotel, Bombay in 1903. The Taj, a symbol of
Indian hospitality, completed its centenary year in 2003. Taj Hotels Resort and Palaces
comprises more than 60 hotels in 45 locations across India with an additional 15
international hotels in the Malaysia, United Kingdom, United States of America, Bhutan, Sri
Lanka, Africa, the Middle East and Australia.
IHCL operate in the luxury, premium, mid-market and value segments of the market through
the following- Taj (luxury full-service hotels, resorts and palaces), Premium Hotels
(premium full-service hotels and resorts), Gateway Hotels (upscale/mid-market full
service hotels and resorts), and Ginger Hotels (economy hotels).
Taj: EARTH24
23 http://www.tajhotels.com
18
In an endeavour to reinstate its vision and efforts to boost sustainable tourism and integrate
environment management in all business areas, Taj Hotels Resorts and Palaces presents
EARTH (Environment Awareness & Renewal at Taj Hotels), a project which reiterates the
conscious effort of one of Asia’s largest and finest group of hotels to commit to energy
conservation and environmental management. EARTH has received certification from Green
Globe, the only worldwide environmental certification program for travel and tourism.
Taj Hotels has joined the internationally-recognised Green Globe benchmarking and
certification system as an extension of its existing environmental policies. Taj Hotels has
long recognised that as a leader it has an important contribution to make and a responsibility
to demonstrate to others how they can be part of the fight against climate change.
Product/Service Mix:25
Product Services
• Food & Wine • Jiva Spa
• Benares weavers • TajSATS- Air catering
• Taj Air- Private Luxury Jet
• Inditarvel Pvt Ltd.
• Taj Holidays
• Event Planning
• Surprises by TAJ
• Reservations
• Reward Programmes
• Indian Institute of Hotel Management
• Jodhpur RIFF- Musical Festival
• Taj News & Spice
24 Ibid.
25 http://www.tajhotels.com
19
Food & Wines: Different types and taste of food and wines are made available here keeping
in mind the cultural diversity and tastes of consumers.
Benares Weavers: Taj is proud to continue supporting traditional arts and crafts with a new
project aimed at endorsing the master hand weavers of Varanasi (formally Benares). The
future of this intricate and ancient art is in jeopardy and Taj has elected to support the master
weavers by adopting handloom woven saris as staff uniforms across 10 luxury properties. In
addition, Varanasi silks are now sold in the Khazana boutiques located in a number of Taj
properties.
Jiva Spa: Jiva Spas offer a spectrum of authentic and traditional Indian wellness treatments
and experiences in a stylish and soothing ambience. Drawing from ancient India healing
wisdom and Ayurveda, Jiva Spas believe that a spa unfolds a way of life wherein the life
force is the bedrock of wellness. Jiva Spas enrobe guests in exclusive experiences and
environs whilst offering an array of signature treatments, yoga and meditation.26
Taj SATS Air-Catering Ltd.: The Taj’s legendary hospitality has been taken to a all-new
level: The skies above. It is the largest airline catering service in South Asia, as a joint
venture with Singapore Airport Terminal Services, a subsidiary of Singapore Airlines.
Offering innovative flight catering and related services, TajSATS operates out of the 4 major
metros in India, viz. Mumbai, Delhi, Chennai and Kolkata. Currently, TajSATS caters to
over 26 international and domestic airlines, and is the leader in the Indian flight catering
market.27
Taj Air: A luxury private jet operation with state-of-the-art Falcon 2000 aircrafts designed
by Dassault Aviation, France; and Taj Yachts, two 3-bedroom luxury yachts which can be
used by guests in Mumbai and Kochi, in Kerala..28
26 http://www.tajhotels.com/JivaSpa/default.htm
27 http://www.tajhotels.com/AboutTaj/CompanyInformation/default.htm
28 http://www.tajhotels.com/AboutTaj/CompanyInformation/TajAir_PrivateLuxuryJets.htm
20
Inditravel: It was formed in 2002, post the acquisition of the 18 year old agency Stallion
Travel Services Pvt. Ltd. by The Indian Hotels Company Limited. Headquartered in
Mumbai, with branches in 34 locations across India, Inditravel is a professionally managed
travel agency providing total travel management solutions. It is affiliated to IATA, UFTAA,
PATA, TAAI and the Department of Tourism, India. Inditravel offers the following services:
• Rail ticketing
• Hotel Bookings
• Car Rentals
• Visas
• Passport Assistance
• Global Telecards
• Medical Insurance29
Taj Holidays: At over 75 hotels located in more than 50 destinations, spread over 10
countries, they offer- an unforgettable holiday, across palaces, islands and resorts. They
provide special offers- Visit India 2009, Culinary Journeys, Taj Holidays Summer Collection
2009, Incredible Escapes 2009.30
Event Planning: They organise different events at Taj- weddings, conferences, parties, etc.31
Surprises at Taj: They offer different packages – Stay a bit longer, book early get more, Taj
Club and suit surprises, Business Edge, Weekend Saver, value Vouchers, Taj fly and Stay.32
29 http://www.tajhotels.com/AboutTaj/CompanyInformation/Inditravel_Travel_Services.ht
m
30 http://www.tajhotels.com/TajHolidays/index.aspx
31 http://www.tajhotels.com/EventsandMeetings/default.htm
32 http://www.tajhotels.com/Surprises/default.htm
21
Reservations: Taj provides online reservation facility, where one can check availability of
rooms & rates can even make payments online.33
Reward programmes: If one often stays or dines at the Taj, the Taj InnerCircle is the
perfect programme. As a frequent guest at the Taj he/she will earn points and enjoy a host of
exciting benefits when one uses their services around the world. The Taj Advantage Plus is
a programme designed for valuable corporate bookers. Bookings at the Taj will earn reward
points and special offers from the Taj. The Taj Alliance Preferred Partner Membership
Programme (TAPP Me) is meant for our valued partners in the travel trade.34
Jodhpur RIFF: Taj Hotels, Resorts & Palaces is the main sponsor for the annual Jodhpur
RIFF music festival, as part of its campaign to protect and promote India’s national heritage.
Taking place in October each year, the festival promotes rural art and artisans, with 150 acts
playing in the most beautiful of settings.
Taj News & Spice: Taj News and Spice, the periodic publications of Taj Hotels Resorts and
Palaces encompass news, happenings and the wide array of innovative hospitality initiatives
within the Company and across the hotels. 'Taj News', a quarterly newsletter, provides an
overview and update on news, events and activities across the hotels. Spice', a quarterly
culinary guide, includes updates on the latest culinary offerings at the Taj restaurants and
also traces the continual endeavours of Taj to bring guests a new medley of gourmet
experiences.35
33https://www.yourreservation.net/ibe/02_taj/main.html;jsessionid=361DE779AA4576E6
A8AC44B098A0C8AE?_flowExecutionKey=_cC97987D5-B069-D413-BF18-
E153BA699BA9_k79D3404F-E5AD-CB3B-21D9-2AE636CA184D
34 http://www.tajhotels.com/TajInnercircle/rewards.htm
35 http://www.tajhotels.com/press_room/taj_publications.htm
22
Private Digital Library: Taj offers a unique experience of private digital library, where one
can get a virtual view of all Taj hotels across the world.36
Yoga Retreats: Jiva Spas are hosting exclusive Yoga Retreats for the practise of Jiva Yoga,
of 4 and 7 days, at select Taj Hotels Resorts & Palaces from 12th January to 30th September
2009. The retreats are presently being offered at Jiva Spas at Taj Exotica, Goa; Rambagh
Palace, Jaipur; Umaid Bhavan Palace, Jodhpur; Taj Green Cove Resort, Kovalam and
Nadesar Palace, Benares. Each of these spas is a haven of solitude and perfect for the
practice of yoga. During the retreat, you can spend your free time between 11 a.m. to 3.30
p.m. having a leisurely lunch, swimming, relaxing in the steam room or Jacuzzi; enjoying a
massage at the Jiva Spa, reading yoga books or journals, meditating or meeting with other
guests. 37
36 http://www.leonardo.com/tajhotels/
37 http://www.tajhotels.com/yoga.htm
38 http://www.tajhotels.com/Leisure/Taj%20Hari%20Mahal,JODHPUR/default.htm
23
Close to both the airport and the railway station, the Taj Hari Mahal, with the largest
convention centre in Jodhpur, offers elegant venues from the ornate Amar Mahal Hall with
its awe-inspiring chandeliers to the tastefully appointed boardrooms. You can treat your
guests to unique theme dinners that celebrate the culture and cuisine of the region. It spreads
over six acres of lush, landscaped gardens; this palace of the 21st century offers luxurious
refinement. With its Marwar style architecture and Moghul-inspired domes, enameled
murals, slender columns, and grand interiors, this is design that lives up to the fantasy. It
offers various products and services.
Accommodation39
There are 93 rooms including 3 suites. All the rooms have a tea and coffee maker, mini bar,
safe, colour TV, direct dial telephones, colour television with satellite programs, channel
music, hair dryer and dial up- wireless internet access.
• 3 Executive Suites
• The Superior Garden Rooms, charmingly ethnic and comfortable, offer a view of the
hotel's landscaped gardens. Interconnecting rooms are available on request.
• The Superior Pool Rooms, charmingly ethnic and comfortable, offer a view of the
swimming pool. Inter connecting rooms available on request
• The spacious Executive Suites have a sitting room with wooden flooring and a master
bedroom that leads out onto a stunning jharokha with a pleasant view of the shimmering blue
pool. The bathrooms have bath tubs with individual shower cubicles.
• Marwar, the multi-cuisine coffee shop with a Marwari theme, serves buffet breakfast, light
snacks, lunch and dinner. Live ghazals and sitar performances in the evenings enhance the
ambience.
39 http://www.tajhotels.com/common_Pdf/Taj-Hari-Mahal-Jodhpur.pdf
24
Good Earth, the Chinese speciality restaurant, serves an array of authentic Chinese
delicacies.
• Barbeque, the specialty restaurant, serves the choicest grills and kebabs.
• Verandah Café, an extension of Marwar, is open for breakfast, lunch, light snacks &
dinner. The café opens to the pool deck that is a venue for live performances of Rajasthani
folk dances & puppet shows
• The Bar serves a choice of spirits, wines & exotic cocktails. The bar also serves imported
tea/coffees and cigars.
Taj Hari Mahal also offers a variety of exotic venues and theme dinners for gala evenings
and dining.
• Pal Haveli,
Banquets
The hotel has 5 meeting rooms that can accommodate between 30 and 500 guests. The
maximum conference and banquet capacity for one event are 200 and 600 guests
respectively.
25
The Health Club has separate facilities for ladies and gents. It has a steam room, massage
room, beauty parlour and gents salon, hot and cold shower, yoga room. Specialized massages
including a Swedish massage, balancing massage, lymphatic massage, aromatic massage,
back massage and back scrub are offered. The well equipped gymnasium has a cardio
vascular treadmill, stepper, cycle, weights.
• Cricket - Lawn • Croquet • Darts • Folk Music performance • Gym • Hard Court Tennis •
Indian Classical Music performance • Jogging Track • Lawn Badminton • Lawn Volleyball •
Netball in the pool • Pool Polo • Pool Table • Puppet Show • Swimming classes • Swimming
pool with Jacuzzi • Table Tennis • Y oga and meditation
• Bingo • Cookery Workshops • Cocktail Making Workshops • Food Craft & Carvings. •
Kitty Party
Kids Activities
• Activity Centre complimentary • Board Games • Bread Craft • Card Making Workshop •
Collage Workshop complimentary • Crayon Creations complimentary • Entertainment with
Music complimentary • Face Painting Workshop • Flower Making • Garden Football
complimentary • Kanche (traditional game) complimentary • Kids Garden Equipments
Sightseeing
26
• City Tour (half day) to Mehrangarh Fort, Jaswant Thada,Umaid Bhawan • City Tour &
Shopping to Mehrangarh Fort, Jaswant Thada, Umaid Bhawan, Sardar market, Clock Tower
and Nai Sarak • Osian Sand Dune • Village Safari
NEW TARIFFS:40
Name of the Suits (1 Sept 2008 Single Room Double Room Lux. Tax%
hotel to 31 Aug 2009)
Superior Pool
14000 14000 10
View Room
Deluxe Suite
22000 22000 10
Chapter: 3
Data Tabulation
In order to fulfill the objectives of this research and to gather empirical evidences to derive
the desired results, the field study was carried on at Taj Hari Mahal Hotel, situated at
Residency Road, Jodhpur.
For this purpose, two different surveys were conducted for: Consumers and Manager
respectively in order to gain an insight about the topic and to identify the various strategies
40 http://www.tajhotels.com/Common_pdf/NewTariff.pdf
27
adopted by Taj Hotel and their implications. These surveys helped in deducing the strengths,
weakness, opportunities and threats for Taj Hotel.
For the survey on Consumer Response the sample size was of 10 consumers, for the second
survey the sample size was one. Questionnaire method was used to collect data for these two.
However, a structured interview was carried out for the Manager so that an in depth
discussion could be carried out in order to gain more information about the research topic.
The various aspects of the field study are discussed below (in cue with the objectives) along
with the relative data.
RESPONSE OF MANAGER:
Set- A
Answer: LUXURY is the current USP of Taj hotels. We have strategically positioned
ourselves amongst our competitors. We have well established brand name since last 100
years with value associated with it.
• In an endeavour to reinstate its vision and efforts to boost sustainable tourism and
integrate environment management in all business areas, Taj Hotels Resorts and
Palaces presents EARTH (Environment Awareness & Renewal at Taj Hotels), a
project which reiterates the conscious effort of one of Asia’s largest and finest group
of hotels to commit to energy conservation and environmental management. EARTH
has received certification from Green Globe, the only worldwide environmental
certification program for travel and tourism.
Taj Hotels has joined the internationally-recognised Green Globe benchmarking and
certification system as an extension of its existing environmental policies. Taj Hotels has
long recognised that as a leader it has an important contribution to make and a responsibility
to demonstrate to others how they can be part of the fight against climate change.
28
Answer: YES, location is one of the most important decisions for the hotel. TAJ HARI
MAHAL spread over six acres of lush, landscaped gardens; this palace of the 21st century
offers luxurious refinement. With its Marwar style architecture and Moghul-inspired domes,
enamelled murals, slender columns, and grand interiors, this is design that lives up to the
fantasy. Located close to the city markets, nearby guests can find much to see and
experience. The rich culture of Rajasthan- Desert Festival Jaisalmer, Nagaur Festival
Magaur, Holi Jodhpur, Dussehra Jodhpur, Mawar Festival, Jodhpur, Pushkar Festival
Pushkar attracts tourists. The puppet show and the regional dance provide incredible
experience to the tourists.
2. Does the hotel have a pool of skilled employees? If yes, is the morale of the
employees high?
Answer: The employees and the staff here is skilled enough suiting to the nature of the job
and the morale of employees is high. We have taken a number of steps to provide highly
personalized service to the discerning customer, including butler services. In order to take
care of the entire stay experience, we have also completely revamped its Concierge services.
The Centres of Excellence have been strengthened considerably to train staff to meet the
exacting standards of a truly luxury hotel. Tata Business Excellence Model (TBEM) will
play a significant role in raising the bar of service provided. The TBEM has been rolled out
in all hotels.
Answer: Yes, the management of the inventory is good. We have installed inventory
software; our inventory systems are designed that desires a complete control over stock
levels and inventory tracking. Our systems are powerful and easy-to-use software. We
continually enhance our software and update periodically. They even follow the process of
forecasting the inventory requirement.
4. Has the hotel & the staff demonstrated the ability to adapt the changes?
Answer: YES, from time to time the hotel and the staff have adopted changes willingly
taking into consideration the changes in the-
Answer: “Local Events” with the mixture of rich heritage culture of Rajasthan is one of the
major sources of our revenue and profits.
2. What are the innovative ideas you have recently come up with?
Answer: Keeping in mind the changes in the habits, taste and the preferences of the
customers we try to come up with innovative ideas which appeal customers. Like,
• MARWAR, the multi-cuisine coffee shop with a Marwari theme, serves buffet
breakfast, light snacks, lunch and dinner. Live ghazals and sitar performances in the
evenings enhance the ambience.
• Jodhpur RIFF: Taj Hotels, Resorts & Palaces is the main sponsor for the annual
Jodhpur RIFF music festival, as part of its campaign to protect and promote India’s
national heritage. Taking place in October each year, the festival promotes rural art
and artisans, with 150 acts playing in the most beautiful of settings.
• EARTH: In an endeavour to reinstate its vision and efforts to boost sustainable
tourism and integrate environment management in all business areas, Taj Hotels
Resorts and Palaces presents EARTH (Environment Awareness & Renewal at Taj
Hotels), a project which reiterates the conscious effort of one of Asia’s largest and
finest group of hotels to commit to energy conservation and environmental
30
management. EARTH has received certification from Green Globe, the only
worldwide environmental certification program for travel and tourism.
• Cultural and Heritage Experience: Taj Hari offers variety of exotic venues and
theme dinners for gala evenings and dining tinged with cultural and heritage
experience at like-
a) Pal Haveli,
b) Meherangarh Terrace Jharokha Theme Dinner,
c) Marwar Terrace Theme Dinner,
d) Champagne Brunch at Chessboard Lawns,
e) Poolside Romantic Theme Dinner
f) The Jhalamand Castle Theme
g) Sand Dunes Dinner Experience
h) Village Safari Meal
• Reward programmes: If one often stays or dines at the Taj, the Taj InnerCircle is
the perfect programme. As a frequent guest at the Taj he/she will earn points and
enjoy a host of exciting benefits when one uses their services around the world. The
Taj Advantage Plus is a programme designed for valuable corporate bookers.
Bookings at the Taj will earn reward points and special offers from the Taj. The Taj
Alliance Preferred Partner Membership Programme (TAPP Me) is meant for our
valued partners in the travel trade.
• Yoga Retreats: Jiva Spas are hosting exclusive Yoga Retreats for the practise of Jiva
Yoga, of 4 and 7 days, at select Taj Hotels Resorts & Palaces from 12th January to
30th September 2009. The retreats are presently being offered at Jiva Spas at Taj
Exotica, Goa; Rambagh Palace, Jaipur; Umaid Bhavan Palace, Jodhpur; Taj Green
Cove Resort, Kovalam and Nadesar Palace, Benares. Each of these spas is a haven of
solitude and perfect for the practice of yoga. During the retreat, you can spend your
free time between 11 a.m. to 3.30 p.m. having a leisurely lunch, swimming, relaxing
in the steam room or Jacuzzi; enjoying a massage at the Jiva Spa, reading yoga books
or journals, meditating or meeting with other guests
Answer:
31
Answer: YES, we do have tie ups with air lines, credit cards and cellular companies. Apart
from that we have our air line services by the name of JET AIRS- it is an executive jet
service that offers luxurious experience in the comfort.
Product Mix: Hotel stays innovation in peripheral services rather than core services.
Price mix: The diverse nature and character of dishes, involvement of cost and spending
power of customers.
Place mix: location of the hotel is the most important business decision for the hotels.
People: The hotel trains its people regularly, especially the front line professionals.
32
Physical evidence: LOBBY- It being the first and the last part of the hotel that the guests
see, thus it should be well designed also to ensure that the customer returns again the room
should be comfortable and should have made his stay hassles free.
• Check –in
• Bell person carrying the luggage to the room.
• Food
• Wake-up call
• Check-out
We plan our process in such a way that there are minimum glitches and errors.
a) Premium Pricing Strategy: TAJ HARI follows Premium pricing strategy popularly
known as prestige, prominence, "Connoisseur" pricing strategy. It is the strategy of
consistently pricing at, or near, the high end of the possible price range to help attract
status-conscious consumers. People will buy a premium priced product because:
i. They believe the high price is an indication of good quality;
ii. They believe it to be a sign of self worth - "They are worth it" - It authenticates their
success and status. It is a signal to others that they are a member of an exclusive
group.
iii. Moreover they have well established brand image since last 100 years. The value is
associated with the brand name.
Taj Hotels has joined the internationally-recognised Green Globe benchmarking and
certification system as an extension of its existing environmental policies. Taj Hotels
has long recognised that as a leader it has an important contribution to make and a
responsibility to demonstrate to others how they can be part of the fight against
climate change. Having implemented the Environmental Awareness and Renewal
(EARTH) programme, a project which began as a conscious effort to commit to
energy conservation and other sustainability strategies, Taj Hotels was one of the first
groups to join the tourism industry in its efforts.
b) Growth strategy/Expansion strategy: Taj Group of Hotels is following growth
strategy it has already ventured overseas with 15 international hotels and further it is
planning to explore some new areas. Taj Group plans to add around 12 hotels in the
next three years in the business hotel segment. Recently in 2004 it has extended its
footprints in China and existing business in middle-east. This is for the first time; any
Indian hotel company is planning to set up a base in China.
c) Differentiation Strategy: TAJ focuses on class leadership rather than on cost
leadership. They believe in giving value to the customers. Even the customers are not
bothered about the price because they receive desired value and services. They
provide unique features to the customers both- tangible and intangible.
d) Sub-Branding Strategy: The usual trend in the international hospitality industry is
to have distinct brands for each segment that a hotel group operates in. This strategy
ensures that the brand equity is not diluted when the brand enters the business
segment or economy hotels segment. But the Taj brand has not treaded this path till
now. But lately, this company has realized the advantages of separating the premium
parent brand names of Taj from all operations and to restrict the brand names only to
ultra premium hotel properties. The company has decided to follow a sub-brand
strategy where by the business hotels will run under a separate hotel brand name but
endorsed by the Taj brand. Taj Group also plans to use its Gateway brand to bolster
up the budget hotel segment. This strategy ensures that Taj preserve its brand equity
and also facilitates the expansion to other segments by endorsing the sub-brands with
their parent brand names.
e) Product up-gradation/restructuring strategy: IHCL continues to invest in
renovation and re-launch of key / brand defining properties. In the last financial year
IHCL upgraded rooms at the Taj Mahal Palace & Tower, Mumbai and Taj West End,
34
Bangalore the lobby and public areas of Taj Lake Palace, Udaipur and Rambagh
Palace, Jaipur were also renovated to provide a luxurious sense of arrival. The Sea
Lounge and Harbour Bar at Taj Mahal Palace & Tower, Mumbai was re-launched,
while a new Vietnamese restaurant 'Blue Ginger' was opened in Taj West End,
Bangalore, etc.
f) Balanced Scorecard Strategy: The use of the Balanced Scorecard (BSC) has been
strengthened across the organization. It is used as the key strategy deployment tool.
The key strategic objectives are captured in the BSC and cascaded across the units &
departments. All the SBU scorecards are aligned with the corporate scorecard, as well
as the HR & Sales & Marketing scorecard.
g) Tata Business Excellence Model (TBEM): In order to intensify the drive for
Business Excellence, IHCL conducted Internal Assessments based on the Tata
Business Excellence Model for Luxury, Leisure, and Business SBUs as well as for
Taj SATS Air Catering Limited. The Luxury Division has also applied for External
Assessment, which is to be facilitated by Tata Quality Management Services. Based
on the External Assessment (2003) feedback report and the feedback from the
Internal Assessment, action plans to improve processes which finally impact the
overall organizational effectiveness, have been drawn out and worked upon.
h) TOP: IHCL’s operational improvement programme, TOP (Total Overdrive for
Profits), being managed jointly with McKinsey & Company, has made significant
progress since its inception in July 2002. The programme has identified improvement
ideas across areas like Rooms, Banquets, Purchase, Engineering, Wines, Mini-bar,
In-room dining, Chambers and several other operational areas. In addition, the TOP
team has been working with a cross functional team to develop a strategy for
maximising revenues from key corporate accounts. The focus of the TOP team for
the next few months will be in ensuring that all identified improvement ideas are
fully implemented. In addition, the team will continue to focus on cost areas and
address new areas like restaurant revenues and capital expenditures.
i) Strategy Muse: TAJ has also adopted the marketing strategies formulated by MUSE
is a marketing consultancy agency in order to boost its income and cut cost.
1. What is your customer retention performance since last 3 yrs?
Answer: Taj Hotels is one of India’s oldest service bands owned by Tatas, which is nearly
100yrs old. The Taj, a symbol of Indian hospitality, completed its centenary year in 2003.
IHCL operate in the luxury, premium, mid-market and value segments of the market. Its
USP is LUXURY. Taj Hotels Resort and Palaces comprises more than 60 hotels in 45
locations across India with an additional 15 international hotels in the Malaysia, United
Kingdom, United States of America, Bhutan, Sri Lanka, Africa, the Middle East and
Australia. Recently Taj Hotels Finished a $100 Million Renovation at The Pierre on New
York's Fifth Avenue. Taking into consideration the above points it can be inferred that Taj
possesses strong financial resources.
Answer: YES, our target segment is upper class- (business class, foreign tourist, affluent
families) and our USP is LUXURY which is designed taking into care tour USP; it makes
our segment niche and we consider it as our major strength.
4. Other strengths?
Answer: Demand-supply gap: sometimes our hotel faces a mismatch between the demand
and supply of rooms leading to higher room rates and occupancy levels. This is one of the
major sources of our revenue.
Government support: The government has realized the importance of tourism and has
proposed a budget of Rs. 540 crore for the development of the industry. The priority is being
given to the development of the infrastructure and of new tourist destinations and circuits.
The Department of Tourism (DOT) has already started the "Incredible India" campaign for
the promotion of tourism in India.
Increase in the market share: Our market share in international tourism and hospitality
market is expected to increase over the long-term. New budget and star hotels are being
established both in India and oversees.
SET- B
Answer: At times we are not able to recover costs when storage and fixed cost is high during
off season blues (stagnancy).
Answer: Our average fixed cost and storage cost is satisfactory. It is sometimes high during
off season blues.
Answer: YES, during the time of- off season blues low occupancy pulls down our profits.
5. Do you think internal security & unrest hamper your foreign tourist arrival rate?
Answer: YES, after the terror attack at Taj Mumbai we consider the fact that internal security
and unrest hamper our foreign tourist arrival rate and is also susceptible to political events
but, we are working to make our internal security system strong and transparent.
Answer: YES, we conduct training programmes on regular basis for our staff and employees
in order to keep them update with changes both internal and external. Staff and employees
are sent for internships in hotels at different locations.
SET- C
1. Is there any area which has not yet been taken care of by your competitors?
Answer: Still we have to harp upon some of the international best practices.
Answer: YES, Owing to the rise in income levels, Indians have more spare money to spend,
which is expected to enhance leisure tourism and hotel industry. While there has been much
talk about record number of foreign tourist arrivals, very little has actually been said or done
about domestic tourism, which, according to our estimates, has registered a 40% annual
37
growth in the last three years and is currently estimated at 300 m travellers. Per capita
income grew by an impressive 7.1% in 2005, while Gross Domestic Savings touched an all
time high of 28%. Significantly, the present-day consumption boom in India has been
influenced more by higher disposable income rather than lower savings. This is good news,
as income induced spending is likely to sustain itself for a longer period. Higher disposable
incomes are also expected to enhance the concept of travelling for leisure.
Answer: Yes, due to increase in disposable income of people and change in lifestyle of
people there are lots of opportunities available in Hotel industry which can be en-cashed
upon. Moreover the attitude of people towards life is changed, now people are more inclined
toward fun and leisure.
Answer: The opening up of the aviation industry in India brings exciting opportunities for
the hotel industry (airlines transport around 80% of international tourists). Increased airline
activity has stimulated demand and has helped to improve India's troubled infrastructure.
Increased competition among airline companies will further lead to the development of new
and improved services. Also the open skies policy has benefited both international and
domestic travel.
Answer: YES, the travel and tourism industry is growing at a greater pace because it brings
in huge chunk of revenue and foreign currency to our country. There are lots of areas and
opportunities still unexplored, which can be en-cashed upon.
Answer: YES, from time to time we have utilized this opportunity in different framework
like-
Surprises at Taj: They offer different packages – Stay a bit longer, book early get more, Taj
Club and suit surprises, Business Edge, Weekend Saver, value Vouchers, Taj fly and Stay.
38
Reward programmes: If one often stays or dines at the Taj, the Taj InnerCircle is the
perfect programme. As a frequent guest at the Taj he/she will earn points and enjoy a host of
exciting benefits when one uses their services around the world. The Taj Advantage Plus is
a programme designed for valuable corporate bookers. Bookings at the Taj will earn reward
points and special offers from the Taj. The Taj Alliance Preferred Partner Membership
Programme (TAPP Me) is meant for our valued partners in the travel trade.
SET-D
Answer: YES, the total dependency on foreign tourists can be risky, as there are wide
fluctuations in international tourism. Domestic tourism needs to be given equal importance
and measures should be taken to promote it.
3. Do you think any changes in policies of government and tourism industry will affect
your hotel industry?
Answer: One of the features of environment is that it is dynamic and multifaceted i.e. certain
change in environment may be opportunities for some and for others it may be a threat.
Similarly change in government policy which is the part of environment can be a threat or
opportunity depending upon the impact on the hotel.
Answer: YES, definitely terrorism is a major and serious threat to whole hotel industry. After
terror attack at Mumbai Taj it is explicit that hotel industry is haunted by terrorism.
Answer: Yes, it can be a critical issue for our organisation because of new job avenues and
opportunities emerging in the market.
Answer: YES, there are many international brands that are capturing Indian Hotel market. In
today’s changing scenario the competition in Hospitality industry is going international.
There are many new brands who have ventured into Indian hotel industry. This may also
erode the loyalty of the current customers.
7. Other Threats?
Answer: Poor facilitated airports, inadequate road infrastructure, high taxation levels and a
bureaucratic visa processing system.
RESPONSE OF CONSUMERS: Sample size was 10 out the 3 were from business class, 2
foreigners, 5 localities.
1. Are you aware of Taj Hari Mahal Hotel, Jodhpur? Have you visited TAJ even once?
Answer: a) Yes b) No
Figure: 1
Observation: 100% of the respondent said that they were aware about Taj Hari Mahal Hotel,
Jodhpur.
2. Which is the major service encounter that extremely delighted and disappointed you?
• Beverages
• Marwari theme: The multi-cuisine coffee shop with a Marwari theme, serves buffet
breakfast, light snacks, lunch and dinner. Live ghazals and sitar performances in the
evenings enhance the ambience.
• Ambience- Rich cultural and heritage ambience which gives palatial effect.
• Jodhpur RIFF -music festival.
• Surprises at Taj scheme: They offer different packages – Stay a bit longer, book early
get more, Taj Club and suit surprises, Business Edge, Weekend Saver, value
Vouchers, Taj fly and Stay.
• Different Themes Dinner.
1. Rate – 1) price and value (tariff rate), and 2) taste & quality of the food provided 3)
services by the staff and employees on the Linkert scale?
Observations: 30% of the respondents said that the quality of the food was very good and
other 40% said it was good, remaining 30% rated it as fair.
Figure: 4
Observations: None said that the service provided was excellent, 20% said it was fair, 20%
said it was poor, 20% rated very good and 40% rated as good.
2. Do you think that the employees and the staff are skilled or do they require customer
service training?(rate them)
Answer:
Figure: 5
Observations: Majority of the respondents said that the employees and the staff were
skilled. (50% supported this view).
Answer: The opinion was distributed 3 business class respondents said that they come every
year. 2 foreigners said they have come for the first time. Remaining 3 were localities- out of
five- 2 come every 2 months, 1 said every 6 months.
4. According to you what are the opportunities Taj Hotel en-cash upon?
Answer:
• Initiative of EARTH.
42
• Yoga Retreat
• Jodhpur RIFF
• Marwari Theme
• Any other (mention)
Figure: 6
This was a short account of the field study conducted for the purpose of this research. The
interview and the questionnaires were designed keeping in mind the various objectives and
the data tabulation has also been done in correspondence with the objectives so as to
maintain the focus and the very purpose of the research. The interpretation of the data shall
now be discussed in the next chapter.
Chapter: 4
Data Analysis
After the detailed account of the field study and the data tabulation lets look into the
interpretation as to what does the data so calculated implies to.
There are various strategies which have been adopted by Taj Hotel from time-to-time in
order to revitalize there brand. Below is the list of various strategies adopted by them:
a) Premium Pricing Strategy: TAJ HARI follows Premium pricing strategy popularly
known as prestige, prominence, "Connoisseur" pricing strategy. It is the strategy of
consistently pricing at, or near, the high end of the possible price range to help attract
status-conscious consumers. People will buy a premium priced product because:
• They believe the high price is an indication of good quality.
43
• They believe it to be a sign of self worth - "They are worth it" - It authenticates their
success and status. It is a signal to others that they are a member of an exclusive
group.
• Moreover they have well established brand image since last 100 years. The value is
associated with the brand name.
a) Sustainability Strategy: In an endeavour to reinstate its vision and efforts to boost
sustainable tourism and integrate environment management in all business areas, Taj
Hotels Resorts and Palaces presents EARTH (Environment Awareness & Renewal at
Taj Hotels), a project which reiterates the conscious effort of one of Asia’s largest
and finest group of hotels to commit to energy conservation and environmental
management. EARTH has received certification from Green Globe, the only
worldwide environmental certification program for travel and tourism.
Taj Hotels has joined the internationally-recognised Green Globe benchmarking and
certification system as an extension of its existing environmental policies. Taj Hotels
has long recognised that as a leader it has an important contribution to make and a
responsibility to demonstrate to others how they can be part of the fight against
climate change. Having implemented the Environmental Awareness and Renewal
(EARTH) programme, a project which began as a conscious effort to commit to
energy conservation and other sustainability strategies, Taj Hotels was one of the first
groups to join the tourism industry in its efforts.
b) Growth strategy (Expansion) strategy: Taj Groups of Hotel is following growth
strategy it has already ventured overseas with 15 international hotels and further it is
planning to explore some new areas. Taj Group plans to add around 12 hotels in the
next three years in the business hotel segment. Recently in 2004 it has extended its
footprints in China and existing business in middle-east. This is for the first time; any
Indian hotel company is planning to set up a base in China.
c) Sub-Branding Strategy: The usual trend in the international hospitality industry is
to have distinct brands for each segment that a hotel group operates in. This strategy
ensures that the brand equity is not diluted when the brand enters the business
segment or economy hotels segment. But the Taj brand has not treaded this path till
now. But lately, this company has realized the advantages of separating the premium
parent brand names of Taj from all operations and to restrict the brand names only to
ultra premium hotel properties. The company has decided to follow a sub-brand
44
strategy where by the business hotels will run under a separate hotel brand name but
endorsed by the Taj brand. Taj Group also plans to use its Gateway brand to bolster
up the budget hotel segment. This strategy ensures that Taj preserve its brand equity
and also facilitates the expansion to other segments by endorsing the sub-brands with
their parent brand names.
d) Differentiation Strategy: TAJ focuses on class leadership rather than on cost
leadership. They believe in giving value to the customers. Even the customers are not
bothered about the price because they receive desired value and services. They
provide unique features to the customers both- tangible and intangible.
e) Product up-gradation/restructuring strategy: IHCL continues to invest in
renovation and relaunch of key / brand defining properties. In the last financial year
IHCL upgraded rooms at the Taj Mahal Palace & Tower, Mumbai and Taj West End,
Bangalore, The lobby and public areas of Taj Lake Palace, Udaipur and Rambagh
Palace, Jaipur were also renovated to provide a luxurious sense of arrival. The Sea
Lounge and Harbour Bar at Taj Mahal Palace & Tower, Mumbai was re-launched,
while a new Vietnamese restaurant 'Blue Ginger' was opened in Taj West End,
Bangalore, etc.
f) Balanced Scorecard Strategy: The use of the Balanced Scorecard (BSC) has been
strengthened across the organization. It is used as the key strategy deployment tool.
The key strategic objectives are captured in the BSC and cascaded across the units &
departments. All the SBU scorecards are aligned with the corporate scorecard, as well
as the HR & Sales & Marketing scorecard.
g) Tata Business Excellence Model (TBEM): In order to intensify the drive for
Business Excellence, IHCL conducted Internal Assessments based on the Tata
Business Excellence Model for Luxury, Leisure, and Business SBUs as well as for
Taj SATS Air Catering Limited. The Luxury Division has also applied for External
Assessment, which is to be facilitated by Tata Quality Management Services. Based
on the External Assessment (2003) feedback report and the feedback from the
Internal Assessment, action plans to improve processes which finally impact the
overall organizational effectiveness, have been drawn out and worked upon.
h) TOP: IHCL’s operational improvement programme, TOP (Total Overdrive for
Profits), being managed jointly with McKinsey & Company, has made significant
progress since its inception in July 2002. The programme has identified improvement
45
ideas across areas like Rooms, Banquets, Purchase, Engineering, Wines, Mini-bar,
In-room dining, Chambers and several other operational areas. In addition, the TOP
team has been working with a cross functional team to develop a strategy for
maximising revenues from key corporate accounts. The focus of the TOP team for
the next few months will be in ensuring that all identified improvement ideas are
fully implemented. In addition, the team will continue to focus on cost areas and
address new areas like restaurant revenues and capital expenditures.
i) Strategy Muse: TAJ has also adopted the marketing strategies formulated by MUSE
is a marketing consultancy agency in order to boost its income and cut cost.
Objective 2: To identify the opportunities and threats for Taj Hari Mahal in the
market, and analyse its strengths and weaknesses.
The following strengths, weakness, opportunities and threats for TAJ HARI MAHAL
HOTEL have been identified during the course of research with the help of the responses
received in the field study. A few points have been added through the analysis of the external
environment done on the basis of the doctrinal research. Thus the analysis in the present case
will involve the identification of Strengths, Weaknesses, Opportunities and Threats based on
the primary and secondary data collected.
SWOT Matrix has been plotted below on the basis of field study done.
Strengths: Weaknesses:
1) Well established brand image since last 1) Issues related to internet connectivity
100 yrs. 2) High fixed cost
2) USP- Luxury
3) Niche target segment (luxury loving & 3) High storage cost
high income group) 4) Loosing on profits due to low occupancy
4) Strategically placed in Jodhpur 5) Off-season blues
5) Personalised approach in service
6) Internal security & unrest hamper tourist
6) Skilled employees with high morale
7) Efficient inventory management arrival
8) High degree of adaptability to changes
9) “Local Events” with a mixture of rich
heritage culture of Rajasthan
10) New innovative ideas- Jodhpur RIFF,
46
Opportunities: Threats:
An overview of the SWOT Matrix shows a very favorable position for Taj Hari Mahal,
Jodhpur. The hotel has immense strength to make most of the opportunities. There are
weaknesses but they do not negate the strengths or the ability of the organization to have
substantial growth. As the weaknesses show the Organization is very new in the city and is at
a nascent stage.
47
One of the most favourable factors for TAJ HARI MAHAL HOTEL is its brand image,
brand awareness and high brand recall. These factors have played a major role in building up
its position. According to them hotel stays innovation in peripheral services rather than core
services, therefore they lay greater emphasis on peripheral services. The demographic and
geographical location of TAJ HARI MAHAL HOTEL is of great advantage to them and
when linked up with opportunities of change in habits, tastes and preferences of customers
can bring to them a huge chunk of revenues and profits.
The employees and staff of TAJ HOTEL are skilled and demonstrate high morale. They
even have personalised approach towards service and demonstrate high degree of ability to
change. These strengths can be utilised in curbing the high storage cost and fixed cost. The
skilled employees can work efficiently in this direction.
TAJ has always tried to come up with new innovative ideas from time to time, like
JODHPUR RIFF, Marwari Theme and specially Yoga Retreats which provides the
customers incredible experience, greater emphasis on innovative ideas and seizing in the
opportunity of increase in disposable income and change in lifestyle and preferences of
customers will not only increase the overall profitability of TAJ but would also help in
countering the competitive advantage of the competitor.
TAJ Hotel can address to the threats of increasing Terrorism and Event Risk by laying
greater emphasis on peripheral services and activities, as they are already doing that they can
work upon refining them. By adopting international best practices and efficient utilization of
existing resources they can definitely make an attempt do away with the threat of fluctuation
in international tourist arrival rate.
There effective customer feedback system (CFS) and tie-ups with airlines, cellular and
credit card companies has enhanced their market share. Initiating reward programmes for
staff and employees will help retaining them, thereby will reduce and can even eliminate the
threat of retaining key staff.
48
If we observe the responses of the consumers we’ll find that 100% of the respondent stated
that they are aware of the TAJ HARI MAHAL existing in Jodhpur and all of them have
visited TAJ atleast once. This response demonstrates that they have high brand recall and
awareness.
The number of services that delighted the respondent is more than the services which
disappointed them, this show a favourable position for TAJ HARI Hotel. By improving on
these disappointing services they efficiently cater to the needs of the customers.
TAJ HARI follows a Premium Pricing Strategy and Differentiation Strategy; where value
is associated with its brand name, they provide unique experience to their customers. People
are attracted towards TAJ because of the luxury associated with its brand name and people
who love luxury don’t mind paying for it. 60% of the respondent rated the price and value of
the food and service as very good. Taste and quality of the food provided is also rated as
good almost 70% rated it as good.
TAJ HARI MAHAL HOTEL considered BALSAMAND and PARK PLAZA as there major
competitor in Jodhpur. They have devised various strategies to withhold the competition.
Firstly, they are well established brand with VALUE associated with their brand name.
Secondly, laying more emphasis on peripheral services, thirdly, coming up with new
innovative ideas, fourthly, and venturing into areas which have not yet been taken care of by
them.
After analysing the Strength, Weaknesses, Opportunities and Threats- we can identify and
plot the strategies adopted by them:
Opportunities
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(Growth/offensive Strategy)
Weaknesses Strengths
(Defensive Strategy)
Threats
“S-O” Strategy: TAJ HARI is currently following growth strategy or offensive strategy by
utilizing its strengths to address an opportunity against it major competitor in Jodhpur i.e.
BALSAMAND and PARK PLAZA.
“W-T” Strategy: TAJ HARI is following defensive strategy and taking some corrective
action to eliminate and minimize the weakness of internal security so as to minimize the
threat of Terrorism.
integral way by which a hotel can differentiate itself. Today, a large number of
people look for Wi-Fi connection in hotels to enable internet connection for their
laptops. Hoteliers fulfill such requirements of their customers by taking various
initiatives. There is no doubt that superior guest services are, and will always define
the success of a property. Appropriate technology would also be a strong factor in
deciding whether a property does well or not.
b) Efficient Inventory Management: Proper strategies should be formulated which
help in maintenance of optimum level of inventory. It will also help in reducing its
fixed cost and storage cost.
c) Promotional Activities: More aggressive promotional activities should be carried
out by the hotel. Schemes like smart card, discounts, value packs, price offers, and
free-coupons should be more frequent and should be well advertised as well.
d) Off-season blues strategy: During the off-season blues they should lay greater
emphasis on “LOCAL EVENTS” and should try and come up with new innovative
ideas which will help them recovering cost due to low occupancy.
e) Environment Strategies: The environmental movement is not new to the hotel
industry. TAJ HARI HOTEL should adopt environmental programmes as a part of
their environmental strategy in order to reduce energy use, water use, waste
generation, and more recently greenhouse gas emissions. They should place
customer-focused initiatives such as towel and linen reuse programs. The major
motivation for them is cost controls in the face of rising utility rates. Utilities account
for 5-15% of total operating costs for hotels, and cost-effective environmental
management strategies can cut property-wide consumption up to 30% without major
investments in physical plant, and up to 75% in targeted use areas. Though TAJ has
made an initiative in this direction with the new concept of EARTH as discussed
earlier, but there is a need to lay greater emphasis on environmental strategies.
Chapter: 5
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Conclusion:
An important part of any strategy planning would include identifying the environment and
understanding its aspects in a holistic sense. A scan of the internal and external environment
is an important part of the strategic planning process. Environmental Factors have a major
role to play in the performance of a business organization and thus Environmental Scanning,
Appraisal and Analysis has a major role to play in strategy formulation. SWOT Analysis is a
significant tool as it helps combine internal and external environmental factors to provide an
overview of the business scenario and help formulate the appropriate strategies. It provides
information that is helpful in matching the firm's resources and capabilities to the
competitive environment in which it operates.
After conducting the SWOT analysis of TAJ GROUP OF HOTELS we can identify the
current position and performance of the orgainsation. These strengths, weaknesses,
opportunities and threats will help to formulate appropriate strategies for the organisation.
There is huge potential and definitely there is lot of revenue in the Hospitality Industry, and
TAJ HOTELS have the requisite strengths to milk the opportunities before it. It has almost
unbeatable competitive advantages, huge potential and high growth rates. It is a well
established brand with values associated with it since last 100 years. It provides incredible
and unforgettable experience to its customers which become a sweet memory for them. It has
lots of opportunities coming in its way which if explored bring them to the “ZENITH”.
Various strategies have been adopted by them from time to time in order to retain their
customers and maintain their brand image, like – Premium price strategy, differentiation
strategy, strategy muse, sustainability strategy, product up-gradation strategy, growth
strategy and many more.
IF they harp upon the opportunities available in the environment along with the utilization of
their existing strengths they can minimize their threats and weaknesses. TAJ HARI needs to
focus on inventory management, and aggressive promotion to enhance its business and claim
them self as a leader in the untapped market of hospitality industry, simultaneously
expanding into wider international markets for holistic growth.
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Suggestions:
From the above data tabulation and analysis we can observe that TAJ HARI has adopted
many strategies which have lead to its success, but still there are some areas on which it can
work upon:
generation, and more recently greenhouse gas emissions. They should place
customer-focused initiatives such as towel and linen reuse programs. The major
motivation for them is cost controls in the face of rising utility rates. Utilities account
for 5-15% of total operating costs for hotels, and cost-effective environmental
management strategies can cut property-wide consumption up to 30% without major
investments in physical plant, and up to 75% in targeted use areas. Though TAJ has
made an initiative in this direction with the new concept of EARTH as discussed
earlier, but there is a need to lay greater emphasis on environmental strategies.
• Using their insight to make their brand the first choice for guests
• Using worldwide scale and experience to retain existing consumers and attracting
new consumers.
• Making the most of their global presence – guests choose their brand when they
travel.
• Investing in their human resource and their ability to achieve set goals and targets.
Annexures
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1) SYNOPSIS
2) QUESTINNAIRE & STRUCTURED INTERVIEW OF GENERAL MANAGER
3) QUESTIONNAIRE FOR CONSUMER RESPONSE
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Synopsis
Introduction:
As the topic suggests, the research shall be directed towards studying the SWOT Analysis of
Taj Group of Hotels specifically for the ones situated in Jodhpur city.
SWOT analysis is an acronym for the internal Strengths and Weaknesses of a firm and the
environmental Opportunities and Threats facing that firm. SWOT analysis is widely used
technique through which managers create a quick overview of the company’s strategic
situation. It is based on the assumptions that an effective strategy derives from a sound “fit”
between internal resources (strengths and weaknesses) and its external situation
(opportunities and threats). A good fit maximizes a firm’s strengths and opportunities and
minimizes its weaknesses and threats. Where:
• Strengths are the availability of a particular resource with the firm, and the ability of
the firm to leverage it to performing certain activities better than its competitions. It
could arise from Physical, Human and Organisational assets.
• Weaknesses are the non availability of a particular resource with the firm, or the
inability of the firm to leverage that resource in performing certain activities better
than its competition. It could arise from lack of physical, human, organisational, or
intangible assets, lack of appropriate skills or expertise in leveraging the resources,
lack of strategic directions for the company to understand and fulfil the needs of the
specific customer segment(s).
• Threats are those factors that the firm is not equipped to handle. The environmental
threats could arise out of emergence of new customer segments in the market for the
company, changes in the customer habits and preferences, and their buying
behaviour, change in technology, entry of new competitors in the market with new
business models.
The aim of any SWOT analysis is to identify the key internal and external factors that
determine the chances of success or failure of the business venture. SWOT analysis groups
key pieces of information into two main categories:
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Organisation:
The Indian Hotels Company Limited (IHCL) and its subsidiaries are collectively known as
Taj Hotels Resorts and Palaces and is recognised as one of Asia's largest and finest hotel
company. Incorporated by the founder of the Tata Group, Mr. Jamsetji N. Tata, the company
opened its first property, The Taj Mahal Palace Hotel, Bombay in 1903. The Taj, a symbol of
Indian hospitality, completed its centenary year in 2003. Taj Hotels Resort and Palaces
comprises more than 60 hotels in 45 locations across India with an additional 15
international hotels in the Malaysia, United Kingdom, United States of America, Bhutan, Sri
Lanka, Africa, the Middle East and Australia.
Taj Hari Mahal, Jodhpur, Spread over six acres of lush, landscaped gardens; this palace of
the 21st century offers luxurious refinement. With its Marwar style architecture and Moghul-
inspired domes, enameled murals, slender columns, and grand interiors, this is design that
lives up to the fantasy. It offers various products and services such as- Jiva Spa, Food &
Wines, Event Planning, Taj Holidays, Babysitting, Beauty parlour / Hair salon, Car hire
service, Currency exchange, Doctor-on-call, Express laundry / dry cleaning, Travel
assistance, etc.
Objectives:
1) To identify the strategies adopted by Taj Hari Mahal.
2) To identify the opportunities and threats for Taj Hari Mahal in the market, and
analyse its strengths and weaknesses.
3) To generate/suggest an alternative course of action/strategies for the firm using
SWOT matrix analysis.
Research Methodology:
Since the research will be doctrinal and non-doctrinal in nature, therefore the data would be
collected both from secondary and primary sources of information. On the basis of the data
collected, a questionnaire will be developed, which would further help in field study and
collection of primary data. So, research would also follow empirical research. Therefore the
approach for research would be deductive approach.
Tentative chapterizations:
• Executive Summary
• Statement of Objectives
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• Research Methodology
1. SWOT Analysis: Introduction
Meaning
Purpose
Mechanism
2. Introduction to Taj Group of Hotels
3. Data Tabulation
4. Analysis
5. Conclusion
• Annexure
• Bibliography
• Limitations ( if any)
Bibliography:
• John A Pearce II, Richard B Robinson, Jr, Strategic Management,Tata McGraw, New
Delhi, 9th edn., 2005
I. Set- A
1. What is your USP?
2. What makes you stand-out from your competitors?
3. Do you consider the geographical location as one of your strengths?
4. Does the hotel have a pool of skilled employees? If yes, is the morale of the
employees high?
5. Does the company manage its inventory efficiently?
6. Has the hotel & the staff demonstrated the ability to adapt the changes?
7. What is the major source of your revenue and profit?
8. What are the innovative ideas you have recently come up with?
9. How does the company withstand international competition?
10. Do have tie-ups with airlines, credit card and cellular companies?
11. What are the various strategies adopted by you?
12. What is your customer retention performance since last 3 yrs?
13. Do you consider financial resources as your strengths?
14. Do you consider niche target segment as your strength?
15. Other strengths?
I. Set- B
1. Are there any complains reported by your customers?
2. In what areas the hotel is not able to recover cost?
3. Is your fixed-cost and storage-cost high enough?
4. Are you loosing on profits due to low occupancy?
5. Do you think internal security & unrest hamper your foreign tourist arrival
rate?
6. Is there need of training for customer service staff?
I. Set- C
1. Is there any area which has not yet been taken care of by your competitors in
the town?
2. Do you consider increase in disposable income as an opportunity?
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I. Set- D
1. Do you consider fluctuations in international tourism arrival as a major threat?
2. Do your consider event risk as a threat?
3. Do you think any changes in policies of government and tourism industry will
affect your hotel industry?
4. In today’s changing scenario- do you agree that hotel industry is haunted by
terrorism and has become a major threat (for your hotels)?
5. Do you consider retention of key staff critical?
6. Do you consider international brand as a threat to your organisation?
7. Other threats?
Bibliography
Books:
• John A Pearce II, Richard B Robinson, Jr, Strategic Management, Tata McGraw,
New Delhi, 9th edn., 2005
• Kotler, Philip, Marketing Management (Prentice Hall of India, New Delhi, 11th edn.,
2003)
• John A. Parnell, Strategic management-Theory and Practices, Biztantra, New Delhi,
2008, pg.130
Websites:
➢ http://www.baserler.com.tr/onur/isletme/Management%20Skills-SWOT.htm
➢ http://competitive-intelligence.mirum.net/competitive-intelligence-methods/swot-
analysis-strengths-weaknesses-opportunities-threats_4.html
➢ http://ollie.dcccd.edu/mrkt2370/Chapters/ch2/2env.html
➢ http://www.quickmba.com/strategy/swot/
➢ http://www.marketingteacher.com/Lessons/lesson_marketing_environment.htm
➢ http://www.businessballs.com/swotanalysisfreetemplate.htm visited
➢ http://en.wikipedia.org/wiki/SWOT_Analysis
➢ http://marketingteacher.com/Lessons/lesson_swot.htm
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➢ http://www.tajhotels.com