7 Days Inn Hotel Case Study
Autor: kiddathome • March 31, 2016 • Case Study • 259 Words (2 Pages) • 1,792 Views
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Q1-Advantage
Big market in China(2.4-2.5)
Strong IT support(3.2-3.3)
Extensive Membership Programe and members’ loyalty(3.3-3.4)
Good Location\Room Design\Low operating Cost(3.6-3.8)
Mixed and Advanced Business Model(4.1-):L&O and F&M
Low cost to keep standard management and continuous on-going fee and one-time joining fee
Q1-disadvantage
High cost and early loss of business model L&O (4.1)
No asset control\fixed asset and hard to use indirect financing(4.3, 5.4)
The scale of business grows too fast(4.6)
Easily to be controlled or hurt by shortage of financing(5.3)
Hard to negotiate with elder investors and share holders(9.8)
Tough competitors and always be the middle rank(12)
Growth of revenue and PBIT are slowing down(13)
Relatively high stock price(14)
Q2-Good but Limited Market
Big market with so many competitors
Advantages compared with 1-2 stars hotels
Same standards and same style of rooms all over the China
A lot of price-sensitive consumers in China want to have high cost performance hotels
Government and companies cut off luxury spending, so 5 stars hotels will not always be one option for business trips.
Q2-Choose to invest in Hantin
Not too aggressive extension compared with two main competitors
High potential of growing
Close share of market compared with 7 Days
Good business data compared with 7 days
May be low cost
More detail fsa data
Business models
Historical information
Q4-Choose not to invest
Too aggressive strategies
Not easy to control the whole company
Low revenue growth and not so good data of business performance
Illiquidity for a long time
Not easy to negotiate with elder stock holders or have to pay high price to privatize.
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