AllFreePapers.com - All Free Papers and Essays for All Students
Search

7 Days Inn Hotel Case Study

Autor:   •  March 31, 2016  •  Case Study  •  259 Words (2 Pages)  •  913 Views

Page 1 of 2

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.

...

Download as:   txt (1.7 Kb)   pdf (55 Kb)   docx (10.4 Kb)  
Continue for 1 more page »