The market the business is entering is extremely large as the business is not only going have to compete with hotels, but also other venues of accommodation. This would include campsites, B & B’s, holiday centres i. e. Centre Parks and theme parks accommodation e.
g. Alton Towers. The data provided by Visit Britain (see appendix 1) there is still a variable market for the hotel industry, as it is showing 23% per cent of tourists staying in hotels within the UK compared to the other forms of accommodation. This percent shows hotels are second choice as 48% would prefer to stay at a friends or relatives house.The business needs to reach out and to be different in order to boost the percentage for the hotel market and lower the FR (friends and relatives) percentage, by providing a high quality level of service and amenities which will outperform the comfort of FR’s. The trends of the consumers staying within the UK, the largest amount was mainly for a holiday.
According to Visit Britain (2009) it was the largest since 2000 with a 33% increase in 2007. But there has been a decline as in 1995 the numbers of visitors has dropped from 44% to 33%. For VFR there has been an increase since 1995 from 20% to 30% (Visit Britain, 2009).VFR is the only one showing growth within the market, “since 1999 it has had an increase of 30% in total but they are not contributing to the accommodation sector” (Visit Britain, 2009). Visit Britain (2009) states “Business visitors are generally a lucrative target- spending on average i?? 126 per night, i?? 514 per visit, and staying largely in paid accommodation (68% in hotels/Guesthouses)” “This technique provides a framework that enables an organization to assess their position within a market in relation to the competition” (Page and Connell, 2006).Strengths of the business is having a variety of rooms, several conference rooms, which are hi-tec, high quality service, training programmes for staff and effective strategies in place.
This will help to retain consumers and with research on consumers and competitors, the business will be able to enhance finances. “Firms that generate disseminate and meaningfully respond to market intelligence and planning inputs are likely to enjoy enhanced financial performance”. (Jaworski and Kohli, 1993). Weakness of the business is mainly signage, as it is not cheap and processes though the council can take time. Other weaknesses are finance.The business will be seeking finance from banks and investors, to help start the business. “Such firms, which generate valuable knowledge about both customer preferences and competitor intents by integrating planning and intelligence inputs/views, can optimize the fit between their capabilities and external opportunities and thus achieve superior performance” (Novicevic et al, 2004) Opportunities for the business is developing links with other attractions, to help out in further projects within the town especially with the lead up of the 2012 Olympics as this will help to bring in more custom an dalso benefit the local attractions.
The Euro is becoming stronger against the Pound forming an era of an affordable England for international tourists, which helps to have the opportunity of develop a good financial stance within the market. According to Day and Nedungadi (1994) the opportunities are “intended to provide options for the firms to exercise in order to maximize the fit between its capabilities and future opportunities”.Threats for the business are the competition as they will up their game to ensure that a new business does not succeed, especially within a recession.
The local authority will be a threat via planning permission may not be given for certain development plans. The idea of these threats is to acknowledge them until resources allows them to be minimised. According to Liedtke (2000) “synthesizing process creates value, not only in aligning components, but also in creatively re-arranging them”.