SWOT

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Outrigger Hotels and Resorts SWOT Analysis

The outrigger Hotels and Resort is one of the oldest hotels in the hospital industry. It was established in 1967, with an idea of making the middleman’s dream a paradise. It has employed approximately 3600 employees. It has established an elaborate and decentralized IT System and has one of the rapidly reservation internet system to facilitate reservation and for customers’ usage as well. Therefore, it a widely know company for its elaborate IT system which it has installed to facilitate its business activities. Above, it has several establishments in different countries. The management structure and its strategies has been key driver of growth for the company. Some of the key aspects which the hotel leveraged on are prime location in the region, recognized brand, vocation destination and a goo travel network distribution. This report provides the strength, weakness, opportunity and threats analysis of the Outrigger Hotels and Resorts, which have contributed to its growth in the industry.

SWOT analysis

The SWOT analysis is undertaken to analyze and understand the internal and external aspect of the organization. It is done to identify issues affecting the operation of a company both internal and external and therefore, the SWOT analysis could be used to offer alternative leadership or develop a strategy to spearhead the growth of a company. As illustrated in the diagram below, the SWOT analysis of Outrigger Hotels and Resorts focused on its management strategies, market aspects and customer’s relationship strategies. It also analysis the market competition and future markets available which the company could invest to get better returns for the profitability and growth of the hotel.

2.1. SWOT Analysis Table

Strengths

Strong relationships with wholesale. It is noted that outrigger has a close relationship with other companies and especially the local tourism organization and airlines. This has helped the company to have a strong inflow of customers throughout the year.

It has maintained centralized management structure which gives the management or staffs personal interaction with the owner.

It has wide portfolio which provide a suitable pocket budget and luxury traveling in wide geographical region.

It has established connection with local tourism organization and therefore, become the first choice for travelers CITATION Gab05 \p 25 \l 1033 (Piccoli 25).

The customer loyalty to the brand is project to be 25% which is higher compared to competitors in the industry.

Opportunities

The cross property traffic globally set a good environment for investment and Outrigger can take advantage to increase its market share. A study has shown that there are growing developments of properties along the coastal region and inland locations which are strategic for tourism attraction. Outrigger Hotel could partner with these property developers to increase its market share.

The hope of customer trend to the island is creating a good business opportunity which can be utilized by the company to increase its customer hence market share and profitability.

The company should use the OHANA brand as its marketing brand and for booking and reservation. This will definitely help increasing the market share and profitability of the company.

Weaknesses

Brand recognition is low compared to other hotels in Hawaii and its overall rating among the key hotels does not much its competitors in the market.

Dealing with property owners for efficient management of condos has proved to be a challenge to the company.

The decentralization of the network and the expansion to international locations is one the issues which affect the growth of the company.    

It is not serving business ventures or business tourism which could have offices in their properties CITATION Gab05 \p 10 \l 1033 (Piccoli 10).

The overall hotel services which are being provided by the Hotel such as room service, laundry, and daily maid service did not meet the hotel chain overall hospitality.

Threats

Bigger brands in Hawaii are the biggest threat to Outrigger hotel.

Airlines which serve the establish Outrigger market is a problem

Wedded to the success of its established markets. Therefore, stiff competition from these markets can easily make the company an obsolete and therefore, lose its entire customers.

There are several hotels in Hawaii, which are recognized and therefore, offering stiff competition to the market.

Summary

It is evident that Outrigger Hotel has years of operations and therefore, it has established name. However, it has made its brand widely recognized compared to other companies in the market. This is because of some of the challenges it faces which are related to marketing, airline partnership and decentralization of its network distribution across the region and unmatched overall services which are being provided by the hotel CITATION Gab05 \p 5 \l 1033 (Piccoli 5). Comparably, the hotel services offered by its competitors are of high demand and fit the current service provision in the industry. The decision making process of the company is also centralized. This ensures that all the critical decision regarding the management of the company is made at the top.

Works Cited

BIBLIOGRAPHY Piccoli, Gabriele. "Outrigger Hotels And Resorts: A Case Study ." Communications of the Association for Information Systems (2005): 2-15.