1) Potential Entrants (Threat of new entrants) – In the hotel industry there are considered to be big hotel giants that are already in the market such as Marriott, Hilton, Hyatt, Accor, IHG etc. Therefore if a new hotel chain plans to enter such highly competitive market then they have to go through a lot as this industry is all about being up to date with technology. If a new entrant can adopt to technology in a unique way to sell its products or services, customers might be impressed with it and might switch in this case so there is always a threat to big chains from new entrants.
2) Power of Buyers – Consumers (guests) actually known as buyers hold the advantages as hotels cannot make money, profits until and unless their facilities (products and services) are used. There are considered to be millions of people that use the products/ services of Crowne Plaza Hotels and therefore if they don’t like the services/ product it will be very easy for them to switch brands resulting in losses, collapse for the organisation. In order to avoid it hotels need to be very careful in terms of their guest’s preferences, what they dislike. Preferences can be in terms of rooms, food and beverage, other services provided by the hotel.
3) Power of Suppliers – Crowne Plaza has different suppliers across the world. Suppliers hold an upper hand in terms of costs and prices being offered to a particular hotel. For example rivalry among hotels such as Marriott and Hilton will influence the suppliers to increase their rates on the products as well as services that are being supplied. This can therefore damage a hotel’s reputation if something goes wrong.
4) Competitive Rivalry – Rivalry can be classified as competition between the hotels in order to increase market share. In order to retain customers (guest’s) hotel offers different types of loyalty and membership programs to have an edge over their competitors. Hotels are seen these days doing mergers with other brands to obtain competitive advantage. An example can be seen where Accor Hotels have merged with Mantra Hotel Group to obtain competitive advantage. Therefore, Crowne Plaza an InterContinental Hotel Group Brand offer excellent services to its guests including business, corporate, leisure, families etc and is itself competitive.
5) Threat of Substitutes – An example can be seen where the hotel guests of Crowne Plaza pay quite a big amount for parking their cars in the hotel car-parking and when having breakfast, dinner in the hotel’s restaurant. This can be affected as if the travellers prefers to park somewhere else where it is free or where it is not expensive could be on the street. Similarly dining outside the hotel for dinner or breakfast instead of within the hotel to avoid expensive charges. There are many substitute products out in the market which can have a negative impact on the hotel’s performance.

1. Croc’s Core Competencies can be summarized as a non-slip, unique comfortable, light, odor resistant, easy to wash forming Clog shoe with ownership of a proprietary foam material used to mold the shape of the owners foot. This material was called Croslight and could be molded and colored to attract a vast sales market from Surfers to athletes, colleges and medical personnel who spent quite a bit of time on their feet. ‘This Croslight mixture consisted of raw materials relatively inexpensive ingredients purchased in a pellet form from a variety of suppliers.” Pg.4 The production of the Croc shoe was a simple inexpensive process which added to Croc’s Core Competencies; a revolutionary, quick turn-around delivery strategy that was unheard of in the shoe industry.

2. Prior to Croc’s introduction of a revolutionary, quick turn-around delivery the shoe industry was limited as to when they could order shoes and typically ordered prior to upcoming season driving the production plan. This type of production relied heavily on sales forecasting, which if not on target could increase storage necessities or under produce for orders while increasing wait times for customers. The CEO; Ronald Snyder, said it best “If the products sell extremely well, we will build more in season and will be back on the shelves in a few weeks…we’re not going to wait with a hot new product until next year, when hopefully the same trend is alive” pg. 5. This was an example of a flexible, innovative strategy with a (MTS) Made to ship embedded hybrid production Plan.

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3. These Strategies supported Crocs Competencies as this company expanded at an incredible rate within the global market. These pursued strategies were exploited and evolved throughout the company’s global expansion. For example, moving from an Engineering to ship strategy to a MTS strategy reduced the delivery time while the Home-grown data base production system supported the hybrid production plan. This Hybrid production plan used a forecasted demand with planned production and planned inventory. Although these strategies evolved they always stayed flexible and always focused on the customer relationship, supplier relationship, quality product with quick delivery turn around.


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