Bulgari Hotels Resorts and Radisson Blue Hotel SWOT Analysis

Radisson Blue is chain of hotels operating in more than 380 cities, belonging to the Radisson Hotels conglomerate. This chain exists since the 1960s, with the brand coming online in 2009, after a rebranding strategy was launched by the company (Sharma and Jaswal 2022). These hotels can be found in nearly all major cities, near the airports and popular leisure destinations. The chain’s SWOT analysis is as follows:

• Strengths: Wide geographic presence and strong brand position. The company is well-established, its brand is recognized for quality and innovation (Madsen and Stenheim 2022).
• Weaknesses: Declining market share and poor supplier loyalty. The company has been seen a decline in market shares due to COVID and other geopolitical issues. Supplier loyalty is low due to the company’s policies of driving down prices (Köseoglu et al. 2019);
• Opportunities: Online space and increasing customer bases in lower segments. With the people becoming poorer overall, it is best for luxury brands to have options in the lower price ranges. Online presence will help attract customers (Li 2020).
• Threats: Changing geopolitical environment and a shortage of human resources. With the global economy fracturing due to geopolitical pressures (wars, diseases, etc.), the company may see their assets becoming less profitable. Employee shortages result in a poorer quality of customer services (Adriaanse et al. 2021).

The chain’s PESTLE analysis is as follows:

• Political: Political stability and peace are crucial for Radisson to function. Wars, sanctions, and associated issues make it difficult for Radisson to maintain presence in certain parts of the world (Merrill 2022).
• Economic: Overall economic stability is sought out, instability results in a loss of revenue. Since Radisson is a large chain of hotels, the reduction of tourist flows hurts its bottom line.
• Social factors: New generations are less fond of hotel chains, require increased media presence. Young people nowadays prefer to rent apartments and rooms for their traveling needs. Radisson would have to maintain a solid media presence to bring hotels back to fashion.
• Technological factors: Use of AI and automation presents opportunities for decreasing costs. Relationships with suppliers can be automated to save time and money, while improving logistics (Bisoi et al. 2020).
• Legal: Business practices and laws differ from one country to another. Difficult to sustain a uniform policy.
• Environmental factors: Climate change and extreme weather hurt the hotel chain. This factor is relatively uniform across the industry, with Radisson being particularly vulnerable to it due to its size (Abdoh et al. 2020).

Bulgari Hotels

Bulgari Hotels is a branch business of the Bulgari brand, an Italian company dealing with jewelry, perfume, and luxury items. The Bulgari Hotels chain is a joint project with the Ritz-Carlton chain, which belongs to Marriott. The chain currently covers Milan, Bali, London, Beijing, Dubai, Shanghai, and Paris, with properties in Moscow, Rome, Tokyo, Miami Beach, and Los Angeles scheduled to be open between 2022 and 2025 (Deng 2022). SWOT analysis for the organization is as follows:

• Strengths: Strong brand association with luxury, Ritz-Carlton support. The company is aimed to provide luxurious services in terms of visuals and appearance, and is associated with jewelry and other elements of status (Alarcon 2019).
• Weaknesses: Lack of presence worldwide, too few properties. The hotel chain is only present in 8 large localities, which make its global footprint negligent. As a result, they are missing out on many opportunities in other parts of the globe.
• Opportunities: Many large chains have lost market share in the aftermath of COVID-19, Bulgari can claim it (Oves 2022). The growth boom after the aftermath of COVID-19 has been dealt with is inevitable, and Bulgari can be the hotel chain to grow, since they were not affected as much as other companies (Kleeman 2020).
• Threats: People are becoming more stay at home, overall revenues for hotels are dropping. The restrictions have changed the way people perceive traveling, the overall tourist traffic fell. This might be a long-term issue that would curb industry growth (Banyeva et al. 2023).

PESTLE analysis for Bulgari Hotels is as follows:

• Political: The external political factors affect Bulgari Hotels just like any other chain. If a war or a disease break out, the company will suffer losses, though not as significant as other chains due to a lack of scale.
• Economic: Bulgari is not as vulnerable to economic downturns due to aiming its services for the ultra-rich individuals.
• Social Factors: Political and economic instability may cause certain locations to become less stable to expand into. Bulgari’s plants to acquire properties in Moscow have been put on hold (Chen et al. 2021).
• Technological Factors: Generation change and technological advancements bring a new standard of hospitality and media presence for Bulgari Hotels;
• Legal: Like all hotel chains, Bulgari experiences difficulties standardizing across different countries with different legal frameworks (Mak and Chang 2019).
• Environmental: Environmental crises may make certain Bulgari spots less profitable than others. The company has a vested interest in furthering environmental protection (Alacron 2019).

Reference List

Abdoh, H. M. B., Saany, S. I. A., Jebur, H. H. and El-Ebiary, Y. (2020) ‘The effect of PESTLE factors on E-government adoption in Jordan: A conceptual model’, IJETT, 68, pp. 19-23.

Adriaanse, J., van der Rest, J. P. and Parsa, H. G. (2021) ‘we’re teaching it all wrong: a need for premortem analysis in hotel strategy education (and practice)’, Journal of Hospitality & Tourism Research, 45(5), pp. 846-849.

Alarcón, E. V. (2019) ‘Social media and fashion-branded hotels: the case of Armani hotels‘, Journal of Tourism and Heritage Research: JTHR, 2(3). Web.

Banyeva, I., Lebedieva, N., Nehrey, M., Velychko, O., Petrova, O. and Peresichna, S. (2023) ‘Digital tools of marketing strategies in hotel branding’, Journal of Information Technology Management, 15(1), pp. 62-88.

Bisoi, S., Roy, M. and Samal, A. (2020) ‘Impact of artificial intelligence in the hospitality industry’, International Journal of Advanced Science and Technology, 29(5), pp. 4265-4276.

Chen, C., Kim, E. L. and Schuckert, M. (2021) ‘Haute couture-to-table? A study of luxury fashion-brand restaurants/Cafés‘, Journal of Global Scholars of Marketing Science, 1, pp. 1-14. Web.

Deng, J. (2022) ‘Hotel brands and the impact of brand differentiation on the success of the global hotel brands‘, Highlights in Business, Economics and Management, 1, pp. 265-276. Web.

Köseoglu, M. A., Putra, E. D., Yi, X., Okumus, F. and Zhao, X. (2019) ‘Strategic decision tools and organizational performance in the hotel industry’, Journal of China Tourism Research, 15(1), pp. 15-32. Web.

Li, Y. (2020) ‘A study of the management innovation mode of coastal resort hotels‘, Journal of Coastal Research, 107, pp. 206-209. Web.

Madsen, D. Ø. and Stenheim, T. (2022) Encyclopedia of tourism management and marketing. New York: Edward Elgar Publishing.

Mak, A. H. and Chang, R. C. (2019) ‘The driving and restraining forces for environmental strategy adoption in the hotel industry: a force field analysis approach‘, Tourism Management, 73, pp. 48-60. Web.

Merrill, P. (2022) ‘Trip essentials’, Quality Progress, 55(3), pp. 42-45.

Oves, M. (2022) ‘COVID-19 overview, natural immune-boosting medication, and the economic implication‘, Journal of Engineering and Science in Medical Diagnostics and Therapy, 5(2), pp. 1-16. Web.

Sharma, V and Jaswal, R. (2022) ‘A case study on front office staff service quality improvement as new trends for best customer satisfaction in hotel Radisson Blu Kaushambi, Ghaziabad’, Global Journal of Management and Business Research, 22(2), pp. 29-32. Web.