Introduction
In my business endeavor, I have decided to venture into the hotel industry and set up a fast-food restaurant in the heart of the city. The reason behind choosing this kind of a venture is because the hospitality and hotel has for the past two decades become a very developing industry, and due to many people eating out because of commitments such as work, it has led to the hotel industry becoming a very profitable venture. In fact, due to the emergence of the hotel industry coming up strongly as an industry of its own, various courses in the hotel and catering industry are being offered as people seek more and more information about the industry. Numerous job vacancies are coming up in the already sprouting industry with many people finding working and investment opportunities in this semi-explored area.
Justification for choosing the hotel industry
The hotel industry started off as basically a restaurant, serving food, dessert and beverages to customers. Inns were the initial checkers into this industry in Kaifeng, China in 960 AD. Since then, hundred of years later, it has grown to be an industry on its own, and earns many states high GDP, thus contributing a lot to many countries’ annual budget. According to statistics, many states across the world collect an annual percentage of 6-17% of the total Gross Domestic Product.
Market scenario
The hotel industry has been doing well especially around the town areas because people are busy at work and have little time to cook their food themselves.. In the cities, it is even more advanced with developed service systems such as room services in hotels offering accommodation facilities, outside catering services for corporate and social events, and fast food restaurants and food dispensers. Therefore, the hotel industry has been doing well especially around the populated areas.
Opportunity management requirements
With the being of the opportunity to venture into this industry, I believe a have the capability to grow and expand because I have the necessary skill required for this task, bearing hospitality and tourism degree and a diploma in information and technology. I also have the entrepreneurial and managerial skills which are important for administration purposes.
Strengths
First of all a good hotel must have a unique style of service to the customers. An array of service styles to be employed will include: in situ services, over the counter these are some of the services that are rarely offered by the competitors. Ensuring that the hotel has a brand name and image will go a long way in advertising itself. This will be achieved by how the hotel is organized in terms of the human resource, layout of the establishment: the interiors and exteriors. Through my administrative skills, I could get a team of skilled employees who are motivated towards the realization of the goals of the establishment (Armstrong, 2008).I will introduce a unique choice of items for example, gourmet meals available on the menu. This will not only attract new customers but will also create niche market targeting a particular group of people in the market.
Weaknesses
These are the weak points of the hotel. With advertisement as a marketing tool, failure to advertise the establishment can reduce its chances for growth.
To offer a product which is already in the market in as much as you would want to customize your hotel, it is evident that there are particular products that will be requested by the customer for example latte. Competitions from various International hotels. These are the already established big players in the business. They are well conversant with the business environment in terms realizing the landscape as of high and low season.
Opportunities
These are the benefits that accrue from the hotel business. The hotel has a latent potential for growth and this is facilitated by the growth of domestic tourism as well as inbound tourism will ultimately promote the growth of business in the way of multiplier effects. Another opportunity may arise in the event that your competitor has closed down. There might be also the availability of more rooms for expansion in the sense that there is a vacant room next door which might be utilized for expansion. Capacity utilization is another opportunity when employed effectively will help reduce costs and therefore maximize on profit. (Porter, 1985)
Threat
These are the instances that could cause harm to the hotel. Your operating costs are set to increase in the near future. In the hospitality industry, there are numerous price wars which have been triggered by the competitors. My hotel could also face the risk of competition by bigger hotel chain moving in your area of operations. The other threat will be the effects of economic impacts on a country and how the effects impact on the hotel industry.
Conclusion
With proper strategies put in place especially bearing in mind the pace at which the hotel industry is gaining speed, then there definitely is a room for setting up a successful hotel and even a hotel chain, if all that has been discussed above is seriously evaluated and applied.
References
Armstrong, S and Mitchell, S. (2008). The Essential HR Handbook: A Quick and Handy Resource for Any Manager or HR Professional. West Perky: Career Press.
Porter, M.E. (1985). Competitive Advantage. New York: Free Press.