Qatari The Torch Doha Company’s Analysis

Background of the Organization

The Torch Doha, also called the Aspire Tower, is among the most recognized hotels in Doha, Qatar. It was founded in 2012 and is a haven for discerning travelers such as sports enthusiasts, business leaders, as well as health and wellness seekers (Hospitality ON, 2022). The hotel has several modern rooms, suites, and three signature restaurants. The main actors of the hotel are the founder, co-founder, general manager, directors, and staff members. For ease of operations, the hotel has adopted a hierarchical organizational structure, as shown in the figure.

Key Events and Timeline

There are several key events and timelines for The Torch Doha Hotel. These events are:

1. The building of the Tower began commenced in the year 2005. It marks the foundation of a hotel that became the center of attraction for people and businesses across the globe.
2. It was completed in 2007 after two years of construction. This timeline provided ample time for construction engineers to finish their work and ensure that the design requirements were met.
3. In 2012, the building started operating as a hotel by providing hospitality services (Hospitality ON, 2022).

A Potential Challenge

The company has issues that prevent it from reaching its potential. One of the problems is poor marketing strategies, which makes it difficult for the organization to maintain its loyal customers. These customers are important for the growth and survival of the company. According to the marketing manager, the company faces problems such as price wars and oversupply in the market that make it hard to keep customers (Mallick, 2017). It lacks innovative marketing techniques to help maintain loyal customers.

External Environment Analysis

PESTEL

Political factors:

• Qatar has a stable government because it is a monarchy.
• The country has trade deals with the world’s largest economies (Crédit Agricole Group, 2022).

Economic factors:

• Qatar’s economy is growing steadily.
• The rate of unemployment in the country is almost zero. This is an indication that people have a lot of money to spend (Crédit Agricole Group, 2022).

Social factors:

• Qatar’s culture is very diverse.
• There are more and more people in Generation Y who like to travel and have fun.

Technological factors:

• Qatar is one of the top countries when it comes to accepting new technologies and being open to them.

Environmental factors:

• Qatar is becoming more concerned about protecting the environment.
• The country has joined other countries in trying to cut carbon emissions.

Legal factors:

• The minimum wage in Qatar has risen significantly because of a new law.
• The law to protect the environment sets limits on how much pollution can happen.

Porter’s Five Forces

• Threat of entry: The initial investment needed in the industry is significant, which presents an entrance barrier to new entrants.
• Power of suppliers: They have less room for negotiation because there are so many suppliers competing for customers’ business in the market.
• Power of buyers: Their ability to negotiate effectively is diminished by the size of their consumer base. It is not possible for the buyers to integrate backward.
• Threat of substitute: There is a significant number of competition for hotels in the market, and some of these competitors include vacation rentals, hostels, and others.
• Rivalry among existing competitors: There is a high level of competition among the hotels that are already in Qatar that offer the same kinds of services (Buhalis & Leung, 2018).

Competitive Environment

The Torch Hotel Doha operates in a monopolistic competition. In this model, there are different manufacturers who develop distinct items, even though those products can all fulfill the same function. Customers are able to differentiate between the products due to the various distinctions in quality, features, and other aspects. Companies that engage in monopolistic competition have the ability to set prices for their products, earning them the title of price makers (Dhingra & Morrow, 2019).

Internal Analysis of The Torch Hotel Doha

SWOT

Strengths:

• The brand of the hotel is recognized far and wide.
• They have personnel who are skilled.
• They have a significant presence on the internet.
• Products and services of the highest quality (Hospitality ON, 2022).

Weaknesses:

• The company has poor marketing skills, which makes it challenging to keep customers.

Opportunities:

• The growth of underserved markets.
• The ever-increasing number of people who utilize the internet.
• The progression of technological capabilities.

Threats:

• There is a high level of competition in the market.
• Laws enacted by the government that increase the minimum wage.

The Torch Hotel’s Competitive Advantage

Hotel’s resources:

• The company has The Torch Tower, which features updated accommodations.
• It has tables stocked with tasty refreshments and iPads to greet guests.

Capabilities:

• The capability of the hotel involves the ability to conduct a given task or activity. Quality services are some of the aspects that differentiate the hotel from the ones that exist in the market.

Competencies:

• It differentiates the company from its competition and creates a competitive advantage. The organization has skilled employees who perform the assigned roles (Hospitality ON, 2022).

VRIO analysis

Sales Agent:

• This resource is valuable, not rare, can be imitated and organized, and assists in achieving competitive advantage.

Customer Community:

• This resource is valuable, rare, imitable, and organized, and helps in the attainment of competitive advantage.

Leadership:

• The resource is valuable, rare, cannot be imitable, organized, and offers a platform for achieving competitive advantage (Hospitality ON, 2022).

Value Chain

The value chain consists of support and primary activities. Support activities include the unique iconic torch tower, modern rooms, and suites. Other support operations are the existence of skilled staff, modern equipment, tablets, iPads, and purchased supplies and materials (Hospitality ON, 2022). As shown in the table above, primary activities include aspects such as inbound logistics, operations, outbound logistics, marketing and sales, and services. Inbound logistics include material handling, while operations consist of the delivery of services.

The Torch Hotel Doha’s Performance

Financial And Market-based Measures

From: RocketReach ( 2022)

Revenue is among the major tools used by organizations to determine their size and performance. It is defined as the value of all the sales of goods and services recognized by an organization over a given period of time. Based on this, revenue can be used to understand the performance of The Torch Hotel Doha. As shown in the table, the hotel has an increasing revenue. For example, in 2018, it realized revenue worth $5 million, and in 2020 and 2021, the hotel got revenue of about $8 million (RocketReach, 2022).

Comparison With Competitors

(Booking, 2022)

Competition is among the main factors that affect the performance of the hotel. Since it operates in a monopolistic competition industry, the prices of the products and services are determined by individual firms. As shown in the table, the main area of competition is the prices of the products offered by different organizations. Due to this, a client is likely to visit companies that provide services at low prices. For example, apart from Oryx Airport Hotel, the other competitors in the market offer their products at lower prices (Booking, 2022).

Trends Over The Past 3 To 5 Years

For the past 3-5 years, the following activities took place:

1. Installation of iPad solutions: The major goal of the activity is to expand the services to consumers across the globe.
2. Automation of systems: The main aim of the operation is to enhance the efficiency of operations and increase the performance of the organization.
3. Review of social media: The purpose of the activity is to improve the marketing of the organization. It intends to increase the productivity of the company.
4. Customer satisfaction review: The goal of the operation is to enhance sales of the hotel (Hospitality ON, 2022).

Competitive Advantage

Competitive advantage enables an organization to provide products and services better than its competitors. Based on this, Torch Hotel Doha has a competitive advantage over its rivals. Firstly, it is an iconic building that people from different areas want to see and visit (Hospitality ON, 2022). The building has modern staterooms and suites that aim to provide quality services to customers. Secondly, the hotel has skilled employees to provide quality services. All these aspects can be sustained through efficient leadership.

Diagnosis

The value chain of the hotel is important because it helps in the attainment of competitive advantage. The requirements of the external environment are not met by the organization’s resources and capabilities. It possesses a well-defined plan to attain a competitive advantage in the market. The hotel does not make use of its strengths and does not make the most of the opportunities that are presented to it. It suffers from a significant deficiency that must be compensated for in some way.

For an organization to effectively perform, it requires a commitment of its loyal customers. However, currently, The Torch Hotel in Doha is facing the challenge of keeping its loyal customers due to poor marketing. The existence of a price war with its rivals in the market makes it challenging for the company to continuously maintain its loyal clients. A customer is likely to shift to an organization that offers the same services at a low price. Therefore, the hotel is facing the issue of keeping its loyal clients in the market.

Proposed Strategic Solution

Adopting retention methods is the most appropriate strategy that can aid in finding a solution to the problem. For instance, in order to maintain communication with repeat customers, you may set up a program that sends out automated emails and SMS messages (Mahmoud et al., 2018). The technique will assist the customer remain loyal to the brand in the long run. It will make it possible for the hotel to comprehend the challenges that its guests might be experiencing.

Plan For Implementation

Activities

• In one month, notify stakeholders about the change.
• In two months, strengthen human services.
• Adopt technology to help keep communication with customers.

Financing the operations

• I will ask the managers to provide funding for the project.

Outcomes

• In the next month, it is important for the hotel to keep its regular guests.
• Assist the hotel in acquiring a competitive advantage through the development of a sizeable customer base in a period of three months.
• Within the next three months, you should aim to increase the level of client satisfaction by more than 50%.

References

Crédit Agricole Group. (2022). Economic and political overview in Qatar. Web.

Booking. (2022). 162 hotels in Doha, Qatar. Booking.Com. Web.

Dhingra, S., & Morrow, J. (2019). Monopolistic competition and optimum product diversity under firm heterogeneity. Journal of Political Economy, 127(1), 196-232.

Buhalis, D., & Leung, R. (2018). Smart hospitality—Interconnectivity and interoperability towards an ecosystem. International Journal of Hospitality Management, 71, 41-50. Web.

Hospitality ON. (2022). The Torch Doha. Web.

Mahmoud, M. A., Hinson, R. E., & Adika, M. K. (2018). The effect of trust, commitment, and conflict handling on customer retention: the mediating role of customer satisfaction. Journal of Relationship Marketing, 17(4), 257-276. Web.

Mallick, L. N. (2017). Torch Doha’s team is behind the hotel’s major success: GM. Qatar Tribune. Web.

RocketReach. (2022). RocketReach – Find email, phone & social media for 450M+ professionals. Web.