The Rocco Forte Hotel Collection and a conceivable development strategy

Essay from the year 2007 in the subject Business economics - Business Management, Corporate Governance, grade: 1,3, Edinburgh Napier University, course: International Hospitality Management, language: English, abstract: This report aims to present a conceivable development country for the Rocco Forte Hotel Collection. Because the company's vision is to have one company in each key European city, this analysis also suggests the city as well as the country, namely Budapest in Hungary. The current performance figures of the company are quite impressive. There has been rapid expansion over the last 10 years since the company was formed, mainly through acquisitions or by building new properties in important European cities. The SWOT analysis shows that the company seems to be on the right track and apart from some inevitable threats, such as terrorism or strong competition in some markets, the company is well positioned to operate successfully in each market. A PESTEL analysis of Budapest has shown that that city offers particularly high potential for investment generally but also for expansion of the luxury hotel market, as the demand for high-class accommodation is rising and the EU accession has been a catalyst for the growth efforts of the city, the region and the country generally. Porter's 5 forces framework demonstrated that competitive rivalry is of medium strength but that the capabilities of the Rocco Forte Hotel Collection should provide the company with an excellent gateway to compete successfully in this market. A market entry strategy was proposed using Ansoff's market and product expansion matrix and Tribe's simplified version of Bowman's strategy clock. The findings were that a limited diversification and differentiation-based strategy are the appropriate market entrance strategies. The corporate legislation form should be as a Hungarian Limited Liability Company (equal to the British 'Ltd') and in terms of corporate finance the market entry should be achieved by acquisition of an appropriate property, or by building a new one in the right location. After an examination of all factors, the author believes in the success of a new Rocco Forte Hotel in Budapest under given conditions.