strategy annisa

8/8/2019 Strategy Annisa

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Tune Hotel,

HanoorAnnisa Amir


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Tune Hotel, BaliTune Hotel, Bali Tunes hotel Bali, open in Legian

and Kuta Beach.

Tunes hotel star at room rate Rp.

98000 ($ 10.5)

The budget hotel follows closely

AirAsia's model by offering

rooms for accommodation at

attractive prices.


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Balance Score CardBalance Score Card Vision

To be hotel chain that offer highquality rooms with low price.

( 5 Star Sleeping experience with1 Star price )

Mission

To provide hotel serviceresulting long term satisfactionof our stakeholders.


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Tune Hotel ProductTune Hotel Product Limited Service

Low Price, Low Service

Omitting conventional full Service

Additional amenities and services liketoiletries, air-conditioning, TV and in-room Wifi are offered as pay as you useextras.

Hotel space is also available for rent to

advertisers (indoors, outdoors as well aswhole floors) also on room walls, onroom keys, in hallways and in the lobby.

Major Brand that have advertisement =

Nestle, CIMB Bank, King Koil


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Unit Selling PointUnit Selling Point Tune Hotel design its hotels, rooms and business for

guests who are more likely to spend most of their timeout and about during the day time.

Its five unique selling propositions are:

5-star beds

Heated, high-pressure Power Showers

Central and strategic locations

Clean environment

Safe and secure environment with 24-hour securityguards on duty and extensive CCTV coverage


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SWOTSWOT Strength

Low price in the market.

High market in the Air Asia

Customer.

Weakness

Low Quality Workers.

Opportunity

High Tourism market in Bali.

There is a lack of hotel that are

cheap and good quality rooms.

Threats

Indonesia Economic and

Political Crisis


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PESTELPESTEL Political =

Instability fromgovernment

Uncertainty ofgovernment

changing Developing Taxation

Security Issues

Risk of Political Instability, 2010 Country Rating1

Australia 9.24

Singapore 8.78

New Zealand 8.76

Germany 8.49

France 8.46

United States 8.16

H on g K ong S AR 7. 49

Uni te d Kin gdom 7. 41

China 7.12

India 7.08

Malaysia 6.90

Taiwan 6.42

Korea 5.72

Japan 5.40

Indonesia 4.94


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EconomicEconomic Instable Economic Policy

Global Financial Crisis

Increasing in hotel competitive in the hotel industry


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PASTEL, contPASTEL, cont Social

Low minimum income for labor

Low Level of Education

The high gap between low and medium to highincome.

High Consumerism

Environment

Natural Disaster

National Security

Technology

Challenges of Technology in Indonesia.

Law and Regulation

UMR ( Minimum wages by regulations )

800.000,0 ( $ 79 )

Instable Regulations.


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Porters 5 Forces ModelPorters 5 Forces Model Threats of new Entrants

Capital Requirement, the startup cost for making investment

are better compare to other

country.

Experience, Tune Hotel recruit

Indonesian employee and

shareholder.

Cost Competitive, Tunes hotel

are the cheapest hotel in the

area.

Threat of Substitute

There are number of low pricehotel in this area.


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Porters, contPorters, cont The bargaining power of buyers

Low degree of dependency

High buyer information

availability

Unique of our hotel product.

The Bargaining Power suppliers

High variations of distributionchannels

High substitutes but quality

questionable.


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Porters Generic StrategiesPorters Generic Strategies Tunes Hotel is Cost Leadership for Hospitality, not

just one specific market can be family, business etc

They have the lowest price in the hotel industry in

Bali, but they have profit from cost effective and

efficiency.


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COMMENTSCOMMENTS Good background

Identification of cost leadership strategy

The PEST should have come first giving more structure

Think of the S and its effect on E and the environment

and then link to business implications

SWOT identified and utlised, develop criticality

Use of P 5 Forces could have been more critical

Fair attempt.


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Reference ListReference List harp, Byron; Dawes, John (1996), "Is Differentiation Optional? A Critique of Porter's Generic

Strategy Typology," in Management, Marketing and the Competitive Process, Peter Earl, Ed.London: Edward Elgar.^ Speed, Richard J. (1989), "Oh Mr Porter! A Re-Appraisal ofCompetitive Strategy," Marketing Intelligence and Planning, 7 (5/6), 8-11.^ Yetton, Philip,Jane Craig, Jeremy Davis, and Fred Hilmer (1992), "Are Diamonds a Country's Best Friend?

A Critique of Porter's Theory of National Competition as Applied to Canada, New Zealandand Australia," Australian Journal of Management, 17 (No. 1, June), 89-120. Allio, RobertJ. (1990), "Flaws in Porter's Competitive Diamond?," Planning Review, 18 (No. 5,September/October), 28-32.

"Indonesia: Country Brief". Indonesia:Key Development Data & Statistics. The World Bank. September2006.^ "Historical Exchange Rates". OANDA. 7 January 2010. Retrieved 28 April 2010.

Indonesian Central Statistics Bureau (1 September 2006). "Tingkat Kemiskinan di IndonesiaTahun 20052006" (in Indonesian) (PDF). Press release. Archived from the original onSeptember 27, 2006. Retrieved 26 September 2006.

"Indonesia". InterKnowledge Corp.. Retrieved 6 October 2006.

http://www.tunehotels.com/, ( 2 October 2010)

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