SWOT is a state art tool to evaluate potential strengths, weaknesses, as well as opportunities, and threats of an organization. This analysis can show potential business development as well as possible internal and external business environmental changes. Mr. Andrews, professor of Harvard Business School, introduced this innovative tool for comprehensive and long term analysis of business in 197l. It proved to be a significant and helpful tool in order to evaluate areas of development for strategic management. SWOT analysis facilitates and equivalents to analyze the strength and weakness present in the internal environment and the opportunity and threat present in the external environment.
International Hotel Industry and SWOT Analysis
The international hotels serve in a multicultural market that increased their chains after World War-11. They need to design their products and services that should be attractive for potential customers. They should be in accordance with taste and priority of the customers whole the globe. As a matter of fact, hotel industry holds a pivotal position in international business. Hence, international hotels need to take into account their business strategies in a global context. They should prepare themselves to deal with questions arising by virtue of a changing global business environment.
The main factors that drive worldwide networks include investment, production, marketing, increases in world travel, growth of global media and advances in telecommunication technologies and the Internet, . Moreover, hotel industry may experience a controversial trend, as many consumers, including business and tourist travelers, seek unique services that should reflect their local cultures, customs and lifestyle. Interestingly SWOT analysis proved that the international hotel industry makes an effort to investigate the perceptions of customers from a different region in the context of room rates and restrictions that differ between Western and Chinese customers.
To provide a better understanding, we can consider SWOT analysis of a five star international hotels belongs to a Gulf country having chains in different countries including United States. The potential strength, weakness, opportunities and threat are as follows:
- Natural and attractions landscape view,
- Different arrangement depending on climate like summer, winter and so forth,
- Presence of several historical sites in vicinity that can expand tourism activities,
- Availability of adventurous and ecotourism tourism opportunities.
- Lack of development in comparison with neighbors,
- Lack of leisure activities including live shows and entertainment activities
- Transportation facilities for a particular city or area like less number of direct flights from other countries.
- The new airport of Muscat have a capacity of 12 million per annum which should boost further inbound tourism flows
- Considerable government supports for the development of the tourism industry, its supporting infrastructure and related industries such as a hotel industry.
- Cruise ship arrivals are rising considerably. This growth will also offer related opportunities for local hotel chain.
- Growth of multinational companies’ investment into Gulf construction industry particularly in Muscat.
- Economic and political uncertainty in the medium-to-long term,
- Risk of terrorist attacks. (Due to Oman’s friendly relations with UK, US and Western
Countries), also terrorism affects global tourism negatively.
In short, SWOT analysis is the best available tool to enhance the effectiveness of business by considering possible strength, weakness, opportunity and threats. Its application ranges from hospitality to industry and agriculture to tourism.