Analysis:
v Industry Rivalry
At the center of the five forces model is industry competition arising from the rivalries among existing firms. Defining an industry can be described as drawing a line between the established competitors and the substitute products offered by competitors outside the industry.
Profile of Competitors
We have identified 2 major competitors of Legend Villas: Lancaster Hotel Manila, and New Horizon Hotel.
Lancaster Hotel Manila
Lancaster Hotel Manila, ranks as no. 1 recommended hotel in Manadaluyong, is a prestige condominium hotel that stands tall in its 42-story stature along Shaw Boulevard, in the heart of Mandaluyong City in Metro Manila; with stunning views of WackWack Golf & Country Club and within close proximity to world-class malls, exclusive schools and state of the art medical centers and hospitals. Its strategic location makes it accessible to the Ninoy Aquino International Airport, a few minutes ride to and from the business, commercial and shopping centers in key cities of Metro Manila; apart from it being at walking distance to OrtigasCenter. Transportation line includes Metro Rail Transit (MRT), and other public utility vehicles.
Lancaster Hotel Suites is an epitome of luxury and conventional caring at no extra cost. It has opulent and outstanding ambiance for work or leisure.
New Horizon Manila
Located in the bustling city of Mandaluyong, New Horizon Hotel is a business hotel that stands along the metro’s major thoroughfare. The hotel’s prime location gives you easy access, to the nation’s capital of Manila as well as country’s business triumvirate – Makati Central Business District, Ortigas Business Center and Fort Bonifacio Global City. The city of Mandaluyong is poised to be the next center of business and commerce in the country, it is home to a number of malls, restaurants and sports facilities to cater to your business and leisure requirements and these are all conveniently close to New Horizon Hotel. New Horizon Hotel Ortigas boasts of “bigger-than-usual” guest rooms that ensure optimum comfort and convenience. Where other hotels in Ortigas or Manila only offer 25-square meter standard rooms, New Horizon Hotel’s guest rooms start at a spacious 40 square meters with suites measuring up to 84. Apart from its amazing location, New Horizon Hotel also offers high-quality accommodations with personal service — a rarity in other Manila and Ortigas hotels.
v Potential for New Entrants
The entry barriers to the hotel industry are relatively high. An expensive startup cost consisting of property, hotel, and staff are just the beginning. In order to compete against many of the corporate leaders, one would need extensive amounts of advertising and marketing campaigns. Rivalry that occurs within this industry is becoming more intense as the number of new entries increase. Some of the potential entrants in hotel industry are Miramar Hotel and New Solanie Hotel.
Entering the hotel industry is fairly difficult because of the high costs related to the purchase of facility, governmental barriers, and brand recognition. Many hotel companies are combining to become bigger players in the industry.
We have identified two new hotels in the country: Miramar Hotel and New Solanie Hotel.
Miramar Hotel is strategically located within minutes of Manila’s business establishments and cultural destinations. It is a stone’s throw away from the American Embassy, The Metropolitan Museum, MuseoPambata (Children’s Museum), Rizal Park, Manila Ocean Park and is a few minutes drive from the Walled City of Intramuros. Shopping at the Mall of Asia (the country’s largest), dining and shopping at Blue Wave night market, hunting for trinkets at New China Town, and haggling in Binondo are all quick rides fromMiramar. The domestic and international airports are just a mere 20 minutes from Miramar.
New Solanie Hotel was first known as Casa SolanieApartelle. Its unique name was derived from its first proprietors, a proud Ilonggo couple, Sofronio and Melanie Javelosa, formerly known as one of the finalists of Ms. Spain. A year of renovation followed, resulting in a total facelift. New Solanie is a transformed classy hotel and duly accredited by the Department of Tourism as a 3-Star Hotel and a member of Philtoa.
v Bargaining Power of Suppliers
Suppliers can exert their bargaining power over hotel firms by threatening to raise prices, limit availability of resources, or reduce the quality of products delivered. It also affects the intensity of competition in the industry when there is a large number of a supplier. Both the suppliers and producers are in the best interest to help each other in pricing reasonably and improving quality. There are potential hotel suppliers which include kitchen supplies, bar supplies, banquet supplies, housekeeping supplies and concession and catering supplies. To meet higher satisfaction for their customers, hotel firms choose those products with higher quality from their certain suppliers.
v Bargaining Power of Buyers
Hotel industry is a service-oriented industry. It is important to know on how the hotel will offer quality products and services that will best suit the demand of their customers. The force of the buyer’s bargaining power is proportional to the ability of buyers to force down prices, bargain for higher-quality products or more services, and pit rival organizations against one another. Main customers are professionals, investors / businessmen, travelers/ tourists, delegates/ conventions as well as ordinary people who want to stay in a hotel for some reasons like having a place for a comfortable rest and a time for pampering and relaxation. It is in the buyer’s discretion on which brand to purchase. They have the power to decide which hotel to stay or not.
v Substitute Products
Another force which acts upon an organization and is included in Porter’s five forces model is the threat of substitute products. Substitutes are the indirect competitors of the key players in the industry. Another contributing factor to the high rivalry within this industry is the fact that there are few differentiating factors between hotels. Within the different segments there factors such as price, quality, service, and reward attributes, but all of these are easily copied limiting a sustainable competitive advantage. The number of close substitutes are rising due do this increase in rivalry. For each segment there are several competing companies who offer the same attributes making differentiation difficult. Substitute for hotels are motels, apartels and tourist inns.
Motel is a public lodging establishment for automobile travelers. Motels have traditionally differed from hotels in that the former have facilities for free parking on the premises, are seldom more than three stories high, and offer occupants direct access to rooms without having to pass through a lobby. Motels are also generallysmaller and farther away from urban areas, and they offer fewer services than hotels. The distinction between motels and hotels, however, is very difficult to make, especially in the case of the so-called motor hotels, which combine the characteristics of both types of establishment.
An apartel (also Apartment Hotel, ApartHotel, Apart Hotel, and Apart-Hotel) is a type of accommodation, described as “a serviced apartment complex that uses a hotel style booking system”. It is similar to renting an apartment, but with no fixed contracts and occupants can ‘check-out’ whenever they wish. Apartels are flexible types of accommodation; instead of the rigid format of a hotel room, an apartel complex usually offers a complete fully fitted apartment. These complexes are usually custom built, and similar to a hotel complex containing a varied amount of apartments. The length of stay in these establishment is varied with anywhere from a few days to months or even years. Prices tend to be cheaper than hotels. The people that stay in apartment hotels use them as a home away from home; therefore they are usually fitted with everything the average home would require.
Tourist inn is a lodging establishment catering to transients which does not meet the maximum requirement of an economy hotel.
A. Competitive Profile matrix
CRITICAL SUCCESS FACTORS
WEIGHT
Legend Villas
Lancaster Hotel Manila
New Horizon Hotel
Rating
Score
Rating
Score
Rating
Score
1. Advertising
0.15
2
0.25
4
0.60
4
0.60
2. Service/Product Quality
0.15
3
0.45
4
0.60
3
0.45
3. Price (rate) Competitiveness
0.20
4
0.80
3
0.60
3
0.60
4. Management
0.15
3
0.45
4
0.60
3
0.45
5. Financial Position
0.10
2
0.20
4
0.40
3
0.30
6. Customer Loyalty
0.10
3
0.30
3
0.30
3
0.30
7. Ambiance
0.10
2
0.20
1
0.30
3
0.30
8. Market Share
0.05
1
0.5
2
0.10
2
0.10
TOTAL
1.00
2.70
3.50
3.10
Basis: Company Profile, Industry Analysis and Questionnaire
Based on the CPM Analysis, Lancaster Hotel Manila got a total score of 3.50, and its major competitiveness are service quality, advertising, experienced management and strong financial position. Legend Villas hotel is weak in the competition, because of the lower advertising and market share. In order to increase the competitive position, Legend Villas should emphasize on advertisement to improve the brand awareness, and attract more potential customers and improve the geographic coverage to gain more market share.
A. External Factor Evaluation (EFE Matrix)
EXTERNAL ANALYSIS
Basis: Industry Analysis
External Factor Evaluation (EFE Matrix)
EFE Matrix is based on the evaluation of general environment analysis of the external factors affecting the business to get the potential opportunities and threats for Legend Villas.
Basis: Industry and Company Profile
Analysis:
The highest possible score for EFE Matrix is 4.0 and the lowest possible score is 1.0.
The company scored a 3.30 on the EFE Matrix. This means that Legend Villas has adequately positioned itself to take advantage of opportunities which may arise as well as to be able to handle and cope with threats.
Key strategic issue of the company
As an effect of increased annual family income, people tend to engage with travel and therefore, there is an increase in demand for hotel accommodations. The tourism growth rate also has a good impact for the industry. Moreover, businesses generally prefer to hold seminars, conventions and other business meetings despite the popularity of telephones, faxes and e-mail, that’s why demand for hotel services is expected to increase. Country’s strategic location also encourages foreign tourists to travel to the Philippines.
Political instability which includes issues on hostage takings, scandals and other immoral acts discourages investors and tourists, the lifeblood of the hotel industry. Another threat is the difficult economic situations that raise financing costs that limit technological improvements for hoteliers. Increase number of substitute services in the market such as apartel, motel, and tourist inn imposes a threat that would affect to the industry especially a decrease in occupancy rates because of the lower rate they offer.
Company need to have strategic concern for those threats to overcome and survive in the industry such as increase quality of tourism technology and providing varieties on products and services with reasonable price to address to the competition.
I. Internal Audit
A. Company profile
The Legend Villas, a hotel that is a perfect home base for those who want to do their business combined with leisure by spending time with family, friends or by doing some shopping, is in the developing commercial, retail and entertainment district of Mandaluyong, and is within walking distance of 2 large shopping centres. About 10 minutes drive from the Legend Villas Hotel is the Ortigas business area where the SM Mega Mall and Robinson’s Galleria are sited. Rooms are elegant and homely and fully equipped to ensure a pleasant stay.
It is 100% Filipino owned and one of the hotel chains of Legend Hotels Corporation. It is an elegant hotel with amenities and services well beyond its old world charm. Legend Hotels International Corporation is a chain of super value hotels that provides above standard accommodations to a wide range of clientele - company executives, families, OFW’s, balikbayans provincial business travelers, students, local and foreign tourists.
Fig.1 Map
It is strategically located in Mandaluyong, a city situated right in the heart of Metro Manila, it is best known as the “City of Malls” and the new base of progress and development - the area that is envisioned to become the ideal business district of the 21st century. The Legend Hotel is a perfect business and leisure haven.
Within the vicinity are the Ortigas business and commercial district and the country’s largest and most modern Shopping Malls which house fine restaurants, sports facilities, and top-of-the-line specialty shops and many more. Three of the country’s Golf Courses and the headquarters of the Asian Development Bank (ADB) are only a few minutes-drive. The famed Greenhills section is on the opposite side while Makati’s business and commercial district stretches just a little towards the south. Ninoy Aquino International Airport (NAIA) is six (6) kilometers.
A “villa in a city’, The Legend Hotel is designed to provide guests a total refreshing ambiance. Enjoy 5-star hotel services and amenities at standard (3 stars) hotel prices. Our gracious, attentive and adept staff makes sure you get the highest level of personalized service.
The Legend Hotel boasts of 117 lavish guestrooms and elegant suites. These are expansively spread out in seven clusters in a unique resort-like lay-out surrounded by well-manicured gardens. The rolling terrain affords hotel guests ample area for a leisurely walk or jog. The ambiance is tropical, unhurried and casually elegant.
Affiliations
Legend Hotels International Corporation is affiliated with the following groups:
Hotel and Restaurant Association of the Philippines (HRAP)
v Hotel Sales and Marketing Association (HSMAI)
v Hotel Sales and Marketing Association (HSMAI)
v Hotel and Restaurant Cost Controller Association of the Philippines (HRCCAP)
v Philippine Travel Agencies Association (PTAA)
v Philippine Tour Operators Association (PHILTOA)
v Palawan Tourism Council
v Association of Credit Executives in the Tourism Industry (ASCETI)
v Philippine Marketing Association (PMA)
v Mandaluyong Chamber of Commerce and Industry(MCCI)
v Purchasing and Materials Management Association of the Philippines (PMMAP)
Also accredited with:
v DOT (Department of Tourism)
v Philippine Convention & Visitors Corporation
A. Mission and Vision Statement
Mission Statement
“We are God’s host nurturing the lives of our guests..”
Vision Statement
In his search for inner peace, he found his calling. In surrendering, he discerned a clear vision of the role his hotels and their employees were to take. Legend Hotels International is not simply a business but a calling to serve and touch the lives of its guests. To be a chain of super value hotels that provides the best of the Filipino in service that is anchored on God-centered values. That is the essence of LHI’s values.
For Wyden King, owner and chair of Legend Hotels International Corporation, this vision is the beacon that guides him and his people in running the business - from the choice of amenities and facilities to setting up the systems and processes. More importantly, this vision is the wellspring of wisdom in nurturing his people toward the pursuit of excellence in service.
Always, the customers take center stage. Their wellness, top of mind.and constantly, the customers get the longer end of the deal - more than what they bargain for. Here in LHI, the customer’s satisfaction takes precedence over the organization’s comfort. Its energies, time and focus are entered on the consumer’s well-being.
In this age of commercialism, where values are sometimes compromised for the sake of expediency, Wyden King believes with a passion that business founded on God’s principles can flourish.
Corporate Core Values
Love and Service.
What these values translate to is quite simple. Love compels the achievement of the highest standards of work and service. When the heart is right, the work will be right.
Service is the product of the love and passion one brings to one’s work… that drive to go the extra mile to delight a hotel guest. This is the passion of LHI’s service. This is what sets them apart from the other players in the hotel industry.
A. Products and Services Offered
v Accommodations
Superior Room
Ideal for the busy businessman and couples.
Room Features :
Two (2) double-sized beds
Bedside control pane
Telephone
Cable Television
Villa Suite
Exceptional Bi-Level, extended stay apartments allow the utmost in luxury in a very homey setting, complete with kitchen facilities.
Suite Features :
Two Queen-sized beds
Living and Dining Area
Kitchenette
Electric Pot
Mini Bar
Cable Television on ground and upper floors
Two (2) Telephone units
Bedside control panel
Executive desk
Two (2) Toilets and Bath
FullyAirconditioned
Team Suite
Great for seminar participants, business associates, student groups or barkada, our bi-level Team Suites can comfortably fit a group of six.
Suite Features :
Six (6) single beds with individual closets
Living and Dining Area
Kitchenette
Electric Pot
Mini Bar
Cable Television on ground and upper floors
Two (2) Telephone units
Bedside control panel
Two (2) Toilets and Bath
FullyAirconditioned
Two (2) Working Tables
v Services and Facilities
Lola Maria Coffee Shop
With varied twists and flavors of our homegrown cooking that will keep you coming back for more. Each dish is a testimony of just how much we value you as our guests.
Savor our variety of a la carte and buffet offerings…from festive to regional Filipino, home-style cooked meals by our Filipino Chefs. The best of Filipino.
Swimming Pool
Take a dip in our outdoor pool. Or better yet, revitalize your senses in poolside Jacuzzi while enjoying a cool drink.
Banquet Socials
The Banahaw and Raja Ballrooms are the ideal settings for wedding ceremonies and receptions, debutante balls, anniversaries and all of life’s occasions in the style that’s close to your heart. Simply choose the date and we’ll take care of the rest.
Business Center
Located by the Front Office, the Business Center provides full secretarial services along with mailing, fax services and parcel delivery. Guests can also enjoy high speed WiFi Internet connection in guest rooms, function rooms and in almost all public areas of the hotel.
Fitness Gym
Stay healthy and fit without the hassle of the going out of the hotel. Fitness gym has the basic equipment that will help you sweat it out.
v Function Room
Fil-Hispanic-inspired Function Rooms
Welcome to the Del Pilar, Luna and Jacinto - function rooms designed with Old Manila as inspiration. We have 12 function rooms and two ballrooms that can be re-arranged to complement perfectly your size requirement. Fil-Hispanic or Mindanao-influenced in architecture and design, our rooms lend ease and comfort to business participants and party guests.
Mindanao-inspired function rooms
The Raja, Kudyapi, Kulintang and Kubing - Mindanao-inspired function rooms made for the success of your business.
Outdoor Socials
If you want to party outdoor, try our Lanai or Datu Function Room. Here you get a perfect blend of exotic ambience set against a lush and refreshing backdrop.
Patio
Located right beside the pool, it is undeniably the best located for a more casual business meeting or social event.
A. Internal Factor Evaluation (IFE) Matrix
Basis: Interview and Questionnaire
