Hotel Industry

A
INDUSRTY ANALYSIS REPORT

ON
“Organized Hotel Industry in

India”
SUBMITTED BY
RAVINDRA R. GAIKWAD (9538)
PRASAD KALEKAR (9529)
GAURAV GUNDECHA (9512)
AMRUTA LAWATE (9504)
SATISH KALAMBE (9547)
PRAVEEN DHAKANE (9533)
ABHAY MUTHA (9504)
EMBA (Semester-III)
Business Policy and Strategic Management
Date: 29-Oct-2010
Table Of Contents
1.Introduction................................................................................5
1.1Objective..................................................................................................5
1.2Motivation................................................................................................5
1.3Problem Statement..................................................................................5
1.4Resources................................................................................................5
2.Scope and Approach..................................................................6
6
6
3.The Organized Hotel Industry in India........................................7
3.1 Introduction............................................................................................7
4.Overview of Organized Hotel Industry in India...........................8
4.1 Size of the Industry.................................................................................8
4.2 Competition............................................................................................8
5.Market Segmentation.................................................................9
5.1 Size of the Industry.................................................................................9
5.2 Growth....................................................................................................9
5.3 Competition............................................................................................9
6.Cost Structures and Profitability...............................................10
6.1 Size of the Industry...............................................................................10
6.2 Growth..................................................................................................10
6.3 Competition..........................................................................................10
7.Dynamics of Industry...............................................................11
7.1 Basis for Competition............................................................................11
7.2 Critical Success factors.........................................................................11
8.Factors Affecting Industry........................................................12
8.2 Growth..................................................................................................12
9.Components of Import & Exports used by Industry..................13
9.2 Growth..................................................................................................13
Industry Analysis: The Organized Hotel Industry 2

9.3 Competition..........................................................................................13
10.Key Events happened in Industry...........................................14
10.1 New Big player Entry..........................................................................14
10.2 Major Merger.......................................................................................14
10.3 Acquisitions.........................................................................................14
11.Analysis of top five Players in the Industry.............................15
11.1 Player 1...............................................................................................15
11.2 Player 2...............................................................................................15
11.3 Player 3...............................................................................................16
11.4 Player 4...............................................................................................16
11.5 Player 5...............................................................................................17
12.Future of the Industry............................................................18
12.1 Size of the Industry.............................................................................18
12.2 Growth................................................................................................18
12.3 Competition........................................................................................18
13.SWOT Analysis.......................................................................19
13.1Strengths.............................................................................................19
13.2Weaknesses.........................................................................................19
13.3Opportunities.......................................................................................19
13.4Threats.................................................................................................19
14.Key strategic initiatives and its’ impacts................................21
15.Conclusion..............................................................................23
Glossary......................................................................................24
References and Bibliography.......................................................25
APPENDIX A: XYZ.........................................................................26

List of Figures

1. Introduction
The Global Positioning System (GPS) is a satellite-based navigation system
made up of a network of 24 satellites placed into orbit by the U.S. GPS works
in any weather conditions, anywhere in the world, 24 hours a day. There are
no subscription fees or setup charges to use GPS. GPS receivers are
extremely accurate, to their parallel multi-channel design. GPS device’s
channel receivers are quick to lock onto satellites when first turned on and
they maintain strong locks, even in dense foliage or urban settings with tall
buildings. Certain atmospheric factors and other sources of error can affect
the accuracy of GPS receivers. GPS receivers are accurate to within 15
meters on average.
GPS provides unequaled accuracy and flexibility of positioning for navigation,

surveying and geographic information system (GIS) data capture. Its growing
use in automotive and consumer applications is propelling the market for
mobile location technologies. Although standalone products are quite
popular, the most common applications are built around Portable Navigation
Devices (PNDs), mobile phones, or car navigation systems.
Moreover, the technology is fast gaining acceptance worldwide, as it is
penetrating into previously untapped areas.
1.1 Objective
The goal of the project is to analyze opportunities in India for GPS technology
based application Fleet Management System.
1.2 Motivation
Currently, I am working on a GPS technology based software product
development project. These products are very popular in US, UK and other
parts of the world; however, in India it still remains to be untapped market.
So in my research project, I would like to analyze business opportunities
present in India for Fleet Management applications based on GPS technology.
1.3 Problem Statement

To analyze opportunities present in India for Fleet Management applications
based on GPS technology.
1.4 Resources
The single resource dedicated to the project is the author of the report. The
report has been mainly compiled using secondary research from information
available in the public domain and a survey conducted by author.

2. Scope and Approach
I choose to study four key aspects of the Product viz. Technology Trends,
Market Trends, Software Product Architecture and Product Features which
has significant impact on product roadmap.
Other several aspects that influence the product roadmap (e.g. business
model, price points, budget, brand, go-to-market strategy) have not been
included in this initial study based on the time and resource availability
for the study.
The conclusions for these key aspects have been summarized in the
conclusion section. The references for data gathered and more detailed
analysis has been presented in the report.

3. The Organized Hotel Industry in India
3.1 Introduction
Market research (or survey research) is one of the many types of descriptive
research. For this study market research is most appropriate. It is beneficial
because by surveying an appropriate number of people we can find out
about a far larger population. Through this study various factors responsible
for the growth of the GPS market in India were analyzed.
For this study, Fleet owners, vendors who are providing GPS and GPS related
services in India, GPS Users and general public were studied.
The data collected from the survey was analyzed quantitatively. The results
from the survey were validated with the factors found in the literature review
and the conclusions were put forth based on the data analysis.

4. Overview of Organized Hotel Industry in
India
4.1 Size of the Industry

4.2 Competition
To cater to the commercial vehicles segment, a number of local players offer

fleet management, vehicle tracking, and other value-added services using
technologies such as GPS, GPRS, GSM, and CDMA. Current offerings include
monitoring and routing applications for taxi operators, order delivery
tracking, call centres to receive emergency calls from vehicles, fleet
management systems, and remote management of LCD displays in public
transport buses and bus stops.
Mobile operators may become future competitors. Airtel, which has 120
million subscribers, now offers a location-based service called Buddy Finder
on each handset. BSNL has introduced eTrack, a fleet tracking system, which
uses a vehicle-mounted, microprocessor-controlled device to send periodic
SMS/GPRS messages from the vehicle to a network command center.
Competition in the market will mostly result in value addition and

enhancement. Price drop and competition are two aspects that will keep
happening. The competition will help the market grow. So market is
expecting a low cost structure, a robust pricing model and good quality
products.

5. Market Segmentation

5.2 Growth
The survey questionnaires were designed schematically to answer the
survey objective. Most of the survey question
5.3 Competition

Mobile operators may become future competitors. Airtel, which has 120
million subscribers, now offers a location-based service called Buddy Finder
on each handset. BSNL has introduced eTrack, a fleet tracking system, which
uses a vehicle-mounted, microprocessor-controlled device to send periodic
SMS/GPRS messages from the vehicle to a network command center.
Competition in the market will mostly result in value addition and

enhancement. Price drop and competition are two aspects that will keep
happening. The competition will help the market grow. So market is
expecting a low cost structure, a robust pricing model and good quality
products.

6. Cost Structures and Profitability

6.2 Growth

6.3 Competition


7. Dynamics of Industry
7.1 Basis for Competition

7.2 Critical Success factors


8. Factors Affecting Industry

8.2 Growth

9. Components of Import & Exports used by
Industry

9.2 Growth
9.3 Competition


10. Key Events happened in Industry
10.1 New Big player Entry

10.2 Major Merger

10.3 Acquisitions


11. Analysis of top five Players in the
Industry
11.1 Player 1
a. Size
Market research
b. Market Share
Market research
c. Growth
Market research
d. Profitability
Market research
e. SWOT Analysis
Market research
11.2 Player 2
a. Size
Market research
b. Market Share
Market research
c. Growth

Market research
d. Profitability
Market research
e. SWOT Analysis
Market research
11.3 Player 3
a. Size
Market research
b. Market Share
Market research
c. Growth
Market research
d. Profitability
Market research
e. SWOT Analysis
Market research
11.4 Player 4
a. Size
Market research

b. Market Share
Market research
c. Growth
Market research
d. Profitability
Market research
e. SWOT Analysis
Market research
11.5 Player 5
a. Size
Market research
b. Market Share
Market research
c. Growth
Market research
d. Profitability
Market research
e. SWOT Analysis
Market research

12. Future of the Industry

12.2 Growth
12.3 Competition


13. SWOT Analysis
13.1 Strengths
Navman one of the fleet management application providers, operates in 15
countries and tracking over 100,000 vehicles for more than 7,000 customers
worldwide. A world leader in Fleet Management System.
More than 7000 benefitted customers.
Fleet Tracking & Management solution streamlines and maximizes field
productivity in addition to saving fuel and operating costs.
13.2 Weaknesses
The price of software and hardware is slightly high for Indian market
conditions in relation to the cost of a vehicle.
13.3 Opportunities
India has enjoyed rapid economic growth over the past few years, and is now
the ninth largest car producer in the world and the fourth largest Asian
automobile exporter. India now produces two million passenger vehicles a
year. India looks like a promising market for Fleet Management Products.
Logistics vertical, Radio cabs, School Bus, BPO sector, High end phones,
luxury cars and government initiatives has greater potential for Fleet
management products. Large fleet operators, logistics firms, and taxi
companies have shown keen interest in these products.
Crimes related to call center taxi services and requirement of managing a

large number of cabs has also increased the demand for vehicle tracking
systems. The success of navigation systems with US taxi services has forced
Indian taxi services to think about implementing the same kind of services
here in India.
Bundling features such as navigation with entertainment systems could be

another attractive proposition.
13.4 Threats
Currently, public transport operators, fleet operators, truck operators and
private drivers are not legally required to install tracking devices.
Mobile phone operators may hold the key to the future growth of GPS in
India. But they need to come up with innovative packages in which the
handset is pre-loaded with GPS features at a small upfront price. Google has
launched Latitude, its location finder service using Google maps, for mobile
phone users.

The key challenges include the lack of awareness and consumer perception,
fragmented logistics sector and operational issues.

14. Key strategic initiatives and its’ impacts
In this section the research findings will be discussed in light of the survey
results and secondary data studied. A discussion of implication findings and
recommendations will also be included.
Through this research and survey findings, issues hindering GPS growth in
India are highlighted. Many useful recommendations have been received
from survey respondents and GPS/GIS vendors throughout the country,
which will help to improve the GPS/GIS industry in India. This will help in
reducing the communication gap between the vendors and GPS policy
makers in future.
The vast size of the country and the large population make India a great
opportunity for foreign investors. The study reflects that government policies
are not viable for the growth of GPS in India. The survey response for Questions
7 and 8 shows that 73% of the respondents’ rate Indian markets lower for the
sales of GPS/GIS products as compared to other Asian countries. Survey
respondents agree that there is a great disparity between the size of the GPS
market in India and in western countries. The responses to the open-ended
survey questions suggest that lack of GPS infrastructure in the country,
overall low awareness among the citizens, and rigid and non-encouraging
government policies have caused a detrimental effect on these multinational
GPS vendors.
It was assumed that social awareness of GPS is a very important aspect for
successful penetration of the GPS market in urban India. The survey
response for Question 6 suggests that only 15% of the senior management is
aware of GPS technology. Open ended questions responses suggested that
GPS be introduced in the curriculum of schools and universities for the
students. It is therefore recommended that seminars and workshops need to
be organized to educate officials in different organizations. Such a spread of
awareness is important, because consumers for whom the cost is not the
deterring factor can purchase GPS related items as a luxury commodity only
if they know its advantages and uses.
Some of the open-ended questions suggested that the high over-head cost
GPS/GIS resulting from the high cost of hardware and software can be
reduced by having this component manufactured in India itself. It is
recommended that self-reliance will help significantly to make GPS cheaper
in the country, thus making it accessible to all kinds of consumers.
This research can continue to progress in studying GPS consumer behavior.

Solutions to the needs of individual users will ensure long-term success for
the GPS industry in India.

Other researchers, too, can use the same approach as discussed in this
study for other upcoming technology like wireless. Researching the issues
can help these new technologies give a better edge to the Indian market
worldwide. Personal Interview and group discussion can be used to obtain
more relevant information on these topics.

15. Conclusion
The GPS market in India is set to increase manifold, with companies looking
to provide simple, low cost and reliable solutions. India has a huge potential
to become a leading destination for the multinational GPS technology
companies in Asia.
This study has highlighted the factors inhibiting the growth of GPS
technology in India. Social awareness is found to be the key factor for the
growth of the GPS market in India. The research suggests that India has a
potential to become a leading destination for the multinational GPS
companies in Asia. The recommendations provided in this study can help to
achieve this goal.
Following were some of the factors discovered during study. These factors
were further analyzed through survey data analysis.
1. Awareness: Awareness is one of the main keys for vendors to make

GPS technology successful among the general public. They need to
provide the services which are used in day to day life.
2. Government Role: Government plays an important factor in making a
new technology successful in any country. Its positive support for the
private GPS/GIS vendors will help in building a healthy competition in
this field along with the public vendors.
3. GPS Policies: There is an urgent need to introduce new GPS policies
like open-data policy, and also to update the exiting GPS polices
regarding licensing procedures in the GPS field.
4. Implementation of Feedback: Feedback from customers and inputs
from the GPS vendors are important and need to be implemented by
the GPS policy makers in India; this will richly benefit the GPS market.

Glossary
Fleet - A group of vehicles that are operating within a city or across cities.
Automatic Crash Notification (ACN) - vehicle onboard system designed to
notify a designated call center in the event of a significant collision, reporting
the vehicle location, speed and severity of the crash, deployment of airbag(s)
and other diagnostic information from onboard
sensors (sometimes referred to as "Mayday Systems")
Automatic Vehicle Location (AVL) - the automated system and related

technology of tracking vehicle locations. AVL systems utilize GPS technology
coupled with wireless communication systems to provide a vast array of data
to the home station and/or fleet operator.
Data Packet - Information about a vehicle or group of vehicles, or other

non-voice data, transmitted via communication conduits (cellular, Internet,
etc.) to the fleet management system computer.
Differential GPS - using data from at least four (4) GPS satellites, this
method of GPS corrects for a naturally occurring error to achieve a more
precise location, usually within 2 meters.

References and Bibliography
• Latest News on GPS in India : http://www.gpsinindia.com/index.php?

n=Main.News
• Indian Express – Organized Retail in India
• Frost & Sullivan study - http://www.sensormatic.com/instore/
• http://www.frost.com/prod/servlet/report-toc.pag?repid=F838-01-00-
00-00
• Indian Brand Equity Foundation - http://www.ibef.org/
• http://www.prlog.org/10093221-warehouses-and-cold-chains-in-
india.html
• http://www.arcweb.com/Regions/Asia/Lists/Posts/

APPENDIX A: XYZ
I am a student enrolled in the Executive MBA program in Marketing

specialization at PUMBA (Pune University). As part of the requirements of this
program, I am working on a research project which is about finding
Opportunities for GPS (Global Positioning Satellite) technology applications in
India. As part of this research I am attempting to understand various
economic factors influencing the market penetration of GPS services in urban
India and potential for it.

Hotel Industry

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Hotel Industry

Uploaded by

Copyright:

Available Formats

A

INDUSRTY ANALYSIS REPORT

“Organized Hotel Industry in

Industry Analysis: The Organized Hotel Industry 2

Industry Analysis: The Organized Hotel Industry 3

Industry Analysis: The Organized Hotel Industry 4

GPS provides unequaled accuracy and flexibility of positioning for navigation,

1.3 Problem Statement

Industry Analysis: The Organized Hotel Industry 5

Industry Analysis: The Organized Hotel Industry 6

Industry Analysis: The Organized Hotel Industry 7

4.1 Size of the Industry

To cater to the commercial vehicles segment, a number of local players offer

Competition in the market will mostly result in value addition and

Industry Analysis: The Organized Hotel Industry 8

5.1 Size of the Industry

To cater to the commercial vehicles segment, a number of local players offer

Competition in the market will mostly result in value addition and

Industry Analysis: The Organized Hotel Industry 9

6.1 Size of the Industry

The survey questionnaires were designed schematically to answer the

To cater to the commercial vehicles segment, a number of local players offer

Industry Analysis: The Organized Hotel Industry 10

7.1 Basis for Competition

7.2 Critical Success factors

The survey questionnaires were designed schematically to answer the

Industry Analysis: The Organized Hotel Industry 11

8.1 Size of the Industry

Industry Analysis: The Organized Hotel Industry 12

9.1 Size of the Industry

To cater to the commercial vehicles segment, a number of local players offer

Industry Analysis: The Organized Hotel Industry 13

10.1 New Big player Entry

10.2 Major Merger

To cater to the commercial vehicles segment, a number of local players offer

Industry Analysis: The Organized Hotel Industry 14

Industry Analysis: The Organized Hotel Industry 15

Industry Analysis: The Organized Hotel Industry 16

Industry Analysis: The Organized Hotel Industry 17

12.1 Size of the Industry

To cater to the commercial vehicles segment, a number of local players offer

Industry Analysis: The Organized Hotel Industry 18

Crimes related to call center taxi services and requirement of managing a

Bundling features such as navigation with entertainment systems could be

Industry Analysis: The Organized Hotel Industry 19

Industry Analysis: The Organized Hotel Industry 20

This research can continue to progress in studying GPS consumer behavior.

Industry Analysis: The Organized Hotel Industry 21

Industry Analysis: The Organized Hotel Industry 22

1. Awareness: Awareness is one of the main keys for vendors to make

Industry Analysis: The Organized Hotel Industry 23

Automatic Vehicle Location (AVL) - the automated system and related

Data Packet - Information about a vehicle or group of vehicles, or other

Industry Analysis: The Organized Hotel Industry 24

• Latest News on GPS in India : http://www.gpsinindia.com/index.php?

Industry Analysis: The Organized Hotel Industry 25

I am a student enrolled in the Executive MBA program in Marketing

Industry Analysis: The Organized Hotel Industry 26

You might also like