This report concerns the Norwegian company Mofjell Hotels AS, one of the Norwegian hotel market leaders, willing to expand beyond the borders of Norway. In order to question 1 I make a brief review of SWOT Analysis in order to have a clearer view of the situation a given firm in the market. According to question 2 I make a review of a company’s current value configuration with a view to find out, does Mofjell protect its presence on the domestic market. In question 3 I discuss briefly the best appropriate, in my mind, strategy for Mofjell to expand to international market successfully.
During the preparation of this report I have used empirical data sources, such as academic articles from the «Scholar» and internet and material from the book « Global marketing: A decision-oriented approach» (Hollensen, 2007).
The Mofjell Hotels AS, established in Trondheim, Norway in 1970 by Mr. Paul Arne Tilset firstly as a restaurant holding company, now is representative of the hotel brand, which is expected to become a market leader in Norway. When Mofjell started the hotel venture, its service concept was about targeting the business market only, but later Mofjell Board realized, that it is better to develop, buy and collaborate with hotels and chains offering a bigger variety of concepts, for example budget minded travelers, summer tourists and private consumers.
Despite the fact that the first experiment was long-term lease contract with five-room hotel, Mofjell still uses that strategy all over the Norway, because it reduces business risk and the tie-up of capital in good way. A good example is the fact, that in 1998 the company had 15 partner hotels, and by the beginning of our century that number increased twice.
The Mofjell properties are renowned for their convenient and strategic locations in large cities via the southern part of country. Also synonymic with the brand are the high level of personal service guests receive, and the vast range of in-depth business facilities available in seminar and convention settings.
Mofjell offers a few services as follows:
· Seminar and convention hotels (large hotels for large group of business travelers);
· Budget hotels (bed & breakfast hotels for budget-minded travelers);
· Summer hotels (small hotels in tourist-areas for summer time);
· Suite hotels (extended hotels for private consumers and business executives).
Differentiating the type of offered services assists not only in building the Mofjell brand as a whole, but gives a push to attract more frequent business travelers, who require a higher level of personal service and recognition than they can receive at competitive properties. This can provide the Mofjell with an opportunity to leverage its core competencies as regards servicing the business traveler in a luxurious environment.
Chapter 1. SWOT Analysis
I suppose, if Mofjell wants to make sure, that it protects its presence in the domestic market, it would be a good idea to have a look to the SWOT analysis. Moreover, it can help to identify the right business strategy. (Hollensen, 2007) This analysis highlights the internal strengths and weaknesses of this organization and the opportunities and threats, which Mofjell face in the external environment.
· Strategy: fixed differentiation strategy.
· Structure: more fragmented market.
· Skills: wide range of service skills within management and staff.
· Style: strong, rival culture.
· Staff: specialized and skilled staff, which is stimulated. A well educated team, which is proud of Mofjell hotel and respects and supports the brand values.
· Shared Values: clear and well communicated.
· Brand Strength: brand values well submitted from brand loyalty amidst present and new customers.
· Reputation: a strong reputation within the local market and corporate and travel trade markets for reliability, exemplary service and quality.
· Strategy: it needs to be more clearly communicated to the external national market (and world market in future).
· Systems: interdepartmental communications could be improved.
· Staff: seasonal turnover requires ongoing training and looking for the new staff.
· Facilities: some rooms could need repair and modernize as regards technical equipment, for example, high speed Internet access.
· Market: steady increase from 2009 to 2012.
· Competitors: becoming a part of a national/international chain.
· Suppliers: solid, long-term relationships established with investors.
· Guest Dependency: corporate business based on personal maintenance and quality.
· Market Entry: potential for a rival, international brand to penetrate the market with a resembling offer.
· Substitutes: fully furnished and serviced business apartments offering low daily tariffs.
· Economy: the slight recession can be after abrupt market growth.