Sample paper
Word Count: approximately 2,900 words
Background
Tian Jing Hotel, founded 2019 in Kuala Lumpur's Chinatown, features 20 individually designed rooms blending traditional Chinese architectural elements with modern amenities, targeting culturally curious leisure and business travellers from Southeast Asia, China, and Europe. Performance has followed a COVID-19 disruption and recovery arc: 65% occupancy and RM 2.5M revenue in 2019, declining to 30% occupancy and RM 1.2M revenue in 2020, and recovering to 50% occupancy and RM 1.8M revenue by 2021.
External Analysis
PESTEL: Political stability and government tourism prioritisation (National Tourism Policy 2020-2030); economic recovery (5.5% 2022 GDP growth) with lagging tourism sector recovery; social trends favouring experiential, culturally immersive tourism; technological trends favouring OTA/mobile booking and contactless operations; environmental trends favouring sustainable tourism positioning; and legal considerations spanning health/safety, employment, data protection, and post-COVID regulation.
Porter's Five Forces: Low new-entrant threat (tempered by sharing-economy competition), moderate supplier bargaining power, high buyer bargaining power (OTA-driven), high substitute threat (serviced apartments, vacation rentals), and intense fragmented-market industry rivalry.
Key opportunities and threats: Experiential tourism growth, post-COVID revival, and sustainable tourism trends versus new entrant/substitute threats, buyer bargaining power, and regulatory compliance burden.
Strategy Formulation
TOWS matrix analysis generates SO strategies (niche cultural tourism marketing, cultural attraction partnerships, sustainable tourism positioning), WO strategies (digital marketing and technology investment, offering expansion), ST strategies (cultural differentiation, loyalty-driven retention, revenue diversification), and WT strategies (cost-cutting, strategic hotel chain partnerships, contingency planning). QSPM analysis identifies a differentiation strategy grounded in cultural identity and personalised service as the highest-scoring, recommended strategic direction.
Strategic Objectives
Eight SMART objectives: 75% occupancy by 2024; 90% guest satisfaction score by 2023; 50% online booking share by 2023; 10% operating cost reduction by 2024; 20% RevPAR increase by 2024; two new cultural experience packages by 2023; 50% repeat guest rate by 2024; and a sustainable tourism program implemented by 2023.
Conclusion
Tian Jing Hotel's recommended differentiation strategy -- anchored in authentic Chinese cultural identity and personalised guest service -- directly addresses its external opportunities and threats while building on its internal strengths, with the eight SMART objectives and supporting action plan providing a concrete pathway to post-pandemic recovery and sustained competitive positioning in Kuala Lumpur's boutique hotel market.
References
Prakash Srivastava. (2023, September 2). Bargaining power of supplier -- Porter's Five Forces. Harappa. Srivastava, 2023 Robina-Ramirez, R., Medina-Merodio, J. A., Moreno-Luna, L., Jimenez-Naranjo, H. V., & Sanchez-Oro, M. (2021). Safety and health measures for COVID-19 transition period in the hotel industry in Spain. International Journal of Environmental Research and Public Health, 18(2), 718. Robina-Ramirez et al., 2021 Strategic CFO. (2013, July 24). Threat of new entrants (one of Porter's Five Forces). Strategic CFO, 2013 Surendranathan, H. (2024, April 26). 6 Malaysian sustainable hotels for the conscious traveller. Travel and Leisure Asia. Surendranathan, 2024 Tian Jing Hotel. (2024). Welcome to Tian Jing Hotel. Tian Jing Hotel, 2024 Watkins, E. (2016). 20 years of OTAs: How they changed the hotel industry. Watkins, 2016