With the adjustment of the holiday policy and the advancement of the Chinese people’s living level, the tourism industry in China has been developing at a quick speed, which also leads to the fast development and expansion of the hotel industry in the country (Limei, 2007). Because the incomes of the most Chinese people are not very high, their consumption abilities are limited and most of them will avoid choosing luxury hotels. All their requirements on the hotels are cozy, clean but cheap, which just meet the characteristics of the budget hotels (Carlo, 2011). Besides, it is a new trend in the tourism industry that tourists prefer to stay in warm, clean but economy hotels and nowadays, the demand for budget hotels in China is very huge and promising (Limei, 2007).Therefore, the budget hotel industry in China has great market and is of great promise to develop in the near future. Home Inn, as the benchmark in the Chinese budget hotel industry, has achieved great success in the Chinese market in a past decade.Now, it is going to open its business Tibet and continue its success there.
The purpose of the report is to present a strategic analysis to assess the viability of opening Home Inn in Tibet as well as the reasons why a Home Inn in Tibet would be successful. This report will firstly give an introduction to the Home Inns as well as the Tibet region so as to help readers have a better understanding of the background. Then, an analysis of Home Inns will be presented in order to identify the mission of the organization. In the third part, this report will aim at identifying and discussing the competencies the Home Inn has developed to achieve its mission as well as the values the organization is building in its offering products and services to achieve success.
In conclusion, the mission of Home Inn is to provide with its customers a cozy, clean and homelike living environment as well as high-quality, efficient and convenient service offerings by focusing on details and perfection, to create a favorable and enjoyable working environment for its staff by giving equal and sufficient promotion opportunities and cultivating a corporate culture that values its employees and to enable its partners and investors reap stable profits through reasonable programs. In addition, Home Inn enjoys a lot of competences in the Chinese budget hotel industry. It enjoys great reputation in its branding and have a lot of loyal customers, it is very cost-efficient so that its room price is very competitive, it has an advantage of hotel number and scale in China, it possesses a large number of customers among with many are members, it has enough capital to open and expand its business, it takes the most advantage of IT and at last it is very standardized in the budget hotel industry.
Today, the Chinese government is being devoted to improving the economy in Tibet area through developing its tourism industry and with the development of the tourism in Tibet, there is an growing demand for accommodation and hotel development. And nowadays, people are more favorable to choose economy hotels because they are comfortable and cheap. Besides, in Tibet area, the hotel industry, especially the budget hotel industry, is not as mature as other areas in China and still needs further development. All the three outside factors lay the foundation for the success of Home Inn. On the other hand, Home Inn has its own competences and advantages such as strong brand influence, competitive price setting, sufficient customer sources and enough capital, therefore, the writer believes that Home Inn would be successful in opening its business in Tibet.