A modest restaurant chain was transformed into a full-fledged hospitality services group under his direction. Kamat Hotels (India) Ltd. included five leading verticals from five star luxurious resorts (The Orchid Ecotel) to economy eateries (specifically Kamat Restaurants) that catered to the different customer segments. Kamat had ambitious plans for the expansion of every perpendicular using alternative growth strategies. However, the recent economic slump had basis on a surprising setback due to the drop in average room occupancy and room that was competing -tariff rates provided by other resorts. In such a tumultuous situation, Kamat planned to make use of the core competency of the hotel as an 'ecotel,' that is, an environment friendly hotel, to go in for corporate branding and lever its standing in the industry. The case exemplifies the challenges confronted by Kamat in expanding the core competency of 'The Orchid' to its other verticals.
Orchid Ecotel Leveraging Green Hoteling as Core Competency Case Solution
The Orchid had performed better than the sector average until 2008. Nevertheless, in 2009, the functionality dipped, partly due to the economic recession. This prompted the board members of the business to choose extending the core competency of the hotel that was ecologically sustainable into other verticals. However, this choice needed to be considered carefully in the light of its impact on 'The Orchid' together with on the other verticals. Do you know the challenges that will be confronted while expanding the core competency of 'ecoteling' to the other verticals? There were numerous related issues that needed to be addressed strategically in addition to tactically, to be able to keep a balance between expanding the core competencies across the verticals while expanding the brand.
PUBLICATION DATE: October 26, 2011 PRODUCT #: W11394-HCB-ENG
This is just an excerpt. This case is about STRATEGY & EXECUTION
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