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Strategic analysis of the Accor group

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  1. Introduction
  2. External analysis
    1. Definition of the industry
    2. Analysis of economic forces affecting the industry (PESEL)
    3. Industry Analysis: Porter's Five Forces
    4. Industry segmentation
  3. Internal Analysis
    1. Defining the Enterprise
    2. Resource Analysis
    3. Skills Analysis
    4. Balanced ScoreCard analysis
    5. Analysis of Corporate Governance
  4. Final analysis
  5. Conclusion

Accor, a leading European player in the world of hospitality and tourism, was founded in 1967 by Paul Dubrule and Gerard Pelisson. Forty years down the road, the group now operates in nearly 100 countries and employs about 170,000 active employees. The Accor group offers its clients, both individuals and companies, expertise and service quality, especially in hotels and services. Through its hotels and resorts, the group has been providing unmatched hospitality and related services in the travel and tourism sector.

The Accor group contains some heavyweights among the tourism industry including the Sofitel, Pullman, Novotel, Mercure, Suitehotel, All Seasons, Ibis, Etap Hotel, Formule 1 and Motel 6 brands, representing over 4,000 hotels and nearly 500,000 rooms in 90 countries.
Business services and public institutions also form a significant part of the group's business with 23 million people in 40 countries benefiting from Accor Services benefits.

The external and internal analysis of the group will show us how the Accor Group has become the undisputed European leader in the hotel business. How has the group utilized its resources and skills to reach this position? What strategy should the group adopt to maintain its leadership?

Identity card of the Accor Group: We will begin with an examination of the key points of the Accor group, with particular emphasis on its business, its locations and its key financial data.
Name: Accor, formerly SIEH (Societe d'investissement et d'exploitation hoteliers)
Activities: The group is positioned in the world of tourism, travel and business services
Company name: Accor is a company featuring a Management and Supervisory Board with capital of 594, 973,000 euros
CEO: Gilles Pelisson
Turnover in 2006: 7.6 billion euros
Strength: 170,417 employees

The European leader in the world of hospitality and tourism as well as the global leader in corporate services, Accor operates in nearly 100 countries and involves 170,000 employees. It offers its clients, both in the private and public sector, expertise in its two core businesses:

The hotels: Accor Hotels offers a range of hotels suited to everyone's wallets, from budget to high end luxury brands within 4,000 establishments representing nearly 500,000 rooms in 90 countries. It is more popular brands include Sofitel, Pullman, Novotel, Mercure, Suitehotel, All Seasons, Ibis, Motel 6, Etap Hotel and Formule 1.

Sofitel: 182 premiums hotels which represent the ultimate embodiment of the fine art of French living worldwide.
Pullman: A new chain of upscale hotels dedicated to business travelers.
Novotel: A contemporary yet mid-scale hotel concept that blends both business and leisure hotels with over 385 establishments in 59 countries.
Mercure: 750 hotels that let its guests discover the pace of life of different regions in over 49 countries.

Suitehotel: Three star luxury hotel chain in Europe predominantly catering to families and businessmen.
All Seasons: An economy chain of hotels which retain the quality and feel of traditional hotels.
Ibis: Part of Accor's middle range of hotels, the chain is reputed for its efficient around-the-clock services at an economical price in more than 761 hotels worldwide.
Motel6: American chain of budget motels in over 850 locations across the United States and Canada.
Etap: Over 366 basic-service budget hotels spread over Europe, concentrated mostly in France. Source: www.accor.com
Formule 1: More than 373 super low budget hotels in over 14 countries.

Tags: European player, Accor, business services, hotels and services.



[...] The external and internal analysis of the group will show us how the Accor Group has become the undisputed European leader in the hotel business. How has the group utilized its resources and skills to reach this position? What strategy should the group adopt to maintain its leadership? External Analysis 1. Definition of Industry 1-1 Business Activity Identity card of the Accor Group We will begin with an examination of the key points of the Accor group, with particular emphasis on its business, its locations and its key financial data. [...]


[...] Analysis of corporate governance The legal structure of ACCOR In 2006, the group changed its course of governance by replacing the system of executive board and supervisory regime with the Board. Serge Weinberg was appointed as chairman of the board of directors while Gilles Pelisson was appointed as the CEO of Accor. The General Meeting held on January adopted a new constitution by approving the amendment to the administration plan and group management. The current status of the group: Company name Accor Headquarters 2 rue de la Mare Neuve 91000 Evry Administrative Headquarters Tour Maine Montparnasse 33, avenue du Maine 77015 Paris Legal form Public liability company Shareholding Yes Capital 651,797,322 EUR Number of shares 217,265,774 Employees The total payroll of the Accor group represents more than 168,000 employees. [...]


[...] Accor Group does not sell its services directly to final consumers (it never writes a check on behalf of the Accor Group), yet it sells its image (Marketing: Advertising). Moreover, it is now possible to identify the membership of each brand of hotel to the Accor Group. Indeed, a new logo stating ?Accor Hotels' has been created for each hotel chain. Therefore, the sales function of the Group is aimed at the different Accor hotels and not directly to customers. [...]

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