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SWOT analysis of Accor group

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case study
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15 pages
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  1. Introduction
  2. Internal analysis
    1. Group's presentation
    2. Clients
    3. Strengths and Weaknesses
  3. External analysis
    1. The hotels market and the French demand
    2. Competitive analysis
    3. Opportunities and threats
  4. Areas of improvement
    1. The real estate strategy
    2. The development strategy
  5. Conclusion

France is considered as a popular tourist destination in the world and thus tourism occupies an important place in the French economy.

Due to its interdependence with tourism, this study will emphasize on one of the leading French hotels: the Accor group.This group mainly specializes in hotels and business services.

Today competition in the hotel market is increasingly strong forcing the different hotel chains to refine their strategies to cope with the changes in their supplies and demands. Accor has thus found a solution for this, by offering a wide range of services that can cover the majority of consumer needs.

Thus, this study will present an internal analysis, with a presentation of the group, its resources and its customers in the first part. Then in the second part, it will conduct an external review with the specifics of the French hotel market and also a presentation of the competition. Finally, it will conclude on the possibilities for improvements.

Accor is established in 140 countries. It is now the European leader and is considered as the major player in the world of travel, tourism and services, with its two major international activities.

The hotel industry has a wide variety of services ranging from economics to luxury. The Accor group also provides services to companiess and institutions (19 million users in 34 countries). The group is also present in the travel agencies (Carlson Wagonlit Travel), casinos (Groupe Lucien Barriere SAS) and restaurants (Lenotre Gemeaz Cusin).

At the end of 2004, Accor had 3973 hotels, that is to say, 463,427 rooms. This French group has positioned itself at the fourth place in the world by the number of bedrooms in the hotel industry. In 2005 this group had 168,500 employees throughout the world including 113,000 hotels and 44,000 people operating in services and other activities.

Accor covers all market segments since it has hotels ranging from 0 to 5 stars. Its offers are segregated accordingly to satisfy the needs of each client.

The hotel facilities are divided into 3 categories: Luxury hotels (Sofitel hotels and resorts); Midscale hotels (Suite hotel) and Upscale brands (Novotel, Mercure, etc.) and economy hotels and budget brands.

Accor also offers a range of leisure activities: Accor vacations; Coralia Club; and the Accor Thalassa (expert in thalassotherapy, fitness, spa and well being)

In December 2004, Accor was known as the number one hotel group in Europe with 2,198 hotels and 240,327 rooms. It represented 52% of its entire hotel facilities by the number of bedrooms.

Accor is present around the world: In North America: 1257 or 29% of hotel rooms; Latin America and Caribbean: 158 or 5% of hotel rooms. In Africa and Middle East: 135 or 5% of hotel rooms and the Asia Pacific region: 225 or 9% of the hotel rooms.

The external environment must be appropriate to the customers. In fact, customers imply the fact that the leisure and the tourist infrastructures are widely developed. The leisure customers try and stay throughout the week and sometimes extend their stay for the weekends as well. The trips are usually made by a family or a minimum of 2 persons. These are customers who have time to enjoy the stay.

Tags : Accor Group, overview, internal and external analysis of the group

[...] The Accor Group has been targeting several types of customers and each company specializes in the segment that is most appropriate. We will now determine the types of expectations of each customer: Leisure customers: The external environment must be appropriate to the customers. In fact, customers imply the fact that the leisure and the tourist infrastructures are widely developed. The leisure customers try and stay throughout the week and sometimes extend their stay for the weekends as well. The trips are usually made by a family or a minimum of 2 persons. [...]


[...] All Accor hotels operate with two classes of customers (leisure, business) in order to maximize their sales. The main strengths: - Accor is an integrated channel of international networks. Market shares are easier to be attained. Accor has an advantage over its independent competitors who are struggling to compete against the hotels. - The IPO allows Accor to have a substantial capital to promote its development. Benefits: - This group provides a wide range of offers to its customers. - The group generally focuses on units that are of large capacity (40 + rooms). [...]


[...] The group is also present in the travel agencies (Carlson Wagonlit Travel), casinos (Groupe Lucien Barriere SAS) and restaurants (Lenotre Gemeaz Cusin) At the end of 2004, Accor had 3973 hotels, that is to say rooms. This French group has positioned itself at the fourth place in the world by the number of bedrooms in the hotel industry. In 2005 this group had 168,500 employees throughout the world including 113,000 hotels and 44,000 people operating in services and other activities. [...]

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