About Red Carnation Hotels

The Hospitality makes the hotel Red Carnation famous. The hotel carnation is actually a family owned business. It provides luxury and also the award winning hotels in United Kingdom and also in Channel Islands, South Africa, and Switzerland and in United States of America. The Hotel started in the year 1950 and it was founded by the couple  Bea and Stanley and they decided to open a large number of hotels in order to provide hospitality which is of a world class. The couple’s principle of sophistication, elegant love for the cuisine helped the industries to flourish in the later days to come.  Red Carnation managed to enter the market of United Kingdom in the year 1975 (Redcarnationhotels.com 2017; Kumar and Brady 2014) The motivation of the Red Carnation is based on the best services provided to the guests and gifting them with experiences which are memorable. The company has a target to provide services to the twenty- three locations. The Hotel also depends upon the IT based infrastructures.

The Hotel consists of 17 boutique hotels in its different locations of the country. However, the hotel is also looking forward to explore further opportunities and targets for expanding its branches across the world. The hotel managed to achieve top ratings on the following applications of the TripAdvisor. The company also manages to promote destinations for the travels in order to attract people to visit places and to spend holidays in the hotel. The Company also follows certain important strategies in the field of responsibilities based on social and environmental which is taken forward by collaborating with the Foundation of Treadright (Redcarnationhotels.com 2017). The hotel has also taken responsibility of an UNESCO world heritage name Kloof Wilderness Reserve. The Hotel is also into supporting charities which incorporates the foundation of the Starlight, the national autistic society and the other two charities (Redcarnationhotels.com 2017).

The aims and the vision of the Hotel are to expand more in the International market. The hotel as already mentioned before is looking forward to dig out more opportunities in the International forum, by keeping this important aspect in mind, the report further discusses the Hotel’s motives and aims and analyzing them with the help of different methods of analyzing (Redcarnationhotels.com 2017). The report further supports its expansion in an international market by making one country as its target.

The Political Factors: The factors which are carrying the notion of politics play a significant role to determine the economy of the country. The main aim of the Hotel industry has always remained to attract the international customers. The hotel industry is always supported by the government and the help of the government helps the hotel industry to sustain its competitive advantages in the market (Robinson et al. 2016; Camillo, Holt and Marques 2014). The government tends to charge a huge amount of tax on the luxury products of the hotel. The political changes also tend to influence the hotels through the government’s decision making policy. The state government also plays an important role in taking huge decisions while in turn might affect the hotel industry (Robinson et al. 2016).(See Appendix 1)

Expansion Motives and Strategies in International Markets

The Economic Factors: The economic factors also influence the success of the hotel industry. The taxation, inflation, interest groups and also the exchange rates influence the success of the Global Industrial Market. The provinces or the capital states of every other country owns wider number of tourists attracting from all over the world in terms of workshops, dealings in the businesses and the other main soul purposes (Robinson et al. 2016). The flow of money brings incentives to the economic conditions of the hotel Industry. At the same time, the economic condition of the country also plays an important role in determining the success and the failures that the hotel industries are going to face (Camillo, Holt and Marques 2014).  For example the economic conditions in Ireland and London have enabled The Red Carnation Hotel to bring economic improvements in their sector. (See Appendix 1).

Social Factors: The changes brought by the social factors of a country also play a significant role in determining the economic stability of the global hotel management industry (Camillo. Holt and Marques 2014). The conditions prevailing in a country becomes a huge question mark for the emerging hotel industry to state whether the industry would be able to attract the people from the other countries or not (Robinson et al. 2016). For example, the terrorist attacks in both London and South Africa determines the entry of the tourists in the Red Carnation hotel, which further might affect the economy of the country (See Appendix 1).

Technological factors: Technological factors of the hotel industry determine the help rendered to the staffs and customers to meet their needs. The updated technologies in a hotel focus on the swift flow of services to meet the comfort zones of the customers. The visitors are also being positively affected by the updated technologies of the hotel industries. The hotels keep their updated technologies to promote the travel destinations and can help out the customers to visit different places (Robinson et al. 2016). The updated technologies in the form of Wi-Fi and the security purposes are quite helpful for the visitors. Hotels like Red Carnation are inclined to use certain integrated hotels with the help of the technology to attract customer from all over the world (Robinson et al. 2016; (Camillo. Holt and Marques 2014)). Using an updated version of the technology is a methodology to attract the people all over the world. Red Carnation with its ability to promote destinations for the people, has achieved top ratings in the applications of the hotel Tripadvisor (See Appendix 1).

Analysis of Political, Economic, Social, Technological, Environmental, and Legal Factors

Environmental Factors: The environmental factors play an important role as well to indicate the successful working of the hotel industry. Environmental changes such as weather conditions, the application of taxes are available on the environmentally friendly products. The hotel and tourism industries play are blamed for increasing the emission of carbon in the atmosphere, which is resulting to the pollution of the atmosphere. Accordingly, certain hotel industries also need to take proper care in managing the carbon emissions (Robinson et al. 2016). The Red Carnation hotel of each country to combat the change of the environment has a green team to focus on the investigation of the process to carry forward the work. The hotel also follows the recycling of the wastes in order to contribute to the well being of the environment (See Appendix 1).

The legal factors: The legal environment also plays an important role while determining the growth of the hotel industry.  The situations prevailing in a country indicates the contemporary situations regarding any kind of issues which are affecting the international laws (Robinson et al. 2016; Camillo, Holt and Marques 2014). On determining the situation the hotel industry might change laws which might affect significantly. The government also becomes aware about the ongoing external factors which might end up as a negatively impacted on the growth of any hotel industry (See Appendix 1).

Threat of the substitute goods: The hotel industry is always waging competition with the other hotel industries in terms of goods. The price of the goods will always pose constant challenges and accordingly it will decide the customers in their respective hotels. The utilization of the proper internet can also pose threat to the existing hotel industry. A better internet provided by a hotel can attract customers (See Appendix 2).

The Bargaining powers of the buyers: Tourists are generally experiences in using internet and they offer their bondage in another novel way (Lopes 2016). The other finding business on internet will try to bargain for their customers (Cheng 2013). This in turn will place the power of bargaining to the user’s end and the same freedom would stop the customer from switching over to the other hotels (See Appendix 2).

Rivalry among the competitors: This rivalry among the competitors is more dangerous. The tourists or the visitors always look forward for the best price offered by the hotel. To top it, the attitude to reduce the price is also very competitive (Cheng 2013) (See Appendix 2).

Threats from Substitute Goods

Barriers to entry: The presence of the internet which tends to reduce the marketing cost and this in turn gives entry to the new competitors to avail the resources and suppliers.The investment in the industry has created an entry barrier; however, the barrier entries in the markets of the hotels are reduced by the internet (Cheng 2013; Lopes 2016). There might be a differentiation regards to the barriers to entry in terms of the location of hotels and the services provided by the hotels to the customers. Another important entry barrier is the expertise. However, in the society of using mobile, the employees tend to leave one hotel chain in order to work with another hotel chain (Cheng 2013). It is in the field of expertise that a hotel can make in order to bring an impact on the client (See Appendix 2). 

Bargaining power of the suppliers: However, this is not regarded as an important threat. With the growth of the aging people, a fewer people can fulfill the jobs of the services in order to provide beautiful experiences with the clients (Cheng 2013).  To incorporate the internet strategy, there has to be a section for recruiting the employers (Lopes 2016) (See Appendix 2).

The supplies which are demanded for the hotel can also be attained by the channels of internet. If the products are in the process of greater demands by a good number of hoteliers, this tends to achieve a greater power through the offering made by the competition (Cheng 2013) (See Appendix 2).

Inbound logistics: The Hotel Red Carnation provides a well sophisticated system which makes sure about the smooth flow of operation in its 23 locations by meeting the objectives of the hotel through the availability of 25000 employers.

Ownership segment: This segment has the total of hotels which are owned by the red carnation hotels in South Africa, Ireland, United Kingdom and The channels islands (Gereffi and Fernandez 2016;  Redcarnationhotels.com 2017) (See Appendix 3(1)).

Segment based on management and franchise: The number of hotels are owned by the third parties and managed by the Red Carnation hotel. The company also made its brand licensed to the franchises islands (Gereffi and Fernandez 2016;  Redcarnationhotels.com 2017) (See Appendix 3(1)).

Timeshare segment: It consists of 41 segments. The segments are involved in marketing. The company is indulged in the resorts based on timeshares and also the membership clubs and also providing the financing of the consumers islands (Gereffi and Fernandez 2016;  Redcarnationhotels.com 2017) (See Appendix 3(1)).

Bargaining Power of Buyers and Suppliers

Red Carnation operates in the following segments

• USA
• Africa
• Europe
• Channel islands (See Appendix 3(1)).

It generally refers to the services provided to the customers in which the hotel Red Carnation is associated with the service of higher standards and also the provision for the transportation services who are moving out of the hotels (See Appendix 3(2)).

Marketing and sales: The marketing and sales practices form an important part of the red carnation hotel. The sales team are allotted with the  task of bookings and other travels and the conventions. The brand of the red carnation is attractive and also allow the customers to come back in order to earn points islands (Gereffi and Fernandez 2016;  Redcarnationhotels.com 2017). Hotel Red Carnation uses technology to promote travel destinations along with the wi-fi system in the hotel (See Appendix 3(2)).

Service: A high quality service is being provided to the visitors which form the core values of the Red Carnation hotel. The staffs are the multilingual to deal with the other customers. The customers are give there feedbacks with the help of other social networking sites (See Appendix 3(2)).

Infrastructure: Red Carnation is an international hotel. The company expects the staff to deliver service in a more professional manner islands (Gereffi and Fernandez 2016;  Redcarnationhotels.com 2017). The company looks forward to give a greater quality of the hotel service  by keeping sure that the hotels rooms are perfectly clean and in shape. The equipments are working properly (See Appendix 3(2)). 

Human Resource management: The human resource management in order to keep pace with the customer’s satisfaction, the management workers is given proper training. The hotel also provides rewards to the workers for their best services (See Appendix 3(2)).

Technology development: The main intention of the usages of the technology is to provide services to the customer by the Red Carnation islands (Gereffi and Fernandez 2016;  Redcarnationhotels.com 2017). It has also developed an official website for booking rooms and providing travel destinations to the customers (See Appendix 3(2)).

Procurement: The award winning incidents and the brand of the hotel red carnation enables to derive high requirements for the suppliers. The hotel is also quite selective and also very cautious about its suppliers islands (Gereffi and Fernandez 2016;  Redcarnationhotels.com 2017). The suppliers have to be friendly and must not involve themselves in any unethical acts (See Appendix 3(2)).

Strength: The strength of the hotel is the proper geographical area and the services provided to the customers are the strength of the Red Carnation hotel. It is located in some of the historical places where the people can enjoy the surroundings (Yu et al. 2014; Redcarnationhotels.com 2017) The Hotel was rewarded for the best services provided to the customers and was satisfied in meeting the customer’s needs. Red Carnation was also awarded for the best human resources team in the year 2015 (See Appendix 4).

Rivalry among Competitors

Weakness: The tough competitors of the Red Carnation are the Hyatt, Mariott, being the main competitors.  The global presence of the market share is also very limited (Yu at al. 2014; Redcarnationhotels.com 2017). The hotel is dependent on the tourists more and they are considered to be quite politically sensitive (See Appendix 4). 

Opportunities: The aging population can be regarded as the boosting power for the integrated services. Along with this the trend of demands at a higher rate on the quality can add values to the sectors (Yu et al. 2014; Hollenson 2015). The opportunities of attracting more international travelers from the other countries will lead to the swift flow of the money (See Appendix 4). 

Threats: The hotel industry might get affected by the presence of the black market which might act as a threat to the competitiveness of the sectors. The threats might also come from not sufficiently skilled labors (Yu et al. 2014; Hollenson 2015). Attacks of terrorist and the political unrest might also affect the coming of the tourists in the hotel industry (See Appendix 4). 

France in compare to China, Nigeria and Thailand is said to be comparatively better to do international marketing. In terms of swift communication, maintaining vast diversity and the availability of resources along with much protection, France in all the respect is the perfect country to carry out its trade (See Appendix 5).

• The country welcomes per annum the largest number of tourists having more than 80 million visitors.
• France has more than twenty two thousands foreign companies specially Paris. The rank of the France is among the attractive countries for the foreign investment.
• There are no restrictions from the administrative point of views in France in regard to the foreign investments. The government even took steps to bring improvements in the business by reducing the taxation of the corporate world (Ehrmaan 2015).
• France is also looking forward to bring skills of the foreign and the experts in France.
• France being an economically developed country has a large diversified and more sophisticated base of the consumers
• The government policies do not bar the foreign industries from doing business. In that case there are no any strict laws
• The political culture and the external environment are also considered safe for the foreign industries to get flourished (Ehrmaan 2015; Lefebre et al. 2012).  

Ansoff Matrix incorporates four quadrants having the four possible forums for the business organization which is expanding (Hussain et al 2013; Ehrmaan 2015). In this context to judge from the perpective of doing business in other countries, the red Carnation hotel are looking forward of expanding its branches in the country France. In this context, the innovative strategy of the market is providing advantage (Hussain et al 2013; Ehrmaan 2015; Baker 2014; Fifield 2012). The hotel industry is looking forward to extend its business in France and to extend its service in the other parts of the world. France as already mentioned before is a politically safe country and the hotel Red Carnation can take advantages of the large number of tourists coming to France (Hussain et al 2013; Ehrmaan 2015; Turnball et al 2013). Being the economically developed country, France will allow a greater financial support to the success of the industry. (See Appendix 6)

   The hotel Red Carnation can apply for the merger strategy with the other local hotels in order to expand the business in France. The French company with whom the merger will take place must have some good shares in the market (Jhonson et al 2013; Redcarnationhotels.com 2017). It has to be ensured that the leading business organizations to have control over the market of France (Jhonson et al 2013; Redcarnationhotels.com 2017). (See Appendix 7).

Barriers to Entry

Marketing mix consists of the four p’s which are product, place, pricing and promotion

Place: The situation of the products play an important role, where specially in the case of hostel industry, the customers need to go to the products. The Red Carnation hotel can select a location which can be proved suitable for the visitors to spend their holidays (Gordon 2012).

Promotion: The promotion of the hotel industry in order to attract the visitors all over the world through the usage of social media or any other television or newspapers (Hyuang and Sarigollu 2014; Armstrong at al 2015).

Product: The product of the red carnation hotel should be well defined and designed having wi-fi, gym and the comfort zone with a great infrastructure facility to attract tourists (Hyuang and Sarigollu 2014; Armstrong at al 2015).

Pricing: The hotel industry must frame out the price in a more organized manner in this competitive era (Hyuang and Sarigollu 2014; Armstrong at al 2015).  The price set up should take place in such a way that it can be availed by anyone irrespective of their income facility

The hotel Red Carnation’s organizational management must measure the risk before framing out the ways to expand in the foreign market (Terpstra, Foley and Sarathy 2012; Turnball et al 2013). The organization must take care of the effectiveness of the cost and must also conduct a research about the market place and structure (Gordon 2012). They need to have strategy to make the functioning of the market stronger (Terpstra, Foley and Sarathy 2012; Turnball et al 2013). The market must also appoint the local employees as intermediaries.

Conclusions and Recommendations 

On a concluding note, it could be stated that the red carnation hotels must work on the strategy to overcome its weakness and must go through a deep research work for the expansion of its branches all over the world. The hotel must start increasing its market share and must also look forward to enhance its business in the Asian countries. In order to expand its market in the French market place, the hotel needs to know the background of the country and accordingly expand its branches for the suitable expansion of its business.

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