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Selected Case

published: 30 Aug 1997

  • Topic: Strategy
  • Industry: Hotels
  • Region: Asia

As the world’s largest hotel group, Accor has been late entering Asia. In 1987 it finally pushes ahead with an aggressive expansion strategy using its brands Novotel, Mercure and Ibis. However, lack of capital and arguments between HQ in France and the legally independent regional center in Sydney in 1996 raise questions as to whether the rapid development can continue.

Pedagogical Objectives:
The case discusses the strategic and organizational issues facing a latecomer in the hotel/leisure industry in Asia. It focuses on the question of how much autonomy should be transferred to the region, and how much standardization is required in an industry, which increasingly operates with global brands, but faces different service requirements in different parts of the world.

Strategy, Asia, Expansion, Entry Strategy, Multinational, Organisation, Product Adaptation