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Selected Case

published: 01 Oct 1996

  • Topic: Operations
  • Industry: Hotel Business; Services; Hospitality
  • Region: Asia

Abstract:
The ACCOR group was started in 1967 in France with the introduction of the Novotel concept. Over the following 30 plus years it developed a group of hotels: Sofitel, Novotel, IBIS and Formule 1 and extended the groups business in the USA and Asia. With a range of brands marketed at different price levels the group has enjoyed wide market coverage. As with its previous internationalisation projects, ACCOR approached a different set of challenges in developing in Asia. This case examines in more detail the expansion into the Indonesian market.

Pedagogical Objectives:
This case illustrates the key steps involved in expanding abroad: Identifying an appropriate market Deciding on an entry strategy and development speed Deciding how to service the value proposition, the formulation and the delivery system to adapt efficiently in the chosen markets and how, eventually, to respond to new competition

Keywords:
Management of Services, Internationalization of Services, Hotel Management


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