THE TAJ GROUP

OF
HOTELS
 BCG MATRIX

''TAJ GROUP OF HOTELS'' ''ITC GROUP''

''LEELA GROUP''

''INTERCONTINENTAL''
 ANSOFF MATRIX
MARKET PENETRATION:
• Hotel TAJ was established in 1903 and have
managed to sell a certain type of nich services till
now
• Thus the hotel ends up selling more in its existing
market.

MARKET EXTENTION:
• The TAJ GROUP has globalized its services after
providing exellent sevices in its nation.
• The group is being providing its services all over the
globe by 11 hotels overseas.

NEW PRODUCT DEVELOPME NT:

• The TAJ GROUP has been an innovator,whereby
introducing various nich services like spa's, health
care facilities under the brand name TAJ.
DIVERSIFICATION:
• TAJ has diversified and have entered into various
other sectors like catering in airlines and nich
railway services like ''PALACE ON WHEELS''.
• TAJ also owns a FALCON 2000 aircraft.
• It also provide the facility of cruise service.
• Its has also been indulged in luxury residency
appartment in mumbai.
 SWOT ANALYSIS

Strengths
India’s rich culture heritage: With a historical
backdrop of 5,000 years, India is one big package of
culture, religions, customs, festivals, sights and sounds
and Hotel TAJ is a great combination of all of these. The
TAJ group not only introduses the guests with Indian
culture but also serve them with the moto; as said in
India ''ATITHI DEVO BHAVA''
Demand–supply gap: Indian hotel industry is currently
facing a mismatch between the demand and supply of
rooms leading to higher room rates and occupancy levels.
With 95,000 odd rooms in the country, the size of the
hotel industry represents an abysmal figure for India's
size and growth prospects. Though new capacities are
expected to come in the next five years demand will
outpace supply in the short to medium term. The table
below highlights that, over the last 24 months, major
cities in the country have witnessed impressive growth in
average room rates, due to strong demand and not much
addition to supply.

ARRs: Average growth rate

 FY0 FY0 FY FY
2 3 04 05
- -
2.3 31.
Delhi 4.2 5.7
% 4%
% %
- -
Mumba 2.2 28.
11.2 15.2
i % 7%
% %
Bangal 3.7 15.1 11.7 29.
ore % % % 1%
-
Chenna 6.6 5.4 6.4
6.9
i % % %
%
-
12.1 9.8 18.
Goa 8.2
% % 4%
%
source HVS international
Government support: Till a few years ago, the Indian
government had a total apathy towards promotion of
tourism. In fact, the industry did not find a place in the
government’s fund allocation. Things have, however,
witnessed a change. The government seems to have
realized the importance of tourism and is willing to spend
towards the development of the industry. The
‘Incredible India’ campaign is a product of this
realization. The focus on infrastructure, modernisation
of airports, open sky policy, development of new tourist
destinations and circuits, more fund allocation towards
tourism are some of the initiatives taken by the
government. The TAJ GROUPfor sure stands to gain
from this proactiveness shown by the government.

Weaknesses
Poor support infrastructure: India is currently spending
a miniscule amount compared with its needs, on
infrastructure. China is spending seven times as much as
India on infrastructure (excluding real estate) in
absolute terms. In 2003, total capital spending on
electricity, roads, airports, seaports and telecom was
US$150 bn in China (10.6% of GDP) compared with
US$21 bn in India (3.5% of GDP). However, over the past
2-3 years, the government has realized the importance
of infrastructure and has focused on improving it.

Opportunities
Rising Income: While there has been much talk about
record number of foreign tourist arrivals, very little has
actually been said or done about domestic tourism,
which, according to our estimates, has registered a 40%
annual growth in the last three years and is currently
estimated at 300 m travelers. Per capita income grew by
an impressive 7.1% in 2005, while Gross Domestic
Savings touched an all time high of 28%. Significantly,
the present-day consumption boom in India has been
influenced more by higher disposable income rather than
lower savings. This is good news, as income induced
spending is likely to sustain itself for a longer period.
Higher disposable incomes are also expected to enhance
the concept of traveling for leisure.
Also, there has been an overall transformation in
consumption pattern in the last five years. The increase
in number of young people, their rising aspiration levels,
and an increase in their spending power has led to a
change in the consumption pattern. There is a marked
shift from spending on traditional categories like food
and grocery, clothing and jewelry, to lifestyle categories
such as leisure, and aspirational products and services.
Open sky benefits: The opening up of the aviation
industry in India brings exciting opportunities for the
hotel TAJ. Increased airline activity has stimulated
demand and has helped to improve India's troubled
infrastructure. Increased competition among airline
companies will further lead to the development of new
and improved services. Also the open skies policy has
benefited both international and domestic travel.
New business opportunities: We believe that, over the
next three to five years, the biggest surge in
accommodation demand is expected to come from
commercial zones that are being developed in metro
suburbs and secondary markets. Mixed-use development
projects that include retail and commercial space have
also gained momentum in the last 24 months and will
continue to be an attractive option. This provides a
unique opportunity for hospitality projects. Also the new
concept, which is going to gain importance is that of
budget hotels (started by Indian Hotels – Ginger, the
erstwhile Indione). Due to their inherent nature of
operation, associated costs and flexibility, budget hotels
will be better suited to withstand the next economic
downturn as and when it takes place.

Threats
Event risk: Dependency on foreign tourism can be a
double-edged sword as travel decisions are based on
global patterns and events that happen elsewhere can
have serious impact the performance. Events like 9/11,
SARS outbreak and Afghanistan and Iraq wars have
severely impacted the tourism industry in the past and
the threat remains.
Increasing competition: Global hospitality majors like
the Four Seasons, Shangri-La and Aman Resorts are all
making their entry into the Indian market. They are not
the only ones who are turning their attention to India.
The Hilton Group is deciding on a comeback and has tied
up with the Oberoi Group. Two other groups - the
Carlson Group and the Marriott chain are furiously
hunting for new hotels in India's top cities. This will
increase the competition for the existing Indian hotel
majors.