This essay focuses on Porter’s Five Forces focus on the five forces that management must analyze to determine the profitability in entering into a new business venture or industry. Porter’s Five Forces include competitive rivalry, threats to new entrants, bargaining power of both suppliers and customers, and threat of substitution. By investigating all five of the forces, an entrepreneur can determine the potential success of a business.
Hotel & Lodging Management & Operations
About the Assignment As you learned in the course,
Porter’s Five Forces focus on the five forces that management must analyze to determine the profitability in entering into a new business venture or industry.
Firstly, competitive rivalry, threats to new entrants,
Secondly, bargaining power of both suppliers and customers,
Thirdly, threat of substitution.
By investigating all five of the forces, an entrepreneur can determine the potential success of a business.
In an 800 to 1200-word essay, answer the prompt below using concepts you learn from the course to support your arguments.
Imagine that you are the manager of a new hotel located in a major city.
Your hotel sits amongst several other hotels of the same or similar level of service, amenities and property features.
During recent times, there has been unrest in the local community attracting fewer visitors to your city and, more specifically, your hotel.
Crime in the city increased by 20% over the past several months
Local small businesses like restaurants, bars and retail stores are closing their doors at alarming rates Occupancy in the area is down by 30%
Your hotel’s occupancy is down by 50% over the past few months Property Facts:
Additionally, 200 rooms including single rooms,
Moreover, 1 and 2 bedroom suites and a presidential suite with a view of the city skyline One fine dining restaurant,
Further, a large lobby bar and a coffee/breakfast area Outdoor/Indoor heated rooftop pool Conference/Banquet space
Finally, Large theater that can accommodate 2,000 people complete with a stage and sound system.
Top management is considering selling the hotel and asked you to make a strong argument for keeping the property.
Using Porter’s Five Forces, assess whether your hotel will be successful under the current circumstances.
As you apply the five forces to the current situation,
be sure to include recommendations for current and alternative uses for the property and its revenue centers.
Please write your paper in the APA format.
As part of your research, you may refer to the course material for supporting evidence,
but you must also use at least three credible, outside sources and cite them using APA format as well.
Please include a mix of both primary and secondary sources, with at least one source from a scholarly peer-reviewed journal.
If you use any Study.com lessons as sources, please also cite them in APA (including the lesson title and instructor’s name).
Primary sources are first-hand accounts such as interviews, advertisements, speeches, company documents, statements,
press releases published by the company in question.
Secondary sources come from peer-reviewed scholarly journals, such as the Journal of Management.