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Strategic Management Report of Home Inn


1. Introduction


Home Inn Group, established in 2002, has seen a rapid growth over the last decade. In October, 2006, it came into market in NASDAQ, America, with stock code being HMIN. As the first Chinese hotel going public overseas, it has constantly dedicated to serving its customer by offering high quality service and making customers feel at home (Dan and Pu, 2008). Home Inn economic hotel chains uphold comfort, warmth, value and mission, offering a vide range of accommodating service for white-collar staff, business guests and tourists both at home and abroad. Along with the economic development, it is in the stage of fast growth.

2. The SWOT Analysis of Home Inn







1. The service staff at home inn are passionate and bright; Home Inn has set up a favorable public image, which can help save costs on renting and advertising

2. It has developed the brand effects and excellent Enterprise culture.

3. It has formed standardized and effective criteria to select and appoint talents in various divisions.

4. It has developed a complete information management system and loyal customer groups.

5. Its coming into market wins increasing popularity.

6. As a established economic hotel chain, it can expand businesses and take market shares in an easier way.  


The advantage of higher lodging rate has seen a decrease recently.

1. It can try to enter the higher-end market to strove for star hotels.

2. It can enhance the ability to merger its competitors and followers.

3. As there is still a great demand in the hotel market, Home Inn can keep improving and extending its businesses so as to take up market shares in other places.

4. It can try the best to reduce any possible costs.

1. There are more and more economic hotel chains.

2. Quite a number of small hotels also offer good service with lower prices.

3. The market demand is decreasing and Home Inn sees a decrease in occupancy rate.

4. The price of rent is increasing.


3. General Environment of Home Inn 

3.1 Political environment


中国的政治形势为如家酒店的发展提供了非常好的机会。但是中国独特的政治制度也为他的发展决定了独特性,在目前的中国市场,主要有三类企业在竞争市场份额,民营企业 国有企业和外资企业。考虑到他们的制度的不同,发展模式也有所不同,应该多元化。作为一个连锁性的酒店,得到市场的支持和政府的支持是非常有必要的。

China’s political situation provides a good environment for the development of economic hotel chains. However, the unique political institution also determines the uniqueness of Chinese enterprises. In current China, there are mainly three kinds of enterprises competing for the market share in economic hotel industry, private-owned enterprise, foreign-funded enterprise, and state-owned enterprise. Considering that they three have totally different natures, the expansion modes should also be diversified. As the operation of a hotel is closely liked to various governmental organizations, it is indispensable for every hotel to maintain a good relationship with governments. Home Inn has done a good job and paid constant attention to this.

3.2 Economic environment 经济环境


China has faced a more and more complicated economic situation; influenced by the sub-prime crisis in America, many countries in the globe has seen a drop in their economy. Under such a situation, business activities and tourism also enter the stage of austerity. Although it imposes great changes to the development of economic hotels, it also offers some development opportunities. As more and more companies and organizations began to cut expenses, they tend to reject high-level and luxurious star hotels, which is definitely an huge opportunity for economic hotels like Home Inn. Faced with both challenges and opportunities, the economic hotels in China need to make innovations. On the precondition that the price is kept low, the hotels should try to improve their service quality and hone their competitive advantages.

3.3 Social-cultural environment

In the west, for instance, in the United States, about 60 percent of the hotels are economic ones, while in China, there are only 5% economic hotels. “Chain” and ” brand” should be the most important elements for the success of economic hotels; the former could ensure an enterprise to become larger and larger, taking up more market share; the latter can help to improve enterprise popularity, attracting more customers and enhancing competitive advantages (Wang, 2009). Therefore, Home Inn has done quite well in these two aspects.

3.4 Environment

With the boosting of environmental protection awareness, an increasing number will start to care for the surrounding environment of a hotel. The design of hotels and its internal decoration should be environment friendly. Besides, the services and products should also go in line with this principle.

4. Competitive Environment of Home Inn

4.1 Intensity of rivalry among competitors

The rivalries of the economic hotels are mainly high-level hotels like five- or four-star ones, and those simple hotels offering accommodation (Eisenhardt & Graebner, 2007). However, as consumers in China are mostly in the moderate consumption level and there are a vast number of consumers in the hotel industry, the above-mentioned rivals are not so big a challenge for the economic hotels. Two points are still  worth attention. With the economic development, the living standard of Chinese people are also improving, so some of the consumers will prefer high-level star hotels. Besides, more and more star hotels adopt low-pricing strategy, which can weaken the competitive edge of economic hotels.

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