Strategic Management Report of Home Inn

管理策略报告

1. Introduction

在过去的十年中，如果酒店发展的速度非常快，如家酒店成立于2002年，在2006年，如家集团就在美国上市了，他是唯一一个在国外上市的中国酒店。他一直致力于为客户服务的理念，让客户感受到家的温暖。为国内的白领和国外的客人，商人提供最温馨的服务，随着经济的发展，他们也在快速的发展。

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

3. General Environment of Home Inn 

3.1 Political environment

政治环境

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

中国的经济形势非常复杂，受美国次贷经济危机的影响，全球的经济都在下降，在这样的经济形势下，企业活动和旅游都在下降，虽然这种形势对酒店服务行业有一定的影响，但是也为他提供了新的机会，随着其他酒店都在消减开支，他们却升级自己的酒店的标准，在这种创新模式中，酒店的质量和服务得到了认可。为他的竞争提供新的优势。

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.