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Swot Analysis Of Taj

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8. SWOT ANALYSIS

8.1. Strengths
IHCL has a very dominant position in Indian hospitality industry with largest distribution of hotels around the country. Its key advantage is the established 'Taj ' brand name. It has got a much diversified hotel and brand portfolio catering to different market segments which helps in capturing wider customer base. The company has got sales and marketing reach globally. The parent company being Tata sons limited which is one of the largest companies in India is an added advantage. Their presence in every segment namely luxury, upper upscale, upscale and budget allows more flexibility and stability. They have a well-diversified business model of subsidiaries, associates, joint ventures and management contracts which help in reducing risk and fuels faster growth. This asset light policy will help in revenue stability during economic turndown. Presently 45% of IHCL hotels are operated through joint-ventures, 40% are management contracts and 15% are owned in part or full by IHCL.
Source: Adapted from HotelierIndia Nov 2010, Press Release
The company has introduced a strong loyalty programme which helps in retaining customers. The company 's alliances and partnerships have helped it in entering into new markets such as wildlife lodges and air catering. They have the advantage of very strong corporate purchase chain whereby they can considerably reduce raw material cost. As the parent company is present in the production of FMCG 's they are able

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