Vithal Kamat (CMD, Kamat Hotels India Ltd) is a second generation entrepreneur who took Kamat Hotels brand to new heights. A small chain of restaurants has become a service hospitality group of right under his leadership. Kamat Hotels (India) Ltd consisted of five vertical large luxury five-star (The Orchid Ecotel) restaurants in the economy (including Kamat restaurants) that responded to different customer segments. Kamat has ambitious plans for the expansion of each vertical using alternative growth strategies. However, the recent economic crisis has caused a setback due to the sudden drop in average occupancy rooms and competitive tariff rates offered by other types of hotels. In such a tumultuous situation Kamat planned to use the main competition of the hotel as “Ecotel” is a friendly hotel environment, go to the brand of the company and the lever from its position in the market. This case illustrates the difficulties faced by Kamat in expanding the capacity of the base of the orchid its other vertical markets. The orchid has been better than the industry average made until 2008. However, in 2009, the performance dropped, partly due to the economic recession. This led the Board of Directors of the company to decide on the extension of the core competence of sustainable hotel with the environment in other vertical markets. However, this decision must be carefully considered in light of its impact on The Orchid and other vertical markets. What are the challenges that arise while the core competencies “ecoteling” for other vertical markets spans? There were many related issues to be addressed strategically and tactically, to maintain a balance between the extent of basic skills in vertical markets, while expanding the brand.
Source: Ivey Publishing
Release Date: October 26, 2011. Prod #: W11394-PDF-ENG
Orchid Ecotel: Making Green Party as hoteling skill base case solution