Oberoi Group Strategic Expansion and Branding Challenges

Oberoi Hotels: Background Information

Background Information 

The case study discussed below  presents the challenge being faced by Gautam Raj, Executive vice president, Strategic Development, The Oberoi Group when making submissions to the chairman P.R.S Oberoi for giving shape to the organization’s future strategic plans and developing the blueprint for its further growth.  The organization Oberoi Group Hotels is among the leading India-based hospitality company and had plans to expand in the five-star deluxe segments by looking for new opportunities for its luxury leisure business so that to obtain a greater geographical spread. As such, the case provides detailed information associated with “The Oberoi” resorts starting from their founding to their branding, and marketing strategies in order to put into perspective the challenge faced by the protagonist in making appropriate recommendations concerning the optimal choice of location for brand new luxury leisure resorts.  

These hotels attract and offer services to some of the world’s highest quality guests. It acquired small Bangalore-based chain hotels. They have plans to keep half of the acquired hotels and rebrand them. Whereas the remaining half will be sold to increase liquidity and reinforce further expansion plans. Oberoi hotels also have plans for the transformation of the acquisition in the budget hotel segment where guests would stay for short durations. These hotels are found in the downtown location which is frequented by transit guests and tourists who visit to see popular destinations. 

The company feels that re-employment of existing Mumbai-based employees to lead in Bangalore would be the most appropriate decision when they re-open.  It envisions the ownership of 150 more five years and 300 hotels in 10 years. If Bangalore has plans to succeed, then it will have to set a tone of further expansion across the country and internationally as well. 

However, the organization has never recruited anyone to work outside Mumbai, and chances are high that it will have trouble deciding on how to compensate workers outside Mumbai. According to information provided on the internet, they believe the existing salary in Mumbai is Rs 55000+bonuses while the average salary of managers in Bangalore is Rs 600000 without the bonus. The directors have plans to recruit internal Managers who are to operate in Bangalore and in that case they will forced to relocate to Bangalore.