STRATEGIC

MANAGEMENT
PROJECT
RADISSON HOTELS

PRESENTED TO
MS. GINNI SYAL
PRESENTED BY
PRABHLEEN DEVGAN (2021585
PARAS ARORA (2012745))
TABLE OF CONTENTS
1. INTRODUCTION TO
RADISSON HOTELS
2. BUSINESS OF RADISSON
HOTELS
3. FINANCIAL STATEMENTS
4. GROWTH
5. MARKETING STRATEGY
6. PESTLE ANALYSIS
7. SWOT ANALYIS
8. TOWS ANALYSIS
9. GENERAL ELECTRIC
MATRIX
1. Introduction of Radisson Hotels: Radisson Hospitality, Inc is an American
multi-national hospitality company. It started as a division of Carlson Companies,
which owned Radisson Hotels, Country Inns & Suites and other brands. In 1994,
Carlson signed a franchise agreement with SAS International Hotels (SIH), after which
SIH started to use the brand Radisson SAS in the Europe, Middle East and Africa
markets. In 2005, Carlson acquired 25% of the shares of SIH, at that time known
as Rezidor SAS Hospitality. In 2010, Rezidor Hotel Group (formerly Rezidor SAS)
became a subsidiary of Carlson. The enlarged hotel group adopted a new trading
name, Carlson Rezidor Hotel Group, which was one of the top hotel corporations in
2013.[7] In 2016, Carlson Companies sold Carlson Rezidor Hotel Group to Chinese
conglomerate HNA Group. In the fourth quarter of 2017, Carlson Hotels, Inc.
(the holding company of the hotel group) was renamed Radisson Hospitality, Inc.,
while the listed subsidiary (Rezidor Hotel Group AB) was renamed Radisson
Hospitality AB. In 2018, HNA Group re-sold Radisson to a consortium led by a Chinese
government-owned hospitality company, Jin Jiang International.

2. Business of Radisson Hotels: They are based in the hospitality industry and
their brands are:
• Radisson Collection
• Radisson Blu
• Radisson
• Radisson RED
• Radisson Individuals
• Park Plaza
• Park Inn by Radisson
• Country Inn & Suites by Radisson
3. Financial Statements:

4. Growth: In 2022, Radisson Hotel Group continued to drive forward its ambitious
expansion plan to be one of the top three hotel groups in the world with its strong
portfolio of nine distinct brands and its growing resorts portfolio. Radisson Collection,
the luxury lifestyle brand, had an exceptional year of openings in 2022, with the
introduction of six new hotels in Bilbao, Pula, Tirana, Riyadh, Tallinn, and Istanbul. In
2023, the Group is looking forward to new pivotal additions, including Radisson
Collection, Santa Sofia Milan, Radisson Collection Astorija Hotel, Vilnius, Radisson
Collection Resort, Galle in Sri Lanka, and Cour des Loges Lyon, A Radisson Collection
Hotel. Radisson RED, the vibrant and dynamic upper upscale brand, celebrated several
milestone openings in 2022 in Liverpool, Madrid, Gdansk and Oslo. Radisson
continues to be the fastest growing upscale brand in EMEA in the industry and added
properties in Belgium, Poland, Ethiopia, Tunisia, Dubai and Turkey, as well as the
Maldives and India. Radisson Blu continues to be the largest upper upscale brand in
Europe for over a decade and expanded in Romania, Madagascar, UK, and Spain as
 well as South Sudan. Radisson Individuals expanded with over 20 properties in Italy,
France, Poland, and Thailand. In India, Radisson Hotel Group launched its first
Radisson Individuals Retreats with the opening of Rakkh Resort, a member of Radisson
Individuals Retreats, offering guests unique opportunities to immerse themselves in
out-of-the-ordinary experiences through wellness programs, cultural excursions,
specialist gastronomy, and more. Following the opening of three new prizeotel
properties in 2022, the Group will focus on expanding its signature midscale lifestyle
brand further in 2023.

5. Marketing Strategy:
• Product Strategy: Radisson Hotels is one of the leading hotel chains in the world.
Radisson Hotels is a branded House which has 7 brands operating under it. They are as
follows:

➢ Radisson Collection

➢ Radisson Blu

➢ Radisson Red

➢ Park Plaza

➢ Park Inn

➢ Country Inn & Suites

• Pricing Strategy: Radisson primarily has adopted a premium pricing strategy as it

is aware that its guests- business travellers, honeymooners, leisure travellers, etc.- will
not mind shedding additional bucks for such good of ostentation and maintaining their
status and quality.

• Place & Distribution Strategy: Radisson Hotels are present in 70+ countries at
over 900 locations with headquarter being at Minnetonka in the United States. Radisson
Blu operates at 150+ places in Asia, Europe and Africa, Park Inn at 120+ locations.
• Promotional Strategy: Radisson Hotels uses a combination of several marketing
strategies to promote its product. Yes I Can! is a training program focused on guest
satisfaction. It is a type of Internal Marketing Strategy (or Relationship Marketing)
wherein the hotel’s front-line service employees are trained on how they can serve their
customers to the best of their abilities. It aims to achieve 100% Guest Satisfaction and
is so confident that it allows its customers ‘No Payment’ option if the service can’t be
made right.

• Service Strategy: The buying exposure of those visiting the hotel starts right from
the point when a room is booked. As everything is getting digitalised at a great pace, so
is the booking system at Radisson Hotels. The target segment, which comprises of
upper segment of people, now prefer to make bookings online or via agent and the
offline booking is somewhere going behind the scene. Radisson Hotels has a dedicated
team of digital specialists which creates innovative channel campaign and shares
relevant news. Then comes the actual utilisation of the service, i.e., check in at the hotel.
The valet parking facility is available at the entry. Then comes the reception counter
where the entry is made, then going to the room, living for the certain period and then
check out.

6. Competitor Analysis: Radisson Hotels competitors include Marriott and Holiday

Inn. Radisson Hotels ranks 1st in CEO Score on Comparably vs its competitors. See
below how Radisson Hotels compares to its competitors with CEO Rankings, Product
& Services, NPS, Pricing, Customer Services, Overall Culture Score, eNPS, Gender
and Diversity Scores.

7. PESTLE Analysis:
• Political: Radisson Hospitality has to manage diverse regulations in the
various markets it is present in. Over the last few years United Kingdom and
other emerging economies have changed regulations regarding not only market
entry but also how companies in Hotels & Motels can operate in the local
market.
 • Economical: The performance of Radisson Hospitality in United Kingdom
is closely correlated to the economic performance of any country’s economy.
The growth in last two decades is built upon increasing globalization and
utilizing local resources to cater to global markets.

• Social: For the Services products, Radisson Hospitality has demographics on

its side. Radisson Hospitality can use this trend to cater to various segments of
the population.

• Technological: Latest technology based innovations implemented by

competitors of Radisson Hospitality – This can provide a good insight into what
the competitors are thinking and where Hotels & Motels business model future
is.

• Legal: Some countries even though follow international norms but the time
for resolution often run in years. Radisson Hospitality has to carefully consider
average time of specific cases before entering an international market.

• Environmental: Greater awareness among customers have also put

environmental factors at the center of Radisson Hospitality strategy. Customers
expects Radisson Hospitality to adhere to not only legal standards but also to
exceed them to become responsible stakeholder in the community.

8. SWOT Analysis:

• Strengths:

➢ Service: As the tagline of Radisson indicates, the service motto

of the hotel chain is “Yes I Can.” The employees are trained to
never say no or show disapproval for customer requests, always
positive pleasant and willing to serve. This ensures that their
 service is top grade and consistent across their properties in
various parts of the world.
➢ Wide network: The Radisson Group has the presence in almost
73 countries across the world and has around 1000 properties.
Though the majority of their hotels are in the United States
where they have a wide network, the hotel chain has a strong
presence in most of the world.

• Weaknesses:

➢ Expansion plans: Radisson Group is planning to expand further

into the Asia Pacific and this will also be backed by a restructuring
and leadership change. This change will come with a lot of
expenses and, may prove to be costly for the company. The
restructuring and leadership change may also mandate the need
for a change of culture which may be challenging.
➢ High promotions costs: The Radisson Group is planning to
reposition and rebrand itself for which the budget assigned is 200
million USD. At an age where the hotel business is facing cost
management challenges, it may not be the right move.

• Opportunities:

➢ Changing Market Trends: The increased focus on service, is

reducing the price sensitivity of an average customer. Business
class hotels are benefitting a lot from the surge in corporate
overseas travel. Yet another market trend that acts in favor of
hospitality businesses are the lower costs of overseas travel
which makes it important for hotel chains to have the presence
in all parts of the world.

• Threats:

➢ Competition: The main competitors of Radisson Group are

Shangri-La Hotels & Resorts, Starwood Hotels & Resorts,
Hilton, Wyndham Worldwide, and Intercontinental Hote
9. TOWS Analysis:
 GENERAL ELECTRIC MATRIX

Before starting with the General Electric Matrix of Radisson hotels, we will discuss what is
General Electric matrix,

The GE McKinsey Matrix is fundamentally a portfolio analysis. That is, it compares groups of
products with their competitive power and market attractiveness. The portfolios themselves are
comprised of the full suite of products or services that a business offers to the market. In the
context of General Electric, the matrix was created so that the company could analyze the
composition of each of its 150 portfolios – otherwise known as strategic business units (SBUs).
The GE McKinsey Matrix allows a large, decentralized company to determine where best to
invest its cash.

For our analysis, we have selected 5 portfolios of Radisson Hotels:

• Radisson Collection

• Radisson Blu

• Radisson Red

• Radisson Country Inn & Suites

• Park Plaza

For the matrix we have selected the following factors:

1. Market Attractiveness: Market attractiveness refers to the overall desirability of

a particular market for a business or product in terms of its potential for growth,
profitability and sustainability. There are several factors that contribute to market
attractiveness of Radisson Group, which have been depicted in the below table.
 DESCRIPTION

• INDUSTRY GROWTH RATE: To commence with, Industry Growth Rate, it is

an important factor to consider when analysing the market attractiveness of the hospitality
business like Radisson Hotel. Furthermore, it can be evidently seen from the figure that
Radisson Collection, which is luxury hotel brand that is part of the Radisson Hotel Group
stands at a score of 2.4 out of 10 in terms of the growth rate.Looking further, it can be
deduced that Radisson Blu stands at 1.5 as per our analysis. Apart from this, the score for
Radisson Red has a minor difference from the brand Radisson Blue which exceeds with
a score of 0.3 from the same. However, the weighted average of industry growth rate for
The Radisson Country Inn & Suites is comparatively more than all other Radisson brands
with approximately 2.7 and 0.9 for The Park Plaza as well. This growth rate suggests that
there is increasing demand for hospitality services, which could be due to various factors
such as an expanding economy, increasing disposable income, and rising tourism. A high
growth rate provides businesses in the hospitality industry for businesses like Radisson
with opportunities to expand their customer base, increase their market share, and
generate higher profits. Additionally, a growing market can attract new entrants, leading
to increased competition and innovation in the industry. Overall, a 30 percent industry
growth rate for the hospitality business is a very positive sign for the industry and suggests
that there are significant opportunities for businesses to succeed and grow.

• MARKET SIZE: On the other hand, the market size acts as an another important
factor in determining market attractiveness. market size refers to the total volume or value
of a particular market, usually measured in terms of sales revenue or the number of
potential customers. It represents the total demand for a specific product or service in a
given market, and is an important factor in determining the potential growth and
profitability of a business. Looking at the Table, it can be clearly observed that the market
size of the Radisson Collection is Rs. 1.1 Billion leading to a weighted average score of
0.5. Furthermore, the market size of the brand Radisson Blue stands at Rs. 7.3 Billion
succeeding from the Radisson Collection, making it a weighted average score of 0.7.
Moving further, the size of the market of the Radisson Red is nearly Rs.1.75 Billion,
forming a score of 0.6. However, the brands like Radisson Country Inn& Suites and Park
Plaza form a great difference as they stand at the size of Rs. 2153 Billion and Rs. 778
Billion; leading to an average score of 0.9 and 0.4 respectively. Achieving a target market
 share of 10% for a hospitality business can be a reasonable goal, depending on the size of
the market and the competition.

• LOW COMPETITION: Low competition can be an important factor in evaluating

market attractiveness, but it should be considered in conjunction with other factors such
as market size, growth potential, and customer preferences. It can be quite evidentiary
seen from the table that, Radisson Collection stands at 8 out of 10 in terms of low
competition and is almost a duopoly. Consecutively, Radisson Blu is 6 and is moderately
competitive. Furthermore, Radisson Red and Radisson Country Inn & Suites acquire 5
out of 10 score , meaning it has good competition in the market, whereas Park Plaza stands
3. It is important to note that low competition does not necessarily guarantee success. A
market with low competition may also indicate a lack of demand for the product or
service, or that the market is not yet well-established. Therefore, it is important to conduct
thorough market research before entering a low-competition market to ensure that there
is sufficient demand and potential for growth.

• INDUSTRY PROFITABILITY: A profitable industry can be a good indicator of

market attractiveness. However, it is important to remember that profitability alone does
not guarantee success, and businesses should still conduct thorough market research
before entering a market to ensure that there is sufficient demand and potential for growth.
It can be clearly observed from the table that, Radisson Collection stands at 2.8 score of
industry profitability out of all the luxury brands. It is also quite noticeable that the
Radisson Red acquires double profitability of the Radisson Blu which has a score of 1.2
weighted average. However, The Radisson Country Inn& suites is the highest among all
the brands with a position of 3.6 weighted average in terms of industry profitability, while
the same for Park Plaza being 3.2. A profitable industry generally indicates that there is a
high demand for the products or services offered, which is a positive sign for businesses
looking to enter or expand in that market.
 Market
Attractiveness
Weighta
ge to
Radisso
each
Radisson n
factor Radisson Radisso Park
Factors Collectio Country
(As Per Blu n Red Plaza
n Inn &
our
Suites
Analysis
)
Industry
Growth Rate 30% 30%-8 8.7%-5 11%-6 55%-9 3.24%- 3
Weighted 3*0.3=0.
Average 8*0.3=2.4 5*0.3=1.5 6*0.3=1.8 9*0.3=2.7 9
Rs. 1.75 Rs. 2153 Rs.778
Market Size 10% Rs. 1.1 bn-5 Rs. 7.3 Bn- 7 Bn- 6 Bn-9 Bn- 4
Weighted
Average 5*0.1= 0.5 7*0.1= 0.7 6*0.1=0.6 9*0.1=0.9 4*0.1=0.4
Low
Competition 20% 8 6 5 5 3 (Highly
Weighted 3*0.2=0.
Average 8*0.2=1.6 6*0.2=1.2 5*0.2=1.0 5*0.2=1.0 6
Industry
Profitability 40% 17%-7 3%-3 14%-6 20%-9 19%-8
Weighted 8*0.4=3.
Average 7*.4=2.8 3*0.4=1.2 6*0.4=2.4 9*0.4=3.6 2
Total Weighted
Score 7.3 4.6 5.8 8.2 5.1

• Competitive Strength: A business's competitive strength in the hospitality industry

is determined by a combination of factors, including location, market share, relative
growth rate, customer service, quality of facilities, price, marketing, reputation, and
innovation. To succeed in this industry, businesses must constantly analyse and improve
their competitive strengths to stay ahead of their competitors.

DESCRIPTION
• MARKET SHARE: To begin with, Market share is another important factor to
consider when analysing competitive strength in the hospitality industry. Market share
refers to the percentage of the total market that a business controls. It can be clearly
 observed from the table that market share for the brands Radisson collection and Radisson
Country Inn& suites accounts for a score of 2.7 weighted average as compared to other
brands. Furthermore, the score of share of market for Radisson Blu is 0.9, which is quite
low from others. Also, the weighted average for the Radisson Red is 2.4 and for Park
Plaza is 1.5. A business with a smaller market share may still have a competitive
advantage if it offers a unique product or service, has exceptional customer service, or has
a strong brand reputation. Additionally, market share can be influenced by a variety of
factors, such as changes in the market or the entrance of new competitors.

• RELATIVE GROWTH RATE: Relative growth rate refers to the rate at which a
business is growing compared to its competitors or the overall market. It should be
evaluated in conjunction with other factors, such as customer satisfaction, product quality,
pricing, marketing, and reputation. It can be observed from the table that the relative
growth rate for Radisson group of hotels is quite reasonable, with Radisson Collection
standing at a score of 8 from other brands. Apart from this, Radisson Blu scores 3, which
accounts half of the brand Country Inn & Suites, i.e 6.However, Radisson Red accounts
the relative growth rate of 7, with a minor difference from Park Plaza. For example, a
business with a high relative growth rate may also have higher costs or be investing
heavily in marketing or product development, which can impact profitability in the short-
term. Additionally, growth rates can be influenced by a variety of factors, such as changes
in consumer preferences or economic conditions, so it is important to consider the
sustainability of a business’s growth over the long-term.

• BRAND REPUTATION: This factor is based on customer reviews, A brand’s

reputation can have a significant impact on consumer behaviour and can influence their
purchasing decisions. A strong brand reputation can help a company differentiate itself
from its competitors, establish customer loyalty, and increase market share. It is quite
noticeable from the Table that the brand Radisson Collection scored 7 out of 10th position
in terns of reputation, which is commendable. Also, the brands like Radisson Blu and
Park Plaza score an 8 in terms of brand reputation, which an indicator of higher number
of loyal customers. However, the score for Country inn& suites is 3, which is exact half
of what customers reviewed for Radisson Red.
• CUSTOMER SERVICE: For a hospitable business, customer service is an
especially important factor to consider when analysing competitive strength. In the
hospitality industry, customer service can make or break a business, as customers are
paying for an experience as well as a product or service. From the table, it can be deduced
that customer reviews the service of Radisson Collection by giving it a strong 7. Apart
from this, the score for brands Radisson Blu and Park Plaza is an 8, which is great in terms
of customer satisfaction. However, Radisson Country inn & suites lag behind and
Radisson Red is reviewed with an average of 7.4. A hospitable business can gain a better
understanding of their customer service and its impact on their competitive strength. A
business with exceptional customer service is often better positioned to compete in the
marketplace and win over customers.

Competitive
Strength
Weighta
ge to
Radiss
each Radiss
on
factor on Radiss Park
Factors Radisson Blu Countr
(As Per Collecti on Red Plaza
y Inn &
our on
Suites
Analysi
s)
30.5%-
Market Share 30% 39.3%-9 <10%-3 8 ≤10%-3 20%-5
Weighted 9*0.3=2. 8*0.3=2 3*0.3=2 5*0.3=1
Average 7 3*0.3=0.9 .4 .7 .5
Relative Growth
Rate 20% 8 3 7 6 5
Weighted 8*0.2= 7*0.2=1. 6*0.2=1. 5*0.2=1
Average 1.6 3*0.2= 0.6 4 2 .0
Brand
Reputation 20% 7 8 6 3 8
Weighted 7*0.2=1. 6*0.2=1. 3*0.2=0 8*0.2=1
Average 4 8*0.2=1.6 2 .6 .6
Customer
Service 30% 7 8 6 3 8
Weighted 7*0,3=2. 6*0.4=2 3*0.4=1. 8*0.4=
Average 1 8*0.4=3.2 .4 2 3.2
Total Weighted
Score 7.8 6.3 7.4 5.7 7.3
 • GE Matrix:
1
Radisson Radisson Park
2
collection Red Plaza
Radisson
3 Blu
Radisson
Country
4
Inn &
Suites
5
6
7
8
9
1 2 3 4 5 6 7 8 9

• Columns represent Market Attractiveness

• Rows Represent Competitive Strength

Analysis: As per the GE Matrix, all 5 business units fall in the category of Invest and grow.
The company should be focussing on all these businesses in the coming years as per our
conclusion.