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SWOT Analyis of Sofitel Paris Arc de Triomphe - Research Paper Example

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In the paper “SWOT Analysis of Sofitel Paris Arc de Triomphe,” the author discusses the strengths and weakness of the Sofitel Luxury Hotel brand. It carries the name of the Arc de Triomphe in the name, referring to one of Paris' most legendary pieces of architecture…
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SWOT Analyis of Sofitel Paris Arc de Triomphe
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 SWOT Analyis of Sofitel Paris Arc de Triomphe Strengths The main strength of this particular brance of the Sofitel Luxury Hotel brand is that it carries the name of the Arc de Triomphe in the name, referring to one of Paris' most legendary pieces of architecture and something that many tourists and businessmen alike will want to see on their trip to the city. The Arc de Triomphe and the Champs Elysees are only 0.2km (according to the website) away from the hotel, meaning that this branch is very central and can offer a lot to those wishing to visit this area. Another strength of this business is that it bears the name of Sofitel. Sofitel is a very successful luxury brand name and has hotels on many continents and in many cities, meaning that those who have had a positive experience in one Sofitel will likely seek out the experience again. Several Sofitel hotels, including this one in Paris, have been awarded accolades that suggest that these hotels are the best. These accolades are also an asset that this business has over others in the industry who may not have such awards or may struggle to maintain consistent levels of customer service. Weaknesses A weakness of this hotel is linked to its age. It has not been refurbished recently and a quick look into online reviews suggest that the state of the hotel reflects this. Reports of cracked bathroom tiles and other negative aspects show that this is a major weakness of the hotel. It cannot compete in this way with some of the newer hotels that will offer the modern comforts that some tourists and businesspeople expect when visiting a luxury hotel such as this one. Another weakness of the hotel is that there are a great many in this area of Paris. This is not something that can be matched and converted without serious takeover efforts by Sofitel, but it is something worth remembering when considering a business of this size. It would be wise for Sofitel to attempt to takeover or push these competing hotels out. Opportunities The opportunities for this hotel are numerous. One of the main opportunities presented to this hotel would be the chance to upgrade and refurbish the rooms. As previously mentioned, the age of the building and the business seem to have negatively impacted this branch of Sofitel, and therefore a good refurbishment and refitting would greatly benefit the business and allow it to continue to charge the luxury prices that it does. Trips to the local Champs Elysees, Eiffel Tower, Disneyland as well as its namesake the Arc de Triomphe could be arranged by the hotel and incorporated into some room rates to increase the profit margin. This reflects the great central location of this hotel and could help to outdo the competition in the local area. Threats The most obvious threat here is that there are a great number of hotels in Paris with more modern interiors that can rival the luxury of this Sofitel branch. The central location is no longer enough, because even without this, there are great public transport links in the city, enough to make an extra kilometer or so less important than it would have been in the past. Another major threat faces the luxury brand in general, and this is that there is a recession. This recession is greatly impacting countries using the Euro, of which France (and therefore Paris) is one. This may leave less money for refurbishment as well as a smaller market of potential customers. Outdoing the competition is very important at this stage. SWOT Analyis of Westin Vendome Paris Strengths One major strength of this business is La Terrasse. La Terrasse is a spacious courtyard bar and restaurant that sits in the center of the hotel. This is open to everyone staying at the hotel as well as visitors from outside, and provides an authentic Parisian feel, something which is very important and something some visitors may feel is lacking from a chain hotel such as the Westin Vendome Paris. Managing to create a local feel in such a chain is one of the most important and valuable things that Westin could have done with this hotel. Another major strength is the location, as it is located in central Paris and has great transport links, either by the Paris Metro or by taxi service. This means that all the tourist attractions as well as many business centers are easily accessible from the hotel. Another strength of this hotel is that it is part of the hugely successful and widespread Westin chain of luxury hotels, which means that it will often get repeat clientele from people who wish to repeat stays which they have had in other cities. Weaknesses One of the weaknesses of this hotel corresponds to its strength. The fact that Westin have made this seem like a luxury Paris boutique hotel is good for some clients but bad for others who may be relying on a typical Westin experience. This is something that can be partially rectified by keeping to good standards of staff training and cleanliness to ensure that the hotel is up to Westin standards even if it is atypical in decor and looks. Another weakness is that the central location could lead to issues with noise and therefore the hotel may not seem suitable for those on holiday or those business clients who have early starts requiring a comfortable and silent night of sleep. Opportunities A great opportunity for this hotel chain would be to exploit the slightly more Parisian feel that it boasts. This could be used both to out compete the other luxury hotel brands in the area who may be lacking the local feel that this hotel boasts or to compete on price and comfort with small, local hotels who may not be able to offer the prices and services that this Westin can. Another opportunity would be to offer discounts, which may lead to repeat custom. For example, the price guides above show that this Westin is extremely expensive, especially when compared to the Sofitel. Offering discounts and great service to these customers could help bring repeat custom at the full price or may attract more customers ensuring a greater profit margin. Threats As with any business, the main threat is the other competing businesses in the area. In Paris, there will always be several hotels offering similar services and the best thing to do is to outcompete them on service, price or both. Another threat here is the economic issues of the Euro as discussed above. Read More
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