Contents

• 1. Executive Summary.….………………………………………………………….2
• 2. Introduction…………………………………………………………….…………3
• 3. Industry Analysis…………………………………………………………………4
• 4. Dunning Electric Paradigm……………………………………………………...5
• 5. National Culture………………………….……………………………………….7
• 6. Disadvantages to entering the UK…….………………………………………..8
• 7. Competitive advantages…….…………………………………………………..9
• 8. Demographics…………………………………………………………………..10
• 9. Internationalization strategy (mode of Entry)………………………………...11
• 10. Recommendations……………………………………………….……………..13
• 11. Divestment Consideration………………….………………………………….14
• 12. Conclusions………………………………….………………………………….15
• 13. References…………………………………..…………………………………..16
• 14. Appendices………………………………………..…………………………….18

Description

This paper seeks to present an internationalization strategy for the Indian firm, Taj Hotel Corporations to enter the UK hotel industry. Through both theoretical and real world works, it is able to review the industry conditions, host market environment, and the firms own strengths and weaknesses in order to present the optimum internationalization strategy. The paper draws on concepts of organizational culture, gradualisation models and theories of internationalization. Furthermore, it seeks to review the mode of entry literature in order to ensure that the Indian firm enters the market in a manner, which is in line with their current internationalization moves. The UK hotel industry is one, which is highly competitive, however, the competitiveness of the industry is reduced in the luxury market. What is important in the UK market is the ability to meet customer expectations, and thus the firm would have to remain at the top of its game. It is suggested that the firm enter the UK market, following a wholly owned subsidiary route, although commonly referred to as a high risk strategy, this mode of entry would allow the maximum form of control for the firm, such control is vital to the success of the internationalization strategy due to high levels of customer service needing to be maintained. Cultural problems have been raised, due to India and the UK being in different cultural blocks according to academic models. However, such cultural problems could be overcome with the help of local workers, and a transfer of knowledge between the hotel and UK business due to the desire of UK firms to learn more about India.