Contents

• Introduction 2
• Pan Pacific Hotel 3
• Pan Pacific Hotels & Resorts and its Proposed India Expansion 4
• PESTEL of Indian Markets 4
• Political 5
• Economical 5
• Social 6
• Technological 7
• Environmental 7
• Legal 8
• Porter’s Five Forces 9
• Supplier Power 9
• Buyer power 10
• Threat of new entrants 10
• Threat of Substitutes 11
• Rivalry 11
• 7Ps for Competitive Edge in the Market 12
• Product 12
• Price 12
• Place 13
• Promotion 13
• People 14
• Physical Evidence 14
• Process 15
• Challenges of Globalization 15
• Conclusion 16
• References 18

Description

Starting and managing international operations even for a well established company domestically could pose many challenges and threats just for the simple reason that market forces in the host country are alien to the company starting venture internationally (Adler, 2005). The success or otherwise of an international venture depends upon many factors like political stability in the host nation, governmental policies, customer behavior, per capita income, customer spending habit, market potential, competition and so many other factors (Baker, 1985). It is important for the company that is starting an international venture to have sustainable capabilities to absorb possible initial failures. Another major factor that influences the success or failure of an international venture especially in the hospitality industry is the culture and religion practiced in the host country. It is well known fact that consumption of pork is not allowed in some of the Middle Eastern Islamic countries. Even alcohol consumption is not allowed in some countries in the Middle East. The company that is venturing into an alien nation must study, understand and adapt to the culture of the host nation. India and China are the two of the fastest growing economies in the world, in the current millennium (Datamonitor, 2009). This paper critically analyses the environment for Pan Pacific, Singapore chain of 5 star hotels to enter into Indian market, which hitherto has not been tested by the company. The paper uses market environment analysis tools such as PESTEL, Porter’s market forces, 7Ps required for the success of a company. The paper finally recommends the measures and precautions Pan Pacific needs to take before entering into Indian markets.