Swot Oyo

Strengths are defined as what each business does Weaknesses are used to refer to areas where the
best in its gamut of operations which can give it an business or the brand needs improvement. Some of

upper hand over its competitors. The following are the key weaknesses of Oyo rooms are:
the strengths of Oyo Rooms: A strategy of co-branding: Oyo does not own any of
Standardisation: The Oyo rooms are mostly owned the rooms that it lets out. But it is more like a hotel
by various providers but have just been standardized aggregation platform where the buyer and seller are
under the Oyo franchise and thus people are allowed to transact with each other through a
guaranteed of standardized service in all Oyo rooms common window provided by Oyo. Thus, they just
wherever they may be located. cobrand with various budget hotels but do not own
Ever growing network: What started off as a one the rooms.
room one hotel thing in Gurgaon now has around Poor service quality: Though Oyo has tried to
8500 properties to its credit and an additional standardize amenities for each room based on the
inventory of 4000 motels and homestays? This is a prices they charge, they have not been able to do the
clear strength. same with services. This has made the service quality
Spirit of Innovation: The root idea or need from and reliability highly questionable.
which Oyo rooms were conceptualized is a highly Tight margins: Hotels that are on a tie-up with Oyo
innovative one of a one-stop shop for a budget stay can also loop in other agents for which Oyo cannot
in India. The company continues to maintain its do anything much to circumvent. In this context, the
strong spirit of innovation as is evident from the model thrives solely on how well the margins they
policy to standardize rooms amongst many others. provide for their hotels are which can be risky in the
Subsidising Hotel Stays: Oyo subsidizes rooms to long run.
make them affordable for customers and similar
to Ola and Uber have emerged successfully in their
line of business.
Young and highly spirited leader: The founder of
Oyo Ritesh Agarwal is a youngster who has won a
lot of accolades and besides entrepreneurship caters
to a wide range of interests. This is reflective of
every strategy that Oyo adopts since there is a
freshness to the approach taken which is one strong
reason for its instant success.
Opportunities refer to those avenues in Threats are those factors in the environment which
the environment that surrounds the business on can be detrimental to the growth of the business.
which it can capitalize to increase its returns. Some Some of the threats include:
of the opportunities include: Competition: With lowered barriers to entry, every
Growing demand for aggregators: As the world new entrepreneur is looking at aggregating services.
reels from the aftermath for repeated recessionary There are a lot of online portals like Ibibio, trivago,
trends, pay cuts, and job losses, most higher end MakeMyTrip etc which offer a varied gamut of
hotels are struggling to balance supply and demand. services similar to Oyo.
This increases the scope for aggregators like Oyo Growing concerns about safety: Today there is
since most hotels would prefer to take external negative imagery of unsafe stays and the number of
support for sourcing new business. cases of harassment is on an increase. Though Oyo
Focus on budget accommodation: Earlier the trend does not guarantee safety at any point in time for its
was more biased towards luxury and boutique hotels hotels they have a moral commitment to ensure that
but not anymore. People are trying to minimise no such untoward incidents happen.
spending and focus on saving and thus budget hotels
that can provide decent boarding and lodging
facilities are on a high demand today.
A surge in the number of business travellers in
emerging economies: The number of people who
travel on business from both genders has grown
profusely in emerging economies. This has resulted
in a demand for budget stays.

Swot Oyo

Uploaded by

Copyright:

Available Formats

Swot Oyo

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Swot Oyo

Uploaded by

Copyright:

Available Formats

Strengths are defined as what each business does Weaknesses are used to refer to areas where the

best in its gamut of operations which can give it an business or the brand needs improvement. Some of

You might also like