Case Study On OYO

A case study on OYO Rooms
Md Shadab UM19219
INTRODUCTION
OYO rooms is one of the best start-ups of India founded by Mr. Ritesh Agarwal. He understood the customer
needs and planned his venture as per the customer demand. There was a dearth of hotels in India which Mr.
Agarwal took as an opportunity and converted his problems into a solution for all.
Inspired by AirBnb, OYO has reached the numero uno position in the budget hotel domain and is constantly
adapting and changing as the situation demands.
However, with the advent of competitors, OYO has to make sure that the quality of service is not diluting as
there are so many options available for consumers now.
Strengths Weaknesses
o1. First-mover advantage 1.Expansion at the cost of quality
o2.Standardisation of services 2.Emphasis on just one domain
o3.Assurance and Affordability 3. No celebrity endorsements
o4. Cost-effective marketing strategy 4.Dilution of quality service
SWOT
Opportunities Threats
1.Women-only hotels 1.Partner hotels can switch
2.Merge with cab-aggregators and freelance 2. Cultural hindrance
photographers.
3.Global competitors like Airbnb capturing the
3.Venturing the premium segment. Indian market
4. Helpline Booking 4.Change in taxation policy.
PESTEL ANALYSIS
POLITICAL ECONOMICAL SOCIAL
1. Trade restriction 1. Higher purchasing power 1. Demographic structure

Trade barriers between two the consumer can spend more on In a country like India, the
countries can shut down Oyo luxury and comfort. This can be population is towards the youth,
services in the foreign countries advantageous as it can open a which is a plus point for the oyo.
and similarly restrictions on new segment for Oyo rooms. 2. Cultural Hindrance
foreign brand in India will be a 2.Change in Interest rates There are some partner hotels
blessing in disguise for Oyo. Hike or fall in the interest rate which doesn’t allow rooms to
2. Change in tax policy can hamper the bottom line of unmarried couples. This will give
Higher tax will increase the price oyo. other competitors an advantage
of OYO rooms or decrease the 3. International relations over oyo.
profits of the organisation. between countries 3. Religious Pilgrimages
3.Political imbalance Chinese slowdown and US-China India is known for different
If there is a nuisance going on in Trade war can create a problem pilgrimages. OYO can partner
a state or in the country, it will for OYO. with the hotels in these areas
hamper the oyo hotel business. which can give quality hotels at
lower price.
PESTEL ANALYSIS
TECHNOLOGY ENVIRONMENTAL LEGAL
1. Easy to use interface 1. CSR Policies 1. Minimum wages law

It is very easy to access the oyo Company has to follow the CSR If the government imposes
app. policy. As Oyo uses plastics for minimum wages laws for the
2. Digital India Movement soaps and linen detergent, it is hotel staff, oyo has to comply by
The advancement of digital India their duty to give back to the those rules.
policy has made internet society in which they are earning.
accessible in remote areas of the 2.Compliance with the hotel
country. 2.Environmental protection association laws
3. Fall in data prices policies India has their own pan India
There has been fall in the data Oyo should make proper association. Oyo has to comply
prices all over India because of alternatives for plastic products. with their rules, otherwise they
4G LTE technology They give eco friendly shampoos can impose fines and penalty on
4. Tech-savvy audience to their guests. the organistaion.
The population has become
more tech savvy and able to
compare hotel rates online.
New marketing campaigns and plans for expansion to
three tier cities and elderly travellers.
• Oyo needs a celebrity endorsement. All its competitors has celebrity

endorsements which give assurance to the public about the service.
• Oyo gift vouchers to the parents on their birthdays, anniversaries, Mother’s
day and father’s day from the children for a hotel not far away from the city.
• Group travel offers like One Big Happy Family will increase sales in a country
like India where joint family system are still present.
• Campaigns in tier-3 cities for freelance photographers and influencers to
explore and find interesting tourist places in those areas.
Trace the influence of social media marketing in
the success of OYO rooms.
• Oyo has around 7,82,000 likes on Facebook and above 20,000 followers on Twitter.
• Oyo received the quest experience award for the best use of social media for customer
experience Improvement.
• Oyo has resolved a whopping 93% of the complaints registered on their social media platform.
• It has made sure that there is a presence of their ads on all digital spaces by tying up with
Grofers, Ola, MakeMyTrip, etc.
• Oyo has come up with emotional ads from time to time which connects people in India. In the
recent India v/s Pakistan cricket match, they came up with an interesting ad on their social
media accounts which received great praises.
With foreign competitors catching up, how can
OYO leverage its position and stay ahead?
• Oyo women only hotels will help the single women travellers in India to
have a safe stay at hotels.
• OYO should start offering holiday packages at affordable rates to maintain
its numero uno position.
• Oyo should merge with freelance photographers just like they have Oyo
captains. This will ensure great pictures on the tour that will increase the
customer satisfaction.

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A case study on OYO Rooms

1. Trade restriction 1. Higher purchasing power 1. Demographic structure

1. Easy to use interface 1. CSR Policies 1. Minimum wages law

• Oyo needs a celebrity endorsement. All its competitors has celebrity

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