The focal point of this paper is to evaluate and analyze Kempinski Hotels in United Arab Emirates. It should be mentioned that the Kempinski group of Hotels are one of the leading players in the hospitality industry with a history of around 180 years. The Kempinski Hotels ventured into UAE lately and at this date their hotel is regarded as high profile feature in the region.
At the moment the Kempinski Hotel of Ajman is in its growth period and it is expected that it will soon reach its zenith in the hospitality industry. (Sen, 448-50)
2) It is always difficult to enter any industry and the hospitality industry in UAE was no different. However with proper execution of five forces it becomes logically viable for a new company enter into a specified market Michael Porter in his famous idea of the Five Forces condenses his theory regarding the 5 separate forces, which, according to him, influence any given industry. These forces include the force of Rivalry, rampant between all the firms in the industry. Threat of substitutes is another force i.e. the threat posed by outside products which do not belong to the same industry as the product it tends to threaten. Buyer Power Barriers is another which, if high, can even set the price for things available in the market. The next one is the Supplier Power which, if high, can even bite of a good chunk of the manufacturers profit by simply supplying raw materials at a higher price. The last one is the Barriers to Entry, which is the principle key in the hands of the old firms to keep new firms from entering the market.
Porter's five forces train a new competitor to scrutinize these 5 important forces ...