OYO Rooms: Another Unicorn in the Making?

OYO Rooms: Another Unicorn in the Making? Description

OYO Rooms had been growing exponentially since its inception in 2013. By January 2016, it had registered 1 million check-ins and was set to become India's largest budget hotel chain. The venture's unique business model helped it to offer effective solutions for the difficulties that were faced by customers seeking budget hotel accommodation in India. OYO Rooms' potential for rapid growth made it a candidate for even greater expansion in the global arena. However, OYO Rooms needed to prove its ability to sustain growth in the Indian budget accommodations market. The company's success and the opening of a huge untapped market had led to a flurry of competition. Would the entrepreneurial founder be able to sustain his company's early momentum in the wake of increased competition? What would be the best strategy to achieve growth and monetize the company's operations? Should OYO Rooms diversify into allied services or apply a more focused strategy? The founder needed to answer these questions to retain the company's dominant position in the market. Saju B. is affiliated with VIT University. Hari Krishnan K is affiliated with VIT University. Joseph Jeya Anand S. is affiliated with VIT University.

Case Description OYO Rooms: Another Unicorn in the Making?

Strategic Managment Tools Used in Case Study Analysis of OYO Rooms: Another Unicorn in the Making?

STEP 1. Problem Identification in OYO Rooms: Another Unicorn in the Making? case study

STEP 2. External Environment Analysis - PESTEL / PEST / STEP Analysis of OYO Rooms: Another Unicorn in the Making? case study

STEP 3. Industry Specific / Porter Five Forces Analysis of OYO Rooms: Another Unicorn in the Making? case study

STEP 4. Evaluating Alternatives / SWOT Analysis of OYO Rooms: Another Unicorn in the Making? case study

STEP 5. Porter Value Chain Analysis / VRIO / VRIN Analysis OYO Rooms: Another Unicorn in the Making? case study

STEP 6. Recommendations OYO Rooms: Another Unicorn in the Making? case study

STEP 7. Basis of Recommendations for OYO Rooms: Another Unicorn in the Making? case study

Case Analysis of OYO Rooms: Another Unicorn in the Making?

OYO Rooms: Another Unicorn in the Making? is a Harvard Business (HBR) Case Study on Leadership & Managing People , Texas Business School provides HBR case study assignment help for just $9. Texas Business School(TBS) case study solution is based on HBR Case Study Method framework, TBS expertise & global insights. OYO Rooms: Another Unicorn in the Making? is designed and drafted in a manner to allow the HBR case study reader to analyze a real-world problem by putting reader into the position of the decision maker. OYO Rooms: Another Unicorn in the Making? case study will help professionals, MBA, EMBA, and leaders to develop a broad and clear understanding of casecategory challenges. OYO Rooms: Another Unicorn in the Making? will also provide insight into areas such as – wordlist , strategy, leadership, sales and marketing, and negotiations.

Case Study Solutions Background Work

OYO Rooms: Another Unicorn in the Making? case study solution is focused on solving the strategic and operational challenges the protagonist of the case is facing. The challenges involve – evaluation of strategic options, key role of Leadership & Managing People, leadership qualities of the protagonist, and dynamics of the external environment. The challenge in front of the protagonist, of OYO Rooms: Another Unicorn in the Making?, is to not only build a competitive position of the organization but also to sustain it over a period of time.

Strategic Management Tools Used in Case Study Solution

The OYO Rooms: Another Unicorn in the Making? case study solution requires the MBA, EMBA, executive, professional to have a deep understanding of various strategic management tools such as SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.

Texas Business School Approach to Leadership & Managing People Solutions

In the Texas Business School, OYO Rooms: Another Unicorn in the Making? case study solution – following strategic tools are used - SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.

We have additionally used the concept of supply chain management and leadership framework to build a comprehensive case study solution for the case – OYO Rooms: Another Unicorn in the Making?

Step 1 – Problem Identification of OYO Rooms: Another Unicorn in the Making? - Harvard Business School Case Study

The first step to solve HBR OYO Rooms: Another Unicorn in the Making? case study solution is to identify the problem present in the case. The problem statement of the case is provided in the beginning of the case where the protagonist is contemplating various options in the face of numerous challenges that Oyo Vit is facing right now. Even though the problem statement is essentially – “Leadership & Managing People” challenge but it has impacted by others factors such as communication in the organization, uncertainty in the external environment, leadership in Oyo Vit, style of leadership and organization structure, marketing and sales, organizational behavior, strategy, internal politics, stakeholders priorities and more.

Step 2 – External Environment Analysis

Texas Business School approach of case study analysis – Conclusion, Reasons, Evidences - provides a framework to analyze every HBR case study. It requires conducting robust external environmental analysis to decipher evidences for the reasons presented in the OYO Rooms: Another Unicorn in the Making?.

The external environment analysis of OYO Rooms: Another Unicorn in the Making? will ensure that we are keeping a tab on the macro-environment factors that are directly and indirectly impacting the business of the firm.

What is PESTEL Analysis? Briefly Explained

PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in OYO Rooms: Another Unicorn in the Making? case study. PESTEL analysis of " OYO Rooms: Another Unicorn in the Making?" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.

How to do PESTEL / PEST / STEP Analysis? What are the components of PESTEL Analysis?

As mentioned above PESTEL Analysis has six elements – political, economic, social, technological, environmental, and legal. All the six elements are explained in context with OYO Rooms: Another Unicorn in the Making? macro-environment and how it impacts the businesses of the firm.

How to do PESTEL Analysis for OYO Rooms: Another Unicorn in the Making?

To do comprehensive PESTEL analysis of case study – OYO Rooms: Another Unicorn in the Making? , we have researched numerous components under the six factors of PESTEL analysis.

Political Factors that Impact OYO Rooms: Another Unicorn in the Making?

Political factors impact seven key decision making areas – economic environment, socio-cultural environment, rate of innovation & investment in research & development, environmental laws, legal requirements, and acceptance of new technologies.

Policy Making Impact on OYO Rooms: Another Unicorn in the Making?

Government policies have significant impact on the business environment of any country. The firm in “ OYO Rooms: Another Unicorn in the Making? ” needs to navigate these policy decisions to create either an edge for itself or reduce the negative impact of the policy as far as possible.

Data safety laws – The countries in which Oyo Vit is operating, firms are required to store customer data within the premises of the country. Oyo Vit needs to restructure its IT policies to accommodate these changes. In the EU countries, firms are required to make special provision for privacy issues and other laws.

Competition Regulations – Numerous countries have strong competition laws both regarding the monopoly conditions and day to day fair business practices. OYO Rooms: Another Unicorn in the Making? has numerous instances where the competition regulations aspects can be scrutinized.

Import restrictions on products – Before entering the new market, Oyo Vit in case study OYO Rooms: Another Unicorn in the Making?" should look into the import restrictions that may be present in the prospective market.

Export restrictions on products – Apart from direct product export restrictions in field of technology and agriculture, a number of countries also have capital controls. Oyo Vit in case study “ OYO Rooms: Another Unicorn in the Making? ” should look into these export restrictions policies.

Foreign Direct Investment Policies – Government policies favors local companies over international policies, Oyo Vit in case study “ OYO Rooms: Another Unicorn in the Making? ” should understand in minute details regarding the Foreign Direct Investment policies of the prospective market.

Taxation & Regulation Impact on OYO Rooms: Another Unicorn in the Making?

Corporate Taxes – The rate of taxes is often used by governments to lure foreign direct investments or increase domestic investment in a certain sector. Corporate taxation can be divided into two categories – taxes on profits and taxes on operations. Taxes on profits number is important for companies that already have a sustainable business model, while taxes on operations is far more significant for companies that are looking to set up new plants or operations.

Tariffs – Chekout how much tariffs the firm needs to pay in the “ OYO Rooms: Another Unicorn in the Making? ” case study. The level of tariffs will determine the viability of the business model that the firm is contemplating. If the tariffs are high then it will be extremely difficult to compete with the local competitors. But if the tariffs are between 5-10% then Oyo Vit can compete against other competitors.

Government Scheme & Subsidies Impact on OYO Rooms: Another Unicorn in the Making?

Research and Development Subsidies and Policies – Governments often provide tax breaks and other incentives for companies to innovate in various sectors of priority. Managers at OYO Rooms: Another Unicorn in the Making? case study have to assess whether their business can benefit from such government assistance and subsidies.

Consumer protection – Different countries have different consumer protection laws. Managers need to clarify not only the consumer protection laws in advance but also legal implications if the firm fails to meet any of them.

Political System & Stability, and its Impact on OYO Rooms: Another Unicorn in the Making?

Political System and Its Implications – Different political systems have different approach to free market and entrepreneurship. Managers need to assess these factors even before entering the market.

Freedom of Press is critical for fair trade and transparency. Countries where freedom of press is not prevalent there are high chances of both political and commercial corruption.

Corruption level – Oyo Vit needs to assess the level of corruptions both at the official level and at the market level, even before entering a new market. To tackle the menace of corruption – a firm should have a clear SOP that provides managers at each level what to do when they encounter instances of either systematic corruption or bureaucrats looking to take bribes from the firm.

Independence of judiciary – It is critical for fair business practices. If a country doesn’t have independent judiciary then there is no point entry into such a country for business.

Government attitude towards trade unions – Different political systems and government have different attitude towards trade unions and collective bargaining. The firm needs to assess – its comfort dealing with the unions and regulations regarding unions in a given market or industry. If both are on the same page then it makes sense to enter, otherwise it doesn’t.

Economic Factors that Impact OYO Rooms: Another Unicorn in the Making?

Social Factors that Impact OYO Rooms: Another Unicorn in the Making?

Technological Factors that Impact OYO Rooms: Another Unicorn in the Making?

Environmental Factors that Impact OYO Rooms: Another Unicorn in the Making?

Legal Factors that Impact OYO Rooms: Another Unicorn in the Making?

Step 3 – Industry Specific Analysis

What is Porter Five Forces Analysis

PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in OYO Rooms: Another Unicorn in the Making? case study. PESTEL analysis of " OYO Rooms: Another Unicorn in the Making?" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.

Step 4 – SWOT Analysis / Internal Environment Analysis

Step 5 – Porter Value Chain / VRIO / VRIN Analysis

Step 6 – Evaluating Alternatives & Recommendations

Step 7 – Basis for Recommendations

References :: OYO Rooms: Another Unicorn in the Making? case study solution