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Boston University HF 100 OYO Case Study

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OYO CASE STUDY Q1)Evaluate the competitive and market context in India when OYO launched operations in the country. Why did its value proposition resonate with buyers? How did OYO’s model create value in the hotel ind ...

OYO CASE STUDY Q1)Evaluate the competitive and market context in India when OYO launched operations in the country. Why did its value proposition resonate with buyers? How did OYO’s model create value in the hotel industry in India? A1) India is a developing country with new brands in the hospitality industry still entering the market while the ones already present were still working on expanding throughout the massive area. The proportion of branded rooms to total rooms in India was only 21% that implied that 79% of rooms all across India did not belong to a hospitality brand. Since the majority of accommodations did not belong to a specific brand, there was no standardization. People travelling with a budget could never get a clear picture of how their stay was going to be and were often disappointed by the accommodations. This created an opportunity for OYO. The company focused on two things, predictability and discoverability. OYO provided predictability to its customers by working on these budget hotels to provide a minimum level of service and facilities. OYO also ensured that given standards were met with complete transparency between the client and the product. This gave clients a much needed clear picture causing them to trust the brand. To tackle the challenge of discoverability OYO convinced small hotels to come under the OYO franchise. The company did this by ensuring more occupancy and a larger customer pool. With the aid of increasing customer loyalty, the company began expanding to become one of the biggest names in Indian hospitality. Q2) How effective has the company been in countries such as Malaysia, China, Indonesia, UAE, and Saudi Arabia? What common lessons emerge from these initial market entries? A2) The company has been extremely effective in countries such as Malaysia, China, Indonesia, UAE and Saudi Arabia. They adopted more or less the same practices in most of these initial market entries like creating a dynamic plan that would be suitable to tackle the unique complications that would arise in these different places. First and foremost they created strong leadership that was native to the land to create trust in small hotel owners. They moved on to selecting

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