OYO Case Study
1. 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
1. 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?
India is a growing economy with hotel brands entering the market and trying to build their
brand in the country. The hotels already in India are trying to grow and be discovered and
this is where OYO comes in. When Oyo first launched, the market was filled with high-tier and
low-tier hotels, where low-tier hotels were family-operated, located in rural or suburban
areas, and usually had smaller budgets. The low-tier hotels lacked uniform service standards,
which resulted in varying customer services in terms of comfort, hygiene, and convenience.
Since they had smaller budgets, they also lacked the capital to adapt to the growing market
and maintain their customer's loyalty. The hotel's remote locations reduced their ability to
gain customers that established branded hotels and hence struggled to become a part of the
higher-tier hotels. Ritesh concluded that discoverability was the key challenge that low-tier
hotels faced today. OYO obtained capital funding and hoped to generate revenues through
referrals by building a platform where hotel owners could list properties, and travelers would
have many options to choose from with varying prices to adhere to customer’s needs and
budgets. OYO’s model created value in the hotel industry in India by ensuring that predictable
services are provided to consumers rather than discoverable services. This essentially meant
that service standards were adopted by all properties to maintain t
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