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OYO case study.

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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 val... ue 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 [Show More]

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