oyo case study harvard

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OYO: Creating Effective Spaces

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After Byju’s, OYO is now a Harvard Business School case study

The harvard business school curriculum now includes ‘oyo: creating effective spaces’, a case study that reveals the ritesh agarwal-led company’s journey, challenges, and growth..

Thursday January 02, 2020 , 3 min Read

The Harvard Business School has built a case study on Gurugram-based  Oyo  . Now a part of the Harvard Business School curriculum, the case study, titled OYO: Creating Effective Spaces , talks about the company’s journey, challenges, and growth .

Abhinav Sinha, Global Chief Operating Officer, OYO Hotels & Homes and Partner, OYO USA, said: “At OYO, every OYOpreneur has worked passionately and with utmost dedication towards the company’s mission. It makes us immensely happy and proud that OYO’s journey and mission-driven approach to business has led to it being included as a case study at the prestigious Harvard Business School.”

Ritesh Agarwal's OYO is now a part of the Harvard Business School's curriculum as a case study.

He added: “We have had the opportunity to exchange thoughts with several bright minds at Harvard Business School , and their questions, observations, and suggestions have been extremely thought-provoking and, at the same time, a humbling experience. We hope Ritesh’s remarkable journey encourages budding entrepreneurs at HBS to follow their dreams and work hard towards achieving them.”

In April, Ritesh Agarwal, Founder and Group CEO, OYO , had addressed students of Harvard Business School.

The case study has been prepared by Professors Das Narayandas and Sunil Gupta , Associate Director Rachna Tahilyani (India Research Centre) and Research Associate Mahima Rao - Kachroo (India Research Centre).

A disclaimer states: “It was reviewed and approved before publication by a company designate . Funding for the development of this case was provided by Harvard Business School and not by the company. HBS cases are developed solely as the basis for class discussion. Cases are not intended to serve as endorsements, sources of primary data, or illustrations of effective or ineffective management .”

Inspiring entrepreneurial journeys

Oyo has expanded to over 800 cities in over 80 countries since it moved to a lease-and-brand model. The company claims to have hosted over 50 million guests .

A company statement said: “With this case study that encapsulates real-life scenarios, including business challenges and innovative solutions, OYO aims to inspire several business students at Harvard Business School to create their own entrepreneurial journey .”

The case study quotes Oyo’s largest investor, Softbank , which stated: “ They have managed to grow aggressively while being disciplined about their unit economics .”

OYO Hotels’ investors include Airbnb, SoftBank Vision Fund, Lightspeed Venture Partners, Greenoaks Capital, Sequoia India, and Hero Enterprise .

The statement added that OYO Hotels continues to bring its successful proposition of combining design, hospitality, and technological expertise, financial acumen and operational capabilities to real estate owners around the world , giving them the ability to get a higher return on investments, access easy financing opportunities, transform their hotels, and offer good quality customer service, thereby significantly increasing occupancy and profitability.

(Edited by Teja Lele Desai)

• Ritesh Agarwal
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OYO Rooms: Disrupting the Indian hospitality industry

OYO rooms is India’s largest branded network of hotel rooms with 14,000 rooms across India. It’s an incredible feat given that OYO was founded 2 years ago by a 21-year-old and  hasn’t built a single hotel!

So how do they get the rooms?

OYO approaches affordable hotels and buys their unsold inventory for a minimum guarantee amount. For a hotel to sell their rooms to OYO, they have to meet OYO’s standardization guidelines that include free Wi-Fi, clean white linen, flat screen TVs, included breakfast. The hotel is then branded an OYO Hotel while preserving its own hotel name as well. OYO then lists these as OYO rooms on it’s own tech platform as well on other OTAs like MakeMyTrip.

Why it works especially well in India

The unorganized hotel sector is massive and fragmented. There are 1 million rooms and a lack of branding across hotels to signify quality.  Moreover, the quality of stay is highly variable and mostly falls short of expectations. The average Indian customer is lost when coming it comes to choosing affordable hotel options! By looping these unbranded hotels under the OYO umbrella, the company signals trust, predictability and quality to consumers.

Pathways to Just Digital Future

The benefits of the operating model are:

• Low CAPEX: They’re simply applying their brand name to hotels once the hotel hit standardized benchmarks. They don’t have any expenses associated with the stay – they don’t build anything; they don’t provide staff or incur maintenance expenses.
• Ensures high-quality without any associated costs : OYO provides the checklist of quality measures that OYO must meet but the hotel bears the cost to standardize.

• Multiple channels for sales: OYO sells the rooms on it’s website and via other Online Travel Agents (OTAs). They are an OTA themselves but by positioning themselves as a brand, they can also embed themselves within competitor websites.

• A method to prevent shopping around: When a consumer visits OYO rooms website to book a room, the name of the hotel is not shown to him till he or she actually books. Only the price and destination from core landmarks is displayed. This eliminates the risk of a consumer going directly to a partner hotel or other competitor OTAs and cutting OYO out of the equation. This is important because the hotel typically lists only part of its inventory on OYO.

OYO continues to innovate on operating models. They are now in the process of launching OYO Café. They are planning to list select partner hotel restaurant menus on food delivery websites (think Seamless) and brand the food as being from ‘OYO Cafés’. This will lead to increased utilization of labor, time and raw materials in OYO hotel kitchens.

From 1 hotel in May 2013 to 3500+ hotels in October 2015, OYO is by far the hottest start-up in India that is disrupting the hospitality industry in India. While the prospects are fantastic, their success fundamentally lies in building a brand that is synonymous with high-quality. This is difficult in India and even more so considering the limited control OYO has over partner hotels.

————–

http://yourstory.com/2015/05/oyo-rooms-review/

http://economictimes.indiatimes.com/industry/services/hotels-/-restaurants/oyo-rooms-ties-up-with-airtel-for-wi-fi-dth-services/articleshow/49831192.cms

http://economictimes.indiatimes.com/industry/services/hotels-/-restaurants/oyo-we-budget-hotels-marketplace-oyo-rooms-launches-exclusive-brand-for-women/articleshow/48963457.cms

http://economictimes.indiatimes.com/opinion/interviews/failing-often-is-the-reality-of-starting-up-ritesh-agarwal-ceo-oyo-rooms/articleshow/48780526.cms

http://www.forbes.com/sites/saritharai/2015/08/06/why-a-21-year-old-is-building-oyo-an-uber-and-not-an-airbnb-for-hotels-in-india /

http://www.iamwire.com/2015/06/ritesh-agarwal-oyo/117761

http://economictimes.indiatimes.com/small-biz/startups/oyo-rooms-to-woo-customers-with-new-food-technology-venture-and-housekeeping-service/articleshow/49795696.cms

Student comments on OYO Rooms: Disrupting the Indian hospitality industry

Thanks for posting on a company that many of us have likely not heard of before. I really like the idea and it seems like a similar concept may be applied to other sectors in developing markets where quality is of major concern. I am only wondering how costly it is for them to inspect hotels to ensure that they meet the OYO standards, assuming they also likely have to check back often to ensure quality standards are maintained.

Very interesting article, Adwaita! Very curious to see how the OYO brand evolves over time and how partners’ collaboration changes with it. If OYO continues growing rapidly, do you foresee it cannibalizing the sales from hotel websites in the future? Is pricing usually similar or cheaper to the hotel’s website?

Thanks for sharing! Really enjoyed reading it!

Great post, Adwaita! OYO Rooms is actually my FIELD 2 company in New Delhi so it was fascinating to read your take on how their business model and operating model align. I completely agree with your point that trust and quality seem to be the most important value created by OYO, particularly for the Indian market. I actually hadn’t known about the OYO Cafes – and forwarded your post to the rest of my team! One element of their ever-evolving operating model that I think you’ll find interesting is that they’re trying to establish a new consumer base of “extended stay” consumers (i.e., consumers who stay at a given hotel for >5 days) – this should even further improve the benefits to the hotel that you mentioned, as it’ll ultimately decrease operating expenses from cleaning fees, etc., all the while increasing the “basket size” if you will for guests at their residences. Great read!

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OYO journey from being a startup by a college dropout to a case study at Harvard

Who hasn’t heard of OYO in recent times? Booking budget-friendly hotel rooms in whichever city or town you want have never been easier. Thanks to OYO, even the cheapest and shabbiest hotel rooms have the most basic necessities and supplies available. Here’s a fun fact- OYO actually stands for “on your own”. It has built a phenomenal brand name in the hospitality sector by offering basic accommodation and decent lodgings at affordable prices. Ever since its inception, OYO has only been amassing praises and achieving milestones. OYO’s legendary founder, Ritesh Agarwal, was just a college dropout with an idea. Today, he’s achieved the title of Forbes’ youngest self-made billionaire (Kylie Jenner did replace him, but she was removed and Ritesh was reinstated) up until 2020 and his start-up grew to such an extent that it became a case study at Harvard. Such is the wondrous journey of OYO and it obviously, begins the way all great stories do-

A man with a plan.

The Beginning:

Ritesh Agarwal was just a college dropout who always had the ambition and drive to start something of his own. At the age of 17 years, in 2011, he came up with the idea of building “Oravel Stays”- where people who made bookings via its platform would always have the assured guarantee of decent accommodation supplies waiting for them when they unlocked the door of their booked rooms. It was renamed OYO, which was finally launched in 2013.

Ritesh Agarwal hailed from Rayagada, Orissa, and from the very beginning, his interest lied in computers, software, and coding. His early intentions were those of a typical science student- to get an entry into top IIT colleges. He even left for Kota to pursue these dream-like countless others, but later, was disillusioned and decided to follow his passion instead.

Agarwal, on the first day of college itself, discovered the shabby conditions of local hotels. He quickly developed the idea of renting out hotel rooms and fixing them up. Fixing light switches, cleaning bedsheets, hygiene products, etc was ensured by him. He saw this idea building up and even withdrew the money in college to fund this small endeavor he’d started. When his father decided to visit him, imagine the shock he felt! His son, instead of studying in college, was running some start-up!

Ritesh Agarwal was among 20 students under the age of 20 who received the Thiel fellowship. The Thiel Fellowship is a prestigious and intriguing fellowship under which the applicant if selected, has to drop out of their educational institution. Ritesh, with an idea on his mind and a dream in his eyes, didn’t think twice before accepting it and receiving a sum of $100,000 as well as guidance and resources to create a startup.

And thus, OYO was born.

The Journey:

OYO has seen continuous growth ever since its establishment. After starting in India eight years ago, today it operates in 800 cities in more than 80 countries of the world. It started its international ventures in 2018 with Malaysia. Then it gradually expanded to the markets of the United Kingdom, United Arab Emirates, Dubai, China, Singapore, Indonesia, and others. In 2018, the company became a 100% leased and franchised hotel chain. It recorded global stayed room nights of 75 million in 2018- almost six times more than the previous year. While achieving this milestone, it collected a revenue of $211 million. In 2017, 2016, and 2015, the recorded global room nights were 13 million, 6 million, and 4 million respectively.

Currently, OYO has acquired more than a million rooms in over 43 thousand hotels. Through its vacation homes venture, the company offers travelers and city dwellers access to over 130,000 homes around the world.

OYO, however, suffered severely during the outbreak of the coronavirus and Agarwal had to address the issue by stating that the revenue and occupancy went down by over 50 to 60% in April of 2020. Moreover, revenue went down by 75% and its employees had to go through a pay cut off 25%.

Funding, Business Model and Revenue:

The Thiel Fellowship Open countless doors for Ritesh and with its help, OYO was able to raise 4 crores from LightSpeed Venture Partners and DSG Consumer Partners at a pre valuation. In the March of 2015, OYO received fundings of $25 million and in the same year in July, OYO received a staggering amount of $100 million in a Series C round of funding from the most prominent and powerful investment firms in the world, Japanese investor SoftBank.

In September 2018, OYO got itself on the prestigious list of Unicorn Companies after raising $800 million from SoftBank.

OYO’s most recent funding has come from Hindustan Media Ventures in January 2021 which invested ₹540 million.

Business Model and Revenue:

The idea behind the establishment of OYO and its vast practical applications in today’s world is one of the driving forces behind why OYO has succeeded and come this far along. The focus of this platform on customer service with dependable, sanitised, value-oriented stay experiences says a lot about its customer care value and ethics. OYO’s amazingly genius GUI that enables customers to book hotel rooms, decide the neighbourhood, specify the price range of their budget and so much more, is all thanks to the tech-driven culture of the company.

The most important part is that OYO didn’t stop at just hotel rooms, but has expanded to vacation houses, office spaces, wedding planning, and organising and so many other diversified businesses. This diversification has helped it gain new investors, expansion to previously unexplored regions, and build a consolidated and loyal brand value.

This was the detailed version of how OYO became a leading brand in the hospitality sector. With a solid business plan and a driven CEO, there is nothing stopping OYO from conquering the world- one hotel room at a time.

Credit To – Prashansa Parwal

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OYO: Global Expansion

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Product Description

Publication Date: October 04, 2019

Source: Ivey Publishing

Between 2016 and 2019, the India-based budget hotel start-up Oravel Stays Private Limited (OYO) expanded into nine countries, including the United Kingdom and the United States. However, OYO faced several crises in its home country: contracted hoteliers of OYO threatened to file lawsuits against the start-up for breach of contract, and customers raised service quality issues. Critics believed that with such rapid internationalization, OYO's founder was simply burning through the cash of venture capitalists. Nevertheless, the founder was determined to expand internationally while enhancing OYO's service portfolio in India. Should he reconsider his decision to focus on international markets instead of the domestic market? Could legal issues in OYO's home country create impediments to this growth plan? How should he deal with these issues? Arpita Agnihotri is affiliated with Pennsylvania State University - Harrisburg. Saurabh Bhattacharya is affiliated with Newcastle University.

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OYO: A New Global Chain of Hotels Emerges

The case discusses the rise of Indian global hotel chain OYO, originating in 2015/16 that has grown to become one of the top five hotel chains in the world in just four years. OYO’s growth illustrates the power of transformative technology on emerging markets to disrupt established industries.  OYO represents a classic case of an organization that leveraged the fragmentation in emerging markets and used its technology to bridge gaps across the value chain to offer a predictable customer experience.  It believes much of the value it created in India relies on its predictive analytics, big data analysis capabilities, and the integration of enterprise systems at variable scale allowing even the smallest operators to utilize these valuable insights to take advantage of the boom in travel.  Since its inception in India where it has thoroughly dominated the industry landscape in terms of the number of hotel rooms it controls through its franchise/lease/manchise agreements, it has expanded into other emerging market countries such as Malaysia, Indonesia, UAE, Saudi Arabia, and China.  It has successful in these forays barring some teething troubles that are typical of global expansion.  However, as the case closes, the company had entered the developed markets of UK, Japan and the US where it has made a large acquisition of a Hooter’s hotel in Las Vegas, NV.  The expansion in to developed markets raises numerous questions regarding transportability of the OYO model from the fragmented emerging markets to the developed countries where the industry is dominated by brands.

STRATEGIES OF OYO ROOMS - A CASE STUDY

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OYO Rooms: Another Unicorn in the Making?

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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, quality & on time delivery.

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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.

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.

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.

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 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, 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.

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Harvard Case - OYO: A New Global Chain of Hotels Emerges

"OYO: A New Global Chain of Hotels Emerges" Harvard business case study is written by Kannan Ramaswamy. It deals with the challenges in the field of Business & Government Relations. The case study is 10 page(s) long and it was first published on : Jan 1, 2020

At Fern Fort University, we recommend OYO Hotels & Homes focus on a multi-pronged strategy to navigate the complexities of the global hospitality market. This strategy leverages OYO?s core strengths in technology and operational efficiency while addressing critical challenges in regulatory compliance, market expansion, and social responsibility .

2. Background

This case study focuses on OYO Hotels & Homes, a rapidly growing hospitality company founded in India in 2013. OYO?s innovative business model involves partnering with independent hotel owners to upgrade their properties and offer standardized, affordable accommodations under the OYO brand. This model has enabled OYO to achieve significant growth in India and expand rapidly into other emerging markets.

The case study highlights OYO?s successes, including its rapid expansion and disruption of the traditional hotel industry . However, it also explores the challenges OYO faces, such as regulatory hurdles, competition from established players, and concerns about labor practices .

Main protagonists:

• Ritesh Agarwal: Founder and CEO of OYO Hotels & Homes, a visionary entrepreneur driving the company?s growth.
• OYO?s partners: Independent hotel owners who benefit from OYO?s technology and brand recognition.
• Local governments: Regulators who play a crucial role in shaping the business environment for OYO?s operations.
• Competitors: Established hotel chains and other emerging players in the hospitality sector.

3. Analysis of the Case Study

Framework: Porter?s Five Forces analysis provides a comprehensive framework to analyze OYO?s competitive landscape:

• Threat of new entrants: High - The hospitality industry is attractive to entrepreneurs, leading to potential competition from new players.
• Bargaining power of buyers: Moderate - Customers have numerous choices in the hospitality sector, but OYO?s value proposition of affordability and consistency can attract a loyal customer base.
• Bargaining power of suppliers: Low - OYO has a large network of independent hotel owners, giving them leverage in negotiating favorable terms.
• Threat of substitute products: High - Alternative accommodations, such as Airbnb and home-sharing services, pose a significant threat to traditional hotels and OYO?s business model.
• Competitive rivalry: High - The hospitality industry is highly competitive, with established players and emerging startups vying for market share.

Key Insights:

• Globalization: OYO?s rapid expansion into international markets highlights the opportunities and challenges of globalization.
• Emerging markets: OYO?s focus on emerging markets underscores the potential for growth in these regions, but also the need for careful navigation of political and economic complexities.
• Innovation: OYO?s technology-driven approach to hotel management demonstrates the power of innovation in disrupting established industries.
• Corporate social responsibility: OYO?s commitment to sustainable practices and fair labor standards is crucial for building a long-term, ethical business model.
• Government relations: OYO?s experience with regulatory hurdles highlights the importance of strong business and government relations for multinational companies.

4. Recommendations

1. Strategic Partnerships for Market Expansion:

• Public-private partnerships: OYO should actively seek partnerships with local governments to develop affordable housing projects and leverage public infrastructure for expansion. This strategy can create mutually beneficial opportunities for economic growth, infrastructure development, and poverty reduction.
• Strategic alliances with local businesses: OYO should forge strategic alliances with local businesses, such as transportation providers and tour operators, to offer integrated travel packages and enhance customer experience.
• Incubator programs: OYO should establish incubator programs to support local entrepreneurs and foster innovation in the hospitality sector. This approach can create a pipeline of talent and new business opportunities.

2. Regulatory Compliance and Government Relations:

• Proactive engagement with regulators: OYO should proactively engage with local governments to ensure compliance with regulations, address concerns, and build trust.
• Lobbying strategies: OYO should develop effective lobbying strategies to advocate for policies that support the growth of the hospitality sector and address specific challenges faced by the company.
• Corporate political activity: OYO should engage in responsible corporate political activity to influence policy decisions that impact the industry and its operations.

3. Social Responsibility and Sustainability:

• Environmental sustainability: OYO should implement sustainable practices across its operations, including energy efficiency, waste reduction, and responsible sourcing.
• Fair labor standards: OYO should ensure adherence to fair labor standards and provide training and development opportunities for its employees.
• Community engagement: OYO should actively engage with local communities, supporting social initiatives and promoting responsible tourism practices.

4. Technology and Analytics:

• Data-driven decision making: OYO should leverage data analytics to optimize operations, personalize customer experiences, and identify growth opportunities.
• Technology innovation: OYO should invest in technology innovation to enhance its platform, improve operational efficiency, and develop new products and services.
• AI and automation: OYO should explore the use of artificial intelligence and automation to streamline processes, improve efficiency, and enhance customer service.

5. Basis of Recommendations

These recommendations are based on the following considerations:

• Core competencies and consistency with mission: OYO?s core competencies in technology, operations, and partnerships are leveraged to achieve sustainable growth and social impact.
• External customers and internal clients: The recommendations address the needs of both customers and hotel partners, ensuring a win-win scenario.
• Competitors: OYO?s strategies are designed to differentiate itself from competitors and create a sustainable competitive advantage.
• Attractiveness: The recommendations are expected to contribute to OYO?s long-term profitability and market leadership.

6. Conclusion

OYO Hotels & Homes has the potential to become a global leader in the hospitality industry. By embracing a multi-pronged strategy that focuses on technology, partnerships, regulatory compliance, and social responsibility, OYO can navigate the complexities of the global market and achieve sustainable growth.

7. Discussion

Alternatives not selected:

• Aggressive price competition: This strategy could lead to a price war and erode profitability.
• Focus solely on emerging markets: This strategy could limit OYO?s growth potential and expose it to risks associated with emerging markets.

Risks and key assumptions:

• Regulatory uncertainty: Changes in government policies could impact OYO?s operations.
• Economic downturns: Economic downturns could negatively impact demand for hospitality services.
• Competition: Existing players and new entrants could pose a significant threat to OYO?s market share.

8. Next Steps

• Develop a detailed implementation plan: This plan should outline specific actions, timelines, and resources required to execute the recommendations.
• Establish key performance indicators (KPIs): These KPIs should be used to track progress and measure the effectiveness of the strategies.
• Regularly monitor and evaluate the implementation: This will ensure that the strategies are adapted to changing market conditions and achieve the desired outcomes.

By taking these steps, OYO can position itself for continued growth and success in the global hospitality market.

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Case Description

The case discusses the rise of a global chain of hotels that originated in India in 2015/16 and grew to become one of the top five leading hotel chains in the world in about four short years. The story of OYO's meteoric growth illustrates the power of technology to transform emerging markets and disrupt established industries. OYO represents a classic case of an organization that leveraged the fragmentation associated with emerging markets and used technology to bridge gaps across the value delivery model to offer a predictable customer experience. It believes a large part of the value it has created in India relies on its use of predictive analytics, big data analysis capabilities, and the integration of enterprise systems at variable scale to allow even the smallest of operators to be able to utilize valuable insights to take advantage of the boom in travel. Since its inception in India, where it has thoroughly dominated the industry landscape in terms of the number of hotel rooms it controls through its franchise/lease/manchise agreements, it has expanded into other emerging market countries such as Malaysia, Indonesia, UAE, Saudi Arabia, and China. It has been quite successful in these forays, barring some teething troubles that are typical of global expansion. However, as the case closes, the company had entered the developed markets of the UK, Japan, and had just arrived in the U.S., where it had made a large acquisition of a Hooter's hotel in Las Vegas, NV. The second round of expansion covering developed markets raises numerous questions regarding transportability of the model across two very different contexts, namely emerging markets, where the industry is fragmented, versus developed countries, where the industry is already dominated by famous brands.

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Referrences & Bibliography for SWOT Analysis | SWOT Matrix | Strategic Management

1. Andrews, K. R. (1980). The concept of corporate strategy. Harvard Business Review, 61(3), 139-148. 2. Ansoff, H. I. (1957). Strategies for diversification. Harvard Business Review, 35(5), 113-124. 3. Brandenburger, A. M., & Nalebuff, B. J. (1995). The right game: Use game theory to shape strategy. Harvard Business Review, 73(4), 57-71. 4. Christensen, C. M., & Raynor, M. E. (2003). Why hard-nosed executives should care about management theory. Harvard Business Review, 81(9), 66-74. 5. Christensen, C. M., & Raynor, M. E. (2003). The innovator's solution: Creating and sustaining successful growth. Harvard Business Review Press. 6. D'Aveni, R. A. (1994). Hypercompetition: Managing the dynamics of strategic maneuvering. Harvard Business Review Press. 7. Ghemawat, P. (1991). Commitment: The dynamic of strategy. Harvard Business Review, 69(2), 78-91. 8. Ghemawat, P. (2002). Competition and business strategy in historical perspective. Business History Review, 76(1), 37-74. 9. Hamel, G., & Prahalad, C. K. (1990). The core competence of the corporation. Harvard Business Review, 68(3), 79-91. 10. Kaplan, R. S., & Norton, D. P. (1992). The balanced scorecard--measures that drive performance. Harvard Business Review, 70(1), 71-79. 11. Kim, W. C., & Mauborgne, R. (2004). Blue ocean strategy. Harvard Business Review, 82(10), 76-84. 12. Kotter, J. P. (1995). Leading change: Why transformation efforts fail. Harvard Business Review, 73(2), 59-67. 13. Mintzberg, H., Ahlstrand, B., & Lampel, J. (2008). Strategy safari: A guided tour through the wilds of strategic management. Harvard Business Press. 14. Porter, M. E. (1979). How competitive forces shape strategy. Harvard Business Review, 57(2), 137-145. 15. Porter, M. E. (1980). Competitive strategy: Techniques for analyzing industries and competitors. Simon and Schuster. 16. Porter, M. E. (1985). Competitive advantage: Creating and sustaining superior performance. Free Press. 17. Prahalad, C. K., & Hamel, G. (1990). The core competence of the corporation. Harvard Business Review, 68(3), 79-91. 18. Rumelt, R. P. (1979). Evaluation of strategy: Theory and models. Strategic Management Journal, 1(1), 107-126. 19. Rumelt, R. P. (1984). Towards a strategic theory of the firm. Competitive Strategic Management, 556-570. 20. Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18(7), 509-533.

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CTE Concerns in Former NFL Players

CTE, or chronic traumatic encephalopathy, is a real condition resulting from repetitive head injury that is identified on autopsy (after someone passes away).

Despite the fact that there is no test today that can confirm whether a living person has CTE, former NFL players may nevertheless be concerned that they have CTE. Our objective was to determine how many players shared this concern, and whether they had other conditions that cause cognitive symptoms (trouble with memory, concentration, planning, and moodiness) that might mimic CTE symptoms. Lastly, we studied whether frequent thoughts of self harm or suicide were common in former players who believe they have CTE.

What did we learn?

• 35% of Study participants report believing that they have CTE.
• Among these former players, those with pain , low testosterone , depression , behavioral instability, cognitive symptoms, and higher recalled concussion exposure were significantly more likely to report concerns about CTE.
• Among this group who believe they have CTE, 25% reported frequent thoughts of suicide or self-harm. For those without CTE concerns, 5% reported frequent thoughts of suicide or self-harm.
• As we see in studies in the general population, depression was the most significant suicidality risk factor for those with and without CTE concerns.
• Even after taking depression, anxiety, and other risk factors for suicidality into account, those who expressed concerns about CTE were twice as likely to have frequent thoughts of self-harm or suicide.
• There were players who didn’t think they had CTE but reported frequent those of suicide or self-harm. This was most common among
• Black former players and former players reporting experiencing headaches.
• It is possible that the CTE-related brain changes are present in the men who have reported CTE diagnoses or concerns, and among those who do not. However, until clinical guidelines and treatments become available, former players and their physicians should explore treatments and positive health behavior changes that have been shown to improve cognitive function and quality of life.
• Weight loss, exercise, a low-salt diet, improving sleep and other positive health behaviors may reduce cognitive symptoms and improve cognitive function.

It’s possible that you, a former teammate, friend, or loved one may be concerned about having CTE or have been given a diagnosis of CTE. Such diagnoses and/or concerns may have understandably led to confusion, anxiety, or uncertainty. We’ve shared resources at the bottom of this email to help you navigate any concerns with a doctor or on your own.

Did you know?

• Other conditions commonly found in former football players may produce symptoms that have been attributed to CTE. Those symptoms, including difficulty with memory and concentration, mood swings, irritability, and confusion, can also be caused by sleep apnea , chronic pain , use of prescription pain medication (e.g., opioids), hypertension , diabetes , obesity , and more.
• While these conditions can lead to a decline in cognitive function, managing or treating them has been shown to improve cognitive health (memory, thinking, concentration, mood swings) in measurable ways.

It is also possible that some former players in our study have the underlying brain changes associated with CTE. Whether the symptoms they are experiencing are eventually tied to CTE or not, we believe that doctors should still be prioritizing health issues that can be managed or treated. Below are some steps former players can take when discussing symptoms with their physicians, as well as other resources for improving cognitive health today.

What you can do with a doctor or specialist

If your clinician suggests that you may have CTE, ask if you have been tested for the following conditions that can affect cognitive function:

• High blood pressure
• Diabetes or high blood sugar
• Sleep apnea
• High cholesterol
• Other heart conditions
• Low testosterone

If you think you may be experiencing symptoms of cognitive impairment, talk to your primary care physician (PCP) about getting a comprehensive neurocognitive evaluation from a neurologist or highly trained specialist . If you don’t currently have a doctor, contact The Trust (Powered by the NFLPA) or use our checklist to get help finding a physician in your area.

To learn more about your health during a visit to the doctor:

• Ask questions
• Don’t be afraid to question a CTE diagnosis
• Seek second opinions from specialists
• Follow through and follow up with your physicians

It is important that your physician listens to you. Your PCP should be someone you trust, who understands your background, and with whom you can work.

What you can do on your own

Physical exercise has been shown to be effective in improving cognitive health and quality of life:

• Ask your physician to recommend specific exercises and lifestyle choices known to provide cardiovascular benefit while limiting wear and tear on joints, especially if you’ve had a prior ACL tear or joint injury.
• Even if you are not going to the gym, find resources for working out indoors. On YouTube, FitnessBlender and Yoga with Adriene are two great channels that have been keeping the study team active. Furthermore, EXOS’s feed on X includes creative ways to stay healthy at home.

Train your brain:

• Try a different walking route around your neighborhood or find a Sudoku puzzle to keep your brain sharp.
• If you would like to learn more about specific techniques and strategies for enhancing cognitive health, contact us for a copy of Harvard’s Guide to Cognitive Fitness.

Reach out to your social circle:

• Maintaining a healthy social life with friends and family has been shown to improve cognitive function, physical health and even extend the lifespan.
• Arrange a hangout with friends through Zoom or FaceTime to strengthen these vital connections.

Cognitive symptoms can understandably raise concerns about CTE in former players. However, we want these symptoms to prompt a call to a doctor or specialist, to spark a demand for quality, evidence-based healthcare, and to serve as motivation to improve diet, increase physical activity and reconnect with friends and loved ones.

Further Resources

• The CDC fact sheet, Answering Questions About Chronic Traumatic Encephalopathy (CTE) , provides useful information regarding CTE, CTE diagnosis, and more.
• Brain and Body Assessment is an integrated and individually tailored assessment offered by premiere medical institutions for players to obtain a thorough, in-depth evaluation of their overall health. Following the assessment, players will receive a recommendation containing a plan of action that each player can follow after his visit. Learn more on their website .
• Sleep apnea or other sleep problems may affect cognition and mood. Check out this resource on sleep apnea and consider consulting your doctor about a sleep evaluation that may help you to learn more about your own sleep.
• NFL Life Line is a free, independent and confidential phone consultation service that is available to former players and their families 24 hours a day, 7 days a week. The Life Line is run by professionals who are trained to assist individuals seeking resources for mental or physical health concerns or who are experiencing personal or emotional crises. You can call (800) 506-0078 or visit their website to chat with a trained counselor .
• The Players Assistance & Counseling Services benefit provides eligible former players and their families with up to eight free counseling sessions a year for matters ranging from family/marital concerns to depression. You can call (866) 421-8628 or visit their website .

Operation Pufferfish: Building and Sustaining a Department of Neighborhoods and Citizen Engagement in Lansing, Michigan Epilogue

• Building Partnerships
• Government - State And Local

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Abstract: Lansing native Andi Crawford returned home and took over a mismanaged and outdated neighborhood grant program, revamping grant processes, bringing in new money and capacity, and expanding eligibility. This shift became just one element of a much larger project, championed by incoming Mayor Andy Schor, that centered neighborhoods as the starting point for community building and civic engagement. His first executive order established a department of neighborhoods and citizen engagement (DNCE) with Crawford at the helm. With a small but mighty team, Crawford created a portfolio of programs and activities to build and foster neighborhood spirit, civic pride, and resident engagement. When COVID-19 arrived in Lansing in 2020, the DNCE worked tirelessly to push out information, connect residents to support, and shift its activities from in-person to virtual. Looking ahead to 2021, Crawford felt the time had come to hand over the reins to DeLisa Fountain, a former community organizer who had been working as the DNCE’s neighborhood resource officer. Fountain prepared herself to take on the new role in an uncertain environment. What could she do to keep residents engaged, connected, and safe amid lockdowns and political unrest in the capital city? And how could she use the platform of the DNCE to ensure equitable engagement across Lansing’s diverse neighborhoods?

This Epilogue accompanies a case , practitioners guide , and slide deck .  

Learning Objective: This case aims to help students and city leaders:

• Understand the democratic goals of civic engagement, including building relationships and advancing equity.
• Ask and answer key design questions for planning engagement efforts.
• See the breadth of options for civic engagement and make strategic choices.
• Assess and troubleshoot civic engagement efforts.

Other Details

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