Essay About Advanced Business Model And Low Operating Cost

7 Days Inn Hotel Case Study
Q1-AdvantageBig market in China(2.4-2.5)Strong IT support(3.2-3.3)Extensive Membership Programe and members’ loyalty(3.3-3.4)Good LocationRoom DesignLow operating Cost(3.6-3.8)Mixed and Advanced Business Model(4.1-):L&O and F&M Low cost to keep standard management and continuous on-going fee and one-time joining feeQ1-disadvantageHigh cost and early loss of business model L&O (4.1)No asset controlfixed asset  and hard to use indirect financing(4.3, 5.4)The scale of business grows too fast(4.6)Easily to be controlled or hurt by shortage of financing(5.3)Hard to negotiate with elder investors and share holders(9.8)Tough competitors and always be the middle rank(12)Growth of revenue and PBIT  are slowing down(13)Relatively high stock price(14)Q2-Good but Limited MarketBig market with so many competitorsAdvantages compared with 1-2 stars hotelsSame standards and same style of rooms all over the ChinaA lot of price-sensitive consumers in China want to have high cost performance hotelsGovernment and companies cut off luxury spending, so 5 stars hotels will not always be one option for business trips.Q2-Choose to invest in HantinNot too aggressive extension compared with two main competitorsHigh potential of growingClose share of market compared with 7 DaysGood business data compared with 7 daysMay be low costMore detail fsa dataBusiness modelsHistorical informationQ4-Choose not to investToo aggressive strategiesNot easy to control the whole companyLow revenue growth and not so good data of business performanceIlliquidity for a long timeNot easy to negotiate with elder stock holders or have to pay high price to privatize.