Introduction

Environment for business is consistently changing. It may happen that some new policies published, economic situation changes and up-to-date technology invented, etc. Positioned in such changing environment, it is vital for companies make quick react in order to achieve success in a certain time. This changing environment includes macro environment and micro environment. By analysing them, companies are able to assess their positions and conduct the strategic direction for present time and future. Besides, competitor analysis plays an important role in company assessment and marketing competitive strategy designing. Competitor analysis involves the analysis of competitive objective, competitive strategy and strengths and weaknesses of competitors. Environment and competitor analysis not only help companies better understanding their present situation but also facilitates companies conducting marketing competitive strategies.

Environmental analysis

As an increasingly popular international touring destination, Ireland is devoting to setting an image of unspoilt environment. And Waterford is the oldest city in Ireland. Waterford has colourful and traditional Ireland culture that is appealing. There can be visitors from out of Waterford or even out of Ireland, so there are plenty of opportunities that people book rooms.

Accordingly, businesses like Treacys Hotel are facing tight regulations to operate their business in Ireland. These regulations are inevitably increasing the levels of operational costs for the company. Additionally, Ireland being a part of the European Union (EU), Treacys performance is also impacted by relevant jurisdictions introduced by the EU.

The environment Treacys Hotel operates in can be discussed in two aspects, macro-environment and micro-environment. Macro- environment includes political, legal, technology, economics, demographic and social and culture. And micro-environment consists of suppliers, customers, intermediaries and internal company environment.

Macro- Micro Environmental forces

Macro-Environment

Political

Political stability is of great significance to the success of hotels as well as any other industries. Ireland has good national situation and Waterford is a political stable city. Tourism policies can influence the number of visitors visit a nation. The tourism policy in Ireland is stepping into a sound and comprehensive stage and Ireland government gives great support to developing tourism, perfecting the tourism industry system, promoting tourism development environment and improving the tourist industry quality.

What’s more, The European Union has proposed plans to assist the travellers who facing financial problems to travel. These plans can help many customers who lack money or under poor personal circumstances to take a holiday. Actually, this proposal could stimulate

consumer and provide people with more chances to travel, which is good news to the hotel industry.

Legal

Legal factors also play an important role in Treacys performance. Immigration rules and procedures of applying for an Ireland visa is becoming easier serves as an example for legal factors that affecting Treacys’ performance in Ireland in indirect ways. Moreover, Treacys’ performance is directly affected by consumer protection and employment laws in Ireland, as well as the competitive regulation and company regulations on construction and buildings.

Treacys hotel legal system has been most of their rules about security and safety.

Technology

These days, technology has greatly influenced the hotel industry in many ways. Hotel bookings have become more sophisticated than ever before. Anyone can book their accommodation or check in with simple steps by internet. People can get the information they need on social media such as Facebook and Twitter and websites like booking.com. Technological advances help companies become more effective in marketing. A hotel adopts useful technological advance earlier will gain a competitive advantage earlier. So, an overall development of technological infrastructure can have great influence on Treacys’ performance.

The hotel offers a certain level of technologies to their customers. Treacys have the opportunity to provide five meeting room with wireless internet, videoconferencing, computers, provide a technician on site and full business services. The services is very high as there is large choice: copy, fax, translator and lot of other equipment.

Economics

Economic factors that affect Treacys may include the extent of expected and real economic growth in Ireland. Ireland was the fastest growing economies in Europe in 2014, with an increase of 4.8 percentages in GDP. Over 7.6million tourists from overseas visited Ireland in 2014, which reached the highest point since 2008. Besides, the number of visitors in the first season of 2015 showed a growth of 14% and the inside tourism also presents a positive trend. In 2014, domestic tourism achieved a number of 74 million, which is the highest among the past five years. And compared with 2013, the population showed a growth of 3.4% in 2014. As for 2015, the number of inside tourism rose 13.2% in the first season. With the rapidly increasing number of travel, the demand for hotel accommodation is rising, leading to the thriving of hotel industry.

Even though the Treacys hotel is a three star hotel …it seem to being itself as a luxurious hotel that not all people can go in and with the financial crisis people have less money even business man or customers can take decision not to visit again.

Social and Culture

Irish culture derived from Celtic culture, it is mainly composed of literature, music and dance and traditional sports that are colourful and unique. The Irish culture contributes a lot to making Ireland a popular destination for the tourist lovers. A wide range of social factors also have impact on Treacys Hotel, they are the increasing popularity of consumer lifestyle, the influence of role models in consumer lifestyle, consumer demographic variables, and rising number of population.

An important Social factor affecting Treacys Hotel is people’s increasing awareness towards health. More and more people are willing to choose healthier hotels with spas and gymnasiums of high standard and restaurant offering varied food. As there are many options out there Treacys must do the best to succeed.

Demographic

Nowadays, Ireland tends to have a more diversified population and the growth rate of immigration is increasing. Besides, the world population and Ireland population are both in growth. All of these account for the rising tourism rate to some degree.

Micro-Environment

Suppliers

Suppliers refer to those sources of input goods (raw materials & component parts) that are supplied to firms for their use in producing output goods and services. Environment concerning suppliers could decide the difficulty in obtaining raw materials and the business cost. For Treacys Hotel, bare necessities like shower gel and towel are related with suppliers. These basic necessities are provided by many suppliers and there is little cost to switch to other options, so, it’s not difficult to find raw materials and the cost is not very high in this aspect.

Customers

Customers are end users and buyers of hotel production and services and they might determine the operating result of the hotel in the end. For Treacys, the customers can be divided into holiday tourists, business travellers and wedding customers. Different customers have their own travel purpose, thus have specific needs. According to this, Treacys offers facilities such as conference rooms, gymnasium, Spa leisure centre and provide with place and service for wedding and celebrations.

Intermediaries

For hotels, travel agencies and airlines are marketing intermediaries that help to promote hotel booking. As the bridge between consumers and hotels, travel agencies and airlines play important roles in hotel marketing. Many customers of hotels are introduced by marketing intermediaries. Therefore, it’s quite necessary for hotels to take the reputation and contribution of intermediaries into account. For Treacys, it’s better to create new distribution channels or adopt different channels, in case the intermediaries choose the competitors.

Internal company environment

Treacys boasts 163 refurbished bedrooms, each elegantly appointed with en-suite bathroom, satellite TV & complimentary Wi-Fi. Standard and deluxe rooms are available in a range of rooms including Single Rooms Double Rooms, Double & Single Rooms, Executive Rooms and Family Rooms.

Treacys Hotel is ideally located on the Quays in Waterford and is just a five minute walk from both the bus and train stations, and only 10km from Waterford Airport. Treacys Hotel has all the facilities people would need to enjoy their stay whether it is for a leisurely break or a business trip. Travellers can relax and unwind within the spas and leisure centres or keep fit in the gyms. If to hold a meeting, Treacys Hotel can cater for any size of meeting or event. Treacys has something for the kids also with the Mini T’s kids clubs where they will have a holiday to remember.

Treacys also adopt a pricing strategy. Like if customers stay for more than 1 night, they can get a discount on the room price and the discount depends on the day’s customer’s book.

The staffs in Tracys Hotel are friendly and helpful, but there still exist a lack of professional hotel management talents. And Treacys Hotel still needs to make effort to build a strong brand image.

Competitor Analysis

Dooley’s Hotel -3 star

Competitive objectives: sales maximisation

Competitive strategies: market segmentation, market targeting, promotion (website, newspaper)

Strengths

Over half of their 113 bedrooms at Dooley’s Hotel are equipped for families. These are ideal for the whole family and feature a double bed, single bed and pull out single bed. Rooms are equipped with: High speed Wifi internet access, Complimentary Daily Newspaper (if requested), Tea/Coffee making facilities, Satellite TV, Work Desk, Bath with overhead shower and Dedicated Children Menu with abundance of choice.

And for family occasions, Dooley’s Hotel has a number of different rooms to choose from ranging from The New Ship Restaurant, The Dry Dock Bar, The Paddy Kirwan Room or Rita Nolan Banqueting Suite. All are available for private, semi private or casual use. Dooley's Hotel provides a selection of dining options designed for your event including sit down dining, casual buffets, finger food options and many more based on your individual requirements.

Dooley’s Hotel offers some unique packages such as 1 Night Golf package, Girls Night Out and Boys Night Out. And it has special offers such as Winter Shopping Hotel Break, Social Dancing Getaway and Phil Coulter 2 Night Package.

Dooley’s Hotel and Rita Nolan Suite Conference Centre is one of the south east’s premier venues for conferences, incentives and corporate events and is located in one of Irelands most popular destinations for conferences. The Rita Nolan Suite can cater for up to 300 delegates and smaller meeting rooms are also available. The Rita Nolan Suite is equipped with the most advanced audio visual and IT equipment and is fully air conditioned with natural daylight. The conference hotel also offers 113 luxurious ensuite bedrooms.

Weakness

Dooley’s Hotel does not have its own parking place.

Dooley’s Hotel lacks some facilitates like gymnasium and Spa leisure centre.

Dooley’s Hotel has a limit on the types of room offers.

Granville Hotel-4 star

Competitive objectives: profit maximisation

Competitive strategies: high standard customer targeting strategy, high pricing strategy, high quality strategy

Strengths

The Granville Hotel has a good brand image and reputation in Waterford.

The Granville Hotel is one of the best located hotels in Waterford, situated in the centre of Waterford City. It overlooks the waterfront & marina in the heart of Waterford City’s business & shopping centre.

The Granville Hotel achieved a harmony of history and modern elegance and it has a unique history dating back to the 1700’s. Granville Hotel offers all that is best in traditional style & grandeur. The interior is designed using fabrics and antiques to reflect the architecture and original interiors of this 18th Century Manor Style Mansion.

The Granville hotel has the award winning Bianconi restaurant & Thomas Francis Meagher bar. The decor is charming and ambience is old fashioned elegant offering stunning views over the Quays in Waterford City. The restaurant is the showcase for all good in Irish eating and the bar has its own ever growing Irish Whiskey wall.

Each of the standard bedrooms in the 4* Granville Hotel has been individually designed and tastefully decorated boasting the modern conveniences for the business or leisure travellers, every room is well equipped

Granville Hotel offers excellent services and comfortable and relaxing rooms.

Granville hotel was awarded as the Award Winners HOTEL OF THE YEAR 2013 held by Georgina Campbell.

Granville hotel has a dedicated team of management and staff.

Weakness

Granville hotel does not have its own car parking place.

Granville hotel does not have its own leisure centre like gymnasium and Spa.

Granville hotel offers fewer rooms than other Star hotels.

Granville hotel gives a high price for rooms.

Designing competitive strategies

Cost leadership. In order to improve the ability of gaining profit, Treacys Hotel should reduce unnecessary cost.

Keep focus on differentiation. Treacys Hotel Has its own leisure centre like Gymnasium and Spa, which is attractive for customers. Treacys should better promote this and create more packages with its leisure centre.

Expand market share by developing market niches. Many hotels provide services beyond customers’ need and charge high prices for that, this causes a low check-in rate. Therefore, Treacys should develop market niches, proving comfortable rooms and services with relatively lower prices, which caters to customers’ need.

Keep up with Competitors. As Treacys Hotel is falling behind its competitors in areas such as offering advanced facilities for its customers, it is of primary significance to update and implement such facilities. For example, it’s necessary to improve IT facilities. One of Treacys’s main tasks is to make sure it offers an up-to-date internet service to its business customers.

Extend advertising. As part of widening Treacys Hotel’s customer base, Treacys should look to advertising abroad.

Indirect competitors

Hotel: it can be the chain of budget hotels. They can provide a room for the night but may not be the same quality and service. I.e. Travelodge and B & B.

Restaurant: compete with other nearby restaurants without the same level of quality and service or the fast foods.

Event: compete with the like of bars and nightclubs which offer regularly theme night or promotion for some events in the year. (New Year, Christmas and Halloween)

Leisure: maybe on the manufacturing of sport equipment that Treacys hotel may have. Now a days business tend to operate in distance which mean conducting meeting over phone , using web conferencing technology and video technology, less business people are travel and the more it effects Treacys hotel. Treacy’s hotel have to keep abreast of all new distance meeting technology to reinforce with clients that is no better way to do business then face to face.

Conclusion

Environment for Treacys Hotel is described in the macro environment and micro environment. Competitor analysis shows that there is fierce competition from Dooley’s Hotel and Granville Hotel. The environmental analysis and competitor analysis imply in competitive strategy it is necessary for Treacys to pay attention to the quality of rooms and services and remain a relatively low price. And the analysis also indicates Tracys should focus on differentiation, try to develop market niche, expand advertising and keep up with competitors..