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Porter’s Five Forces Model Competitive Analysis for Hotel Industry

The Five Forces model of Michael Porter is an business unit strategy tool that is used to make a business model analysis of an industry structure .The aim of the porter’s five forces model is to identify if there are factors in the environment which influence the capability of an organization to position itself to such advantage (Gerry Johnson & Kevan Scholes). Threat of New Entrants The highly rated hotel in Malaysia like 3stars, 4stars, 5stars hotel industry is primary dominated by few competitors like Sunway, Berjaya, Shangri-La, Hilton and few others international large hotel company, so for new entrants that wish to enter the luxury hotel market will be very hard because it may need large capital, initial investment…