SWOT ANALYSIS

Strengths:
 Subsidising Hotel Stays: Oyo subsidises rooms to make them moderate for clients and
like Ola and Uber have risen effectively in their line of business.
 Standardisation: The Oyo rooms are for the most part claimed by different providers
yet have quite recently been institutionalized under the Oyo establishment and along
these lines individuals are ensured of standardised administration in all Oyo rooms any
place they might be found.
 Consistently developing network: What began as a one room one inn thing in Gurgaon
now has around 8500 properties amazingly and an extra stock of 4000 motels and
homestays? This is a reasonable quality.
 Innovation: The root thought or need from which Oyo rooms were conceptualized is an
exceptionally inventive one of a one-stop search for a spending remain in India. The
organization keeps on keeping up its solid soul of Innovation as is apparent from the
strategy to standardise rooms among numerous others.
 Youthful and exceptionally energetic pioneer: The founder of Oyo Ritesh Agarwal is a
youngster who has won a great deal of awards furthermore enterprise takes into account
a wide scope of interests. This is intelligent of each methodology that Oyo embraces
since there is a freshness to the methodology taken which is one in number purpose
behind its moment achievement.

Weaknesses
 A methodology of co-branding: Oyo doesn't claim any of the rooms that it lets out. In
any case, it is progressively similar to an inn conglomeration stage where the purchaser
and vender are permitted to execute with one another through a typical window given
by Oyo. In this way they only cobrand with different hotels however don't claim the
rooms.
 Poor service quality: Though Oyo has attempted to standardise conveniences for each
room dependent on the costs they charge, they have not had the option to do likewise
with services. This has made the service quality and unwavering quality exceptionally
sketchy.
 Narrow margins: Hotels that are on a tie-up with Oyo can likewise circle in different
specialists for which Oyo can't do anything a lot to bypass. In this specific circumstance,
the model flourishes exclusively on how well the margins they accommodate their inns
are which can be dangerous over the long haul.
Opportunities
 Concentrate on budgeted accommodation: Earlier the pattern was progressively one-
sided towards extravagance and boutique lodgings yet not any longer. Individuals are
attempting to limit spending and spotlight on sparing and consequently spending hotels
that can give better than average boarding and hotel offices are on an intense interest
today.
 A flood in the quantity of business travelers in developing economies: The quantity of
individuals who travel on business from the two sexes has developed bountifully in
rising economies. This has brought about an interest for spending remains.

Threats
 High Competition: As there is no barrier to entry, each new business person is taking a
gander at amassing administrations. There are a ton of online entryways like ibibo,
trivago, makemytrip and so on which offer a differed array of administrations like Oyo.
 Developing worries about security: Today there is negative symbolism of risky stays
and the quantity of instances of badgering is on an expansion. In spite of the fact that
Oyo doesn't ensure wellbeing anytime for its lodgings they have an ethical pledge to
guarantee that no such untoward episodes occur.

PESTEL ANALYSIS
Political
 Size of Government Budgets: both Local Governments and National Government – The
administration at both national level and nearby levels are running shortfall spending
plans which is boosting development for the time being however may prompt increment
in expansion over medium term. The bond rating of national government is speculation
grade.
 Job Local Governments Play: Local governments are profoundly powerful in the
strategy making procedure and execution as the greater part of the arrangements and
guidelines are actualized by the nearby government as implementation offices generally
report to neighbourhood government in their very own states with respect to different
laws.

Economic
 Fiscal and Monetary Policies: The Republican government tax reduction culture has
expanded the shortfall and it can prompt monetary issue for the economy in coming
years.
 Inflation Rate: The rate can affect the interest of Oyo Vit items. Higher expansion may
require Oyo Vit to persistently expand costs in line of inflation which could prompt
lower levels brand devotion and steady tries to oversee costs. Cost Based Pricing could
be a terrible methodology under such conditions.
Social
 Attitude towards Health and Safety: The frame of mind towards wellbeing and security
is regularly reflected in the nature of the items and cost structures of assembling forms.
Oyo has stringent standards for wellbeing and security standards so in developing
economies it might need to contend with players who don't have mind-boggling
expense structures that of Oyo Vit.
 Attitude towards Savings: The way of life of sparing in US and China is entirely
unexpected where investment funds rate in China is around 30% , it is well beneath
15% in United States. This culture of utilization and reserve funds sway both kind of
utilization and extent of utilization.
 Power Structure in Society Oyo ought to painstakingly dissect both: What is the power
structure in the general public? How it impacts the interest in the economy. For instance
the power structure in US economy is gradually moving towards the more seasoned age
as that age has higher extra cash contrast with the more youthful age.

Technological
 Level of Acceptance of Technology in the Society: Oyo needs to make sense of the
degree of innovation acknowledgment in the general public before propelling new
items. Frequently organizations enter the field without imperative framework to help
the innovation arranged model.
 Acceptance of Mobile Payments and Fintech Services: One of the zones where US are
missing behind China is Mobile Payments. Oyo ought to evaluate what are favored
decision of versatile installments in nearby economy and picked the plan of action
dependent on it.

Environmental
 Influence and Effectiveness of Environmental Agencies: The job of condition principles
authorization offices is basic in defending standards. Be that as it may, regularly in
rising nations these organizations postpone the procedure as a strategy to concentrate
fixes. Oyo ought to know about nearness of such rehearses in a nation.
 Ecological Standards and Regulations both at National and Local Levels: Often nature
approach at national and nearby level can be extraordinary. This can help Oyo in
various choices, for example, plant area, item advancement, and estimating
methodology.

Legal
 Wellbeing and Safety Laws: What are the wellbeing and security laws in the nation and
what Oyo needs to do to agree to them. Various nations have diverse frame of mind
 towards wellbeing and security so it is better for Oyo to lead a careful research before
entering the market.
 Securities Law: What are the protections law in the nation and what are the conditions
to list the organization on national or territorial stock trade.
 Consumer Protection Laws : Oyo has to realize what are the shopper laws, what is the
pace of requirement, what is the demeanor of experts towards buyer insurance laws,
and what is the job extremist gatherings in implementation of customer security laws.

B, S., & K, H. (n.d.). Figure 2f from: Irimia R, Gottschling M (2016) Taxonomic revision of Rochefortia
Sw. (Ehretiaceae, Boraginales). Biodiversity Data Journal 4: e7720.
https://doi.org/10.3897/BDJ.4.e7720. OYO Rooms: Another Unicorn in the Making? PESTEL / PEST /
STEP Analysis & Solution / MBA Resources. doi: 10.3897/bdj.4.e7720.figure2f

Bhasin, H. (n.d.). Figure 2f from: Irimia R, Gottschling M (2016) Taxonomic revision of Rochefortia Sw.
(Ehretiaceae, Boraginales). Biodiversity Data Journal 4: e7720. https://doi.org/10.3897/BDJ.4.e7720.
doi: 10.3897/bdj.4.e7720.figure2f