PGP-23/033 – NIKHIL S
Summary of Strategy
Corporate transformation-
changes to org. structure
>Chief Disruption &
growth officer
>Marketing innovation lab
>Horizontal structures
>Shadow Comex
Expansion through
02
Acquisitions
Included startups as wells
as giants to create
synergies eg: John Paul,
One fine stay
Cultural transformation
Innovative and open
workspaces, high
connectivity. Change of
employee mindset-
collaborative, risk taking,
2 accepting failures, training
and development
Separation of businesses
 HotelInvest- managing
existing assets through
disposals
01 04  HotelServices-
operating and
franchising hotels under
the group’s brand
Accorhotels
New strategy adopted under Sebastien
Branding
Bazin to compete with new players like 05
Accor becomes AccorHotels
AirBnB
with a new slogan - “Feel
Welcome” so that
customers feel unique,
expected and privileged.
03 06
Digital transformation
>Mobile First – common
mobile App to Accorhotels
>Customer experience
model – 7 steps
>Voice of the Guests
Project
> Tools like Wipolo,
Fastbooking
Analysis - DIGITAL MATRIX

> Hospitality Industry is currently at the ‘Collision at the Core’

phase where the industry incumbents such as AccorHotels and
Marriot are being forced to rethink their business models by
techupstarts like AirBnB.
> Lead Parity Lag Scale: AccorHotels have been the first to
acknowledge the digital disruption and hence is leading with
respect to other industry incumbents with respect to steps
taken relative to other industry incumbents
> Digital giants and tech entrepreneurs are potential
adversaries but can be your allies as well. AccorHotels through
acquisitions and partnerships (eg: it acquired Wipolo (tech
platform to manage itineraries)and linked it with Facebook )
 SWOT analysis and Success traps
SWOT
Strengths
- Leading the digital transformation among hospitality
industry incumbents
- Targeting multiple segments (luxury and upscale, midscale
and economy)
- Have adopted customer centricity and customer
experience model
Opportunities
-Untapped markets in Asia and Africa
- Many places are adopting laws and regulations which makes
it tougher for Airbnb like businesses ( many landlords push out
existing tenants and convert them into homestays)
Weaknesses
- Multiple sub-brands under Accor like Sofitel, Novotel, IBIS
etc. Customers identify with these brands rather than
brand Accor
Threats
- Digitalization making customers more powerful with regards
to choice and price
- Competency trap (new digital technologies become
obsolete quickly), Accor’s investments and acquisitions
for digital transformation may become obsolete
- Companies like Airbnb started offerings for business
travelers
- Metrics trap – existing metrics may not reveal whether
Accor’s digital transformation has been successful
 Going Forward - Recommendations
1. Reduce number of sub-brands and strengthen brand image of Accorhotels among customers
2. Focus on strategic partnerships rather than acquisitions – reduces risk of obsoleteness and competency trap
3. Digitalization of rooms (smart rooms). Eg: Alibaba’s hotel of the future (self check-in at hotels, IOT)
(https://www.youtube.com/watch?v=kLwCG-5sOkY)
4. Security of data of customers – as hotels are becoming more digital, chances of data breach increases. Strong
data governance measures should be established
5. Lobbying governments and communication negative impacts of home-sharing models like Airbnb
6. Establish appropriate metrics for evaluating the digital transformation process. Eg: Bounce rates for digital
marketing strategies)
7. Using big data analytics and AI/ partnering with data analytics companies to identify customer preferences in
markets in countries in Asia and Africa. Eg: Smart rooms may not be favorable in geographies were digital
literacy is low
8. Partnering with digital giants like linkedin to create business networking opportunities, thereby creating
additional revenue streams and potential customers for its hotel business in the future as well.