Sep'21
The IUP Journal of Business Strategy
Focus
The first paper, "Comparing the Business and Pricing Strategies of Two Micro-Stay Companies - MiStay and Brevistay: An Exploratory Study" by Nita Choudhary, discusses how the newly emerging micro-stay segment is creating a space for itself in the hotel industry. Micro-stay is a unique concept where hotel guests pay by the hour and by portion of the day, and is occasionally referred to as capsule stay. It is already popular in developed countries such as the US and is catching on fast in India and China. The concept gained prominence as hotels were facing the pressure of lower occupancy rates. The author compares the strategies adopted by two leading micro-stay platforms - Brevistay and MiStay - by comparing their pricing and business strategies adopted in different cities in India and makes recommendations for the micro-stay segment in general.
Analytics has redefined the way organizations conduct their business. Companies such as Google, Facebook and Amazon were quick to grasp the emerging opportunities and scaled their businesses to reach positions of competitive advantage. Irrespective of the industry, analytics is making a big difference in differentiating, targeting and driving superior performance. The second paper, "Application of Business Analytics in Corporate Enterprises: An Exploratory Study" by Nitu Saxena, Swati John and Pallavi Deshpande, discusses the importance corporations are giving to analytics. Predictive, prescriptive, descriptive and diagnostic analytics will radically call for reconfiguration of business processes and improve efficiencies and productivity. The applicability of analytics in different functional areas, citing use case examples, provides useful insights.
The quest for market share dominance forces many organizations to expand their product mix and portfolio over time. In mature product categories such as food, this strategy is adopted irrespective of the risks involved. The case study, "Nestle Under Fire Over Unhealthy Product Portfolio: Will the Company Emerge Unscathed?" by Shwetha Kumari and G V Muralidhara, on "Nestle's unhealthy food portfolio" is the third inclusion in this issue. The case discusses a controversy in 2021 over the unhealthy food portfolio of the world's largest packaged food and beverages company, Nestle. The company owned more than 2,000 brands that were sold in over 197 countries around the world as of early 2021. However, through the years, the company had been mired in various controversies, facing criticism and boycotts over its marketing and other commercial activities. In June 2021, Nestle found itself in yet another controversy as an internal document from the company indicated that 60% of Nestle's mainstream food product portfolio was unhealthy. Industry experts wondered how Nestle was going to rebuild its image as a healthy brand and regain customers' confidence amidst this controversy and the unfavorable dialogue in the public space.
Consulting Editor
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| Article | Price (₹) | ||
| Comparing the Business and Pricing Strategies of Two Micro-Stay Companies - MiStay and Brevistay: An Exploratory Study |
100
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| Application of Business Analytics in Corporate Enterprises: An Exploratory Study |
100
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| Nestle Under Fire Over Unhealthy Product Portfolio: Will the Company Emerge Unscathed? |
100
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Comparing the Business and Pricing Strategies of Two Micro-Stay Companies - MiStay and Brevistay: An Exploratory Study
Indian tourism and hospitality industry is one of the largest service industries and has been witnessing a healthy growth accounting for 7.5% of the GDP. Increase in domestic travel, high disposable income, rise in middle class, growth of the aviation industry, and significant growth of social travel websites offering convenience and ease of access, have all contributed to the good growth of Indian tourism and hospitality industry. As the Indian market matured, the need for hotels that allowed hourly stays was realized. To tap the demand, players such as StayUncle, Brevistay, SliceRooms and MiStay entered into the micro-stay segment, where customers are allowed to make hourly check-in/out. Initially, this segment was targeted at couples, but now this niche segment has evolved to attract businessmen, corporate executives, pilgrims, students, travelers and professionals seeking rooms for a short stay or just to freshen up. There are nearly 20 start-ups in this segment trying their luck to sell this concept to Indian travelers. While MiStay, Brevistay, StayUncle and SliceRooms continue to occupy the top rung, other players are also trying to compete and make a mark in the fast-growing industry. This paper compares the strategies of two major players in the micro-stay segment - MiStay and Brevistay - in terms of SWOT, business, and pricing strategies. The methodology used for the present study includes an exploratory research based on inductive design. The findings of the study demonstrate that MiStay has better presence in the market strategically and is better in sales promotion than Brevistay. There is no significant difference in room tariff for MiStay and Brevistay, and also both the brands follow the same generic competitive strategies and competitive strategic options.
Application of Business Analytics in Corporate Enterprises: An Exploratory Study
Big data and data analytics have been the most sought-after techniques of the 21st century. While some companies like Google and Facebook were born with data capabilities and harnessing data for company growth and competitiveness, others have integrated data systems in their daily operations. Business analytics offers insights into the form of exploring and identifying new segments, better customer experience and efficient working. Business analytics has changed the way companies use promotions. It has helped develop newer channels and appropriate pricing and for developing new and improved products. Business analytics utilizes mathematical and statistical models along with machine learning algorithms. Some systems do require hardware infrastructure as well. Business analytics will continue to play a defining role in companies' growth and the sooner the corporations learn to integrate and use business analytics, the better it is for them. This paper explores the usage of business analytics in 10 big companies, including Google, Facebook and Amazon. It throws light on how the companies have been able to develop robust systems based on business intelligence.
Nestle Under Fire Over Unhealthy Product Portfolio: Will the Company Emerge Unscathed?
The case discusses the 2021 controversy over the unhealthy food portfolio of the world's largest packaged food and beverages company, Nestle. Nestle was formed in 1905 through the merger of the Anglo-Swiss Milk Company, established in 1866 by brothers George and Charles Page, and Farine Lactee Henri Nestle, founded in 1867 by Henri Nestle. Nestle's success was driven by a combination of product innovation and acquisitions. It was the motivation for growth and diversity that had allowed the company to become a key player in nutrition. Nestle owned more than 2,000 brands that were sold in over 197 countries around the world as of early 2021. However, through the years, the company had been mired in various controversies, facing criticism and boycotts over its marketing of baby formula as an alternative to breastfeeding in developing countries, its reliance on child labor in cocoa production, and its production and promotion of bottled water, among other things. In June 2021, Nestle found itself in yet another controversy as an internal document from the company came out into the public. The leaked document suggested that 60% of Nestle's mainstream food product portfolio was unhealthy. Industry experts wondered how Nestle was going to rebuild its image as a healthy brand and regain customers' confidence amidst this controversy and the unfavorable dialogue in the public space.