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With large, ambitious international brands like Hyatt, Marriot, Intercontinental, and Starwood entering India, The Oberoi Group had to be mindful of its foothold in the hotel industry. Exceptional guest service had been the Group’s main competitive advantage, but with stiff competition, creating an even stronger brand and achieving tangible differentiation became more important for the company. “The key to success,” Vikram Oberoi observed, “is to be able to anticipate changes and have the ability to meet new expectations in as short a time as possible, without compromising the brand and the values that form the foundation of our business.” With its 24 Indian properties recording an average occupancy rate of 68% in 2014, The Oberoi Group had demonstrated its ability to successfully go head-to-head with its competitors. But its relatively limited presence in India and abroad led some to wonder if the Group should consider a more aggressive expansion strategy. On expansion, Vikram Oberoi was committed but cautious. “We feel,” he said, “that we have built a luxury brand that we must expand worldwide.” He was clear, however, that expansion must not compromise quality. “We don’t want to be the biggest, we want to be the best. Our goal is to operate profitable hotels that offer exceptional service and this needs to be considered while taking a decision to develop new hotels.” (Source: Harvard Business School Case Study: Oberoi Hotels: Train Whistle in the Tiger Reserve)
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