Abstract: Introduction: Analysis of PEST:

Identifying competitive advantage:

Behind every increase and sustained success there is a master mind, who strategizes things to work out in the company. It is precisely important for the company to drive through their competitive strategies in order to compete with the market Adam (1992). Therefore every company seeks competitive advantage and line up their strategies according to the market requirements. According to Porter (1985) who elucidated competitive advantage is a dynamic capability of an organisation which aids exploit market opportunities and exceed its competitors. Therefore, competitive advantage in organisations must be established and support it from inside out of the business which should be sustained at all levels (Wickam, 2007). Lynch (2003) proposed that cooperation between the organisation and others in the environment may help achieve competitive advantage, produce lower cost, and help deliver sustainable relationship within and outside the organization. Every industry runs in a changing environment (Parrish, 2003) and variations in these environments may upset the company or even the entire industry in a large scale (Scholte, 2005). Ansoff (1980: 8) defined it as a property of individual product that will help in obtaining strong position. However, Barney (2001) pointed out that to have a sustainable competitive advantage it should be difficult to imitate. My Home Constructions competitive advantage can be explained by Bowmans Strategy Clock. My Home shadowed differentiation strategy by providing products and services that offer benefits altered from those of its competitors and that are extensively esteemed by the customers. The main focus was on achieving competitive advantage by offering better products or services at the same price as its competitors. According to Johnson, Scholes and Whittington (2008), the success of differentiation is dependant on two key factors namely, identifying and understanding the strategic customer and identifying key competitors. The identification and understanding of the strategic customers helps in knowing the target market of that strategy. Le Meridians target market was mainly the international tourists coming to visit Dubai and business executives for their meetings and conferences, Dubai being the hub of all major international organisations. Identification of the key competitors, locally and internationally, is another major factor for differentiation. The success of differentiation strategy depends upon its inimitability and the extent of vulnerability to price based competition. The competitors like Accor and Shangri La are also competing for the common targeted customers thus intensifying the competition. Hospitality being a price sensitive industry, care is taken to keep the prices offered competitive as well as reasonable. Le Meridien Al Aqah beach resort has strong governmental support. Le Meridien Al Aqah sustains its competitive advantage by implementing new and innovative methods to target its customers and offering them an unbeatable service. The hotel advertises to encourage more guests to indulge in different Spa therapies. There are loyalty schemes such as vice-versa card (and Starwood preferred guests. The hotel also has special offers during weekends such as Friday bubble brunches, BBQ brunches to attract more guests to spend money in the hotel. Le Meridien increases its sales through raffle

draws, discounts and complementary incentives. Porter (1998) suggests that innovations play a key role in an organisations success. It could be technology innovation, new skills & knowledge or application of old ideas in new areas. Organisations success lies in adapting oneself to the surroun ding culture and finding success in customer satisfaction. For example, the hotel is investing 10 million AED ($2.7 million dollars) for enhancing the hotel as the best spa destination in the region (Boley, 2009). Le Meridien has invested $2 million in its beach rejuvenation and aims at transforming its shoreline into a unique experience for its guests after the effect of (http://www.travtalkmiddleeast.com). Recently the hotel had upgraded its banqueting facilities and have introduced new restaurant called The Gonu Bar & Grill last year and opening Sapore restaurant in September 2009 (http://www.starwoodhotels.com/lemeridien). According to Johnson, Scholes and Whittington (2008), product developments are subject to the risk of delays and increase in costs. Le Meridien Al Aqah had delays due to credit crunch as tight control over the cost had to be maintained. The hotel introduced new products like crazy golf, glass bottom boats for guests (www.lemeridien.com/fujairah). Le Meridians main advantage factor is the infrastructure itself as it has the largest free form swimming pool in the region with all sea facing rooms. Le Meridian has won awards for its excellent service and the professionalism of its staff. All these factors have give Le Meridian an edge over other hospitality chains in Middle East. Wickam (2007) said that the competitive advantage must be carried from inside the business and should be supported at all levels. Le Meridien has some unique core competencies. Organisations should know the strategists mantra that: To be successful, your firm must have a core competency (Dranove and Marciano, 2005: 27). However, the close interlinks between key markets of the world and continuous increase in the intense global competitors, multinational organisations are adopting a globally centered strategy. This has also created drift for first movers such as Le Meridien Al Aqah, as late movers are adopting the similar strategy to achieve economies of scale (Yip, 1992: 21). Prahalad and Hamel (1990) pointed out that core competence results in achieving competitive advantage. Mooney (2007: 111) defined it as the primary competencies that a firm leverages to compete, although the competencies may often be difficult to identify or overshadowed by the importance of the firms product. It is difficult to copy or imitate Le Meridien Al Aqahs unique advantage of the location; the atmosphere and the strong well known brand associated with the hotel. Le Meridien has launched a unique new service for its meeting and conference delegates know as star meeting concierge. According to Kay (1993) the major source of core competence that eventually result in gaining competitive advantage are the four distinctive capabilities that applies to all businesses. These are costs, knowledge, relationships and structure. Le Meridien has used its knowledge and relationship with Fujairah tourism board to offer its guest a unique experience in discovering the coral reefs off the coast of Fujairah and the only hotel in the region offering opportunity for guest to enjoy the deep sea fishing and snorkelling under the supervision of PADI instructor (www.lemeridien.com/fujairah). A theory of Kay (1993) claims that organizational success derives from competitive advantage of the firm which is based on distinctive capabilities most often derived from

the unique character of a firms relationships with its suppliers, customers, or employees, and which is precisely identified and applied to the relevant market. Le Meridien is achieving competitive advantage through a combination of innovation, its unique resources, its core competencies mentioned above and by updating with the latest trend in the market for ensuring brand image, profit and repeat customers. Another tool used to evaluate the competitive advantages of an organisation is Porters Five Forces, which is given as Appendix 2.

Appendix: Appendix 1:
Pest analysis:
PEST refers to all political, economic, social and technological factors affecting any industry. The objective of PEST analysis is to objectively study the environmental factors facing a firm, company or an industry. The external environment affects the company in many different manner and unlike internal environment it cannot be influenced much.
Political Factors

The political factors affecting the construction and housing industry mostly consists of documentation and permits that has to be obtained during the various phases of construction of a structure and its sale. Building Commencement Certificate: Construction of a building or any such structure cannot take place unless and until the builder or the company secures a commencement certificate from the authority, in case of Hyderabad it is the GHMC who gives IOD&CC- Intimation of Disapproval & Commencement Certificate. Floor Space Index (FSI): FSI is basically a ratio, which determines how high can buildings or a structure can be elevated for construction on a particular plot. The local authority issues it. Occupation Certificate: After the completion of construction work of a building, the builder or the company has to secure an Occupation Certificate without

which the flats in the building cannot be occupied for residential or commercial purposes. Greater Hyderabad Muncipal Corporation [GHMC] Developing Plans: GHMC developing plans form the most basic criteria in selecting a site. These developing plans chart out pre-defined areas, which the GHMC has already allocated for certain purposes. E.g. In a given area, some land is reserved for plantation/farming, some piece is kept for industrial establishments like the MIDC area and the other one reserved for residential purposes. So the Builder finds out the type of land, which is suitable for his purpose, i.e.; if he wants to build up a residential complex, then he has to do so in the area reserved for residential purposes; as per the GHMC developing plans. CRZ (Coastal Recovery Zone): According to this rule a builder cannot carry out any construction within the radius of half kilometer from sea. TDR (Transfer of Development Right): This right is available to a builder for utilizing the additional FSI. Normally TDR is given by the local Municipal Authority who acquires the portion of land of builders either for the purpose of constructing road or for making gardens. Others: Apart from the above mentioned points there is also tax exemption that is given for the construction of building on the land having area of more than 1 acre.
Economic Factors

Fluctuations in prices of inputs: Many builders tend to stop work when the prices of inputs like cement, iron etc goes up so as to wait for the time when they expect the prices will come down. This result in unnecessary delay in the work and the cost of wasting time would actually be more than the increase in price. Changes in demand: Changes in demand due to factors like changes in disposable income of prospective buyers and inflation. Also with the easy availability of housing loans and tax exemption on loans the demand for houses is rising. Future Growth & Resale Value: Any project must be located in an area that if not fully developed must at least be on the way. This is because people prefer those areas having high resale value and will fetch them a good amount of gain. Stamp Duty & Registration: Payments of Stamp duty followed by the registration of the agreement are two important acts when one enters into an agreement with a developer/seller. With the decrease in the stamp duty by 50% it is considered as a good sign for Construction Sector.
Social Factors

Credibility of the company/firm: People do not know what kind of materials has been used in the construction of a building or a structure. Credibility of a builder or the company plays an important role in convincing the buyer to buy the house and be sure of the quality of construction work done. A low credibility or image can lead to poor

financial performance. A good image is not just built in a day, it takes years of servicing the society through following high standards of work in the process of construction and sale. Perceived Image of the property developed: A flat in a so-called posh(high class)area may cost much more than a one in a common mans residential area. This factor can also determine the success of failure of a project. A flat is selected on the basis of infrastructure facilities like water availability, transport facilities, nearness to schools, colleges, hospitals, shopping complexes, leisure centers, etc. Building Facilities: The builders may offer buildings that have swimming pools, health-clubs, gyms & parks.
Technical Factors

Due to technical nature of the construction process, the technical environment keeps on changing every day. There are developments in techniques used, materials used and various other such aspects of the construction business. A few of such developments are as follows Pre-structured Concrete Blocks: These are blocks of concrete, which are made in the factories according to the dimensions of the building or structure to be built. It is just like a picture puzzle where these blocks are put together using a huge crane and joined together using mortar by workers. This enables quick completion of work and also economies of scale. Mixture of Cement and Sand: nowadays in order to save time the constructor can order the mixture of sand and cement (ready-mix)directly from the suppliers as against the traditional way of ordering cement and sand separately and then filtering them and then mixing it. Other Equipments: other modern machines that are used in construction are the use of huge drilling machines to dig the ground, which was before done by workers.

Appendix 2:
SWOT Analysis:
Strengths: