STRENGTHS: 1) Brand equity & Inherent strengths by virtue of being a Tata group company 2) Maintaining high service standards:

IHL has launched a programme across its hotels calledTaj Brand Standards that identifies standard operating procedures to ensure consistency inguest experience. In order to ensure that these standards are consistently implemented andsustained across the organization, a robust third party audit system has also been initiated. 3) Innovative product ideas and creative thinking: It pioneered the concept of authentic palace hotels in the country with the Rambagh Palace in Jaipur and idyllic beach resort at Fort Aguada, Goa 4) Related diversification in airline catering, operating private jetsand yachts, service apartments, spas and wildlife lodges and hence mitigate the business risk 5) Highly profitable marketing alliances: IHL has entered into strategic tie-ups with other players in the business for the promotion of its properties. Currently IHL has marketing alliances withRaffles Hotels and Resorts, Shilla Hotels and Resorts and CC Africa. Such alliances not only allow for cross promotion of hotels with alliance partners, but also allow members of corresponding loyalty programmes to avail of special amenities and privileges at participatinghotels. In addition, several partnerships have been entered into with international and domesticairlines for cross promotions with key customers and package tours. 6) Largest hotel chain in India backed by a balanced property portfolio, strong brand and corporate customer relationships 7) Location of the hotels is another major strength for the Indian Hotels Company 8) Effective and efficient management techniques : Use of management contracts, Joint ventures, Vertical strategic alliances, Vertical internal development, Horizontal internal development, etc 9) Talent pool of people: High caliber senior executives have been introduced in the company at high levels from other countries, supplemented by one or two top Indian managers to enable mentoring and cultural integration with the company. In addition to the expatriate managers, young Indian managers are also made to work in international properties to gain overseas work experience.

10) Interiors complementing the natures beauty: known for its best materials and pieces of art, furniture and interior artifacts. Towering over the lobby is a three-storey marble atrium, the showpiece of a property boasting 300 rooms, every one of them with a view of the sea's expanse. But there's more to Taj Lands End than the panoramic blue beyond its windows. 11) Global presence: luxury resorts in the islandcountries of Maldives, Mauritius, Seychelles and SriLanka; business and resort destinations in theMiddle East; service apartments in the UK andluxury hotels in the USA and Malaysia.A networkof international offices was created in New York,London, Frankfurt, France, Dubai, Singapore, Sydneyand Tokyo, Sydney and Zambia to support the bookings for these hotelsand resorts.

Oppurtunities: 1) The growth of the Indian Hotel Industry is largely due to the rising business opportunities, strong economic performance and cross border investments. 2) India has currently base of 110,000 hotels rooms and still face the shortage of 150,000 rooms. There is a mismatch between demand and supply, leading to higher occupancies and thereby average room rates. 3) Occupancy rates across India have improved from 52% in 1999 to 67% in 2007-2008. Average Room Rates across cities have improved from USD 51.6 to USD 76.4 in the same period 4) FEE (Foreign Excvhange Earnings) from tourism during January-September 2011 were US$ 10.25 billion with a growth of 16.6 per cent, as compared to the FEE of US$ 8.79 billion with a growth of 22.7 per cent during January- September 2010. International tourist arrival in India is expected to grow with a CAGR of 7.9% for the period spanning 2010-2015. 5) Sports events like IPL and the Commonwealth games have a potential to create demand for both Tourism and Hospitality industry in India 6) The Government of Indias Incredible India destination campaign and the Atithi Devo Bhavah campaign have also helped to boost the growth of domestic and international tourism and consequently the hotel industry

7) The opening up of the aviation industry in India has exciting opportunities for hotel industry as it relies on airlines to transport 80% of international arrivals. The government's decision to substantially upgrade 28 regional airports in smaller towns and privatization & expansion of Delhi and Mumbai airport will improve the business prospects of hotel industry in India. And the upgrading of national highways connecting various parts of India has opened new avenues for the development of budget hotels in India. Taking advantage of this opportunity Tata group and another hotel chain called 'Homotel' have entered this business segment.

8) With the USD 23 billion software services sector pushing the Indian economy skywards, more and more IT professionals are flocking to Indian metro cities, thus signaling a boomtime for the hotel and hospitality segment.

Threat: 1) Terrorism internal security and political turbulences in the country ,especially India will hamper the business of IHC as it has a big effect on the tourists visiting the country.Customers would be reluctant to stay as one of the major place of attack by terrorists were on TAJ hotels. 2) Corruption: india is ranked number 72 on corruption as per the official rankings.this has a deterring effect on FDI investments.it also slows down the settlement process and even make undetermined managers chose as a country with seemingly less investment risk. 3) Foreign exchange fluctuation risk:Foreign exchange fluctuations has a major effect on the inflow of tourists as it is a major determinant. 4) High competition from international Players like Hilton, Marriott , four seasons hotels and Competition from rising domestic players like Oberoi, Leela, ITC,Sheraton 5) Conflict between global standards and expansions:Being an industry prone to threat from international players,there would be a comparison among the global standards and expansion.

6) The cost of land in India is high at 50% of total project cost as against 15% abroad. 7) Lack of skilled labour:India faces the problem of not having enough qualified employees.This has a major effect on the hospitality sector. 8) High tax structure in the industry makes the industry worse off than its international equivalent. In India the expenditure tax, luxury tax and sales tax inflate the hotel bill by over 30%. Effective tax in the South East Asian countries works out to only 4-5%. 9) Guest house replacing hotels: a major substitute for hotel industry is guest house which posses threat to IHC as they also have all the comfort and luxuary offered by premium hotels 10) Cheaper International travel:73% of revenue comes from domestic consumers(2010).as a result of cheaper international travel, more domestic consumers start travelling abroad ,thus reducing the revenue of IHC.

Weakness: 1) Brand dilution due to over expansion: being a business diversified into various businesses like resorts, aviation, airline catering 3) Slow implementation: The lack of adequate recognition for the tourism industry has been hampering its growth prospects. Whatever steps are being taken by the government are implemented at a slower pace. 4) Focus on high end luxury segment: Major focus of business is in the high end luxury segment.Recently only they have concentrated on the lower segment such as Ginger hotels. 5) Low return on equity- 17% in the year 2007 but now decreased to 4%. 6) Dependency on Indian Territory:IHCs main focus and their major operation is in India.Thus major political,legal and economic conditions affecting India will affect the business of the hotel.