A case study on OYO Rooms

Md Shadab UM19219
 INTRODUCTION

OYO rooms is one of the best start-ups of India founded by Mr. Ritesh Agarwal. He understood the customer
needs and planned his venture as per the customer demand. There was a dearth of hotels in India which Mr.
Agarwal took as an opportunity and converted his problems into a solution for all.
Inspired by AirBnb, OYO has reached the numero uno position in the budget hotel domain and is constantly
adapting and changing as the situation demands.
However, with the advent of competitors, OYO has to make sure that the quality of service is not diluting as
there are so many options available for consumers now.
 Strengths
o1. First-mover advantage
o2.Standardisation of services
o3.Assurance and Affordability
o4. Cost-effective marketing strategy
Weaknesses
1.Expansion at the cost of quality
2.Emphasis on just one domain
3. No celebrity endorsements
4.Dilution of quality service

SWOT
Opportunities Threats
1.Women-only hotels 1.Partner hotels can switch
2.Merge with cab-aggregators and freelance 2. Cultural hindrance
photographers.
3.Global competitors like Airbnb capturing the
3.Venturing the premium segment. Indian market
4. Helpline Booking 4.Change in taxation policy.

POLITICAL
1. Trade restriction
Trade barriers between two
countries can shut down Oyo
services in the foreign countries
and similarly restrictions on
foreign brand in India will be a
blessing in disguise for Oyo.
2. Change in tax policy
Higher tax will increase the price
of OYO rooms or decrease the
profits of the organisation.
3.Political imbalance
If there is a nuisance going on in
a state or in the country, it will
hamper the oyo hotel business.
PESTEL ANALYSIS
ECONOMICAL
1. Higher purchasing power
the consumer can spend more on
luxury and comfort. This can be
advantageous as it can open a
new segment for Oyo rooms.
2.Change in Interest rates
Hike or fall in the interest rate
can hamper the bottom line of
oyo.
3. International relations
between countries
Chinese slowdown and US-China
Trade war can create a problem
for OYO.
SOCIAL
1. Demographic structure
In a country like India, the
population is towards the youth,
which is a plus point for the oyo.
2. Cultural Hindrance
There are some partner hotels
which doesn’t allow rooms to
unmarried couples. This will give
other competitors an advantage
over oyo.
3. Religious Pilgrimages
India is known for different
pilgrimages. OYO can partner
with the hotels in these areas
which can give quality hotels at
lower price.

TECHNOLOGY
1. Easy to use interface
It is very easy to access the oyo
app.
2. Digital India Movement
The advancement of digital India
policy has made internet
accessible in remote areas of the
country.
3. Fall in data prices
There has been fall in the data
prices all over India because of
4G LTE technology
4. Tech-savvy audience
The population has become
more tech savvy and able to
compare hotel rates online.
PESTEL ANALYSIS
ENVIRONMENTAL
1. CSR Policies
Company has to follow the CSR
policy. As Oyo uses plastics for
soaps and linen detergent, it is
their duty to give back to the
society in which they are earning.
2.Environmental protection
policies
Oyo should make proper
alternatives for plastic products.
They give eco friendly shampoos
to their guests.
LEGAL
1. Minimum wages law
If the government imposes
minimum wages laws for the
hotel staff, oyo has to comply by
those rules.
2.Compliance with the hotel
association laws
India has their own pan India
association. Oyo has to comply
with their rules, otherwise they
can impose fines and penalty on
the organistaion.
 New marketing campaigns and plans for expansion to
three tier cities and elderly travellers.

• Oyo needs a celebrity endorsement. All its competitors has celebrity

endorsements which give assurance to the public about the service.
• Oyo gift vouchers to the parents on their birthdays, anniversaries, Mother’s
day and father’s day from the children for a hotel not far away from the city.
• Group travel offers like One Big Happy Family will increase sales in a country
like India where joint family system are still present.
• Campaigns in tier-3 cities for freelance photographers and influencers to
explore and find interesting tourist places in those areas.
 Trace the influence of social media marketing in
the success of OYO rooms.

• Oyo has around 7,82,000 likes on Facebook and above 20,000 followers on Twitter.
• Oyo received the quest experience award for the best use of social media for customer
experience Improvement.
• Oyo has resolved a whopping 93% of the complaints registered on their social media platform.
• It has made sure that there is a presence of their ads on all digital spaces by tying up with
Grofers, Ola, MakeMyTrip, etc.
• Oyo has come up with emotional ads from time to time which connects people in India. In the
recent India v/s Pakistan cricket match, they came up with an interesting ad on their social
media accounts which received great praises.
 With foreign competitors catching up, how can
OYO leverage its position and stay ahead?

• Oyo women only hotels will help the single women travellers in India to
have a safe stay at hotels.
• OYO should start offering holiday packages at affordable rates to maintain
its numero uno position.
• Oyo should merge with freelance photographers just like they have Oyo
captains. This will ensure great pictures on the tour that will increase the
customer satisfaction.