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Oyo Hotel’s Expansion Spree: Too Much, Too Fast?
Asian Journal of Management Cases Pub Date : 2024-03-26 , DOI: 10.1177/09728201231222070
Arijit Bhattacharya 1
Affiliation  

Established in 2013, Oyo Hotels & Rooms, an Internet startup in the Indian hospitality sector, experienced an astonishing journey, culminating in a valuation of USD 5 billion by the end of 2018. The remarkable success of Oyo left many observers astounded. This meteoric rise was attributed to Oyo’s innovative business model, strategically targeting the fragmented budget segment of hotels beset by inefficiency. Oyo addressed these challenges by providing access to hotel rooms in prime locations, ensuring standardized services and offering affordability to customers.Over the years, Oyo gradually diverged from its core business as a mere aggregator of hotel rooms. It ventured into leasing hotels in the mid and premium segments, tapped into the Indian wedding segment, acquired companies and expanded its footprint into numerous foreign markets. This case aims to scrutinize whether this accelerated growth strategy could compromise the fundamental service promise of standardization. Additionally, it investigates whether the financially robust company, particularly after securing a USD 1 billion investment in September 2018, risks losing touch with reality as it becomes entangled in various controversies.

中文翻译:

Oyo Hotel 的扩张热潮:太多、太快?

成立于2013年的印度酒店业互联网初创公司Oyo Hotels & Rooms经历了一段惊人的历程,2018年底估值达到50亿美元。Oyo的巨大成功让许多观察家惊叹不已。这一迅速崛起归功于 OYO 的创新商业模式,该模式战略性地瞄准了受效率低下困扰的酒店的分散预算部分。 Oyo 通过提供黄金地段的酒店客房、确保标准化服务并为客户提供实惠的价格来应对这些挑战。多年来,Oyo 逐渐脱离其核心业务,成为单纯的酒店客房聚合商。该公司涉足中高端市场的酒店租赁业务、进军印度婚礼市场、收购公司并将其业务扩展到众多国外市场。本案例旨在审查这种加速增长战略是否会损害标准化的基本服务承诺。此外,它还调查了这家财务稳健的公司,特别是在 2018 年 9 月获得 10 亿美元投资后,是否存在因卷入各种争议而脱离现实的风险。
更新日期:2024-03-26
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