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Strategic planning is in our times viewed upon as a component part of the strategic management and as one of the principal management tools of an organization management, elements of the organization planning system. This paper will discuss the main elements of strategic planning and show the path how to get from a concept for the future of an organization to a detailed strategic plan. Strategic management is not possible without strategic planning which is one of the component parts of strategic management. Strategic planning is the establishment of viable connections among long-term objectives, resources and environmental conditions of an organization by using certain methods and activities.

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Oyo rooms is a chain of hotels, presently in a few cities and town (but rapidly expanding) in India. Along with a clean room, they offer, or claim to offer, quality and standardized services like in-room Wifi, breakfast, AC, backup power, etc at budget prices. The standard are audited every few days so that the customers are assured a quality experience. OYO’s budget stay range from 999 to 4,000 rupees. OYO provides property owners with support such as quality standardized supplies and service training. A hotel can be added to their network within 5-6 days after signing of agreement. The brand has secured multiple round of funding and valued for more than 600 crores. The founders Ritish Aggarwal a college dropout aged 17 when he started OYO is an inspiration for many youngsters today. OYO rooms can be booked online using Mobile app. Also they have their presence in all the travel/booking websites.

OYO’s model is simple: it adopts hotels to get them in its fold; gets them to follow certain standards of services, features, staff, pricing, security etc. and then sells their rooms under its own brand, for a certain cut. This new segment operates on the asset-light business model, and is a sure a change element for the traditional capital-weighed-down hospitality. According to a research carried out by CB Insights for The New York Times, OYO Rooms has been deemed as one of the upcoming start-up unicorns.

OYO doesn’t own any of these properties, and instead, invests in marketing and management quality improvement for the hotels under its fold. It’s a win-win for OYO and the hotels, many of whom just don’t have the network, knowledge or the budget for smart marketing, and they run empty. OYO helps them improve their yields


Oyo is an online aggregator of budget hotels. Oyo is coming up with new brand which is Oyo home and Oyo premium. Standardization and the only reason Oyo is so successful is because it runs in very low prized it provide everything which are customer need. One of the main component for any company is SWOT analysis which is divided into four part the first being strength second being weakness third being opportunities fourth being threats.


The strength of Oyo could be stated as firstly they basically use the advertisement using the social media platform to have a high product recall. Another strength which could be stated would be that Oyo rooms are very user-friendly which means to access into the Oyo rooms it user-friendly and it is not rocket science to access Oyo rooms whereas you can just use the application to book a room for yourself at any part of the country. The biggest advantage of Oyo rooms is that they are economically found which is basically means they are budget friendly hotels so people who do not want to spend on their accommodation this is the best option that they could get in any city of a country. They have new innovation coming up the resent one is they are changing their sub brand which is there are known coming up with Oyo premium and Oyo home. They are constantly innovating themselves bringing up new things.


The biggest weakness for them is that purpose budget friendly hotels which at that point is their strength and their weakness because if they want to attract luxury customers who basically want a luxury space and they want a very high end experience. Oyo rooms won’t be able to cater them because they focus only on budget friendly property. Oyo rooms is focusing on very fast expansion but that is the reason for their weakness as well because they have to compromise on their quality as Oyo room are charging very less and for that amount they are providing very low quality to the customer.


A Country like India where the population is growing at a very large scale. There are number of customers who focus on accommodation which is economically well for them so that is the biggest opportunity for Oyo rooms because they focus on only budget friendly hotels and as the population is increase their customer is also increasing. In India the budget travelers are also increasing which is the result for them that the travelers in any part of the country would focus on Oyo rooms rather than buying room from Marriott or Taj. In a country like India there is a 4.1 percent of increase in technology every year. There are lot of people who are focusing on technology today and the customer base for technology increase day by day and Oyo rooms is only a technology base company so they are able to attract a lot of customer and every day the customer base is expanding.



The biggest threats for them is company like ZO Rooms and STAYZILLA who have a path of their business model and run almost the same and some time in future can also be a very big competition  for them. Repeat customer are very less in Oyo rooms because Oyo rooms as they provide service at very low rate customers after visiting once and after getting bad service they do not think of going back to Oyo rooms. So this is the biggest threats for them at time people do not act as a repeat customer for the company.

OYO Rooms in Blue Ocean – A strategy

There is an upper hand for Oyo rooms as it gives the consumer the value for money which is missing in other budget hotels. You just have to pay the price as low as Rs.1500 and you are provided with free Wi-Fi, breakfast, television, air conditioner, a good washroom and many more minute details are taken care off. The perspective for choosing a hotel differs from an individual to individual. Some people prefer fancy lobbies, deluxe spas, elegant elevators and many more while there is some percentage of people who just see the hygiene and the facilities that are provided by the hotel. The core value of the oyo rooms is not to provide huge lobbies or fancy lounges to the people, it is to consider the hygine factor as well as the predictability. Oyo is able to radically decrease the rate per room (in contrast to 3 Star) and instantaneously but disproportionally upsurge the significance to client. Oyo unlocks disproportionate trade by fascinating 3 star consumers to craft down while non-star clients skill up to Oyo Rooms. Thus Oyo is seizing the both sector of clienteles.

Blue ocean strategy has one of the simplest yet powerful tools named as strategy canvas. It does the task of visually identifying the factors that any taken field is have competition on. It plays a huge role when it comes to helping to strategize how the segmentation can be planned when there is enormous competition. There are different aspects that are covered in that graph and that unlocks its significance to the customers which is then marked out of 10 and then is compared with the rivals. Oyo as a company is a live example of the above discussed blue ocean because it has made themselves to stand out of the market by demolishing some extra features those are not needed at that point of time. While they try to demolish these new features they also try and build a new one side by side. There is a common way of focusing of the companies, traditionally the organizations concentrate on out serving the rivalry but this theory states that the separation should be done in the form of Removal, Decrease, Rising and Making.  The researchers have studied and have stated that the oyo room is not the first company to do their strategic planning in this manner. There are numerous, for example, Formula1 Hotels, Ginger Hotels, and so on which have endeavored to make a separation. I should credit Oyo for their brilliance in execution, as well as in endeavoring to discover imaginative approaches to keep the financials in place. For instance, Ginger Hotels unsuccessfully endeavored to focus on a similar section in spite of having own/rented properties. Then again, Oyo Rooms has situated itself as an aggregator mark instead of a customary lodging network. This has helped them to remain fit on capital and operational expenses, and all the more critically, increase in a matter of seconds. So as to make Blue Ocean in your own industry, consider the means associated with making Blue Ocean are represented in the underneath. You can take in more about the 6 ways to make excellent purchaser utility here.

Oyo Rooms is as of now confronting the warmth of rivalry of me-excessively marks. Keeping in mind the end goal to manage position, Oyo should continually refine its offering to open an incentive for clients. For instance, I found that none of the 3 Oyo Rooms I remained in has overnight clothing or iron box on the house. I can’t arrive up for customer meeting in wrinkled outfit J. Also none of them have tea sacks and pots in the room and room benefit didn’t begin before 8 AM. Super forcing the Blue Ocean Strategy and its system is just an endeavor to figure out how advancements can wind up plainly unsurprising instead of a possibility of fortunes or brightness of virtuoso. On the off chance that you are presently tickled to make a blue sea, this article has accomplished its motivation thus OK.





















Strategy adopted by Oyo rooms. The main focus of Oyo rooms today is that Oyo rooms is focusing on digital marketing strategies where in Oyo rooms adopt a lot of customer on the digital platform and attract them by providing them affordable prices and providing them all the features which they requires and they are targeting the mass which is the reason they are so successful in the market. The main focus is also to lead generation where in they provide details. It is strategizing to use all means of social media there main focus is utilizing the social media platform and providing the guest prices which they do not get at a hotels. Their main target is economically found people who focus on buying room for affordable price.

It is strategizing to use all means of social media by targeting potential customers based on their interest, behavior and other parameters which are readily available via digital marketing. It has strong social media presence on Facebook with over 2.7 lakh fans and a Twitter following of over 8,000 followers. The brand claims to have over 1.5 million app downloads with a good number of active users. To fast track its growth, OYO Rooms is organizing several campaigns on social media platforms such as:

·         Dubsmash Contest

·         #AurKyaChahiye videos on Youtube.

·         Father’s Day Celebration campaign, and IPL Final Verbal Combat.

·         Jai Hind was the most successful one that featured Bollywood actor Manoj Bajpai and Raveena Tandon.

·         The video fetched over 1 million views to the brand. Some of their recent endeavors areA Salute to the heroes of 1965 war and Oyo Explorer – Pune.

Results achieved by Oyo Rooms. OYO’s traction and market coverage has swiftly increased because of being listed with travel aggregators like Make MyTrip, Clear trip and com. Launch of OYO café, OYO We for Women travelerS and OYO Premium for high-end customers Tie-ups with major brands such as Airtel for wi- support, ZO rooms, Thomas Cook, Air Pegasus and Tourism and Hospitality Skill councils

Learnings: Along with expanding its business and numbers, OYO needs to really pay attention to Customer feedback and reviews as it’s the service offering industry. Also it needs to bring in more stringent offline quality control mechanisms on-board to manage customer experience and keep the brand growing. Thus, it surely becomes imperative to learn social media.

OYO rooms was among the first to identify the opportunity to initiate the process of branding the domestic budget hotel segment, in the price range of Rs 1000 to Rs 3000.The electronic presence of this segment, earlier was very vague, the quality and standards seldom met the promised parameters. The pictures of the rooms, bathrooms, beds, on the website fell short to keep the intended imagery; it created in the minds of customers. OYO – is an inventory light booking site offering clean, air conditioned, wi-fi enabled places to stay with breakfast. Today chain of this branded hotel that starts with a price tag of Rs. 999/- only has its presence in across 70 Indian cities with an inventory of 12000 plus rooms. OYO doesn’t own any of these properties, instead invests in marketing and management of quality improvement for the hotels under its fold. It’s a win-win for OYO and the hotels, many of who just don’t have the network, knowledge or the budget for smart marketing, which is why, they run empty. OYO helps them improve their yields. OYO needed to up its scale from the current 60 properties and 1200 rooms, though Ritesh Agrawal envisages to have 400+ hotels under its brand by the end of 2015 They work with small hotel entrepreneur, to standardize offerings, conduct physical quality checks every three to seven days, and train the staff on etiquette with a provision of cash benefits when customers give them good ratings. Their technology platforms handle the inventory, predicting and generating demand and adjusting prices accordingly. And for all this the firms charges between 15% to 20% as commission on every booking.

The economy in stays segment is a large unorganized and fragmented and OYO brings a new, scalable and customer friendly approach to address this opportunity. Ritesh and Abhinav, have forged a strong partnership to build OYO, investors look forward to help them in fulfilling their mission of building the world’s largest technology enabled hotel network. Ritesh is very clear about his target users as he puts it succinctly “our vision is to provide a standard experience – The OYO experience to anyone, anywhere looking for a place to stay when not at home.” Ritesh, is very passionate about his love’s labour and says “we are extremely encouraged by our growth and at a current run rate of 4, 00,000 booked per nights per month. The biggest addition to our room rate has come from our app. It’s revolutionary in its own way as it’s the first time globally that there is an app for hotel managers (no check in happens in without the hotel app) similar to the Uber driver app.”














The case also indirectly explores the popularity of Social Media Marketing, for creating and delivering online value preposition (OVP) to the customers through the power of network effect or social graph. The human need for social communication and affiliation to ‘communities’ is social media a very powerful tool for co creation of business through customer engagement techniques (ladder of Engagement etc). OYO room had adopted the strategy of hitting at upwardly mobile demographically defined techno savvy youth of the country. The case clearly brings to limelight to capacity of the companies clarity about their customer segmentation and respective targeting prepositions. OYO room adopted the strategy of product specialization with an aim to reach out to an undifferentiated market. It seems OYO rooms had initiated the penetration strategy of entering into a single segment market (App users/ budget segment) at a time with an intention of spreading the coverage into the super segment of online branded mid and premium level hotel spaces.

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