Reference no: EM133162427

Two companies, Andruga Hotels Ltd and Munguryek Cottage Hotel Ltd are the dominant competitors in the High end Hotel industry in Arua city in West Nile sub region of Uganda. Munguryek Cottage Hotel Ltd commissioned you to undertake a study to analyze the competitive profile of the company in relation to Andruga Hotel Ltd, using the Competitive Profile Matrix (CPM). In the industry in the region success is a factor of product quality, pricing, financial capital, market share, customer loyalty, quality of management and intensity of advertising. Advertising and product quality are the most important factors in the industry. These followed by financial capital, quality of management and customer loyalty. At bottom of the list are pricing and market share in the order of decreasing importance. Your comparative study of the two hotels reveals the following: Andruga Hotels Ltd is very strong in product quality, quality of management, customer loyalty and its huge capital reserves. It is moderately strong in pricing, moderately weak in market share but extremely weak in advertising. Munguryek Cottage Hotel Ltd on the other hand is very strong in pricing, advertising and market share. It is moderately strong in quality of management and financial capital. It is however relatively weak in product quality and customer loyalty.

Required: 

1. On the basis of the information in the Scenario above design the CPM by filling in the matrix below.

Critical Success Factors Weight Munguryek Cottage Hotel Ltd Andruga Hotel Ltd Rating Weighted Score Rating Weighted Score 0.20 0.10 0.15 0.05 0.15 0.15 0.20 TOTAL SCORE 1.00 

1. On the basis of the scores in the matrix above, identify two comparative strengths of each company. Justify your answer.
2. Determine which of the two hotels has a competitive advantage over the other given all the factors taken together. Justify your answer.