Faculty of Management Sciences

MGT 401N Project

Instructor: Dr. Heba adel

TA: Malak Ashraf
Company: Sunrise hotel

Name ID Lecture Tutorial

Rana Zakaria 203793 A B

Mariam Tarek 202971 A B

Spring 2023
1. Introduction. 4
1.1 Vision statement. 4
1.2 Mission statement. 5
1.2.1 Old mission statement for sunrise hotels and cruises. 6
1.3 Comment on mission statement. 6
1.4 Proposed Mission statement 6
2. Stakeholder Analysis. 8
2.1 Customers: 8
2.2 Society and environment: 9
2.3 Employees: 9
2.4 Competitors: 9
2.5 Government: 10
2.6 Suppliers: 10
2.7 Shareholders: 10
2.8 Managers: 11
3. Corporate social responsibility. 11
3.1 Corporate social responsibility towards the environment for sunrise hotels and cruises. 12
3.2 Corporate social responsibility towards the employees for sunrise hotels and cruises. 12
3.3 Corporate social responsibility towards the society for sunrise hotels and cruises. 12
4. Purpose of External analysis: 13
4.1 Pestle analysis: 14
4.1.1 Political Environment: 14
4.1.2 Economic Environment: 15
4.1.3 Social environment: 17
4.1.4 Technology environment: 17
4.1.5 Ecological environment: 18
4.1.6 Legal environment: 19
5. Porter’s Model: 20
5.1 Threat of new entrants: (Low) 20
5.2 Rivalry between existing customers: (High) 21
5.3 Threats of substitutes: (High) 21
5.4 Bargaining power of buyers: (Moderate) 22
5.5 Bargaining power of suppliers: (Low) 22
6. Strategic group mapping (SGM): 22
6.1 SGM for Sunrise: 23
6.2 Comment on SGM: 23
7. Competitive Profile Matrix (CPM): 23
7.1 Table of CPM: 24
 7.2 Comment on CPM: 25
5. External factors evaluation (EFE): 25
8.1 EFE Table: 25
8.2 Comment on EFE: 26
9. Internal analysis: 27
9.1 Purpose of Internal analysis: 27
9.2 Resources & Capabilities: 27
9.2.1 Table of Resources & capabilities: 27
9.3 Value Chain analysis 30
9.3.1 Value chain for sunrise 31
9.3.2 primary activities 31
9.3.2.1 Inbound logistics 31
9.3.2.2 Operations 32
9.3.2.3 Outbound logistics 32
9.3.2.4 Marketing and sales 33
9.3.2.5 Service 33
9.3.3 Support activities 34
9.3.3.1 Firm Infrastructure 34
9.3.3.2 Human resource management 35
9.3.3.3 Technology Development 35
9.3.3.4 Procurement 36
9.4 Internal Factor evaluation (IFE): 36
III. Strategic choices. 38
Generating strategies. 38
1. Strategic position and action evaluation matrix (Space Matrix). 38
1.1 SPACE matrix applied on Sunrise resorts and cruises. 40
2. Strategy formulation 42
2.1 Corporate strategy 42
1. Market Penetration. 43
2. Market Development 44
3. Product Development. 44
4. Diversification 45
4.1 Related diversification 45
4.2 Unrelated diversification 46
5. Forward vertical integration 46
6. Backward vertical integration 47
7. Horizontal Integration 47
8. Internationalization 48
9. Sustainable development 48
10. Digitalization 49
11. Retrenchment 49
12. Divestiture 50
13. Liquidation 50
3. Application of space matrix on Sunrise cruises and resorts 51
Formulating business level strategies 57
1- Aligning corporate and business level strategies 57
1.1 Corporate level strategies 57
1.2 Business level strategies 57
1.3 selected corporate level strategy aligned by the business level strategy 57
2 Identifying porter's 4 competitive strategies 58
Cost leadership: 58
Differentiation: 59
Cost focus: 59
Differentiation focus: 59
3. Developing key functional areas 60
IV Strategy in action 64
1 Organizational life cycle 64
1.2 Sunrise life cycle 65
2.Organizational structure 65
2.1 Types of Organizational structure 65
2.2 Application on Sunrise 66
V. Strategy monitoring 66
1.Developing Strategy – Evaluation Framework (BSC) 66
References. 68
 1. Introduction.

Sunrise resorts and cruises is an Egyptian hotel chain that was established in 2002 by Hossam
Gouda El Shaer. Sunrise has a chain of 7 cruises and 20 resorts placed in the most beautiful
locations in Egypt which are owned and managed by them.The Sunrise cruises are located in Luxor
and aswan. On the other hand, their resorts are mainly located in sharm el sheikh, Hurghada, Marsa
Alam, and Alexandria. Sunrise Resorts are considered as one of the significant All inclusive resorts
in the red sea area. Sunrise has succeeded in creating new standards in hospitality management in
Egypt. Sunrise is keen on offering a wide variety of services for their customers to meet all of their
needs, by providing each customer a personalized hospitality experience for them that not only
satisfies their needs but exceeds their expectations as well. Sunrise is serving all kinds of guests
whether traveling for honeymoon, family holidays, business, or for going on a new adventure.
They are also providing 3 levels of their resorts: the upper scale which is the Meraki resorts, the
luxury one which is the Sunrise select resorts, and the high end luxury which is Sunrise grand
select resorts. Sunrise also got many high ranks and awards like Holiday Check award for 2023 as
5 of the sunrise resorts were recommended by the holiday check, Traveler's choice for 2022 for
being one of the high ranked resorts, Top hotel partner 2021 and selected as one of the most popular
hotels by Schauinsland-Reisen and many other awards all around the years (Sunrise Resorts &
Cruises, 2023).

1.1 Vision statement.

Hyatt (2020), defined a vision statement as clear, inspiring, practical, as well as an attractive image
of your business’s future. A vision is a set of outlines for the future, an agenda or a road map for
members to follow and an illustration of what must be achieved. It may include long-term, future-
oriented goals. Briefly, it is the future that the employees want to create for the organization (Kaiser
et al, 2022). According to Ahmed & Masroor (2020) A vision statement addresses the question '
What does our company want to become?' also A vision statement motivates the organization's
employees to work efficiently and usually results in exceptional performance.
Vision statement for sunrise:

As for Sunrise The organization has a vision to be the Top resort and cruise operators in Egypt by
creating a unique innovative approach for their customers, stakeholders and associates, and turning
all what they dream of into reality ( Sunrise Resorts & Cruises, 2023). We aim to be one of the
dominating cruises and resorts operators, by using innovation and a unique approach to always be
remembered by our consumers, stakeholders, and associates. as we are devoted to making dreams
nourish and come true all over the world, and wherever we locate (Sunrise Resorts & Cruises,
2023).

1.2 Mission statement.

According to Okundia (2021), A statement that has a clear purpose, that differentiates a firm from
its competitors, while at the same time contains the firm's beliefs, priorities, and specifies what the
business stands for in terms of their values to reach their goals is a mission statement.
1.2.1 Old mission statement for sunrise hotels and cruises.
Conveying the most marvelous experience that outdelivers expectations by originating properties
in precisely chosen locations, complemented by personalized service, warmth and a pure style
(Sunrise Resorts & Cruises, 2023).

1.3 Comment on mission statement.

● The previous mission statement is missing the customers
● The previous mission statement is missing the competition
● The previous mission statement is missing the technology
● The previous mission statement is missing the philosophy
● The previous mission statement is missing the self concept
● The previous mission statement is missing the concern for employees

1.4 Proposed Mission statement

By providing a top notch service and quality straight from our hearts in exclusive locations. We
aim to be unique as well as extraordinary like no other hotel and cruise out there to be able to
expand globally. Sunrise optimizes itself by using the latest technology to be able to track our
guests' needs and demands, through our well maintained website and social media pages that
enables us to directly connect with our consumers with minimum barriers possible to ensure their
utmost satisfaction. We believe in consistent improvement of our special hotel by pushing
ourselves to always improve our management techniques and services.

Moreover, to always respect our employees and their personal boundaries, and to give them all the
training programs that they may need to always evolve their skills and to ensure their satisfaction
inside their workplace. Our philosophy is quality, hygiene and safety. as we have formed a special
department for quality that is always updated through our consumers demands and reviews. We
make sure to deliver hygiene and safety by collaborating with big brands to guarantee that our
guests are always comfortable and are enjoying a safe environment for an enjoyable vacation,
because we believe that the environment is our main responsibility.
Old Mission statement Proposed Mission statement

Conveying the most marvelous experience that By providing a top notch service and quality
outdelivers expectations by originating straight from our hearts in exclusive locations.
properties in precisely chosen locations, We aim to be unique as well as extraordinary
complemented by personalized service, like no other hotel and cruise out there to be
warmth and a pure style (Sunrise Resorts & able to expand globally. Sunrise optimizes
Cruises, 2023). itself by using the latest technology to be able
to track our guests' needs and demands,
through our well maintained website and social
media pages that enables us to directly connect
with our consumers with minimum barriers
possible to ensure their utmost satisfaction. We
believe in consistent improvement of our
special hotel by pushing ourselves to always
improve our management techniques and
services.
Moreover, to always respect our employees
and their personal boundaries, and to give them
all the training programs that they may need to
always evolve their skills and to ensure their
satisfaction inside their workplace. Our
philosophy is quality, hygiene and safety. as
we have formed a special department for
quality that is always updated through our
consumers demands and reviews. We make
sure to deliver hygiene and safety by
collaborating with big brands to guarantee that
our guests are always comfortable and are
enjoying a safe environment for an enjoyable
 vacation, because we believe that the
environment is our main responsibility.

2. Stakeholder Analysis.
A stakeholder analysis is an essential process which identifies everyone who is involved with the
firm and their interest, relationship, as well as their influence towards it. In order to be able to deal
with each of them before the project begins (Farmaki, 2019).
2.1 Customers:

Sunrise Organizations are dealing with local citizens, Tourists, Corporate customers, and Touristic
companies. Sunrise focuses on providing for all of their customers with a high quality and safe
experience through providing high quality services and having a hygienic and safe environment
for all of their guests. Also they ensure that all of the guests are satisfied by monitoring the guests
reviews and maintain a constant quality for their guests.

2.2 Society and environment:

In Sunrise they believe that their responsibility extends beyond their properties to the entire
society. Sunrise Resorts & Cruises are recognizing that their organization can have positive or
negative impact on the environment which will accordingly affect their business too, so they care
to implement all the environmental management practices in order to have a positive impact on
the environment and on their business community too. They control their water consumption, reuse
the water to irrigate gardens. Also, they do programs to reduce the yearly energy consumption like
switching lights only when inserting the room key card. They got a recycling system by separating
garbage and collecting used oil to recycle. They ensure that all the environmental activities are
passed for their guests by displaying it in the guests room.

2.3 Employees:

Sunrise has more than 4000 highly motivated and well trained employees which are considered as
a whole family. The organization does implement a fair employment policy that will guarantee the
employees efficiency and also their rights. The Sunrise Employment policy include market
studying to set a suitable salaries and benefits for their employees, The salaries include health and
welfare benefits, they provide a regular training program for their employees to be providing a
high level of personalized service for the guests, providing secure full time working places with
minimum one year contracts, do surveys to ensure the staff satisfaction, providing transportation
for the employees, and provide accommodation, recreation facilities & meals to our employees.
2.4 Competitors:

Jaz hotel group: Jaz in considered as a direct competitor for sunrise, it is a chain of one of the
largest and most prestigious hotel ownership and management chains in the Middle East, with 58
properties in Egypt under the flags of Jaz Hotels & Resorts, Magic World Club by Jaz, Iberotel
Hotels & Resorts, Solymar Hotels & Resorts, and Steigenberger Hotels and Resorts. It is located
in Marsa Alam, Hurghada, and has cruises in Luxor and Aswan.

Azur resorts: Azur is another direct competitor for Sunrise, it is an innovative hospitality
management service company founded in 1997, operates and manages a portfolio of all-inclusive
resorts, city and luxury hotels in some of Egypt's most beautiful coastal cities like Hurghada and
Marsa Alam

2.5 Government:

Sunrise hotel is working due to the Ministry of Tourism and Antiquities Policies and collaborating
with the government with the ministry in order revitalizing tourism in Egypt through trips for
foreign tourists and staying in their hotels. Also the General Union of Tourism and Hotel Workers
is responsible for taking care of all employees in the Tourism sector and guaranteeing their work
rights.

2.6 Suppliers:

As for the suppliers of Sunrise Resorts and Cruises They are working with agencies to provide
them with Foreign Tourists groups to stay in their branches and also get local guests to stay in their
different resorts and cruises. As for the hygiene and food safety they work with Cristal Middle
East Company to ensure that they provide their guests with the most enjoyable vacation
experience. Also they work with Travel life agency which is a globally active agency that is
engaged in environmental monitoring in the hospitality industry to ensure that they are using the
most environmentally friendly techniques and policies possible. They have suppliers who provide
them with the sports equipment needed for the resort gyms. They also cooperate with furniture
companies to provide them with the furniture they demand from beds, chairs, and tables for the
rooms and receptions.
2.7 Shareholders:

The main shareholder known for sunrise group is Hossam Gouda El Shaer he is the owner of the
group since as an entrepreneur he created the resorts back in 2002. He also foresees the operations
and the management at the hotel as he ensures that the operations are going according to plan by
holding meetings on a regular basis to keep up with the managers and employees in the chain of
command.

2.8 Managers:

For the managers at sunrise resorts it was reported that there are 185 managers who work for
sunrise hotels to ensure the utmost satisfaction for the consumers all over Egypt. They also inspect
the workers inside each location to make sure that they are doing their job effectively and
efficiently and that they are always highly motivated. and that would include Mr, Mohamed
Hmady which the project manager for the hotel, Mr Alaa El sayed the general manager, as well as
Mohamed Hany which is the hygiene specialist.

3. Corporate social responsibility.

Latapí Agudelo, Jóhannsdóttir, & Davídsdóttir (2019) have defined corporate social responsibility
(CSR) as concept that is used by a business’s management inorder to incorporate environmental
as well as social concerns inside their business operations, not only that but their interactions with
the their stakeholders as well. thus, providing a well maintained positive brand image for the
company, adding to that CSR also provides the business with a favorable relationship with their
consumers and their stakeholders.
3.1 Corporate social responsibility towards the environment for sunrise hotels and cruises.

According to the annual sustainability report that sunrise hotel and cruise hold, they have
mentioned that it is extremely of high importance to give back to the environment as they strive
on a daily basis to save up their energy by replacing all night lamps with energy saving led lamps
and water consumption by putting “save water” stickers inside the bathrooms to remind the guests
as well as, recycle the waste that is caused by their hotel whenever it is permitted. Moreover, they
are now working towards using sustainable technologies in order to include renewable energy in
their operations. Sunrise has succeeded in doing that starting from 2021 where they were able to
give back to the environment by reducing the energy consumption per every single guest they had
this year by 1.5%, reducing the water consumption inside the hotels and cruises by 0.10 per night.
reducing the output of the water waste by 5% as well as, further improving the safety and health
standards for the hotel consumers. The hotel has also been working in further developing and
elevating their social responsibility activities by reducing, reusing and recycling on a regular basis
(Sunrise hotel and cruises, 2023).
3.2 Corporate social responsibility towards the employees for sunrise hotels and cruises.
The official sustainability report has stated that giving back to their employees is also a crucial
element and they do that by ensuring that they give every single employee the same fair treatment
equally over the period that they are working for the hotel chain. as the management of the hotel
ensures to work hard to make sure that there is no place for discrimination inside the hotel and that
would include political, social, religious, as well as, sexual discrimination. The hotel also ensures
to give the employees training on social, environmental, as well as safety and health issues to be
able to deal with any situation that concerns the environment. Furthermore, the management keeps
the staff of the hotel up to date by communicating their programs, policies, and practices and
providing the required resources for the sake of achieving their objectives and targets (Sunrise
hotel and cruises, 2023).

3.3 Corporate social responsibility towards the society for sunrise hotels and cruises.
Sunrise has also been keeping an eye out for the society by giving back to it in the form of
donations as they have formed donation boxes inside each hotel and cruise's lobby and at the end
of the year they ensure to take all the donations and donate in the orphanage account for instance
back in 2018 they have managed to raise over 40,000 EGP in donations. They also contribute to
the society by doing orphanage visits where the management and staff all engage together in going
and visiting orphanages and interacting with them by doing several activities that bring joy to the
children's hearts. Furthermore, they contribute by participating in special education home visits by
interacting with special needs kids. The famous Egyptian hotel has also, considered the local
community by donating for the renovation of the Ibrahim ElGabry School, and electricity works
for some of the special education schools. Most importantly they ensure to include small Egyptian
business as they know the struggle of being a small Egyptian business by ensuring that they buy
all their products from small local businesses for example back in 2018 they have purchased 85%
from their products locally. Sunrise also holds world environment day where guests and the staff
work together in order to preserve the environment. and by holding meetings for the guests in order
to inform them of the environmental concerns that are happening to raise their awareness and to
solve it hand in hand (Sunrise hotel and cruises, 2023).
 4. Purpose of External analysis:

External analysis is the identification of factors that influence challenges and competition within
the industry. The factors are defined as any trend or event that is beyond the control of any
company in the industry (Sholihah et al, 2019). The external analysis includes environmental
factors such as competitor and partner organizational characteristics as well as relevant social,
technological, economic, environmental, and political trends. Typically, organizations have little
or no control over external factors (Lurati & zamparini , 2018). External analysis is becoming
increasingly important as the economic climate becomes more complex and uncertain. The
company through the external analysis can identify key external environment factors by creating
a list of opportunities and threats and then design Strategies to maximize opportunities or minimize
the impact of possible threats in order to survive and beat competitors. The primary method for
external analysis is to acknowledge the current situation, imagine the best future state, and then
fill in the gaps and establish the organization’s desired direction (Kawiti & Namada, 2023).

4.1 Pestle analysis:

The Pestle analysis has been used as an approach for strategic decision-making and to help develop
future scenarios and business strategies (Capobianco et al, 2021). The Pestle analysis focuses on
the impact of external macroeconomics variables on a project or industry ( Zhou & Yang, 2020).
PESTLE analysis is frequently used to uncover issues that are primarily qualitative in origin and
thus difficult or unsuitable for quantitative resolving. It can be used to analyze and break down
various problems in a more holistic approach (Yudha & Tjahjono, 2019).
4.1.1 Political Environment:

4.1.1.1 Taxation changes:

After the End of The COVID-19 pandemic which hugely affected the tourism sector in Egypt
leading to a huge loss in Tourism and all other industries, President Abdel Fattah El Sisi in order
to help return the sector and encourage Tourists to come to Egypt again; he directed decisions to
exempting tourists from value-added taxes. Based upon those directions, The Dr. Mohsen El
Gayyar “The Director of the Registrars Department at the Egyptian Tax Authority“ has informed
that reducing the value added taxes for tourists would help promoting for the Egyptian Tourism
and encourage tourists to get back to Egypt. El-Gayyar explained that this measure would raise the
number of tourists purchasing Egyptian goods in the duty-free markets at a reasonable price and
without risking any tax burden because the price of goods will be 100% instead of 114% so the
tourist is receiving a 14% discount (Mohammed, 2021). Also The Egypt’s Ministry of Finance
plans to build an electronic system in the country’s sea, land, and air ports to make refunding value
added tax to foreign visitors or tourists easier. According to the decree, VAT will be refunded for
purchases worth more than EGP 1,500. The refund process will take place as tourists return to their
home countries from Egyptian ports and this aims to increase shopping tourism in Egypt and
transform the country’s tourist resorts into global shopping destinations (El Ahram, 2021).
4.1.1.2 Russia & Ukraine War:

The crisis between Russia and Ukraine which resulted in Moscow’s invasion has thrown a shadow
over Egypt’s tourism industry, which is highly dependent on visitors from both countries. In the
month of February 2022, there has been a reported 30% decrease in tourism bookings from
Russians and Ukrainians even before the invasion, as protests continued as Russia amassed troops
along the Ukrainian border (Al-Monitor, 2022). This was a huge loss for the Tourism industry in
Egypt as the number of Russian and Ukrainian tourists visiting Egypt, has been always placed at
the top of the list of the country’s foreign visitors. Despite losing a very high number of tourists,
For the Russian and Ukrainian tourists that were staying at Egypt, Many Egyptian hotels and tour
agencies were owed money by Russian and Ukrainian tour agencies and have a difficulty receiving
their dues (Al ahram, 2022).

4.1.2 Economic Environment:

4.1.2.1 Devaluation of the Egyptian pound:

The Egyptian pound has devalued by around 50% against the dollar over a 10 month period, as a
result the price of imported food and other goods has skyrocketed. The currency has plunged to
29.50 pounds to the dollar before settling down to 30.77 at the moment. Accordingly, the inflation
rate increases which cause a drastic increase in prices and reduce the individuals’ purchasing
power. However, The devaluation of the Egyptian pound on the other side benefits the tourism
sector in Egypt by offering a good value for money and affordable services to tourists, both of
which are important factors in attracting tourism to Egypt (Rfi, 2023). Although the devaluation
benefits the tourism sector and tourists, on the other it harms the Egyptian citizens as the dollar's
rising price causes an increase in products prices in Egypt which reduce their buying power.

4.1.2.2 Unemployment Rate:

Egypt’s unemployment rate fell slightly to 7.2% in the fourth quarter of 2022, down from 7.4%
the previous year. The number of unemployed has decreased by 19 thousand to 2.18 million, which
will benefit tourism in Egypt and contribute to the sector’s growth. Unemployed Egyptians held
intermediate or higher education credentials in the proportion of 83.2%, with 37% holding
intermediate certificates such as technical degrees and 46.2% holding university degrees (Trading
Economics, 2023).
4.1.3 Social environment:

4.1.3.1 Positive attitude of Egyptian citizens:

Egypt is best described as a Low-Cost Tourism Magnet. According to the World Bank (2023), the
tourism industry employed 10% of the population and contributed about 12% of GDP prior to the
pandemic. Egypt ranks 1st in Africa and 5th in MENA, and 51st worldwide in the travel and tourism
development index. It ranks first in the MENA region for environmental sustainability, natural and
cultural resources, and business and cultural travel. With such a population of over 100 million
people, Egypt is a popular destination for outdoor activities as well as a place of rich cultural
diversity (UNDP, 2022).

4.1.3.2 Geographical trends:

All the Organizations in Egypt are moving forward for expanding and opening in the new
established cities known as the 4th generation cities like the new administrative Capital, El Galala
and El Alamin for getting new growth opportunities and reaching new communities. Thus, Sunrise
hotels can extend their branches by opening in the new cities like El Galala which is creating new
integrated urban communities on high international standards and has unique geographical location
that overlooks the red sea coast. Also, in El Alamin new city as it is lies on the Mediterranean Sea
and the first of its kind and a all year round destination (Turner, 2022).

4.1.4 Technology environment:

4.1.4.1 Smart Tourism:

Nowadays, the use of smartphone technology is one of the most important aspects of modern
people’s daily lives. Information Technology has played a significant role in the tourism industry
over the last decade by leveraging the benefits of new technology. Technology has assisted in
lowering costs, improving services, increasing operational efficiency, and improving customer
experience. Customers and businesses alike can benefit from improved communication,
reservations, transportation, and guest service systems, which have assisted in the replacement of
expensive human labor with technological labor (Mohamed, 2018). Sunrise implements this smart
technology by providing a website that has all the services a guest can need which facilitate the
reservation, contact process. It also has an application that guests can download when they arrive
at the hotel to make their stay much easier and services more accessible as It can help them with
ending their reservation process and order food to the room from it or reserve in the restaurants
that are in the resort.

4.1.4.2 Using big data in tourism sector:

The use of big data can hugely impact the tourism sector positively as the data they got are more
reliable because it is based on real user’s actions rather than samples while they are searching in
the travel websites or making reservations on the hotels websites and this allows to consider all of
this data gained by users in order to predict more accurate the demands of customers, get more
targeted marketing, and improve customer experience which will accordingly led to increase the
revenue in the tourism sector (Mohamed, 2018).

4.1.5 Ecological environment:

4.1.5.1 Energy conversion:

Egypt in the last years had heavily focused on sustainability activities like recycling waste, saving
water and energy, air pollution and climate change challenges. Also COP27 held in Egypt which
mainly discussing sustainability activities need to be implemented around the world. Thus, Sunrise
resorts & cruises has a goal to reduce energy consumptions without affecting the guest’s comfort,
They started in 2018 finding Non-conventional solutions for energy consumption using Alternative
Energy like Photovoltaic cells, solar water heaters and got minimize the energy consumption by
9%, their goal was that by the year 2019 they got to reduce energy consumption per guest night by
3% and they achieved this goal and set a new goal with reducing and achieving 1.50% per guest.
(Sunrise Resorts & Cruises, 2023).
4.1.5.2 Waste management:

Sunrise resorts & cruises are collaborating with travel life agency to be part of the corporate
campaign called “love food, hate waste “ to raise guest awareness about food waste and how to
reduce it and inform guests that they should not take food more their need . They are committing
to eliminate single use plastic with all of their hotels, reducing food waste that results from
overproduction, implementing separation waste, collecting used oil for recycling and invest in
local, organic, or sustainable dinning options (Sunrise, 2023).

4.1.6 Legal environment:

4.1.6.1 Child protection policy:

Egypt condemns all forms of child exploitation, as Egypt bans hiring children and advocates for
the removal of exploitative child labor. Sunrise Resorts & Cruises also supports laws that are duly
enacted to prevent and punish child sexual exploitation. They assure the hotel staff that if any one
of them sees a child being abused or exploited to immediately inform the senior management and
local police (Sunrise Resorts & cruises, 2023).

4.1.6.2 Labor regulations:

Sunrise resorts and cruises consider their employees as their valuable assets and recognize their
ethical and legal obligations to care for them, they do believe that by treating their employees well,
they will continue to provide excellent service to customers. Sunrise make sure they have a fair
system that all applicants for available positions are given equal consideration and does not
distinguish and accept applications from all candidates, regardless of gender, age, race, religion,
nationality, or disability (Sunrise Resorts & Cruises, 2023).
5. Porter’s Model:
Porter’s model is a model that inform all the threats and opportunities in the organization’s external
environment in order to formulate a strategic plan for the organization and this was done by Porter
identifying in this model five competitive forces that shape any industry in market: new investor
entry, threat of substitutes, buyer bargaining power, supplier bargaining power, and rivalry among
existing competitors (Göral, 2021). The nature and intensity of competition in the industry are
influenced by Porter’s five competitive forces. This collection of forces determines a business’s
profit capacity (Asemi et al, 2022).

5.1 Threat of new entrants: (Low)

The threat of new entrants is the risk that firms face from entering new firms in the same industry
which will higher the risk of competition (Göral, 2021). There is many barriers that been found for
entering the tourism industry which are the expertise, economy, regulations and polices,
government attitude, manpower, management, marketing, infrastructural factors, and facilities and
tourist attractions (Lou et al, 2019). All those barriers will lower the threat of new entrants entering
the industry and make it more difficult to gain an advantage. So any new businesses must have
differentiating factors so that they can enter the industry and compete with other competitors.

5.2 Rivalry between existing customers: (High)

It is considered as a way to measure the competition intensity between the existing firms. The
extent to which rivalry reduces an industry’s profit potential is determined by two factors which
are the intensity with which companies compete, and the basis on which they compete (Goyal,
2020). There’s a high level of competition facing Sunrise as there’s a high number of hotels
competing in the same areas with similar factors such as Jaz hotels, Azur hotels, albatros hotels,
and hilton hotels which raise the need of differentiating from other competitors in the same
industry by creating a competitive advantage. Having a high number of existing competitors is
considered a high threat for the business so it must always have an edge in differentiating itself
from others in the industry and keep its market position stable as much as possible.

5.3 Threats of substitutes: (High)

It refers to the competition that is created in the industry by substitute products and it occurs when
a customer is faced with a choice between products that may offer the same level of utility (Goyal,
2020). The threat of substitutes that Sunrise face is relatively high as they are too many options for
customers to choose from regardless, the high number of hotels options that customers can choose
from, also nowadays there are many substitute for hotels like Airbnb, hostels, motels, and inns as
customers can rent an apartment for a lower price or stay in a hostel which is also a lower price
option. So, those substitutes are considered as a high threat for hotels as it gains hotel’s customers
and gives them an alternative option which will harm the hotels and put it at a high risk of losing
some customers.

5.4 Bargaining power of buyers: (Moderate)

It refers to the ability of customers to compel price reductions, offer higher quality products or
better customer service (Gayol, 2020). For Sunrise the bargaining power of buyers is moderate
because customers have the flexibility to change hotels and choose the suitable option for them
anytime, the internet helped customers to have all the info they need to know about each hotel and
its prices to make their final choice, and that’s put sometimes the customer in higher position as
they can pressure the hotels to do better offers in order to attract them. But on the other hand, the
bargaining power of Tourists are way more important than normal citizens as normal citizens
purchasing power is lower than tourist’s purchasing power. So the moderate bargaining power of
buyers pose a moderate threat for hotels as it could anytime reduce their profit potential.

5.5 Bargaining power of suppliers: (Low)

It is the pressure that suppliers put on businesses which can be by raising prices, reducing products
availability, and decreasing the quality. It also shapes the competitive environment within the
sector and helps to determine the attractiveness of an industry (Asemi, 2022) . The bargaining
power of suppliers towards hotels is relatively low as hotels can maintain control over suppliers
by creating fear for suppliers of losing their businesses for other suppliers. Control over suppliers
can be by having other suppliers as a backup plan option. The suppliers of Sunrise include suppliers
of food and beverage, maintenance, and infrastructure. For Sunrise it has a high brand value and
has many options for suppliers and this will reduce the bargaining power of the suppliers. So
Sunrise poses a low threat towards suppliers which will make it more of an attractive industry and
increase the profit potential.

6. Strategic group mapping (SGM):

Strategic group mapping is a visionary tool that is used to compare data with other industry
competitors that have similar functions and similar market share as well (Han et al, 2022). Strategic
group mapping analysis is a market and competitor analysis technique that studies the
Organizations that compete in the same industry. It can assist institutions on identifying possible
markets, identifying target segments, and provide competitive strategies (Wilkins, 2020).
6.1 SGM for Sunrise:

6.2 Comment on SGM:

According to The SGM, it has been found that Sunrise are considered from A Category of the
highest resorts in ratings and number of Visitors as well as Jaz and Hilton hotels. As for the middle
category Sea gull, Palm Beach, and Hawaii le jardin were having an average number of visitors
and ratings. For lowest ranking, Sand beach resort and La boutique beach recorded the lowest
ratings and number of visits.

7. Competitive Profile Matrix (CPM):

CPM is a tool that compares a business and its competitors, revealing their strengths and
weaknesses. Companies frequently use CPM to better understand the external environment and
competition in a specific industry. The matrix identifies and compares a company’s key
competitors based on industry key indicators of success. The analysis also reveals the company’s
weaknesses and strengths in comparison to its competitors, allowing a company to determine
which areas require improvement and which require protection (Anh & Tien, 2021).

7.1 Table of CPM:

Critical Weight Sunrise Resorts & Jaz Hotels & Hilton Hotels
Success Hotels Resorts
Factors
Rate Weighted Rate Weighted Rate Weighted
Score Score Score

1) Ratings 0.05 4 0.2 3 0.15 2 0.1

2) Service 0.1 4 0.4 4 0.4 3 0.3

Quality

3) Food 0.1 3 0.3 4 0.4 2 0.2

Quality

4) Location 0.2 4 0.8 3 0.6 4 0.8

5) Prices 0.1 3 0.3 2 0.2 4 0.4

6) Safety 0.2 4 0.8 3 0.6 3 0.6

7) Brand 0.05 3 0.15 3 0.15 4 0.2

Reputation

8) Innovation 0.1 3 0.3 2 0.2 3 0.3

9) No. of 0.1 3 0.3 3 0.3 3 0.3

visitors
 Total 1 3.55 3 3.2

7.2 Comment on CPM:

The total score of Sunrise Resorts & cruises is 3.55 which is considered as the highest score above
all. Furthermore, the total score for Jaz Hotels & Resorts and Hilton hotels was 3 and 3.2.
Accordingly, Hilton Hotels are considered as the first competitor for Sunrise Resorts & Cruises
and Jaz Hotels & Resorts come as the second competitor for it. For Sunrise to compete better with
competitors it should focus on strengthening innovation, working on increasing food quality,
improving their prices, and building their brand reputation.

5. External factors evaluation (EFE):

The EFE Matrix is used to evaluate the impact of external factors on the company. The EFE
Matrix, which is calculated using ratings and weights, describes the situation of a company’s
opportunities and threats (Lazuardy et al, 2022). The EFE is important for taking advantage of the
existing opportunities and minimizing any possible threats.

8.1 EFE Table:

External Factors Weight Rate Weighted
Score

Opportunities

1. After the devaluation of the Egyptian 0.1 4 0.4

pound hotel prices became more appealing
to tourists

2. Emergence of Artificial Intelligence in 0.05 4 0.2

hotel industry
3. Increasing demand of Sustainability 0.05 3 0.15
nowadays

4. People’s Awareness about Civilization 0.1 4 0.4

5. The end of Corona worldwide 0.05 4 0.2

6. Collaborating with Local Suppliers to 0.05 3 0.15

benefit from local sourcing trend

7. Customer database for personalized 0.05 3 0.15

marketing

Threats

1. Political factors that prevent Egypt from 0.1 2 0.2

getting tourists

2. Decreased GDP in Egypt which affect the 0.05 3 0.15

whole economy negatively

3. Labor Shortage in Tourism industry in 0.1 2 0.2

Egypt

4. Strong Competition among hotels which 0.1 3 0.3

could lead to lose market share

5. Pandemics like Covid-19 which affect the 0.1 1 0.1

tourists visiting Egypt

6. Changes in customer preferences towards 0.05 3 0.1

needs and wants

7. Airbnb / apartment rental industry which 0.05 2 0.1

compete the hotel industry
Total 1 2.8

8.2 Comment on EFE:

The result of EFE analysis for Sunrise resorts & cruises is above average which means that the
opportunities of this industry is more than the existing threats on the market. So, this market is
very attractive for investors and hotel owners to operate in such an environment. However there
are some barriers that might face investors like capital requirements and competing with strong
brand names.

9. Internal analysis:
Internal analysis is the analysis that is used to identify weaknesses and strengths in an
organization's internal environment (Karunarathne, 2021). Thongsookularn (2019) defined
internal analysis as the process in which all internal factors within the organization is examined
to evaluate its characteristics, resources, and capabilities for identifying points of failure and
success in the organization and how to deal with it. Internal analysis is determining the controllable
internal factors in an organization that may help or obstruct the organization to achieve its objective
respectively (Phadermrod et al, 2019).

9.1 Purpose of Internal analysis:

Internal analysis is used to determine the ability of a business to develop (Fauzi & Cariawan,
2019). The primary goal of the internal analysis is to allow the company to assess its own strengths
and weaknesses before beginning work on a strategic planning (Sholihah et al, 2019). Internal
analysis has a huge role assisting organizations to enhance its core activities. It aids corporate
executives in identifying many ways to improve their operations (Quezada et al, 2019).
9.2 Resources & Capabilities:
When resources are integrated with the goal of developing one or more tasks in the firm,
capabilities exist. Furthermore, capabilities are typically acquired through employee training,
learning, and knowledge exchange (Prieto‐Sandoval, 2019).

9.2.1 Table of Resources & capabilities:

Types Resources Capabilities

Physical • Land • Sunrise has multiple locations in Egypt in several

• Buildings governorates.
• Facilities
• Services • Sunrise has many buildings as it operates in many
• Equipments locations around Egypt. Sunrise buildings is very
• Innovation important as it is the face of the company and what
influences and attract customers for staying at
Sunrise.

• Sunrise's rooms include many facilities such as

bed, Television, bathroom, kettle, and mini bar
fridge.

• Sunrise provide customers with different services

like Sports and fitness bh providing courts for each
sport and offering Yoga, dance, aerobics and
meditation classes. They also provide water
activities like sailing, kayaking, snorkeling, wind
surfing, and jet skiing.

• Sunrise also includes having fire detectors, Fire

extinguishers, dryers, washers, modern stoves, and
 refrigerators.

• Sunrise hotels provide chatbots on their social

media pages that answer customers questions and
saves time. Also Sunrise supports Contactless
payments, mobile check in, and provide virtual
reality room tours for customers.

Technological • Website and app • Sunrise has a website that has all the info needed
• Software about the hotel and its locations, also customers can
•Forecasting through book their rooms through it.
AI
• Sunrise has an app on google play that guests
could download it in order to facilities the
reservation process and could provide them with a
full info about the services the hotel provide their
different programs.

• The hotel has different softwares installed on the

staff's computer which is essential for the
reservation process, saving guests data, and check
in and check out process.

• Sunrise uses AI for forecasting customer's

preferences and retain customers by doing loyalty
programs and customized offers.

• Also, the data collected after that enables the hotel

to categorize guests based on their preferences and
budgets.
 Human • Employees • Sunrise employees are mainly local staff with a
• Training programs small number of foreign staff members employed
• Employees rights in each department in order to cover the different
language needs.

• Sunrise provides internal training programs in

order to increase knowledge and improve skills of
the staff and open perspectives for higher positions.

• Sunrise ensures that it provides employees safe

and appropriate standards of working conditions,
and gets employees benefits in equal rights without
distinction of gender or ethnicity.

Financial • Financial statements • Sunrise has strong annual financial statements.

• Market Share • Sunrise has a huge market share in the hospitality
industry in Egypt as it holds more than 27 Resorts
and Cruises all over Egypt.

9.3 Value Chain analysis

Mukhtar, & Azhar (2020). Has defined the value chain analysis as, a process where the company
evaluates all of its activities in their own value chain to gain more insights about their points of
opportunities in order to prove value for their consumers thus, gaining a competitive advantage
by studying their primary and secondary activities. They have mentioned its importance as it
helps the company in decreasing their costs while increasing their production efficiently.
9.3.1 Value chain for sunrise

9.3.2 primary activities

The primary activities for any company revolve around their inbound, operations, outbound,
marketing and sales, as well as their service (Mukhtar, & Azhar, 2020).

9.3.2.1 Inbound logistics

Inbound logistics is defined as the way that the goods and raw materials are being transferred to
any firm, before the company begins the process of processing the materials to be able to deliver
a final product for the consumer. By creating a strong relationship with the company’s suppliers
to gain their mutual support which will enable the firm to deliver value with the highest quality
(Kolesnikova, 2022).

Sunrise resorts and cruise has excelled at being one of the best luxury destinations by providing
13 resorts and 7 cruises, some may preview that they are not that scattered around the world,
however each resort and cruises lies in a touristic destination inside Egypt making it a prime choice
for every local and tourists. Being luxurious keeps the management on high alert while providing
their food thus, the management ensures to get the best food and beverage by having a great
relationship with their food and beverage suppliers. Moreover, the hotel ensures to get top notch
appliances that will later aid them in provisioning high quality stay for their guests. Sunrise also
ensures that they hire the right employees that will do the job right (Sunrise Resorts & Cruises,
2023).

9.3.2.2 Operations
This next stage is the process of transformation of the goods and services that were recently
mentioned in the inbound logistics and the way that they are being transmitted into the final product
that will please the guests (Kolesnikova, 2022).

The analysis of the operational activities is of high importance, as it can make Sunrise
distinguished from its competitors thus, gaining a competitive edge and in return having a better
positioning inside the consumers mind. all of that is achieved as Sunrise makes sure that they take
well care of their inventory management, Research and development, and providing personalized
services that no other hotel provides such as, the Royal club which is only for elite members of the
society, the club makes the guest go out of their normal mundane holiday and elevates their stay
by offering personalized services, exclusive services and exclusive access to specific services
(Sunrise Resorts & Cruises, 2023).

9.3.2.3 Outbound logistics

At this stage outbound logistics describes the process of how the final product is being delivered
towards the final consumer (Awan, Sroufe, & Bozan, 2022).

outbound logistics must be well optimized if any company wants to succeed in the market. and
that is exactly what sunrise intends to do every single day. They thrive every single day by
providing over the top room service that leaves each guest with maximum satisfaction, as they do
not have to worry about the hassle of going on vacation and by providing their wishes almost
immediately. The best of the best restaurants are also one of the main assists for sunrise resorts
and cruises as they provide high food quality as well as ensuring the cleanliness of the space to
make the guests trust them more. tSunrise even describes dining as an experience as they aim to
be remembered by the guests for their quality food which is extremely versatile to be able to
acquire everyone's special food taste. The resort also makes sure to provide high quality services
and transportation services that transport the guests from the resorts directly to the comfort of the
private beach owned by the hotel to ensure their well being, comfort and safety (Sunrise Resorts
& Cruises, 2023).

9.3.2.4 Marketing and sales

Marketing and sales are all the methods used by the company’s marketing team in order to attract
the targeted consumers attention thus, generating more awareness towards their business and in
contrast increasing their sales and meeting their expected demand (Mukhtar & Azhar, 2020).

Sunrise differentiates itself from other competition as their marketing team excelled in that
providing sunrise what they aim which is consumer awareness, they do that by making sure to
show their point of difference by offering the best promotional packages that will be suitable for
its guests, as they have special offers for each of their resorts individually such as their offers for
the Arabian Beach resort, Royal Makadi resort, and Romance resorts. They also include offers for
romantic getaways, birthday celebrations as well as honeymoon packages. Sunrise is also well
advertised on Booking.com as well as Google search engine, and social media as they are the best
methods that are able to reach their target segments effectively and efficiently. they also, offer
competitive pricing as they are perceived as higher quality among competitors for lower pricing,
the hotel being next to all of Egypts attractive touristic destinations and at good prices gives sunrise
the best competitive advantage especially since the devaluation of the Egyptian currency the
tourists are preferring their stay at sunrise as it proves the same luxuries vibes at a better price than
other competition (Sunrise Resorts & Cruises, 2023).

9.3.2.5 Service
A great aftersales and post sales service is vital for any organization, as the company’s goal is not
to gain awareness and make purchases only, but to keep the consumer interested by offering value
through their services that will eventually could be a key part in distinguishing them from the
competition (Park, & Jeong, 2019).

Any company's aim is not to make the consumer aware of their brand, it is making them loyal, and
creating a strong bond with their customers, as if the consumer purchased once and did not like
the product due to the poor quality of the after sale service they would just not come back. making
the company lose repeated purchases. a loyal customer however would ensure to come back even
if the prices increased they would come back because there is mutual trust between the company
and the customer. Sunrise does exactly that by providing top notch customer service, post customer
service and after sale service. They do that by providing wellness and spa services that bring the
guests relaxation throughout their stay at their fingertips. by hiring well trained and highly
professional masseuses and masseurs that know how to provide the guest with the best quality spa
experience that will leave them satisfied throughout their stay at the resort and the cruise. Value
added services are also provided by the hotel as romantic dinners on the private beach of the resort,
beauty salon services, gym and fitness services. their post sale services comes in the form of
customer service as they ensure to keep in touch with their guests through emails, phone calls and
text messages to ensure that they enjoyed their stay at the resorts and cruises moreover, if there
was any complaints that they could attend to, to further expand their services and be better for their
next stay in the resort or the cruise (Sunrise Resorts & Cruises, 2023).

9.3.3 Support activities

Support activities are all the activities that help the primary activities in reaching its full potential
by facilitating and coordinating thus reaching the maximum effectiveness and efficiency (Kano,
Tsang, & Yeung, 2020).

9.3.3.1 Firm Infrastructure

The firm's infrastructure consists of several activities performed by the firm. Those activities may
include Finance and accounting, team planning, team management, and organizational
infrastructure (Jones, Demirkaya, & Bethmann, 2019)

When Sunrise optimizes the infrastructure of their firm this will open many opportunities for them
to enhance their value chain and in contrast this will enable them to gain a competitive edge, thus
having better working conditions by having better control over activities of their infrastructure
such as the finance and accounting, well effective team management, planning and buildings all
of these are done effectively by sunrise resorts and cruises which ensure them higher market share
(Sunrise Resorts & Cruises, 2023).
9.3.3.2 Human resource management
Human resource management (HRM) is one of the vital aspects that a firm must seek to expand to
its full potential as when all the departments work together in harmony this will make the company
gain a competitive edge against its competition. HRM includes activities such as recruiting,
training, selecting, or rewarding employees (Stone, Cox, & Gavin, 2020).

a well established organization must have a great foundation. and every organization foundation
is their employees. That is why Sunrise takes pride in their 4000 employees that are well trained
and highly skilled to be able to deliver outstanding experience to the guests at the hotels. as they
were carefully picked by the human resource management. The management makes sure that these
employees go through the recruitment process, and then they carefully select them based on their
expertise as at the end of the day they represent the company. then they employ them however the
employees go through further training to ensure that they are capable of keeping the resorts and
cruises repartition high. Sunrise HRM also makes sure to give back to the workers in the form of
motivational incentives that will make them work harder (Sunrise Resorts & Cruises, 2023).

9.3.3.3 Technology Development

In today's competitive environment the company’s value chain activities are highly dependable on
all the technological support it can get, as they support it and ensure that the business thrives to its
full potential. Technological development includes up to date technology, as well as artificial
intelligence. technology must be integrated in all departments inside the company to increase its
performance and increase its outputs efficiently and effectively with minimum cost (Jones,
Demirkaya, & Bethmann, 2019).

Sunrise makes sure to use the technology development by launching their own application that
guests can download when they arrive to the hotel to make their stay more flexible and easier as
the guests can order room service or book for the spa directly from the application without having
to call anyone and book an appointment, they can also book another stay from the application
directly as they would get special offers. Artificial intelligence is also, being implemented by
sunrise to know the amount of guests that would be staying during the busy seasons and according
to that buy the equipment and materials they need and not over buy or underbuy thus giving them
a cost benefit advantage (Sunrise Resorts & Cruises, 2023).
9.3.3.4 Procurement
Procurement is when the company takes action and starts the process of purchasing important input
assets that contribute to delivering the product to the final consumer; those may include, the
buildings, facilities, lands, equipment, supplies, materials and many more (Mapanga, & Garidzirai,
2021).

Procurement activities are taken highly into account when being implemented by the management
of sunrise as the better the optimization of the procurement activities the better the outcomes of
the inbound, processing, and the outbound as they are linked together. procurements as facilities
for consumers, equipment and raw materials are picked out carefully and well optimized by the
management of sunrise resorts and cruises as they contribute to smooth as well as easy services.
and the management does just that by using their procurement and making sure to use them in
providing well designed and comfortable stay inside spacious rooms, high quality consumer
services, and well trained staff

9.4 Internal Factor evaluation (IFE):

The IFE matrix is an analytical strategic formulation tool that assists in evaluating the internal
environment of an organization and categorizing its factors into strengths and weaknesses (Ben-
Abdallah, 2022).

Key factors Weight Rating Weighted

score
Strengths

1. Online booking engine that Sunrise 0.05 3 0.15

have on their website

2. Sunrise delivering great customer 0.1 4 0.4

experience towards its customers

3. Strong brand image of Sunrise hotels 0.05 3 0.15

and resorts

4. Sustainability implementations in 0.05 4 0.2

Sunrise hotels

5. Strategic locations that Sunrise have 0.1 4 0.4

in Egypt.

6. Sunrise been known for Following 0.05 4 0.2

Environmental Policies

7. Implementation of children protection 0.05 4 0.2

policies in their hotel branches

Weaknesses

1. Expensive prices compared to other 0.1 3 0.3

hotels in the same segment

2. Diversity in staff attitude as some are 0.05 3 0.15

professional and some not

3. High operating costs which lead to 0.1 3 0.3

increasing cost of services

4. Dependance on Tourism and seasons 0.1 4 0.4

5. Lack of self serve options in Sunrise 0.05 2 0.1

hotels and resorts

6. No loyalty programs for frequent 0.05 2 0.1

guests

a. Lacking some certain 0.1 4 0.4

facilities in rooms

Total 1 3.45
9.5 Comment on IFE:

The result of IFE shows that it is above average which means that the strengths of Sunrise are
more than the weaknesses which makes it more attractive in the market and can compete in the
market.

III. Strategic choices.

Generating strategies.

1. Strategic position and action evaluation matrix (Space Matrix).

Space matrix, which stands for strategic position and action evaluation matrix, was defined by
Wardhani, & Dini (2020), as a management mechanism that is required in examining a company’s
strategic position. The space matrix is supreme to any company existing as it is utilized by the
company to foresee what strategy they should implement. to gain deeper insights into the space
matrix and how businesses take advantage of it. The matrix is then broken down into four different
divisions that contain two internal factors as well as two external factors, each factor is distinct
from the other. Further, Space matrix is used as a foundation for other analysis such as, Industry
analysis, Boston consulting group (BCG) Matrix, Internal-External IE Matrix as well as SWOT
analysis. The company then determines its position in the market after evaluating their
effectiveness and efficiency in each quadrant of the four.

The first position being the external financial position, which includes two dimensions the Stability
position (SP), which is measured by factors as, competitive pressure, rate of inflation, barriers to
entry into market, technological change , price range of competing products, and demand
variability. As well as, Industrial Position (IP) that includes factors such as, ease of entry into
market, profit potential, resource utilization, financial stability, growth capital, technological
know-how, and capital intensity.

The second position is the internal strength position, that includes first the financial position (FP),
this dimension measures factors such as, risk involved in business, leverage, liquidity, cash flow,
capital required, ease of exit from market, and return on investment. The second dimension would
be the competitive position (CP), that is used to measure the factors such as, technological know-
how, product quality, customer loyalty, market share, vertical integration, and product life cycle.

Moving forward the space matrix also is divided into horizontal axis that has both the financial
Position (FP), and the Stability position (SP) and vertical axis includes the Industry Position (IP)
and the competitive Position (CP) and four different quadrants, Aggressive position, conservative
position, defensive position, and conservative position. After the business asses its position in the
market by using these four dimensions the space matrix then recommends which quadrant the
business is in. The company’s positions in the FP and IP positions are assigned a numerical value
in which +1 is the worst and +7 is the best. and on the other side for the SP and the CP -1 is the
best numerical value while -7 is the worst numerical value.
1.1 SPACE matrix applied on Sunrise resorts and cruises.

Internal strategic position External strategic position

Financial position (FP) Stability Position (SP)

(+) 1 = WORST (-) -1 =(BEST)
7= BEST -7=(WORST)

Y
– - Liability 4 - Inflation rate -4
AXI - Leverage 5 - Competitive pressure -5
S - Return on investment (ROI)6 - Barriers to enter the market -3
- Working capital 3 - Service demand -2

Financial position average (FP) = 4.5 Stability Position average (SP) = -3.5

Y=FP+SP= 4.5 + (-3.5) = 1

Competitive position (CP) Industry Position (IP)

(-) -1 =(BEST) (+) 1 = WORST
-7=(WORST) 7= BEST

X
– - Service quality -1 - Growth potential 7
AX - Market share -4 - Ease of entry to the market 6
IS - Customer loyalty -2 - Profit potential 5
- Pricing -2 - Productivity 3

Competitive position average (CP) = -2.25 Industry Position average (IP) = 5.25

X=CP+IP= (-2.25) + 5.25 = 3

- X=CP+IP= (-2.25) + 5.25 = 3
- Y=FP+SP= 4.5 + (-3.5) = 1
- (X,Y) = (3,1)
Space Matrix for sunrise resorts and cruises.

- Interpretation.

Based on the directional vector that was drawn starting from the origin point up until the point of
intersection which is shown to be (3,1), the strategies recommended for sunrise cruises and resorts
would be the AGGRESSIVE strategy. Hence, Sunrise is in an outstanding position to use their
own internal strength by, lessening external threats, taking more advantage of external
opportunities, and conquering internal weaknesses. For this reason, Sunrise has the advantage of
being competitive in the market with the best locations near Egypt’s most iconic landmarks and
with highly competitive prices among other hotels in Egypt.
The aggressive strategy is made up out of eight strategies which are:

Aggressive strategy

- Market Penetration
- Market Development
- Product Development
- Diversification:
Related diversification
Unrelated diversification
- Vertical Integration:
Backwards vertical integration
Forward vertical integration
- Horizontal Integration

2. Strategy formulation

Strategy formulation process is a highly important part of any organization’s lifeline. It is used by
firms in order to accomplish their goals, reach their vision, by using the latest available data that
they collected, and what are the right steps they should take to be able to grow and achieve more
of their priorities. in the most effective and efficient way possible (Morgan et al, 2019). Moreover,
strategy formulation contains three levels that are used inside an organization. Those strategies are
as follows: corporate, Business, Functional strategies.

2.1 Corporate strategy

Daniel (2020), has defined corporate level strategy as an outline to what the firm aims to achieve.
and whether the company wants the potential to be able to grow and expand into the market in
several different ways and be a leader, or if the firm wants to have a stable position in the market
and just be a follower, or if they wish to be acquired by another competitor and retrench. Whatever
the company wants to achieve is done for its best interest. Moreover, the corporate strategy must
be broken down and studied well by the company's employees as it holds a great deal into how the
company will perform in the near future as well as how it will financially perform and how much
profit will be generated. Further, the company seeks to grow intensively, or by integration or by
using diversification. or if they wish to pull away from the market by pulling.
 1. Market Penetration.

Simply, a company utilizes the use of market penetration when they wish to penetrate the market
in order to further grow and expand inside the marketplace to achieve more sales and profit. they
do that however not by making a new product or a service. but by targeting the same market or
people and using the same products they already have. It is a simple strategy that could be used by
any company to grow inside the market and grow their market share at a very low risk in
comparison to other methods to grow and expand (Tien, & Ngoc, 2019). Companies make use of
this effortless strategy by doing activities that would include switching the prices for lower, by
providing the same exact product that the firm offers yet, at a lower price. By utilizing this method
the company will be able to reach and grab the attention of the market segment effectively and
efficiently. This way the company will sell more of its services and products faster and thus achieve
its goals which are higher sales and profits. Another method is, opening up more branches in new
territories or areas or offering franchises this way the business can achieve its vision and be more
accessible for the target segment. Modernizing the service or the product in order to adapt to the
new changes and make the product and service better. Acquiring another firm in your industry is
another successful method that aids a business to grow its market share as it increases the customer
base as well as what the company has to offer. by using promotional efforts as discounts or loyalty
programs to stimulate sales and intrigue the consumer to try out the product even if they were not
a loyal customer. and developing frequent marketing campaigns to always remind the consumer
of what the business has to offer and the brand in general (Agzamov, Rakhmatullaeva, & Giyazova,
2021).
 2. Market Development

This strategy follows its name, as a company seeks to grow and flourish its market share they can
develop the market they operate in. as in the company would use the existing product they already
have and try to target a new market or segment (Vieira et al, 2019). This is a huge opportunity for
any firm as they would not have to come up with a new idea for a product. Rather they would just
simply take their existing product and introduce it in a new market, by utilizing this method the
company now has a wider target audience that will purchase their products and services thus,
achieving their goal which is to increase their market share, their sales, and the acquisition of new
consumers. for the reason that the knowledge of the prospective consumers and even current
consumers would highly increase, not to mention the convenience they would face when they find
the products and services they want close to them. However, this strategy is extremely risky unlike
market penetration, as if a company decides to operate in a new market they could fail miserably
in the case that the consumers in the new target market are highly loyal to the competition. or if
the majority of the consumers are unfamiliar with the brand, in this case the company could face
huge losses, as time is wasted as well as money that was used to operate in the new market. and
this is why it is highly recommended that the company thoroughly does research and development
in order to not fail (Verhoef et al, 2021).

3. Product Development.

On the contrary of the market development, product development is its opposite. in which a
company seeks to expand and grow its sales and market share they would utilize the use of the
same target audience or target market they already serve however, they would produce a new
product that will acquaint themselves with the current market preferences. Yet, this is also a risky
strategy to use as the organization is investing a lot of time and effort in research and development
of said new product. and the existing consumers may not even consider it as they do not prefer it.
in the case that the research and development is not done well enough, or if the company
misunderstood what the customers' new wants and needs in the market are. the consumers will not
buy the product or the service thus, the organization would have to cover for the loss and time
gone (Marion, & Fixson, 2021). as mentioned above, to make use of this strategy and ensure less
risk the company must go through several phases that firstly includes research and development,
assessing carefully what the consumer needs and wants in the marketplace is, the actual design of
the product, product analysis, a prototype must be developed as well and given to a small sample
of consumers in order to know their liking to the service or the product, and the they can eventually
if the consumers are satisfied with it launch the product or service (Fuertes, 2020).

4. Diversification

Another form for an organization to expand past its limits and further grow is to use diversification.
according to Oladimeji, & Udosen (2019). Diversification is a growth concept whereby a company
produces and launches a new product and at the same time targets a new target audience or target
segment. Thus, aiding the organization in many ways to expand for the reason that it proves the
firm with new opportunities, higher sales, greater market share, as well as to boost their profits to
a greater extreme. Nonetheless, just like the other growth strategies this concept is of high risk as,
it also requires significant market research as well as extensive research and development for the
new product line and to well know the consumers needs and wants that are in constant change.
Yet, the business would still have a higher chance in succeeding and being at a better position than
their competitors as well as a wider consumer base thus, higher brand knowledge. This strategy
can be used by any firm in two different ways which are related diversification and unrelated
diversification.

4.1 Related diversification

This growth strategy occurs when a company produces a new service or a new product however,
they are not that different from their current existing product lines, as the new service or product
share some common characteristics with the existing product line many business prefer to grow
and mature their market share using this diversification strategy for the reason that, this strategy
has a high potential of sharing the same resources in different business areas as there are a lot of
similarities between the existing and the new product the same resources could be used all over
again which allows the firm to save costs, moreover to gain economies of scale which will also
contribute to the fact that the company could produce their products at a lower cost and still charge
the same price thus, gaining many customers and at the same time gaining sales and profits
(Schommer, Richter, & Karna, 2019).

4.2 Unrelated diversification

Unlike related diversification, this strategy holds that the company will expand and grow its profits
and market share. Yet, the company will produce new services or products that do not have any
relation with its current or existing product lines. In the case the company utilizes this specific
strategy they must be aware of the risks that would face them such as, not sharing resources thus,
having to spend more time and money in finding new methods and machines to be able to provide
the product or the service. Also, this type is harder to manage as well as the company would have
to put more money into training and developing new employees to ensure that the products or
services are well made and will be able to be delivered to the consumer as promised. Thus, this
method is extremely costly for the business as they would have to put in so much effort that may
or may not fail (Tien, & Ngoc, 2019).

5. Forward vertical integration

Del Prete, & Rungi (2020), has defined forward vertical integration as a method for the business
to develop by acquiring, owning or controlling another business that is forward or ahead in the
supply chain of the typical industry. Usually businesses manipulate this method as it provides vast
benefits. That would include, saving up the cost as the middleman is no longer in the picture which
gives the organization the opportunity to save money and reallocate it in other areas of the business
such as product development or research and development. This will also support the business to
gain customer satisfaction as when the organization owns their distributor they would ensure that
the product or service is delivered, shelved, or presented to the end user in the best shape possible
which will eventually greatly increase the customer satisfaction and lower the chances of them
going to the competitors. This would moreover, improve and maintain the brand image of the
company as they would not be held responsible for any faulty packaging or services. it would also
ensure that there is less time wasted in delivering the product or service to the end user. having
over all control over the distribution will also help the firm in reducing their prices as they do not
pay a distributor anymore, which will allow them the room to contribute in sales promotions that
they could have not contributed in before due to higher costs on them, and this will further satisfy
the end user thus, higher sales as well as higher profits.

6. Backward vertical integration

According to Li (2021), backward integration is a part of vertical integration where the company
wants to expand its part in the supply chain thus acquiring business that used to fulfill and complete
activities up the supply chain. thus, buying another company in its supply chain that used to supply
them with their current raw materials and supplies that they use to make the product or the service.
using this strategy will result that the business will save cost due to the fact that, they will supply
themselves with their own raw materials further, the firm will always be ensured that the supplies
are always up to the standards they want and that there are no faulty raw materials received this
will highly contribute to a higher brand image as there will be no customer dissatisfaction from
any low standard product or service quality. Moreover, this will improve the organization's
efficiency and effectiveness. due to lower transportation costs, which will eventually boost the
organization's competitiveness as they would be always ensured that they would receive their
supplies at anytime they want which would reflect in meeting demands of the end user and that
there will be no quantity restrictions by the supplier even in the case of high demand thus meeting
the consumer demands all year around better than the competitors ever could. which will guarantee
customer loyalty as well as satisfaction.

7. Horizontal Integration

In this type of strategy the business aims to stretch its market share by growing its own operations
and acquiring another business that is at the same industrial level. By doing so the company has a
better chance to expand its size in the market as they would acquire another competitor thus, having
more customers to serve and gain profit from. Moreover, increasing the revenue. they would also
be able to diversify what services and products they offer for the reason that they would not only
have their own product lines to work with but others as well thus, being able to cater to a new
target audience that they were not able to target before. they would have the opportunity to upscale
or downscale the segment and have more than one resource that they will profit and gain revenue
from. not the menthon the higher sales that would occur if a company chose to allocate this type
of integration. not to mention that they would be able to eliminate their competition and this will
make them worry less about the competing industries and that they would take some of their
customers. this method would also, contribute in forming economies of scale which will aid the
company to be able to produce at a larger scale and at the same time either gain more profits as
they would sale at the same price or to reduce the prices thus gaining better brand image and higher
customer satisfaction (Pérez-Lara, 2020).

8. Internationalization

Paul, & Rosado-Serrano (2019), has both defined internationalization as a growth strategy used by
organizations who aim to grow in the future and want to increase their profits. they utilize the use
of internationalization as they expand past the horizon of their current existing local market into
another market that is outside their domestic market. thus, gaining new opportunities that they
would not get in case they stuck to their domestic market. and into global markets that provide the
firm with high chances to expand. In this case the firm could sell their existing products or services
outside in another country or they could produce or alter their existing product and services to
match and adapt to the new marketplace. This strategy, just like the others, requires a great deal of
market research and to study the target market thoroughly and well to avoid the risk and failure of
the company.

9. Sustainable development

The process of participatory, iterative and the coordination of the thoughts in order to be able to
achieve actions that will benefit and balance the environment, the economy and the society is
labeled as a sustainable development strategy. organizations have now changed the way that they
operate from being company oriented and seeing how only the company will profit and sell what
they want. to a better approach where they are more than willing to give back to their consumers
and the society as a whole. by doing activities such as giving donations, less water and energy
waste. and give back to the customers in the form of loyalty programs or gifts. By implementing
this strategy the company is doing a great deal to the world. Moreover this can also help them
estable a great relationship with the government. They also could implement this strategy by
training their employees on how to use the green approach this way internally inside the company.
The operations would be better thus more effective and efficient (Chang, 2020).

10. Digitalization

According to Sestino (2020), companies in the world nowadays are trying to adapt to the new
digital changes in the world as they are highly aware that online presence nowadays is very
important for any company’s success they do that by evolving the technology inside the company,
thus achieving the company's short term and long term goals much faster. this will further make
them satisfy their consumers more as they would adapt and find out their needs and wants must
faster, moreover this will also, give them a better competitive edge as they would be able to
modernize their products and allow them to reduce their prices and in return more consumers will
shift towards them which will allow them to achieve their goals and vision which are higher
customer satisfaction as well as higher profit and market share.

11. Retrenchment

In some cases not every product or service the company provides the customer likes or thinks that
it is of use to them. In that case if the company chooses to keep this particular service or product
they will face huge losses as they will keep spending from their money to keep the product or
service working yet they would not be getting anything in return. In this case to keep the losses at
bay and to defend itself the company would eliminate that specific product or service and focus
more on the ones that are generating them the most profit, thus being financially stable (Rico,
Pandit, & Puig, 2021).

12. Divestiture

According to (Feldman, & Sakhartov, 2022), divestiture or divestment strategy is a defensive

strategy that occurs when an organization wants to eliminate the losses they face from a failed
product that is under performing thus they remove that failed product or service as a whole. as they
will not only remove a failed product or a service but the whole product or service line. This way
the company will defend itself.

13. Liquidation

Bao, & Liu (2019), has defined the liquidation strategy as a process the company goes through
when they are so deep in debt so they sell off all their assets and close down their firm in order to
be able to pay off the money they owe other organizations as banks or even to pay their taxes to
the government.
3. Application of space matrix on Sunrise cruises and resorts

Strategy Application on Sunrise

Market penetration Sunrise collaborates with online travel agencies to promote their
resorts and cruises.
- Sunrise deals with booking.com, which is amongst the most
popular travel agencies in the world to make consumers
aware of its offers and that it is among the top 5 best hotels
in Hurghada.
Sunrise implements the use of social media platforms to
penetrate the tourism market.
- By posting regularly on social media platforms such as
instagram and facebook to keep in contact with their
consumers and ensure that they are well aware of them.
Sunrise implements high promotional efforts.
- by boosting high promotional and discounted prices during
vacations as eid vacations, or international vacations as
easter or christmas. This way they have a competitive edge
over the competition, as consumers are looking for
affordable prices to pay during their vacations.
- Additional offers when you book directly from their own
website as, early check in or late check out, VIP amenities,
and 10% off for laundry services.
Sunrise uses google search engine.
- By paying for google services, as search engine optimization
to appear on top of the google page when tourists or travelers
search keywords as Hurghada hotels or sunrise.
Market development Targeting several target segments/audience.
- After sunrise operated back in 2003 it started to target more
than just families. by targeting a bigger target segment who
seek a peaceful vacation without children in the same hotel.
by opening up hotels for adults only in their romance hotels
that only individuals above 18 of age can enter.

Product/service Sunrise enriches its resorts and cruises with several extra
development
services.
- Sunrise also has extra services that will further satisfy their
consumers. Those being, Spa treatment services as oriental
message, birthday services, sports and leisure services,
Fitness services, Anniversary packages as holding a candle
light dinner, holding weddings and meeting rooms.

Diversification Unrelated diversification:

It is recommended for Sunrise to utilize the use of unrelated
diversification.
- By opening up a clothing store inside their resorts and cruises
to provide an opportunity for the guests who are in need of
new clothes in case of an emergency.
- Another recommendation for Sunrise is to open a small mall
inside their hotels so that the consumers can go shopping
without having to leave the premises of the hotel.
Related diversification:
Sunrise to utilize the use of related diversification.
- Sunrise does have several restaurants and cafes at its resorts
and cruises such as Nasaya, Sunray, Sun beam, El sol,
Arabian nights, and Elia restaurants and cafes.
 - Having cruises and resorts.
- Sunrise is not only a hotel, it also operates in the form of a
resort as it allows more privacy, entertainment as well as
experiences while their hotels are mainly for lodging. They
also have cruises, for travelers who enjoy the sea and nile
more than the land thus providing them the experience they
want.

Horizontal integration - It is recommended for Sunrise to apply for a joint venture or

acquire one of its competitors in the market in order to be
able to increase their target segment and profit or to just
increase their overall market share inside the market. For
example, they could hold a joint venture with Hilton hotels
or Fourseasons to create a separate legal entity. or they could
acquire hotels such as marriott or swiss in. This way they can
reach a new and wider target segment as well as gain higher
recognition without losing their entity.

Forward vertical Sunrise is their own service distributor.

integration
- Sunrise delivers their own hospitality services to the
consumers by providing them with high quality rooms to stay
in during their vacation, training the best staff, holding events
such as weddings, and having their own restaurants. This
way they ensure that the consumers receive the best services
possible. Moreover, they allow the consumers to book online
directly from their own website, or in real face to face
interaction at any front desk inside their hotels.

Backward vertical It is recommended for sunrise to be their own supplier.

integration
- The resorts and cruises chain could implement this by
 purchasing other travel agencies to provide themselves with
tourists or travelers who seek to travel such as travel life
agencies who are one of their tourist suppliers, thus, directing
more guests to their hotels and not others. or by holding a
deal or acquiring cristal middle east as it is the company that
provides them with hygiene and safety supplies. they could
also acquire their other suppliers who supply them with
materials for their gym services as machinery. or the cleaning
services company that they deal with. in addition to the
furniture company. by doing so sunrise will have a
competitive edge as they will ensure the highest quality, less
delivery time, and less cost. Or by acquiring one of the travel
agencies that supply sunrise with tourists such as Travco,
This way we will be able to reduce costs and increase tourists
visits at the hotel.

Sustainable Sunrise executes the sustainable development by:

development
People and the society:
- actively engaging in donations, as they set up a donation box
inside every hotel lobby, and later in the year they collect
these donations and donate it to local charities, or schools as
Ibrahim ElGabry schools. They also support local business
by purchasing 85% of their goods locally. They also
regularly visit orphanages and interact in activities with
them.
- It is recommended for sunrise to also, provide for the people
in need by donating to local food banks, partner with local
restaurants, buy local art work from Egyptian struggling
artists, host a clean up at local beaches in Hurghada or el ain
El Sokhna.
 The Plant:
- Sunrise helps to secure the plant by installing censored water
taps inside every room in the cruises and retorts, and putting
up posters in the room to remind the guests to save water.
They also contribute in saving energy by installing everyday
saving light bulbs and led lamps and bulbs that are censored
to reduce the waste of energy when the guest is not using it.
Sunrise also holds their annual world environment day in
which they interact with the guests in activities that help save
the environment.
Profit:
- Environmentally friendly guests are more likely to choose
sunrise over other hotels as it is environment and eco friendly
which contributes to them gaining higher profit for
participating in these activities.

Internationalization Sunrise unfortunately only operates inside Egypt. However, it is

recommended for sunrise to implement internationalization.
- Sunrise could go global and internationalize by opening other
hotels all over the world starting in the middle east such as
Saudi Arabia or Morocco since many people would have
already heard of it thus, the chances of success would be
higher. or globally in Russia as many tourists who visit
Hurghada, Egypt may have stayed in sunrise and will most
likely know it. or the hotel could operate more cruises to
travel or do trips internationally to other countries and call it
an international cruise.

Digitalization It is recommended for sunrise to implement the digitalization

strategy by:
- utilizing the use of internet of things (IOT), As it is extremely
 important to hotels because they aid them in, send and
receive data, save energy cost, and optimize hotel rooms with
little face to face interactions. Moreover, using recognition
technology, as this will help the resorts in speeding up the
payment process and reduce human contact. Furthermore, by
using Virtual reality (VR), it will increase the consumer
satisfaction because it will allow the consumers to experience
what the hotel facilities feel like as their rooms and reception
thus, knowing what they are paying for.
- Implementing chatboots in their own website, to decrease the
wait time the guests have to go through when they send an
email, or if they have an inquiry thus, better customer
satisfaction.
Formulating business level strategies

1- Aligning corporate and business level strategies

According to Ateş (2020), it is the process of coordinating and implementing a firm's practices to
be sure that the organization's main objectives are being met through the strategies that are set.
thus essentially ensuring a well collaborated environment within the organization.

1.1 Corporate level strategies

As mentioned before, corporate level strategy is a plan set to forecast a way that a business can
further grow and expand further with. thus, forming a plan with well thought out actions that will
include specific key strategies utilized by the firm to enable them to achieve a bigger market share
(Daniel 2020).

1.2 Business level strategies

Unlike the corporate level strategy a business level strategy is more focused on the competitive
aspect of the business and who are the firm's competitors. further, the methods used by the firm to
use its special assets, and their competitive advantage to be able to one up the competition. and in
that way attract the attention of the consumers in the marketplace (Yuan, 2020).

1.3 selected corporate level strategy aligned by the business level strategy
- Cost leadership aligned with Market penetration: Sunrise utilizes the use of cost
leadership by ensuring to always provide quality with the most reasonable prices in the
market. Sunrise uses market penetration by providing frequent sales promotion activities
throughout the year, as they not only provide excellent service just like their competitors
yet, they provide their consumers with low prices that will attract a broad market and at
low prices. They also provide extra discounts for the consumers who are willing to book
directly from the sunrise website thus encouraging people to book without using other
methods.
- Differentiation strategy aligned with Market development: By providing hotels just for
couples or guests who are above 18 years old. for a higher price to ensure that the
honeymooners will enjoy a beautiful honeymoon in a relaxed environment provided by the
 hotel. and by also providing services that will complete their beautiful stay as a candle light
dinner on the beach.

Differentiation strategy aligned with related diversification: Sunrise is famous for its
crisis in the most iconic historical sites inside Egypt. by not only operating a normal hotel
inside those historical sites. Sunrise also provides beautiful exclusive crises that will
provide the guests with a full experience of these historical sites while in the sea or the Nile
river for a higher price point. which intrigues a lot of citizens to see their exquisite country
from another point of view as well as tourists from other countries.

2 Identifying porter's 4 competitive strategies

Cost leadership:

The cost leadership strategy connects the company to being the lowest cost seller or producer in
the industry with the same profit potential (Ali & Anwar, 2021). Cost leadership aims to cut costs
while maintaining quality. It is dependent on reaching economies of scale, improving efficiency
in operations, having easy access to raw materials, and concentrating on fewer products or niches.
According to Keiningham et al (2020) this strategy will entail gaining market share in pursuit of
scale efficiencies, enhancing the financial benefits of industry experience and new technology, and
maintaining overheads under tight control. Sunrise uses the cost leadership strategy by minimizing
its operating costs and attracts on the other side many guests with different segments.

Differentiation:

Differentiation is the process of developing a key component of a product in order to distinguish

it from competitors. Several product functions, such as brand image and identity, technology and
features, or customer service and dealer network, are created to a high quality level, and the added
value perceived by the customer compensates for the impact of the higher price. The differentiation
strategy requires the company to create or sell unique goods or services. This strategy focuses on
the uniqueness of the product or service, thereby providing the consumer with an item of value.
Unique features, brand name, technology, supplier or distributors, advertisement or advertising
can all be used to differentiate (Ali & Anwar, 2021). Sunrise tries to control its operating costs but
also provide some differentiation in their services that will make it competitive in the market.

Cost focus:

Cost focus provides products or services to a small number of customers (niche group) at the lowest
market price (Islami, Mustafa & Topuzovska, 2020). It is used when the organization tries to attract
a small segment of customers based on pricing. Keiningham et al (2020) Stated that targeting of a
particular market segment through cost focus strategy should eliminate all competition and
substitution risks As the firm strives for low costs, allowing low-cost products and services to be
delivered for price sensitive customers and it takes advantage of differences in cost behavior in
some segments. Sunrise provides their price sensitive customers with more low cost options
through the Meraki hotel group which will serve the lower segment with more of a lower prices
than the upper scale hotel groups.

Differentiation focus:

Differentiation focus strategy involves tailoring the product to meet the needs of a narrowly
defined market segment. With using this strategy the organization's goal is to provide an extensive
solution to a specific buyer group. Ideally, the product will achieve a differentiated and low-cost
position in its target market segment (Keiningham et al, 2020). Sunrise provides premium service
for VIP customers through the grand select group of hotels that consider high end hotels that serve
only a limited niche segment.

3. Developing key functional areas

Each organization needs functional areas to help it to reach their needed goals. Those functional
areas help to organize tasks in the organization under a specific area which will make reaching
organizational goals more efficient. The definition of a functional area is when units in an
organization are separated and each unit is responsible for a certain function in which they will
thrive the most. Functional areas of each organization differ depending on the size of the
organization and the nature of the market. It aims to ensure the effectiveness of the operations of
the organization across all functional areas. So the functional areas are different areas or
departments of the business which include marketing, human resources (HR), financial,
operations, and R&D that aid in achieving all the planned objectives within the organization
(Fuertes et al, 2020). As an example if the organization wants to increase their market share the
responsible functional area will be Marketing as the organization would do a campaign in order to
achieve this objective. Also as for the finance functional area it will be responsible for revising
and analyzing the organization's financial needs and determining how to allocate the funds needed
for the organization.
Functional area Suggested functional strategy
Human resources (HR) - Well trained and highly skilled 4000 carefully picked by the human
(Sustainable
resource management employees that are to be able to deliver
development strategy)
outstanding experience to the guests at the hotels.

- The HR management ensures that all employees go through the

recruitment process, then select them based on their expertise as they
represent the company.

- Sunrise HRM also makes sure to give back to the workers in the
form of motivational incentives that will make them work harder

Marketing and sales - By offering the best promotional packages as they have special
(Marketing Penetration
offers for each of their resorts individually.
strategy)
- Promotion through their websites and social networks of their
romantic getaways, birthday celebrations as well as honeymoon
packages.

- Sunrise is also well advertised on Booking.com as well as Google

search engine, and social media.

- Utilizing competitive pricing as they are perceived as higher quality

among competitors for lower pricing,while having excellent
locations next to all of Egypts attractive touristic destinations.

Services - Providing top notch customer service, post customer service and
(Service Development
after sale service. as their wellness and spa services that provide the
strategy)
guests with relaxation throughout their stay.

- Sunrise also provides value added services such as romantic dinners

on the private beach of the resort, gym and fitness services.
 - Post sale services come in the form of customer service as they
ensure to keep in touch with their guests through emails, phone calls
and text messages.

Information technology - Sunrise has their own application that guests can download when
(IT)
they arrive at the hotel to order room service or book for the spa.
(Digitalization strategy)
- they can also book another stay from the application directly as they
would get special offers.

Finance and Accounting - Providing a wide range of information regarding the hotel
(Sustainable
operations and the accounting procedures.
development strategy)
- Providing information and services that will help Sunrise to operate
their departments effectively and efficiently
- Estimating budgets for Marketing activities, new buildings, staff
salary and many more.
- Having control over activities of their infrastructure such as the
finance and accounting, well effective team management, planning
and buildings.

Operations/Production - Providing a food production department inside the hotel to enable

(Market penetration)
sunrise to serve the food to the guests in the best way possible and
on time, or even 24/7 for the room service.
- Storing materials such as bedsheets and towels inside the store
rooms and warehouses properly to be able to find them whenever
needed.

Research and - Developing and implementing a great research plan to know the
Development
guests' constantly changing needs and wants.
(Service Development)
- Finding solutions for current and future problems that the guests
might face such as the COVID-19 pandemic that the guests can find
 the new updates on through Sunrise’s official website.

IV Strategy in action

1 Organizational life cycle

Klimas et al (2022) define the organizational life cycle as individuals who have life cycles that
are determined by their formation and eventually their takeover. It consists of five stages which
are the birth stage, growth stage, maturity stage, decline stage, and death stage.
1.2 Sunrise life cycle
Sunrise is considered in the growth life cycle as Sunrise sales are increasing and no. of customers
are continuously increasing, also more competitors are joining the industry. Sunrise is considered
in the growth stage as it is a worldwide brand like other hotels in Egypt which makes it still in the
growth stage.

2.Organizational structure

2.1 Types of Organizational structure

There are three types of organizational structures that are implemented by every firm which are
functional, divisional, and matrix structure.

to start off with the functional structure, which divides the company based on the different
departments that they have as well as the different areas of expertise they are in.
Moving forward to the Divisional structure, the company’s structure is divided based on separate
divisions that are based on geographical areas, or the products or the services that the company
provides to its consumers rather than the work that the employees do.

and finally the matrix organizational structure, where the employees usually report to more than
one leader. thus, creating a dual command circumstance. Usually, one manager performs his work
in an administrative function, for example Marketing or HR, and the other employee may work in
a business unit that is related to a product, service, geography or maybe customer.
2.2 Application on Sunrise

Alfred Chandler has stated that structure follows the strategy, therefore a sequence has occurred
due to the new strategy that is created and new administrative problems that have emerged due a
decline in the Egyptian performance. Thus a new appropriate structure has been created that led to
the economic performance to rise. this was implemented as a recommendation for Sunrise to
further grow from the Growth stage, by horizontally integrating/acquiring Travco travel agency as
it supplies hotels with tourists and by acquiring them this will aid Sunrise to increase the tourists
visits at each hotel and cruise, and making Sunrise a priority rather than other competitors which
will saturate the visits at Sunrise And making it reach peek sales and profits.

V. Strategy monitoring
1.Developing Strategy – Evaluation Framework balance scorecard (BSC’s)

The balanced scorecard is used by many businesses and firms in order to measure four important
aspects of any business which are growth and learning, finance, customers as well as the business
process. By doing so this leaves further room for the organization to be able to collect information
in one report that will later be used in the process of providing information into service as well as
financial performance and quality. And this will lead to the improvement of the efficiency of the
firm (Fatima, & Elbanna, 2020)
Perspective Objective (KPI’s)

- Increase sales by 30% - Increase in % of sales

Financial - Increase efficiency by 25% - Increase in output and sales
- Increase profitability by 20% - Increase of % of gross profit margin
- Decrease operating expenses revenue
by 12% - Comparison between the old amount of
operating expenses and the new one

- Increase customer satisfaction - Positive reviews and surveys

Stakeholder by 20% - Increase in customer retention rate
- Increase in customer retention - Positive feedback and extension of
by 30% contract
- Better relationship with cristal - More CSR activities being contributed in
middle east (Supplier)
- Increase corporate social
responsibility activities

- Increase output rate by 27% - No. Of outputs

Internal Processes - Improve customer - The improvement in customer
management process by 30% management
- Enhance innovation process - Innovative process implications

- Increasing employee - Increase investments by 20%

Learning and engagement by 25% - Well trained employees
- Developing training efficiency - More engaged employees
Growth - Increase investment in research
by 30%
References.
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resorts.com/aboutus

Agzamov, A. T., Rakhmatullaeva, F. M., & Giyazova, N. B. (2021, June). Marketing strategy for
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Ahmad, N. N., & Masroor, F. (2020). The study of generic patterns of mission and vision
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4(2), 159-178.

Ali, BJ, & Anwar, G.(2021). Porter’s Generic Competitive Strategies and its influence on the
Competitive Advantage. International Journal of Advanced Engineering, Management and
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