Oyo Rooms Blue Ocean Strategy

SURAJ RAJANNA
-@03413592

BLUE OCEAN STRATEGY

OYO ROOMS

OYO Rooms was founded by Ritesh Agarwal. With the use of technology the OYO rooms have increased hospitality which eases people (travelers) to find a budget hotels with inclusive of offers. Now, OYO Rooms has its presence in more than 150 cities with 4000+ hotels offering standard stay experience. The network kept growing drastically on various measures in each room with breakfast, flat screen TVs and free WIFI etc.

The Actual Framework:

The above table is the frame work which OYO did and was successful

• Eliminating: The core value innovation of OYO is to cancel out fancy aspects. The company is targeting both the 3 star customers and the non-star customers segment. They differentiated themselves from the others by eliminating easting facilities and architectural attributes.
• Raise: Customer satisfaction was increased by providing offers, free Wi-Fi, Flat screens, big towels, beverage tray etc. They have positioned itself as an aggregator brand rather than a hotel chain. Pay later and check is one more which they concentrated on as it is easy for the customer.
• Reduce: OYO Rooms eliminated fancy features of 3 start and higher rated hotels like spa, swimming etc. but retained the standard services and hygiene of the respective hotels. Due to this they could reduce Price per room cost and performed well in giving customer value.
• Create: Location choices indicates the app based location services. This helps the customer to locate OYO Rooms better and in turn helps the company owners to get a better view of their inventory.

Conclusion

The BOS made OYO Rooms successful, The Company unlocked value to customers and also reduce cost to the company. OYO Rooms are already facing challenges and to be in position, the Company is refining offers to add value for customers. Hence Eliminating, Reducing, Raising and Creating are the four beneficial steps which a Company/Organization can implement (BOS)