Case Study El Gouna

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The strategic evaluation method used primarily by the resort is the SWOT analysis. SWOT analysis has been considered as the epitome and the simplest method of analyzing the strategies used. This not only describes the strengths and weaknesses of a strategy but also assists in understanding the opportunity and threats of the strategies and relevant decisions used. A SWOT analysis is a widely used method for evaluation of strategies and decisions made. It entails understanding all the factors involved in a business activity or a project at hand. It analyzes the internal (strengths and weaknesses) as well as external (opportunity and threats) factors that are highly indispensable for the achievement of the
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El Gouna believes that before a strategic decision is made it is compulsory to understand the activities of a firm to create values for the customers. Value Chain analysis is based on the notion that values are created by organizations for the customers, in this case, tourists and residents. For the analysis, El Gouna divides those activities and strategies that add the value of the organization in specific sets. Each of these activities is then evaluated if they could be considered as factors adding value or should they be removed. Each value adding activity is then accepted as a competitive advantage of El Gouna (Downey, …show more content…
The first strategy that El Gouna can utilize is to function according to the economic and political situations of Egypt. According to the Egyptian Prime Minister, the hotel and tourism industry has economic importance for a country’s financial system. It assists in its economic recovery and social stability. According to the statistics provided in the Orascom’s Annual Report, El Gouna had 2707 hotel rooms in 2013 with 63% of the occupancy rate. On the other hand, rooms available in other countries for tourists were at a lower side. For instance, rooms in UAE hotel are just 346, followed by Jordan with 260 and Oman with 55 and 64. This shows that El Gouna resort has improved business compared to the other competitors in other countries. This demonstrates the edge that El Gouna enjoys when considering community and town destinations (Orascom Development,

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