ITC Hotels: Is Responsible Luxury Sustainable?
(5 pages of text)
In 2018, ITC Hotels, a chain of luxury hotels based in India, achieved a distinct positioning with its branding, “ITC Hotels: Responsible Luxury.” The company intended to communicate its image of being environmentally sustainable, responsible to the local communities and society, and responsible for the safety and comfort of guests and employees. This strategy shaped many of its operational decisions and processes. However, the executive director of ITC Hotels, felt cautiously optimistic about its positioning in the market. Could ITC Hotels succeed in balancing responsibility with luxury? Could this business strategy and positioning counter the intensifying competitive threats from India’s other major luxury hotel chains?
This case is intended for use in undergraduate- and graduate-level courses on business strategy, competitiveness, corporate social responsibility (CSR), and created shared value. The brevity of the case makes it well suited for executive audiences. This case helps students identify and analyze aspects of shared value and CSR, and their relationship to business strategy. After working through the case and assignment questions, students will be able to
- analyze and arrange a portfolio of sustainable initiatives under four key categories: philanthropy, CSR, shared value, and business as usual;
- examine how CSR can coexist as a competitive advantage in a traditional business such as luxury hotels; and
- discuss how a major luxury hotel chain can enhance its positioning of responsible luxury to create or sustain its competitive advantage it the market.
Accommodation & Food Services
India, Large, 2018
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