Case study 12: Shangri-la hotels expanding to non-Asian markets

Abstract

In the past two decades, brands from emerging markets have made significant inroads into developed markets, including those in the tourism industry. Brands from emerging countries increasingly market their brands with the ambition of positioning them as global brands. This case study illustrates the expansion of the Shangri-La hotel group as a good example of emerging markets' brands expanding to the Western markets. The Shangri-La group was a Hong-Kong based hotel group, focusing on luxury hotels. This case study pointed out the market entry challenges the Shangri-La group faced when it entered its first non-Asian market in Australia. As the case study illustrated, one of the biggest challenges faced by the Shangri-La group was preserving its Asian brand identify while adapting to the cultural differences in a new market. This case study also showed some possible challenges an emerging market brand might face before reaching cultural integration in a new market.