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Strategy Design

Case Study: Digital Strategy for Mandarin Oriental Hotel Group in the Era of Digital Revolution

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Project Type

Strategic Design

Role

Strategic Designer

Team

Joseph Zachary Chong

Toon Nattapong

Paul Feng

Rio Wong

Methods

Trend Analysis

Futuring

Doblin 5Es

Competitor Analysis

Client

University of Sydney

May 2024

As a team of strategy designers, we faced the challenge of analyzing various industries in the context of the digital revolution. We chose to focus on the hospitality industry, specifically hotels and resort organizations.

Problem Space

The Mandarin Oriental Hotel Group (MO) needs to adapt its digital strategy to respond effectively to changes in digital technology within the luxury hospitality industry. Despite being a global leader with a rich history and vast experience, Mandarin Oriental faces challenges in maintaining competitiveness in the digital era due to identified gaps in its current digital experience.

Reframed Brief

This research study aims to develop a comprehensive digital strategy for the Mandarin Oriental Hotel Group (MO) to enhance its competitiveness in the evolving digital landscape of the luxury hospitality industry. By conducting in-depth analyses through primary and desk research, and utilizing various frameworks and models, we will identify and address the gaps in Mandarin Oriental's digital experience. Our goal is to provide actionable recommendations that will enable Mandarin Oriental to leverage digital technology effectively, ensuring it remains a leader in the luxury hospitality market.

Methodology

To set the foundation for our analysis, we used the 3Cs framework (corporation, customer, and competitors) to identify gaps in Mandarin Oriental's current digital experience.

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We developed our methodology using these diagrams, which highlight all stakeholders involved in MO's operations and brand, essential for implementing MO's new digital strategy.

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Stakeholder Map

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Power-Interest Matrix

Research insights

To understand Mandarin Oriental Hong Kong's current user journey, we conducted two research initiatives to gather qualitative data. First, we analyzed customer reviews from platforms like TripAdvisor, Google Maps, and YouTube to identify guest compliments and complaints. Secondly, we interviewed a Mandarin Oriental Hong Kong customer to capture their entire journey, including both positive and negative touchpoints. We used the Doblin 5Es method to assess the current model and evaluate our To-Be strategy's impact on the organization's system.

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The positioning map and Mandarin Oriental opportunity area

Market Analysis

After extensive market analysis, including examination of current and near-future digital trends, competitor analysis, and service model analysis, we have devised a method to illustrate Mandarin Oriental's position in the industry and proposed a strategy for future relevance.

The Proposal

Our strategy proposal comprised two parts. Firstly, we delineated the essential steps Mandarin Oriental must undertake to attain relevance in today's digital climate, addressing areas where it has lagged behind competitors. Secondly, we outlined a strategic roadmap for the organization's future journey, aiming to position it as a leading digital-oriented entity capable of navigating the challenges of the digital revolution era and aligning with future trends.

Mandatory Strategy

The mandatory strategy might take around 12-18 months. This would be started by the application creation, to digital asset enhancement with more touch points and feedback gained from users efficiently. Then, Mandarin Oriental Hong Kong as the brand’s flagship would need to revise how they integrate innovation into existing services. After the first hotel has integrated its operations and services with the new technology, Mandarin Oriental could scale to apply the strategy to other hotels in the group.

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New Paradigm Strategy

To look beyond the scope of the hotel group, there is no need to wait for the digital transformation and seamless experience to be integrated into the hotel group; this strategy needs to be piloted in parallel with the mandatory strategy. It is advisable that Mandarin Oriental build an R&D team to do so to increase mobility to trial the new approach to the guest experience and test how to apply the strategy in a controlled environment to study the potential of diverse use scenarios

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Reflection

This project presented a unique challenge for me. It was enlightening to delve into the digital revolution landscape and analyze numerous case studies, particularly those highlighting failures. Drawing from these analyses and employing various design methodologies, we proposed strategies to overcome challenges faced by established organizations in demanding industries. I greatly benefited from my teammates, some of whom had industry-related experience or a deeper understanding of business concepts. My role involved guiding our team's thought process, synthesizing ideas, and contributing insights from competitor analysis. With the guidance of our design consulting industry expert tutor, Leanne Sobel, this journey through strategy design amid the digital revolution was truly enriching.

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