according to case study below:

1.ExplainTWO (2)current strategies implemented by De Cyber Hotel.

2.Strategic alliance relates to a company that forms a relationship with other parties for mutual advantage. ExplainTHREE (3)advantages of the strategic alliance between De Cyber Hotel and ABC Digital Booking.

3.A variety of Malaysia's key sectors are in distress due to post-Covid-19. One of the sectors is tourism which hit the hardest. During Movement Control Order (MCO), travelers are forced to postpone their trips and cancel hotel bookings as well as flight plans, which is a huge loss for Malaysia since it was ranked the third most popular Asian travel destination in 2018. Based on the current situation, conduct an industry analysis on factors affecting the intensity of rivalry among substitute products, competitive pressure created by the rivalry among competing sellers, and the bargaining power of buyers in which De Cyber is competing. You are required to analyze at leastTHREE (3)conditions on each force in the identification of the level of the competitor's intensity. Then, identify which forces are creating the strongest competitive pressures for De Cyber company.

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Introduction "You are so deep in thought, my dear. Is there a problem?", Jaafar asked gently when he noticed that his wife had become so quiet of late. When his wife remained silent, Jaafar very patiently asked, "Is there a problem with De Cyber Hotel?", Siti Alia lifted her head, sighed and looked at her husband. She said, "I'm very confused right now. After working and collaborating for one year, I have to decide whether or not De Cyber Hotel should continue its strategic alliance with ABC Digital Booking". Jaafar immediately understood his wife's dilemma. Hoping he could help his distressed wife, he cajoled, "You need to think about this matter thoroughly, consider the advantages and disadvantages before making a decision; consider the impact of your decision on the business. I believe you can do it". He smiled confidently to reassure her. (3023 Siti Alia was a pensioner from a government agency. Although she was only 53 years old, she had decided to opt for early retirement in order to be with her husband who was working in Kuala Lumpur. After retirement, Siti Alia and her friends, Anisah and Syariff, decided to establish a budget hotel, an interest which was ignited when Siti Alia learnt that her husband's friend, Halim, was involved in running a budget hotel in Johor Bahru. Halim had shared his experience with Siti Alia and was instrumental in influencing and encouraging her to venture into the budget hotel business after her retirement. After De Cyber Hotel was opened, Siti Alia became its manager and was responsible for its day-to-day management and financial matters. De Cyber Hotel wasstrategic location, the hotel availed easy access to the surrounding must-see attractions, like Putra Mosque, Putra Bridge, Thean Hou Temple, Millennium Monument and Petaling Street. Further, the hotel was only 2 km away from Putrajaya and 19.1 km from the Kuala Lumpur International Airport (KLIA). The amenities in the hotel were thoughtfully and carefully planned to ensure an unparalleled comfort for guests. With a common lounge, all rooms in the two-star hotel were air-conditioned and carpeted with attached bathroom. In addition, all rooms had a wardrobe, a work desk and a flat-screen TV. Further, the hotel had a special offer, whereby children aged four and below (one child per room) could stay with an adult at no extra cost. Assistance was made available round the clock at the reception, where the counter was manned by staff who were fluent in both English and Malay. De Cyber Hotel went the extra mile by offering many other facilities to make their guests' stay as comfortable, memorable and pleasant as possible, such as free Wi-Fi in all rooms and public areas, free car parking bay, complementary bottled water as well as tea and coffee making facilities. There were also special facilities for disabled guests, and as a smoke-free hotel, guests could rest assured that the environment was clean and the air was crisp. Another advantage was the hotel's business hours was 24/7 which allowed guests to reach out to the staff whenever necessary. MN3 In terms of its corporate structure, De Cyber Hotel had a simple set-up, and staff members comprised one manager, two supervisors, four front office staff and four housekeeping staff (as shown in Figure 1), totalling 11 staff. The manager, Siti Alia, was responsible for the overall hotel management and financial matters. Supervisors, Afiq and Julia, were in-charge of operational decisions. Siti Alia found that within one year of its operations, the staff turnover rate was around 80%. Better job opportunities, pursuing further studies, taking care of family and an unwillingness to do night shift, were the main reasons cited when staff chose to resign.registered as a private limited company (syarikat sendirian berhad) with Anisah and Syariff as its directors. De Cyber Hotel, located in Cyberjaya, Selangor, was officially opened on 19 January 2019. As a new budget hotel, it faced stiff competition from other more established hotels in the vicinity. To overcome this, initially, the hotel management distributed brochures and promoted the hotel via word-of-mouth. However, De Cyber Hotel depended mainly on walk-in guests. Siti Alia and the management team knew that they must take immediate and more proactive actions in order to ensure the survival of their hotel. She was aware that people were using online booking platforms or Online Travel Agents (OTAs), such as Trivago, Agoda, Expedia and Booking.com, to search for suitable hotels or accommodation before making a booking. With such platforms available, Siti Alia realised that hard copy brochures were no longer the preferred promotional tool. The users of these platforms could compare hotels prices with just a few clicks, something that they could not do with brochures to obtain the desired information. Siti Alia then knew that they could no longer depend on walk-in guests. Determined to increase the rate of occupancy and the hotel's revenue, on 27 March 2019, De Cyber Hotel management accepted an offer from ABC Digital Booking to implement a digital booking system for the hotel. ABC Digital Booking was a company that provided an online platform to enable listing and booking of budget hotel accommodation. De Cyber Hotel and ABC Digital Booking entered into a strategic alliance and they agreed to collaborate for at least one year, from the date the agreement was sealed. Background of De Cyber Hotel Situated within 2.9 km of Shaftsbury Square and 1.6 km of Cyberjaya, De Cyber Hotel was ideal for fun and relaxation. As it was centrally located, it was easy to get around to all shops and malls, such as Dpulze Shopping Centre, IOI City Mall and Mid Valley Mega Mall. In addition, a restaurant within walking distance was available. With itsremembered her friend in Johor Bahru, who had also opened a budget hotel. "Surely, he can help me with some good recommendations", she thought, and did not hesitate to call him to get the contact of a good interior decorator. To get approval for the renovation, she spent many sleepless nights, burning the midnight oil to make sure all documentation was prepared according to the Sepang Municipal Council's specifications. These tasks were time consuming and once approval had been obtained, the hotel renovations took almost a year to complete. XAN Siti Alia and her friends wasted no time during the renovations. They took the initiative to learn about budget hotel management and operations from their friend, Halim. Halim and his team of experienced staff also helped to train De Cyber's newly appointed housekeeping staff. As a new hotel with new staff, Siti Alia realised that training and guidance were very important, particularly for the housekeeping staff and the supervisors, all of whom were new to the job. For this, she hired an experienced housekeeping staff to train her team, while Halim allowed his hotel supervisor to train the supervisors, especially in the hospitality area, as Siti Alia knew the key to De Cyber's success would be a team of well-trained supervisors and housekeeping staff who could provide impeccable services to the guests. The Journey Was Not Easy.... After De Cyber Hotel was officially opened in January 2019, increasing the number of guests was an uphill battle. Siti Alia realised it would be difficult to compete with established hotels, especially without a website. In the midst of these difficult times, a representative from ABC Digital Booking approached Siti Alia and offered a strategic alliance. ABC Digital Booking was a company that could install an online system to enable listing and booking of budget hotel accommodation. It had partnered with hotels in countries, such as India, China, Malaysia, Nepal, the United Kingdom, the United States, the United Arab Emirates, Saudi Arabia, the Philippines, Indonesia and Japan, to install online search and booking platforms. After a series of discussions, SitiAlia and her management team decided to collaborate with ABC Digital Booking. In their business agreement, it was stated that their collaboration would be for at least one year. If De Cyber Hotel decided to discontinue their strategic alliance after one year, a one-month notice must be given to ABC Digital Booking. In terms of payment, it was agreed that all payments could be done online or during check-in, depending on the customers and the OTAs involved. Another term in the agreement was that De Cyber Hotel must accept the prices for all rooms as set by ABC Digital Booking. Normally, room prices depended on supply and demand and would naturally be low if demand decreased, and high when demand increased. For example, when there were events, such as a convocation ceremony of higher education institutions located nearby, the demand for hotel rooms would increase as would the prices. E FO Besides the pricing of hotel rooms, it was also mentioned in the agreement that ABC Digital Booking would do all the marketing and promotion activities for De Cyber Hotel. This was indeed a welcome break and Siti Alia breathed a huge sigh of relief. All rooms would be sold through the ABC Digital Booking system and various other channels or OTAs. An OTA is a website or online service, which sells travel-related products to customers. These products might include hotels, flights, travel packages, activities and car rental. OTAs are the third parties, reselling these services on behalf of other companies, including those in the hotel industry (https/www.revfine.com/online-travel-agents/). ABC Digital Booking cooperated with OTAs in its effort to offer rooms in budget hotels that collaborated with it. De Cyber Hotel did not collaborate directly with OTAs as it was done via ABC Digital Booking. Each month, ABC Digital Booking would coordinate with the OTAs on behalf of De Cyber Hotel in allocating and receiving payments. ABC Digital Booking thus operated like a one-stop centre.Figure 1: Organizational Chart Manager Madam Siti Alia Supervisor 1 Supervisor 2 Afiq Julia Front Office Housekeeping Amir Nora Hussairy Murni Ana Deen Rozie Akeef Job scope: FOR FIN 1. Manager: Hotel and financial management. 2. Supervisor: Staffing, duty roster, quality control, overall daily operations. 3. Front office / Receptionist: Check-in, check-out, payments, daily and monthly sales report. 3 4. Housekeeping staff: Make-up rooms, overall cleanliness. VIN30 Before It Started.... Siti Alia could still remember the struggle that she and her friends went through in 2018 before De Cyber Hotel was successfully established. "It was certainly not easy and we faced so many hurdles....", she reminisced. Financially, Siti Alia and her friends had to ensure that they had sufficient funding. They took loans and used their personal savings just to realize their dreams of setting up a budget hotel. They rented a three-storey building and spent substantially to renovate and refurbish it into a comfortable budget hotel. Even before renovations commenced, Siti Alia had to overcome several challenges; it was indeed a struggle to get an experienced interior designer as well as approval from the Sepang Municipal Council. Siti AliaOur Strategic Alliance with ABC Digital Booking The agreement between De Cyber Hotel and ABC Digital Booking was based on a minimum guaranteed amount. Based on the agreement, all rooms were handed over to ABC Digital Booking for sale. If a room could not be sold, ABC Digital Booking would pay a specic compensation that was mutually agreed to (guaranteed). For example, if the minimum guaranteed price of one room was RMZO, then a minimum guaranteed amount per month of RM21 000 (35 rooms x RM 20 x 30 days) would be paid to De Cyber Hotel. If the sale of hotel rooms exceeded the minimum amount (RM 21,000), the sharing percentage of the gross sales was based on the 30: 20 ratio between De Cyber Hotel and ABC Digital Booking. In other words, if gross sales for any month was RM60, 000, the hotel's share would be RM48, 000 (80%) and ABC Digital Booking would get RM12,000 (20%) I '- However, if rooms could not be sold on any day due to damages/defects in rooms, a certain portion would be deducted from the minimum guaranteed amount. For example, if three hotel rooms could not be sold for three days, then ABC Digital Booking would reduce the minimum guaranteed amount by RMISO (RMZO x 3 rooms x 3 days). According to. Sm Alia, \"We really had to work hard to ensure that the defects/problems were aeled/msolved immediately to avoid losses. In addition, the increased occupancy rate and frequent use of hotel rooms led to higher maintenance costs and the cost of hiring part-time staff to ensure room availability at the appointed time (after 2. 00 pm daily), in addition to ensuring the rooms were of satisfactory quality In this technologically advanced era with users becoming more and more tech-savvy, most guests preferred to use online booking as it was easy and less time consuming. For online booking, guests had to only keyin their names, dates and duration of their stay in the hotel. Once the guests hit the booking button, the system would release the booking number together with the room rate for the selected dates. Guests had the option to key-in their identity card/passport and telephone numbers. During the De Cyber Hotel did some further renovations after its strategic alliance with ABC Digital Booking. According to Siti Alia, "We had to upgrade existing hotel rooms to meet ABC Digital Booking's standards. However, as the hotel had only been recently renovated, the costs incurred were minimal. Siti Alia commented, "Only minor renovations were done. ABC Digital Booking required that all linen should be white and there were no defects in the rooms. We also had to ensure that all facilities in the hotel rooms were in working and pristine condition". On a daily basis, the housekeeping staff would send linen, towels, and duvet to the nearby laundry shop. This was to ensure that these items were clean and available for use in the rooms at any time. NA F De Cyber Hotel installed CCTV cameras in its premise. Other facilities included automated room access cards, fire alarm, fire extinguishers and automated locking system for the main entrance, whereby it could only be opened from inside by the front office staff. All these facilities were installed for safety purposes and to ensure customers feel secure and satisfied with the hotel services. Siti Alia had to constantly ensure that the hotel had adequate cash to pay the monthly operating costs, including staff salary, rental, assessment (quit rent, hotel licence), air- conditioning maintenance for rooms and lobby, hotel amenities (free mineral water and drinks in rooms), laundry and toiletry (shampoo and soap). Of all these expenses, staff salary formed a major portion of the total hotel expenditure. Payment to staff included overtime claims, Employee Provident Fund (EPF) contribution, Social Security Organization (SOCSO) insurance and staff insurance protection (SIP). Besides, utility costs (electricity, water and internet bills) were another major cost in running De Cyber Hotel. Siti Alia noted that if any unexpected costs incurred, it might harm the hotel operation due to limited fund.incomparable hospitality, were significant for getting new guests and retaining existing customers. From this perspective, De Cyber Hotel was unique. With its modern and eye-catching interior design, spacious and comfortable rooms, free wifi, affordable room rate and its strategic location close to malls and cafes, De Cyber Hotel had a complete package to both attract and retain her guests. Another plus point was the extremely friendly and helpful staff and all these features and values clearly distinguished the hotel from its rivals. XAN In Cyberjaya, there are a number of homestay facilities and hotels situated near De Cyber Hotel, ranging from one-star to four-star hotels. Hotel Hilal, Loftplaza Hotel and Ville @ Cyberjaya in the vicinity were among the main rivals of De Cyber Hotel. The average rating of these hotels based on the evaluation made by guests was approximately the same as De Cyber Hotel. The room rate at these hotels was very competitive as its main rivals had used a frontal attack movement to battle in the field. Nonetheless, De Cyber Hotel offered the best room rate compared to its rivals. Siti Alia knew that to stay ahead and afloat in this industry, customer satisfaction was key and must be prioritised. Therefore, fantastic reviews by guests should be disseminated and promoted, not only via the internet and agents, but also through guests' word-of-mouth. The overall rating of De Cyber Hotel according to Trivago.com.my was excellent (9.1/10) as at 17 August 2020. Some reviews of De Cyber Hotel by guests who had rated the hotel as providing 'exceptional' service with a 10/10 rating, were as follows: The Best Place to Stay in Cyberjaya" I would strongly recommend for any traveller to Cyberjaya to stay in this new hotel. Rooms are very clean. Nice comfortable mattress & pillow. You won't regret a single cent you paid for your stay. Go for it. Definitely the most affordable place to stay in Cyberjaya.check-in at the counter, guests had to only present their identity card/passport (in order to know whether they are locals/foreigners), telephone numbers and car registration number for parking purposes. These details were kept by the hotel in the event of any queries in future. Both De Cyber Hotel and ABC Digital Booking kept the sales data for record purposes. To retain customer loyalty and to ensure guests repeat their stay in De Cyber Hotel, Siti Alia's main mission was to provide the best service quality. For this, she had to rely heavily on her front office and housekeeping staff. In essence, a first impression was key to retaining guests. Guests would form impressions during their initial contact at the counter, and subsequently, they decide on the hotel's services by assessing how well the rooms were maintained and how guests are treated. Siti Alia said, "the front office staff must be proficient in both Malay and English and have good communication skills. They must have a professional and pleasing appearance, be extremely courteous and greet all guests with a warm smile, no matter what the circumstances may be. In other words, customers are the most valuable asset and winning them over is the best way to have their continued loyalty and support. From the moment a guest steps into the hotel, service must be par excellence. The front office staff must welcome them and immediately make them feel at home. The registration and check-in process must be prompt and efficient". Further, housekeeping staff play a crucial role. The rooms must be spotless and ready and services needed by guests must be attended to quickly and effectively. In short, Siti Alia knew that the best service quality delivery would give De Cyber the much needed competitive edge for continued survival and sustainability. The rivals to battle... Being competitive and a cut above the other business rivals would be the breakthrough that De Cyber needed. Siti Alia noted that certain distinct characteristics, both tangible and intangible, such as excellent services andLooking Ahead \"Have you made your decision\" ..... asked Jaafar again. Siti Alia realised she had been drifting away into her own thoughts. She took a hold of herself and said, \"I am still thinking....hmmrnm, you know, it is difficult to make this decision. If we decide to not continue the collaboration and terminate the agreement, it will take time to settle all related matters and at least three or four months to settle our business dealings with the related OTAs. We might also need a consultant to advise us on bmldmg a more robust relationship with OT As On the other hand if we continue With this collaboration we have to adhere to the terms, which means we have to share our revenue with ABC Digital Booking. Sometimes, our share o__f thepie is really small. They tend to set extremely low rates for our rooms...it is okay for them, but we are the ones to bear all maintenance costs, not to mentionthe deduction of minimum guarantee payment if the hotel rooms cannot be solddue to defects and damages. For how long do we have to depend on ABC Digital Booking?\". Siti Alia sighed and felt a huge weight resting squarely on her slim shoulders Jaafar empathised with Siti Ahaa'nd-vvished he could do something more concrete to lighten the load she was carrymg alone. He tried his level best to console his wife and said, \"All businesses arendifcult When the economy is stable, business will be good and De Cyber Hotel will do well also. When the economy is bad, all sectors will be affected. Hehee, be patient. If you think De Cyber' lS ready to stand on its own, go for termmation. On the other hand, if you are not ready, you can work with them maybe for another two or three years at the most. Create an interactive website, one that users can-- easily relate to and focus on online marketing and booking of rooms. Set reasonable prices, maintain a good image and provide superior services - you really cannot go wrong by pleasing customers. Just be condent and work both hard and smart. I know for sure that with your ability, you will make the right decision and take De Cyber to unprecedented heights of excellence\". 12 Mr. 5 Reviewed May 15, 2019 Super cheap 6' huge room with a view\" Clean and loved the new modern design. This Hotel is really the best. Easy parking Mr M Reviewed lane 07, 2019 Best 6' Clean hotel to stay in Cybetjaya\" Stayed here multiple times during my business meetings in Cyberjaya. In terms of the overall ofering, De Cyber Hotel never failed me from day one. The sta; hotel facilities, cleanliness 6* everything else were top notch. They are a top class business, providing the best service to their customers. Fantastic place to enjoy Er relax as there are nearby eateries Er convenient stores as well. Kudos to the entire hotel family. 5 Star rated for sure wi thoat fail. MrV Reviewed July 31, 2019 5-star-class room, excellent interior, looks new and high class, yet very affordable\" i stayed there to attend a conference in Magic, Cyberjaya. The hotel staff were very friendly, the hotel looks new, very clean, super nice interior and they have 1st class bathroom! Unbelievable but true! Recommended for business travellers! Ms Nor Reviewed November 10, 2019 Siti Alia gazed lovingly at her husband without saying anything. She kept pondering what would happen in the next six months or one year or beyond. She made up her mind to re-strateg'ise and put more solid plans in place, including carrying out an environmental scan. Everyone was facing turbulent and uncertain times, especially with the Covid-19 pandemic, which had adversely affected the hospitality industry. Siti Alia then decided that worrying and stressing unnecessarily were not going to help her hotel. First things rst, she decided. \"Do I continue the alliance with ABC Digital Booking or do I work independently to promote De Cyber?". Siti Alia knew that these questions which continued to play on her mind must be. answered quickly and professionally in the best interests of all concerned