Oberoi-Hilton strategic alliance that died in infancy
by G.D. Sardana
International Journal of Technology Marketing (IJTMKT), Vol. 5, No. 1, 2010

Abstract: East India Hotels Ltd. (EIH), India's well respected name in the hospitality sector passed through rough weather in years starting 2001. The annual financial results showed downward trend in sales, net profits, value addition, and earnings per share. The process of globalisation started by India in 1991 had benefited the country in providing a boost to the economy. To the hospitality sector it meant more discerning foreign visitors. In 2003, EIH decided to enter into an alliance with Hilton, one of the top hotel chains at the global level. Hilton was equally keen to make its presence felt in the emerging fast growing Indian economy. The alliance made effective in 2004 had become sour by 2006, compelling both the partners to call it off in 2007. The case traces events leading to the sad demise of the alliance raising fundamental issues about the missing homework before signing of the agreement.

Online publication date: Thu, 20-May-2010

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