Can Eco-standards and Certification Create Competitive Advantage for a Luxury Resort?

1. Presentation by –
Mohd Faisal Khan

2. Introduction
• Damai lovina villas and restaurant is a
boutique hotel
• Located in Northern Bali
• Staff to room ratio 57:8
• Hotel occupancy rate - 65%
• Glenn knape, general manager of damai
lovina working on
• How to strengthen the hotel’s competitive
position and
• Increase utilization rates beyond the hotel’s
65% occupancy

3. • Main Competitor Hotels -
• Puri Bagus Lovina
• Alila
• Matahari Beach Resort
• Implementation of internal audit with the
assistance of a broader sustainability
framework
• Assigning Damai’s individual activity into
one of the 4 sustainability categories
• Cost/risk reduction
• Reputation/legitimacy
• Innovation/reposition
• Vision/opportunity framing
Contd.
Damai’s sustainability activities
broadly divided in 3 areas

4. 1. Limited customer base
2. High rate of product recall
SWOT Analysis
Strengths Weakness
Threats
Opportunities
1. Great Variety in the Product Portfolio
2. Strong Foothold in Global FMCG Market
3. Good CSR Recognition
4. Innovative
5. Invests a lot on Research & Development
1. High labor costs
2. Many other companies are also moving towards user
and eco friendly products – Stiff Competition from J&J
and Nestle in the US Market
1. Growing market for personal care products in many
parts of the world other than US
2. Growing demand for user-friendly and eco-friendly
products

5. ES Cloud

6. Sustainable Value
Stakeholder Value
• Fishermen community
• Reclaiming Top Soil
• Fire Safety
• Low labour and
operating costs
• High operating profits

7. Generic Strategy
(Environmental and Social Risks)
(collab with fire dept. for the safety of local and
business, teaching farmers about composting)
(Offering Environmental friendly
services at low costs )
(Not Radical
But
Incremental)
(Sustainability & Organic
Focused at low prices )
(By constantly improving
and looking for gaps)
(Solar Energy, Iodized
water, recycled glass)

8. The 3 main questions that need to addressed
1. Whether or not they would be enough to qualify for one or more of
the 5 VEPs.
2. Whether the hotel needed to invest additional resources to quality
for VEP participation, and if so what investment were required?
3. Whether or not VEP participation would achieve Damai’s broader
strategic objective to enhance its external profile, increasing
bookings and lead to premium prices?

9. Whether or not Damaí’s existing sustainability practices
would be enough to qualify for one or more of the 5 VEPs?
VEP Registration Eligibility
Best Green hotels Free Yes
Eco Lodge Program Free Yes
Green Globe 21 (GG21) Paid No
CERES' GHI Free Yes
ISO 14001 Paid No

10. Whether the hotel needed to invest additional resources
to quality for VEP participation, and if so what investment
were required?
Green Globe 21
• come up with a proper policy
regarding their environmental
and social sustainability
practices
• an integrated EMS
ISO 14001
• Develop an environmental
policy and an implementation
strategy
• M&E of environmental aspects
Yes

11. Whether or not VEP participation would achieve Damai’s
broader strategic objective to enhance its external profile,
increase in bookings and lead to premium prices?
• The VEP participation will surely vouch
for an improved presence in the market
& brand value enhancement.
• We are uncertain about increase in
bookings although considering the
existing urban professional customers
from America and Europe, premium
prices should not be a problem.
• But the premium prices may be an issue
with backpackers and other such
customers.

12. Possible Next Steps
• Damai should join the following free VEPs:
• Best green hotels
• Eco Lodge program and
• Creres’ Green hotel
• If successful, it should then invest in additional resources to be able to
participate in Green Globe 21 and ISO 14001
• The cost of participation in these can be compensated by charging a
premium
• The increased prices will still be less than those of competitors and it
expect that it should not be much of an issue

13. Thanks