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- Securities Law – What are the securities law in the country and what are the conditions to list the company on national or regional stock exchange.

- Data Protection Laws – Oyo Vit needs to assess what are the data laws in the country and what it needs to do to comply with them. For example most of EU countries now want the EU citizen data to be saved in EU countries only.

- Laws regarding Monopoly and Restrictive Trade Practices – As a new player Oyo Vit shouldn’t be worried about the monopoly and restrictive trade practices law.

- Consumer Protection Laws – Oyo Vit needs to know what are the consumer laws, what is the rate of enforcement, what is the attitude of authorities towards consumer protection laws, and what is the role activist groups in enforcement of consumer protection laws.

- Transparency in Judiciary System & Processes – Transparency is essential for fair and consistent decision making. If the process is consistent and transparent then Oyo Vit can plan ahead with greater conviction.

- Health & Safety Laws – What are the health and safety laws in the country and what Oyo Vit needs to do to comply with them. Different countries have different attitude towards health and safety so it is better for Oyo Vit to conduct a thorough research before entering the market.

- Employment Laws – What are the employment laws in the country and are they consistent with the business model of Oyo Vit. For example Uber employment system is not consistent with French laws and it is facing challenges in the country.

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- Focus & Spending on Renewable Technologies – How much of the budget is spent on renewable energy sources and how Oyo can make this investment as part of its competitive strategy.

- Waste Management – What is the policy of waste management in the prospective market and how Oyo can adhere to the waste management requirements in that market.

- Influence and Effectiveness of Environmental Agencies – The role of environment standards enforcement agencies is critical in safeguarding norms. But often in emerging countries, these agencies delay the process as a tactic to extract bribes. Oyo should be aware of the presence of such practices in a country.

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- Intellectual Property Rights and Patents Protection – Before entering new market Oyo Vit should focus on the environment for intellectual property rights.

- Transparency & Digital Drive – Oyo Vit can use digitalization of various processes to overcome corruption in the local economy.

- Integration of Technology into Society & Business Processes – Uber failed in China because it tried to enter before smartphone were widespread in China. Oyo Vit should build a strategy that can integrate societal values, infrastructure, and Oyo Vit business model.

- Research and Development Investment Levels – If there is high level of investment in technology development sector then there are high chances of building a self sustaining ecosystem that drives innovation. Oyo Vit can leverage such a situation to hire the best people in business.

- Mobile Phone & Internet Penetration – Oyo Vit should assess the level of internet and mobile phone penetration in the country as it will it in building a requisite business model based on local needs and realities.

- Technology transfer and licensing issues for Oyo Vit – laws and culture of licensing of IPR and other digital assets should be analyzed carefully so that Oyo Vit can avoid shakedowns and IPR thefts.

- Level of Acceptance of Technology in the Society – Oyo Vit has to figure out the level of technology acceptance in the society before launching new products. Often companies enter the arena without requisite infrastructure to support the technology oriented model.

- Cost of Production and Trends – Oyo Vit should assess - What are the cost of production trends in the economy and level of automatization. We at EMBA Pro believe that in near future the sector most disrupted by technological innovation is manufacturing and production.

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- Types of Immigration & Attitude towards Immigrants – Given the latest developments such as Brexit and Immigrant detention on the Southern border of the United States. Attitude towards immigration has come under sharp focus. Oyo should have capabilities to navigate under this hypersensitive environment.

- Nature of Social Contract between Government & Society – Before entering into a market Oyo needs to understand the nature of the social contract between government and society. For example, it has been extremely difficult for US companies to enter the UK health market as the UK health system is a nationalized system and everything goes through contracts at the national level.

- Gender Composition in Labor Market Oyo can use the gender composition of the labor market to understand the level of liberal nature of the society, women's rights, and women’s say in the matter of societal issues and consumption decisions. The gender composition of the labor market is a good indicator of the disposable income of the household, priorities of the households, and related needs.

- Immigration Policies and Level of Immigration – What are the immigration policies of the country, what is the level of immigration, and in which sectors immigration is encouraged. This will enable the Oyo to determine – if required can it hire talent globally to work in that particular market.

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- Workforce Productivity – Workforce productivity in the US has grown by 25-30 % in the last two decades even though the salaries are not reflecting those gains. It can enable Oyo Vit to hire a skilled workforce at competitive salaries.

- Consumer Disposable Income – The household income of the country has increased constantly in the last decade and half, compare to the USA market where household income is still below 2007 levels and not increased in real terms since early 1980’s. Oyo Vit can leverage this trend to expand the market beyond its traditional customers by employing a differentiated marketing campaign.

- Fiscal and Monetary Policies – The Republican government tax break culture has increased the deficit and it can lead to fiscal trouble for the economy in coming years.

- Foreign Exchange Rate – Number of companies have incurred losses in past few years because of forex risk in – Venezuela, Brazil, and Argentina. Oyo Vit should be careful about the history of forex risk before entering new market. Many US companies have incurred losses in Mexico in regular forex crisis in that country.

- Demand Shifts from Goods Economy to Service Economy – The share of services in the economy is constantly increasing compare to the share of manufacturing, goods, and agriculture sectors.

- Inflation Rate – The inflation rate can impact the demand for Oyo Vit products. Higher inflation may require Oyo Vit to continuously increase prices in line with inflation which could lead to lower levels of brand loyalty and constant endeavors to manage costs. Cost-Based Pricing could be a bad strategy under such conditions.

- Financial Market Structure and Availability of Capital at Reasonable Rates – The quantitative easing policy of the Federal Reserve has led to liquidity flooding all across the global financial markets. Oyo Vit can borrow cheaply under such circumstances. But this strategy entails risks when the interest rate will go up.

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- Role of Non-Government Organization, Civil Society & Protest Groups – The country has a vibrant civil society community and Oyo should build bridges with them and seek out areas of co-operation. Civil society groups are influential not only in policymaking but also in building a society-wide narrative.

- Regulatory Practices - The regulatory practices are streamlined with global norms which have helped the country to improve its “ease of doing business” ranking.

- Unrest within the Country & Chances of Civil Unrest – We don’t think that Oyo Vit business operations are facing any dangers from any kind of civil unrest or internal militant operations in the country.

- Government Regulations and Deregulations – The government is adhering to all the rules and regulations under World Trade Organization norms. There is consistency in both policymaking and implementations of those policies.

- International Trade & Other Treaties – The country has a good record of adhering to international treaties it has done with various global partners. The government of each party has adhered to the treaties done by previous governments, so there is consistency in both rule of law and regulations.

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Oyo prefers to promote completely through different social media sites like Facebook, Twitter, etc. Oyo uses a digital platform to attract new customers with its unique services and lower prices. Also, retain loyal customers by coming up with new discount policies further on the low prices. Oyo has also conducted various online campaigns like #Aurkyachaiye (what else do you want?) which we can see on different other social media sites. Many of these campaigns also included Bollywood artists to make them appear more attractive. One of the most recent campaigns is “One for everyone” which comprises of short 8 movies where customers are showing their own satisfaction with Oyo services.

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Oyo rooms started from a single hotel in Gurgaon and now has extended its empire in all the parts of the country along with going beyond the seas in Malaysia and Nepal. Oyo rooms work totally online, either with an app or through online sites you can go through the available hotels with their estimated price. You can book it online with a confirmation and then you can avail of the services on reaching the booked hotel on a specific date.

So Oyo’s total delivery system is online whether it is booking, complaint or feedback and its online system are totally user-friendly.

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Oyo Room’s strategy is to attract customers with a lower room price in comparison to the base price of the hotel. The main goal is to offer at an unmatched price and which matches the budget of user. Their room price varies from £20 to £50 depending on the location and luxury of the hotel. Due to this discount strategy, many times Oyo turns out to be at a major loss which is then backed by different investors like Softbank group. Overall Oyo rooms are following a very sensible strategy that aims to provide rooms at a moderate rate with awesome services and generate loyalty from customers.

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Oyo Rooms is one of the most popular hotel booking online brands in India. Oyo works on a different scale in comparison to other online room booking sites or online travel agents. Oyo Rooms' work methodology is simple that they pitch the hotels available in a different location to the customers and on booking they take a commission fee as their income. Many times they also do one thing that they book a few rooms of a hotel every month according to consumer request and then they even rent these rooms to consumers at a lower rate at which they themselves have taken from the hotel. This deal attracts consumers and makes their trip way more comfortable at a low cost. Their service of giving rooms to unmarried couples without any hassle also attracts youngsters to a big deal. It takes only 5-6 days for Oyo to make up a deal with a hotel after analyzing all of their services. As a comfortable service is one of their prime motto so Oyo Rooms have also made up a special team that keeps on visiting hotels in a fixed duration to make sure that all the services are available as stated. This gives an insight in the product & service offering in its marketing mix.

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Competition: With lowered barriers to entry, every new entrepreneur is looking at aggregating services. There are a lot of online portals like ibibo, trivago, makemytrip etc which offer a varied gamut of services similar to Oyo.

Growing concerns about safety: Today there is negative imagery of unsafe stays and the number of cases of harassment is on an increase. Though Oyo does not guarantee safety at any point in time for its hotels they have a moral commitment to ensure that no such untoward incidents happen.

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Growing demand for aggregators: As the world reels from the aftermath fo repeated recessionary trends, pay cuts, and job losses, most higher-end hotels are struggling to balance supply and demand. This increases the scope for aggregators like Oyo since most hotels would prefer to take external support for sourcing new business.

Focus on budget accommodation: Earlier the trend was more biased towards luxury and boutique hotels but not anymore. People are trying to minimize spending and focus on saving and thus budget hotels that can provide decent boarding and lodging facilities are on a high demand today.

A surge in the number of business travelers in emerging economies: The number of people who travel on business from both genders has grown profusely in emerging economies. This has resulted in a demand for budget stays.

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A strategy of co-branding: Oyo does not own any of the rooms that it lets out. But it is more like a hotel aggregation platform where the buyer and seller are allowed to transact with each other through a common window provided by Oyo. Thus they just cobrand with various budget hotels but do not own the rooms.

Poor service quality: Though Oyo has tried to standardize amenities for each room based on the prices they charge, they have not been able to do the same with services. This has made the service quality and reliability highly questionable.

Tight margins: Hotels that are on a tie-up with Oyo can also loop in other agents for which Oyo cannot do anything much to circumvent. In this context, the model thrives solely on how well the margins they provide for their hotels are which can be risky in the long run.

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Standardization: The Oyo rooms are mostly owned by various providers but have just been standardized under the Oyo franchise and thus people are guaranteed of standardized service in all Oyo rooms wherever they may be located.

Ever-growing network: What started off as a one-room one hotel thing in Gurgaon now has around 8500 properties to its credit and an additional inventory of 4000 motels and homestays? This is a clear strength.

Spirit of Innovation: The root idea or need from which Oyo rooms were conceptualized is a highly innovative one of a one-stop-shop for a budget stay in India. The company continues to maintain its strong spirit of innovation as is evident from the policy to standardize rooms amongst many others.

Subsidizing Hotel Stays: Oyo subsidizes rooms to make them affordable for customers and similar to Ola and Uber have emerged successful in their line of business.

Young and highly spirited leader: The founder of Oyo Ritesh Agarwal is a youngster who has won a lot of accolades and besides entrepreneurship caters to a wide range of interests. This is reflective of every strategy that Oyo adopts since there is a freshness to the approach taken which is one strong reason for its instant success.

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OYO is an Indian hotel chain. It is the world's third-largest and fastest-growing hospitality chain of leased and franchised hotels, homes & living spaces.
Founded in 2013 by Ritesh Agarwal, OYO initially consisted mainly of budget hotels. Over a span of 6 years, the startup expanded globally with thousands of hotels, vacation homes and millions of rooms across hundreds of cities in India, Malaysia, UAE, Nepal, China, Brazil, UK, Philippines, Japan, Saudi Arabia, Sri Lanka, Indonesia, Vietnam, United States and more.
The key Stakeholders are:
Investor: Softbank Group, Lightspeed India, Sequdia Capital, Hero Enterprise and China Lodging Group
Competitor: Airbnb