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Marriott International 2013

Analysis of the International Market

Wanda Pride

on 3 April 2013

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Transcript of Marriott International 2013

The Marriott International Marriott's Mission Marriott International The World's Lodging Leader! The Marriott is on a mission to conquer the world! The Marriott has a forceful acquisition and franchise strategy that has put them on top of their game. is to provide the best possible lodging services experiences to its customers that vary in backgrounds, languages, traditions, religions and cultures. The Five Forces Model The Marriott International has showed continuous signs of prosperity and has dominated the lodging industry worldwide. Buying Power of the Marriott The buying power in this industry is moderate and its players are constantly offering ways to reduce it.
A strong brand recognizes aids for attracting first time customers, it also entails repeat business since switching costs can be costly in this business.
The primary focus of the Marriott is to retain the customers its has and strive for new ones through different and innovative strategies. Supply Power of the Marriott This industry can be qualified as moderate due to the circumstances that create advantages to suppliers.
Suppliers in this industry are plentiful so the Marriott relies on technology and advanced systems to manage an analyze data from the multiple suppliers in this industry.
As the quality of training employees is parallel with the service they provide the suppliers with the high quality items may have some power over the firm since they are in such high demand. The Threat of New Entrants in the Industry The Marriott has experienced great growth over the past few years and it is likely that it has attracted new entrants.
The industry has been influenced by tourism and travel.
The threat of new entrants has been strong in the Asia-Pacific region, because of new flights being offered. Degree of Rivalry in the Industry The threat of rivalry can be moderate due to financial and logistical factors.
Most of the hotels key players are large branded chains that have a large number of independent companies already in the market.
This increases the level of competitiveness between rivals. Efficiency of the Marriott The Marriott's competitive advantage is the vast global presence it has and the diversified sources of revenue the company holds.
The majority of the companies earnings come from the U.S around 43% comes from its international operations.
Aside from having enormous global coverage the Marriott generates revenue, by tapping in various customer segments, ranging from lower priced segments like the Fairfield Inn to the luxury segments with the Ritz-Carlton. Swot Analysis The strength of this global leader is that near 5% value a share is untouched by hotel ownership. The company owns less than 1% of its hotel portfolio making them less vulnerable to real estate prices, their focus is more on rapid expansion of their portfolio and have a large geographic presence. Weaknesses of the Marriott The Marriott International remains heavily on the U.S. making it sensitive to the changing fortunes of the domestic market.
The lack of low-cost brands.
The Luxury brands leave Marriott International vulnerable to any economic downturns. Opportunities for the Marriott In order to offset the negative impact of a economic downturn the Marriott dives into different markets such as India, Asia, and the Pacific countries.
The high demand for the individual experience is generating potential for more distinctive brands properties and services. What threatens the Marriott? Poor economic conditions forcing businesses to reduce travel and spend less on traveling.
The rapid growth of the economy hotel brands such as limited service brands as the SpringHill Suites chain.
The Credit Crunch is the fear of the global travel industry will see a slowdown due to revenue from customers that want to spend less in the short term. The End
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