Marriott International has civilization and tradition of invention, service and prima public presentation. Marriott International has achieved competitory advantage over the other rivals through three conceptual models: Porters Five Forces attacks, the resources based attacks and the rational attack. Through this approaches Marriott International has identified the beginning of competitory advantage. This study is chiefly based on explicating how the Marriot International Inc. has successfully managed the strategic moves and viing with the strong challengers in the cordial reception sector. This study besides critically evaluates the strategic moves, competitory strength, internal and external environment of the company.
Marriott International is a taking operator, franchisor, and licensor of hotels, corporate lodging belongingss, and timeshare belongingss under legion trade name names at different monetary value and service points. It has more than 3700 belongingss worldwide. It is expanded to 73 states and have 18 trade names. Innovation, service and prima public presentation is ever the cardinal precedence of Marriott International. FortuneA® magazine has included Marriott International in the most admired company in lodging industry and besides as one of the best topographic points to work.A This study critically evaluates the Marriott International ‘s strategic profile. ( Marriott International Inc. , 2012 )
Marriott International has categorized its glowing history in 4 groups ; period between 1927 to 1956 is known as early old ages, growing old ages are between 1957 to 1985, modern old ages are between 1986 to 2011 and the old ages in front is 2012 and onwards.
Marriott was founded in 1927 by J. Willard Marriott and his married woman in Washington D.C. as a root beer base. Due to the humid summer of Washington D.C. the Hot Shoppe bit by bit became the popular topographic point to acquire cool drinks to slake the thirst. For winter season hot Mexican dishes like Tamales, chili, and greasers were the profitable points. In 1929 Hot Shoppes was incorporated in Delaware as Hot Shoppes Inc. Hot Shoppes went public in 1953 by opening its first hotel, the Twin Bridges Marriott in Arlington, Virginia. Marriot did its first international enlargement in 1966 by geting an air hose catering kitchen in Caracas, Venezuela. Marriott became Marriott Corporation in 1967. Cruise lines were added to Marriott Corporation in 1971 and in 1972 J. W. Marriott, Jr. the boy of JW Marriot Became the CEO. Farrell ‘s ice pick parlours became the portion of Marriott Corporation in 1972 and besides two subject Parkss near Chicago and San Francisco came to operation in 1976. In 1977 Marriot Corporation became a billion dollar company. In 1982 the company acquired Host International and opened foremost Courtyard hotel in 1983. In following twelvemonth company entered in the holiday timeshare and senior-living market.
In 1987 Marriott entered in the lower-moderate housing section by geting Fairfield Inn and Residence Inn. Again in 1993 the company one time once more broke down into Marriott International and Host International. In the twelvemonth of 1995 Marriott International acquired Ritz Carlton Hotel Company. Marriott International introduced Marriott Executive Residence, Towneplace Suites and Fairfield Suites in 1997 by geting Renaissance Hotel Group. In 2006 Marriott International announced that all Marriott constitutions in US and Canada are non-smoking zone. Marriott has really colourful yesteryear and it grew old with invention and on the other manus it focused more on amalgamations and acquisitions. In the modern old ages Marriott International opened the first Bulgari Hotels & A ; Resort belongings in Milan, Italy. In the twelvemonth of 2008 The Edition trade name was introduced. Marriott International continued its growing in 2009 as good. In this twelvemonth company launched Autograph Collection, which is a luxury and upscale independent trade name hotels. In the twelvemonth of 2012 Marriott International got its 3rd CEO, Arne Sorenson in the company ‘s history.
Harmonizing to the Bill Marriott, “ Sustainability means being good corporate citizen and environmentally steward and advancing economic growing, diverseness and inclusion in our communities worldwide. ” Marriott International is turning bigger every twenty-four hours. Marriott International is concentrating more on Asia, Africa and Middle East in these yearss.
Marriott International has good planned schemes like New Generation Travelers, Brand Distinction, Portfolio Power, Technology Leadership, Owner Preference and Global Growth. These schemes are formulated to vie with the rival ironss. Beside these schemes Marriott International has CSR scheme known as ‘Spirit to function our communities, ‘ which is societal attack to remain in front from the competition. Company has strategic direction plan to catch up with latest tendency and development in the market place.
Marriott International developed great room anteroom experience for the Following Generation Travelers in 2007 and is expanded to 190 states of the more than 500 Marriott hotels and resorts. Company has planned to spread out this plan to more than 80 % of Marriott belongingss worldwide with in 2015.
Marriott International is besides seeking to minimise its labour costs in its corporate offices despite the greater enlargement of the company itself. There will be wholly 100 hotel in India entirely within 2016. In china Marriott planning to open new hotels in faster gait than the rival hotel ironss. The economic systems of China and India are slightly decelerating down but the travel and touristry industry is still turning in the positive velocity and Marriott International wants to capture the turning market travel and touristry by adding new suites.
MISSION AND VISION STATEMENT
Marriott International does non hold a mission statement ; instead, it has a vision statement which is “ To be the # 1 cordial reception company in the universe. ” ( Marriott International Inc. , 2012 )
INTERNAL AND EXTERNAL ENVIRONMENT:
Large Expansion of Brands
Peoples ‘s concern
Website and Social Network
Focused divestiture Attempts
Attract and retain employees
Culture keeping against the individualities of the trade names
Strong Internet presence
Adequate IT solutions
Over-reliance on US market
Over dependance on luxury trade names
Lack of low-priced lifestyle trade names
targeted by fundamentalists or extremists
Emerging Asiatic Travel and Tourism Markets
Tendency of low-priced market
Distinction amongst hotel service offered
Environmentally and Family Oriented
Decrease of cost of existent estate in the USA
Timeshare non popular any longer
Economic Recession = lower consumer disbursement
Boom of Economy Hotel Brand
External environment demands to be analyzed in timely mode in order to be competitory on today ‘s market topographic point. The environment is altering all the clip and company must be antiphonal to the altering environment. To take effectual actions. Plague is the effectual tool to analyse external environment of the organisation. Marriott International is the taking cordial reception direction company. Its political, economic, societal and technological environment analysis are as follows:
Marriott International has recognized the value of Torahs and ordinances of the single state and acted consequently in the past and present. The political scenario in each state is different and must be addressed decently. Marriott has followed protocol designed by the single state like ; no smoke policy, non-fat nutrient, low Calorie diet etc.
The turning economic system of the Asia and other developing part is actuating Marriott International to put more in these countries. On the other manus, the increasing monetary value of gasolene is promoting Marriott International to concentrate on clean energy and to be more environment friendly by diminishing the usage of man-made fuels, which besides helps in commanding the cost of the operations
Peoples today like to go and research new topographic points. Marriott is widening travel web in America, Europe, Australia, Asia and Africa. Visiting friends and household abroad today is really easy due to the promotion in transit system. Marriot International must acknowledge this market and develop program to pull these markets.
The universe today is like planetary small town. Technology is linking the universe and garnering the people in one topographic point. Peoples travel today more often than in the yesteryear. Reservation, payment, cheque in and look into out can be done seamlessly. Marriott International has adopted technological invention in faster gait than the rivals. Technological and invention is the cardinal precedence of Marriott International.
3 ) FORCES OF FRAME WORK
The purchaser power in the Hospitality industry is moderate. As the Marriott International has strong trade name acknowledgment, it can pull new guest easy with small attempt of selling and publicities. The company can besides maintain its repetition concern because the exchanging cost or hazard for the invitee is unsure. Marriott International is supplying quality service systematically and giving the best experience to its invitee at all degree.
The provider power is moderate for Marriott International as the provider power in Hospitality Industry is fragmented. Property proprietors, developers, designers, existent estate companies, selling houses, jurisprudence houses and information engineering service and equipment providers are some illustration of provider in the industry. Suppliers are in different forms and sizes. Food and drink provider, public-service corporation provider and labour provider are besides cardinal participant, as they are major stakeholder in minimising operational cost of operation.
Menace of New Entrants
Menace of new Entrants for Marriot International is well high due to the significant growing in cordial reception industry in past few old ages. The unfavourable economic status of some European states besides have lowered the value of land and existent estate and it is really likely to pull new enterpriser in the cordial reception industry. The economic growing in South Asia and Asia Pacific is besides maximising the menace of new entrants.
Menace of Substitution
Menace of permutation for Marriott International is low in the developed states and premium market topographic point. In developing states, the menace of permutation is high due to the advanced constructs in travel and touristry industry like ; homestay run, bivouacing, informal visit to friends and household. There is a menace of permutation but we can non compare the service degree provided in the informal sector with the Marriott degree of service.
Degree of Rivalry
The menace of competition in the cordial reception industry is moderate for Marriott International. In cordial reception industry, cardinal participants are big branded ironss. Marriott is confronting strong competition from the other same sized concatenation trade names but it is deriving its competitory advantage through the variegation of concern in specialised sections. Marriott is expanded in 73 states and has 18 trade names which is the chief ground that Marriott is in front from its rival. Beside this, Marriott ‘s strong trade name equity, strong committedness for guest satisfaction, consistent and quality service is assisting Marriott to remain in front from its challengers.
RESOURCES AND CAPABILITIES
Marriott International has a strong presence in the cordial reception market due to its efficient operation, effectual selling, specific market cleavage by variegation of gross and economic systems of graduated table on operations. Marriott is capable of pull offing all of its operations on its ain. Strong committedness to service and guest satisfaction is Marriott ‘s precedence. Satisfied investor and stockholders, motivated employees in all degree, strong corporate civilization is driving Marriott International in the right path of its journey to more satisfied invitee, motivated employees and comfortable proprietors and stockholders.