Marriott International: An Analysis

Marriott International: An Analysis Marriott International has culture and tradition of innovation, service and leading performance. Marriott International has achieved competitive advantage over the other competitors through three conceptual frameworks: Porters Five Forces approaches, the resources based approaches and the rational approach. Through this approaches Marriott International has identified the source of competitive advantage. This report is primarily based on explaining how the Marriot International Inc. has successfully managed the strategic moves and competing with the strong rivals in the hospitality sector. This report also critically evaluates the strategic moves, competitive strength, internal and external environment of the company. Introduction Marriott International is a leading operator, franchisor, and licensor of hotels, corporate housing properties, and timeshare properties under numerous brand names at different price and service points. It has more than 3700 properties worldwide. It is expanded to 73 countries and have 18 brands. Innovation, service and leading performance is always the key priority of Marriott International. Fortune ® magazine has included Marriott International in the most admired company in lodging industry and also as one of the best places to work. This report critically evaluates the Marriott Internationals strategic profile. (Marriott International Inc., 2012) History Marriott International has categorized its glowing history in 4 groups; period between 1927 to 1956 is known as early years, growth years are between 1957 to 1985, modern years are between 1986 to 2011 and the years ahead is 2012 and onwards. Marriott was founded in 1927 by J. Willard Marriott and his wife in Washington D.C. as a root beer stand. Due to the humid summer of Washington D.C. the Hot Shoppe gradually became the popular place to get cool drinks to quench the thirst. For winter season hot Mexican dishes like tamales, chili, and tacos were the profitable items. 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 expansion in 1966 by acquiring an airline 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 son of JW Marriot Became the CEO. Farrells ice cream parlors became the part of Marriott Corporation in 1972 and also two theme parks 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 first Courtyard hotel in 1983. In next year company entered in the vacation timeshare and senior-living market. In 1987 Marriott entered in the lower-moderate lodging segment by acquiring Fairfield Inn and Residence Inn. Again in 1993 the company once again broke down into Marriott International and Host International. In the year of 1995 Marriott International acquired Ritz Carlton Hotel Company. Marriott International introduced Marriott Executive Residence, Towneplace Suites and Fairfield Suites in 1997 by acquiring Renaissance Hotel Group. In 2006 Marriott International announced that all Marriott establishments in US and Canada are non-smoking zone. Marriott has very colorful past and it grew old with innovation and on the other hand it focused more on mergers and acquisitions. In the modern years Marriott International opened the first Bulgari Hotels Resort property in Milan, Italy. In the year of 2008 The Edition brand was introduced. Marriott International continued its growth in 2009 as well. In this year company launched Autograph Collection, which is a luxury and upscale independen t brand hotels. In the year of 2012 Marriott International got its third CEO, Arne Sorenson in the companys history. Strategy Management According to the Bill Marriott, Sustainability means being good corporate citizen and environmentally steward and promoting economic growth, diversity and inclusion in our communities worldwide. Marriott International is growing bigger every day. Marriott International is focusing more on Asia, Africa and Middle East in these days. Marriott International has well planned strategies like New Generation Travelers, Brand Distinction, Portfolio Power, Technology Leadership, Owner Preference and Global Growth. These strategies are formulated to compete with the rival chains. Beside these strategies Marriott International has CSR strategy known as Spirit to serve our communities, which is social approach to stay ahead from the competition. Company has strategic management program to catch up with latest trend and development in the marketplace. Marriott International developed great room lobby experience for the Next Generation Travelers in 2007 and is expanded to 190 countries of the more than 500 Marriott hotels and resorts. Company has planned to expand this program to more than 80% of Marriott properties worldwide with in 2015. Marriott International is also trying to minimize its labor costs in its corporate offices despite the greater expansion of the company itself. There will be altogether 100 hotel in India alone within 2016. In china Marriott planning to open new hotels in faster pace than the rival hotel chains. The economies of China and India are somewhat slowing down but the travel and tourism industry is still growing in the positive speed and Marriott International wants to capture the growing market travel and tourism by adding new rooms. MISSION AND VISION STATEMENT Marriott International does not have a mission statement; rather, it has a vision statement which is To be the #1 hospitality company in the world. (Marriott International Inc., 2012) INTERNAL AND EXTERNAL ENVIRONMENT: SWOT Analysis Strengths Weaknesses Large Expansion of Brands Peoples business Geographic Presence Global leader More franchise Website and Social Network Focused divestiture Efforts Attract and retain employees Culture retention against the identities of the brands Brand Equity Strong Internet presence Adequate IT solutions Over-reliance on US market Over dependence on luxury brands Lack of low-cost lifestyle brands targeted by fundamentalists or extremists Opportunities Threats Emerging Asian Travel and Tourism Markets Trend of low-cost market Distinction amongst hotel service offered Environmentally and Family Oriented Decrease of cost of real estate in the USA Eco-tourism Timeshare not popular anymore Economic Recession = lower consumer spending Boom of Economy Hotel Brand Political instability Terrorism PEST Analysis External environment needs to be analyzed in timely manner in order to be competitive on todays market place. The environment is changing all the time and company must be responsive to the changing environment. To take effective actions. PEST is the effective tool to analyze external environment of the organization. Marriott International is the leading hospitality management company. Its political, economic, social and technological environment analysis are as follows: Political Environment Marriott International has recognized the value of laws and regulations of the individual nation and acted accordingly in the past and present. The political scenario in each country is different and must be addressed properly. Marriott has followed protocol designed by the individual nation like; no smoking policy, non-fat food, low calorie diet etc. Economic Environment The growing economy of the Asia and other developing region is motivating Marriott International to invest more in these areas. On the other hand, the increasing price of gasoline is encouraging Marriott International to focus on clean energy and to be more environment friendly by decreasing the use of synthetic fuels, which also helps in controlling the cost of the operations Social Environment People today like to travel and explore new places. Marriott is extending travel network in America, Europe, Australia, Asia and Africa. Visiting friends and family abroad today is very easy due to the advancement in transportation system. Marriot International must recognize this market and develop plan to attract these markets. Technological Environment The world today is like global village. Technology is connecting the world and gathering the people in one place. People travel today more frequently than in the past. Reservation, payment, check in and check out can be done seamlessly. Marriott International has adopted technological innovation in faster pace than the competitors. Technological and innovation is the key priority of Marriott International. 3) FORCES OF FRAME WORK Buyer Power The buyer power in the Hospitality industry is moderate. As the Marriott International has strong brand recognition, it can attract new guest easily with little effort of marketing and promotions. The company can also keep its repeat business because the switching cost or risk for the guest is uncertain. Marriott International is providing quality service consistently and giving the best experience to its guest at all level. Supplier Power The supplier power is moderate for Marriott International as the supplier power in Hospitality Industry is fragmented. Property owners, developers, architects, real estate companies, marketing firms, law firms and information technology service and equipment suppliers are some example of supplier in the industry. Suppliers are in different shapes and sizes. Food and beverage supplier, utility supplier and labor supplier are also key player, as they are major stakeholder in minimizing operational cost of operation. Threat of New Entrants Threat of new Entrants for Marriot International is considerably high due to the substantial growth in hospitality industry in past few years. The unfavorable economic condition of some European countries also have lowered the value of land and real estate and it is very likely to attract new entrepreneur in the hospitality industry. The economic growth in South Asia and Asia Pacific is also maximizing the threat of new entrants. Threat of Substitution Threat of substitution for Marriott International is low in the developed nations and premium market place. In developing nations, the threat of substitution is high due to the innovative concepts in travel and tourism industry like; homestay campaign, camping, informal visit to friends and family. There is a threat of substitution but we cannot compare the service level provided in the informal sector with the Marriott level of service. Degree of Rivalry The threat of rivalry in the hospitality industry is moderate for Marriott International. In hospitality industry, key players are large branded chains. Marriott is facing strong competition from the other same sized chain brands but it is gaining its competitive advantage through the diversification of business in specialized segments. Marriott is expanded in 73 countries and has 18 brands which is the main reason that Marriott is ahead from its competitor. Beside this, Marriotts strong brand equity, strong commitment for guest satisfaction, consistent and quality service is helping Marriott to stay ahead from its rivals. RESOURCES AND CAPABILITIES Marriott International has a strong presence in the hospitality market due to its efficient operation, effective marketing, specific market segmentation by diversification of revenue and economies of scale on operations. Marriott is capable of managing all of its operations on its own. Strong commitment to service and guest satisfaction is Marriotts priority. Satisfied investor and shareholders, motivated employees in all level, strong corporate culture is driving Marriott International in the right track of its journey to more satisfied guest, motivated employees and prosperous owners and shareholders. DECISION MAKING CRITICAL THEMES CONCLUSION Are you Thirsty? Analysis of Pepsi Advert Are you Thirsty? Analysis of Pepsi Advert Briauna McGrew You wake up in the middle of the night and youre standing in front of your refrigerator with your eyes squinted because of the bright light trying to decide what you want to drink. Then you finally see it, even with your squinted eyes, the exact thing you had been craving since you went to sleep and then dreamed about until the moment you woke up, a Pepsi. So, you grab that glorious Pepsi excited to take a drink and feel the bubbly delicious drink run down your dry throat. Once you take a drink you start to think back to what first got you started drinking this yummy, bubbly, delicious pop. Then you remember the ad that you saw in a magazine that made you laugh out loud so you just had to try the pop. In this ad they used one of Americas famous holidays to get peoples attention and they also made it funny which is something that everyone loves, if someone sees something funny and they are a fun person, more than likely they are going to look into whatever it is that made them laugh, I know I do. When I first looked at this ad the very first thing that I notice is the Pepsi can wearing a Coca-Cola cape. So it is obviously a Pepsi ad trying to get people to drink Pepsi. They are trying to send out a message that Coke is scary and Pepsi is just a normal pop. The only saying on this ad is We wish you a scary Halloween!. This is a big part of them saying that Coke is scary because when you dress up for Halloween you try to be scary, so the Pepsi can is trying to be scary by dressing up as a Coke can. I also got the feeling that when they say We wish you a scary Halloween they are saying that it would be scary if Pepsi turned into Coke When you think of scary things you want to stay away from them, such as shark infested water, if you had to choose between swimming in water that had no living things in it and swimming in water that was infested with sharks I am almost certain you would choose the one with no living things. I think thats what Pepsi is getting at with this ad. Pepsi is a very hip company because they try to appeal to the younger people so they talk their parents into buying it so they can drink it. The colors are key in this ad because if they didnt get the colors just right this could very easily become helpful to Coke and not Pepsi, but because they are professionals at advertisements they used the exact colors needed. In the back ground of the picture are rocks on a hill or a mountain but when you look at it you can see kind of a blue undertone in these rocks, almost like they put a very faint blue tint to the entire picture. If you look at the Coke cape the colors are very dull and aggressive and the shadows on the cape have hints of blue in them which is the main color of a Pepsi can. They made sure that the red on the Pepsi can was a different and more bright red than the red on the Coke cape. They kind of have light coming from the top of the picture and the bottom of the picture so the can just looks so bold. The Pepsi can itself is more bright even though it is under a Coke cape it still pops out. The white on the Pepsi can is a brighter white and the white on the cape is a little more dull. The Pepsi can has some reflecting light on it to make it pop out even more. The top of the Pepsi can has a very bright sun reflection so it makes the can catches the readers eye and makes them look. The whole picture is more of a dark picture but they made sure to make the Pepsi logo very very bright so that it would stand out so that people would know for sure what the ad was for. They made sure to place the sunlight in the perfect place to make the Pepsi can stick out the most. They made the can in general very bold so that your eye is just drawn straight to the can. The colors are very important but the position the can in is important as well. When you look at it it looks like the can is standing tall and is a dominate thing. They make it look like there is a gentle breeze because the Coke cape is open and just looks like it is blowing in the wind, kind of like at the end of a super hero movie when the hero stands on a high mountain top and overlooks the city that he takes care of and they make sure there is a gentle breeze blowing through making their cape blow around and they just look so dominate, thats the feel that I get from this, because they are making this cape blow in the wind it is kind of making the Coca-Cola in this picture a lot less dominate because the word is all wrinkled up and you cant see it as well, you cant see the whole Pepsi word but they have the most important letters of the name in there, the whole name is Pepsi and they have the eps in there so pretty much all of the letters that make up the word Pepi are included, s o people just know what they are looking at. The can is standing right between 2 boulders that kind of make a V or an arrow that kind of points right to the can that also helps with drawing your eyes straight to the can. Also the moss that is throughout the entire picture is isnt a strong point but I can feel the moss kind of guiding your eyes right to the can. To sum everything up, it doesnt seem like this Pepsi ad used a lot of things to try to sell their product but they did. They didnt use a lot of wording but they didnt need to, they kind of came off as a the can speaks for itself kind of thing. They made the colors all hit in the perfect spot and they made all the high lights and low lights perfect. They made the can seem dominate without even saying anything. They made everything in the picture just point straight at the can but they didnt make the pointing too harsh they just kind of slowly guided your eye straight to the can. In my opinion they did an amazing job in this ad just because they didnt use many words but they still got what they wanted to get into everyone that sees this ad head.   So what do you think? Are you going to begin drinking Pepsi? http://www.emlii.com/images/article/2014/02/5300bef02e394.jpeg